Aluminium magnate arrested for bribery

Aluminium magnate arrested for bribery
By Ed Crooks in New York – 25 October, 2011 – FT

A leading London-based businessman accused of bribery in Bahrain linked to contracts with Alcoa, the US aluminium group, has been arrested by the UK’s Serious Fraud Office.

Victor Dahdaleh, who has British and Canadian nationality, was charged with corruption, conspiracy to corrupt, and acquiring and transferring criminal property in connection with alleged payments of bribes to officials of state-controlled Aluminium Bahrain during 2001-05.

The SFO said some of the alleged payments “were in connection with contracts with a US company, Alcoa”, for supplies of alumina, from which aluminium is extracted.

On his website, Mr Dahdaleh published a statement from his law firm Allen & Overy, saying he “believes the investigation into his affairs was flawed and that he has done absolutely nothing wrong”.

The lawyers added: “He will be vigorously contesting these charges at every stage, confident in clearing his good name.”

Mr Dahdaleh is governor of the London School of Economics, a board trustee of the William J. Clinton Presidential Foundation, a former president of the Canada-UK Chamber of Commerce, and a leading donor to charity. He is also a supporter of Policy Network, the centre-left European think-tank that has Lord Mandelson, the former UK cabinet minister, as its president.

He is owner and chairman of Dadco, an investment, manufacturing and trading group that specialises in producing alumina. He was released on bail until October 31. Alcoa said it had not been contacted by the UK authorities, and could not comment on the charges he faced.

The US Department of Justice said in 2008 that it was investigating Alcoa and others, including Mr Dahdaleh, for possible violations of the Foreign Corrupt Practices Act. Alcoa on Monday said it was “co-operating fully with US authorities”. …source