AlcoaWill Pay $447m Settlement to ALBA in Bahrain
Alcoa said it would pay the $85m in two instalments to settle fraud and racketeering allegations made by Aluminium Bahrain, known as Alba, in the lawsuit launched in February 2008.
The settlement also includes favourable terms on a long-term contract for the supply of alumina, the raw material used to make aluminium, which Alba said took the total value of the deal to $447m.
Alcoa said that the sales of alumina, on a price linked to its index for the commodity, would be profitable.
Alba alleged Alcoa overcharged it $2bn over a 15-year period on raw material supplies and bribed Alba officials to win further contracts.
Charles Carr, head of K2 Intelligence, the company that investigated on behalf of Alba, said the probe had “identified millions in questionable payments involving intermediaries, offshore corporate structures and the abuse of supply contracts to Alba”.