Bangladesh Bribe Money Flows to Singapore

WASHINGTON D.C. – Nearly $3 million allegedly soaked in bribes paid to Bangladeshi officials and their families is now in the crosshairs of federal prosecutors. The feds filed a forfeiture action targeting funds held in Singapore, tracing the cash back to a sprawling conspiracy involving public works projects and kickbacks.

The money trail, laid bare in court documents filed January 8, 2009, centers around Arafat “Koko” Rahman, son of a former Bangladeshi prime minister. Prosecutors allege a significant portion of the funds in Rahman’s accounts originated from bribes connected to a massive port construction project in Chittagong, spearheaded by China Harbor Engineering Company. Siemens AG, a German conglomerate, is also implicated, having already pleaded guilty to FCPA violations in December 2008 for a separate mobile telephone project where over $5.3 million in bribes were paid.

The scheme wasn’t just happening overseas. Crucially, the bribe payments from both Siemens and China Harbor flowed through U.S. banks before landing in Singapore. This is what gives federal prosecutors jurisdiction – and the legal teeth to seize the illicit funds. The feds aren’t just going after the companies; they’re targeting the money itself, a key strategy in combating international corruption.

Acting Assistant Attorney General Matthew Friedrich made it clear: the U.S. isn’t shy about pursuing foreign corruption cases. “This action shows the lengths to which U.S. law enforcement will go to recover the proceeds of foreign corruption,” he stated. The move is part of a broader “National Strategy to Internationalize Efforts Against Kleptocracy” announced by the President in 2006, aiming to crack down on high-level corruption globally.

Siemens Bangladesh admitted to funneling bribes through “purported business consultants” – a common tactic used to disguise illicit payments. The money was allegedly used to secure favorable treatment during the bidding process. While Siemens has already faced penalties, the forfeiture action signals the feds aren’t content with just a slap on the wrist. They want the money back, sending a message that corruption has a cost.

The case is being prosecuted by Deputy Chief Linda Samuel and Trial Attorney Frederick Reynolds of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with assistance from the Office of International Affairs and investigation led by the FBI’s Washington Field Office in cooperation with Bangladeshi authorities. Expect more international anti-corruption efforts as the feds continue to follow the money, no matter where it leads.”