Montreal Gazette

Bombardier worker fired after Dutch consultant bribed

Confidenti­al data on train contract was sold, investigat­ion finds

- KRISTINE OWRAM

A Bombardier Inc. employee has been fired for breaching the company’s code of ethics after a consultant at a Dutch railway received 7,000 euros — or about $9,700 — for providing confidenti­al informatio­n about an upcoming train contract.

“Unfortunat­ely, one of our employees, who is now an ex-employee, did breach our code of ethics,” Bombardier spokesman Marc Laforge said in an interview.

“This is totally inappropri­ate and unacceptab­le conduct with regards to our values, so we did address the situation following our finding and we took the appropriat­e measures.”

The employee’s dismissal came after an investigat­ion by the Dutch railway NS Groep N.V. found that an external consultant it had contracted had sold confidenti­al informatio­n to a Bombardier employee in mid-2012.

The informatio­n related to a contract for a new fleet of 120 electric trains valued at 510 million euros.

Neither party has been named, and it is unclear where the employee was based, although NS Groep’s report says the Bombardier employee “was responsibl­e for sales in several European countries.”

“NS has strict standards of integrity,” the railway said in a press release from May 29. “The observed practices are unacceptab­le to NS and in flagrant violation of its principles.”

NS added that it immediatel­y broke ties with the consultant as soon as it discovered signs of wrongdoing, and it appears this was a one-time breach.

The contract eventually went to Construcci­ones y Auxiliar de Ferrocarri­les (CAF), a Spanish trainmaker. Bombardier, which has done work for NS in the past, didn’t end up bidding.

“At the end of the day we did not bid on the project, not because the employee had some kind of informatio­n, but simply because for us the commercial trends were not satisfying,” Laforge said.

NS first got wind of the violation in February of this year after the consultant’s wife reportedly told a friend about the payment. The friend’s husband, who worked for a division of NS, told his supervisor, who then took the allegation­s up the ladder to the company’s board.

According to the findings of NS’s investigat­ion, the Bombardier employee invited the consultant to meet with him on or around June 12, 2012 to talk about the electric-train contract, which the consultant was involved in.

During the discussion, the Bombardier employee asked the consultant to share more informatio­n about NS’s needs and preference­s, and agreed to pay him 7,000 euros.

A few days later, the consultant provided a 41-page document of internal research.

According to the NS findings, every page had “CONFIDENTI­AL” written across it.

This is not the first time Bombardier’s name has been associated with reported allegation­s of corruption.

CBC’s French-language service, Radio-Canada, reported in January that the Montreal-based company was investigat­ed in South Korea but never charged for allegedly offering gifts and trips to civil servants and politician­s who helped it win an elevated-train contract.

And the CBC reported in April that South Africa’s corruption watchdog was investigat­ing allegation­s of bribery relating to a $3-billion train contract that was awarded to a consortium involving Bombardier. Bombardier has denied all of the allegation­s.

The train-making division is considered essential to the company’s future as it works to get its troubled C-Series jetliner to market.

Bombardier is preparing to spin off a minority stake in the transporta­tion unit with an initial public offering planned for the fourth quarter of this year.

“This IPO is expected to crystalliz­e the value of Bombardier Transporta­tion and further strengthen our financial position while preserving flexibilit­y to participat­e if we wish in further industry consolidat­ion,” CEO Alain Bellem are said when the plan was announced in May.

 ?? BOMBARDIER ?? Bombardier Inc. says it did not bid on a Dutch railway contract “not because the employee had some kind of informatio­n, but simply because for us the commercial trends were not satisfying.”
BOMBARDIER Bombardier Inc. says it did not bid on a Dutch railway contract “not because the employee had some kind of informatio­n, but simply because for us the commercial trends were not satisfying.”

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