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France's Safran to pay $17.2 million to settle China bribery charges in U.S. probe

Published 12/23/2022, 06:00 PM
Updated 12/23/2022, 06:30 PM
© Reuters. FILE PHOTO-The Safran company logo is pictured at the company's logistic area in Colomiers near Toulouse, France, March 20, 2019.   REUTERS/Regis Duvignau

(Reuters) - French jet engine maker Safran (EPA:SAF) SA will pay about $17.2 million as part of a settlement with the U.S. Justice Department over bribes its subsidiaries allegedly paid in China, the Department of Justice (DoJ) said in a statement made public on Friday.

The Paris-based aerospace supplier will be required to turn over profits from "corruptly obtained" and retained contracts by its U.S.-based subsidiary, Monogram Systems, the DoJ said.

Monogram and Safran's German unit, Evac GmbH, allegedly paid bribes to obtain "lucrative" train lavatory contracts with the Chinese government.

Safran did not immediately respond to Reuters request for a comment.

© Reuters. FILE PHOTO-The Safran company logo is pictured at the company's logistic area in Colomiers near Toulouse, France, March 20, 2019.   REUTERS/Regis Duvignau

The company, which co-produces engines for Boeing (NYSE:BA) 737 with General Electric (NYSE:GE) through their CFM venture, will continue to fully cooperate with the government's ongoing investigation, the DoJ said.

Safran has also taken redressal measures, including firing an employee allegedly involved in the misconduct and withholding the deferred compensation of another, according to the Wall Street Journal that first reported the news.

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