According to court documents recently filed in an ongoing Racketeer Influenced and Corrupt Organizations Act (RICO) suit against Alcoa, the U.S.-based aluminum maker is now accused of possibly violating the Foreign Corrupt Practices Act (FCPA).
In new court documents, Alba—a state-owned aluminum company in Bahrain—claims that Alcoa paid millions of dollars in bribes to an executive of Alba and a former Bahrain official in a scheme to secure contracts at inflated prices. According to the suit, Alcoa used shell companies owned by Canadian businessman Victor Dahdaleh as fronts for subsidiaries so it could sell alumina—a substance used to make aluminum—to Alba at increased prices. According to Alba, Alcoa garnered hundreds of millions of dollars in profits through the scheme. Alcoa denies wrongdoing.