Sweden's Scania Accused of Corruption in Iraq

Swedish truck maker Scania paid $5 million in kickbacks through the U.N.'s oil-for-food program in Iraq, possibly violating both U.S. and Swedish laws, an anti-corruption investigator said on Friday, according to a report from Associated Press.

Swedish prosecutor Nils-Eric Schultz told the agency he is preparing to file charges in Sweden against several company officials later this year or in early 2011.

He sent a letter this week to the U.S. Justice Department and the Securities and Exchange Commission, presenting his findings and offering to provide more information on the case. Scania was listed on the New York Stock Exchange during the alleged kickback scheme, but applied to be delisted in late 2002.

"I believe the laws of the U.S. may have been breached," Schultz said in the letter, which was obtained by AP.

He said Scania did business with Saddam Hussein's regime through Tunisian and Russian companies, and that kickbacks of at least $5 million were paid for contracts worth about $70 million.

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