Sweden's Scania Accused of Corruption in Iraq

A Scania spokesman reportedly declined to comment because the investigation was still ongoing.

An investigation led by former U.S. Federal Reserve Chairman Paul Volcker concluded in October 2005 that 2,200 companies from about 40 countries had colluded with Saddam's regime to bilk the humanitarian program of $1.8 billion.

AB Volvo, another Swedish truck maker, paid $19.6 million in settlements with the Justice Department and the SEC, acknowledging some subsidiaries made illegal kickbacks through the program.

Scania has been held up as an example of companies that refused to pay kickbacks to the Iraqi regime, even though they faced the risk of losing lucrative contracts.

But Schultz said documents seized during a raid of the company last year showed it continued to deliver buses and trucks to Iraq after the regime started demanding illegal payments in 2000. He said company officials have denied the allegations.

(Source: Associated Press)

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