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Global Contagion Report: Sumitomo Chemical Co.

Country: Cambodia

Companies involved: Sumitomo Chemical Singapore Pte Ltd, Vestergaard Fransen

Industry: Health Care Services

Official(s) Involved: Former director of the National Center for Parasitology, Entomology and Malaria Control, Duong Socheat

Enforcement: Investigation

Summary:

Sumitomo Chemical Singapore Pte Ltd., subsidiary of Sumitomo Chemical Co, and Swiss firm Vestergaard Fransen are being investigated by the Cambodia’s Anti-Corruption Unit for bribery. The companies, both suppliers of mosquito bednets, are accused of paying more than $410,000 in bribes and giving $20,000 in gifts to Cambodian officials in exchange for contracts with the Ministry of Health. 

Between 2006 and 2011, Sumitomo Chemical Singapore secured at least seven contracts worth $4.6 million (4.7 billion yen) through the malaria center.

A report by the Global Fund’s Office of the Inspector General (OIG) uncovered evidence Sumitomo Singapore and Vestergaard paid kickbacks worth $350,905 to Duong Socheat, former director of the Ministry of Health’s National Center for Parasitology, Entomology and Malaria Control, $59,809 to his deputy, $45,770 to a senior procurement officer for the National Center for HIV/AIDS (CNM), Dermatology and STD control (NCHADS).

Sumitomo Chemical Co. denied involvement or knowledge of any suspected wrongdoing by employees from its Singapore subsidiary.

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