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Former Louis Berger VP arrested in India

Image courtesy of Louis Berger InternationalFormer Louis Berger vice president Satyakam Mohanty was arrested Monday on allegations of bribing Indian officials to win a water development project in the state of Goa.

Mohanty was questioned by the Goa crime branch Sunday and arrested Monday, police told the Times of India.

Last month, Louis Berger International Inc., a New Jersey-based construction management company, admitted violating the Foreign Corrupt Practices Act and agreed to pay a $17.1 million criminal penalty.

The company said it bribed foreign officials in India, Indonesia, Vietnam, and Kuwait to win construction management contracts.

Two of its former executives also pleaded guilty to conspiracy and FCPA charges.

James McClung was the senior vice president responsible for the company’s operations in India and later for Vietnam.

McClung and Richard Hirsch, who ran the company’s operations in Indonesia, Thailand, the Philippines, and Vietnam, are scheduled to be sentenced on November 5.

“According to sources,” the Times of India said Monday, “Mohanty’s interrogation provided major leads to investigators in the case.”

The alleged bribery involved a major water project in GAO.

On its website, Louis Berger said: “The government of India in Goa, assisted by the government of Japan, initiated the five-year Goa Water Supply and Sewerage Project to expand, rehabilitate and build new water and sewerage facilities.”

Police in India earlier arrested Anand Wachasunder, a senior official who headed the Goa project, the Times of India said.

The bribery and kickbacks from the project allegedly amounted to about $1 million.


Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.

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