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ARTICLE · 21 MAY 2014

New Bribery-Related Case Law: Case Wärtsilä

The Court of Appeals in Vaasa, Finland dismissed bribery charges brought against a manager of Wärtsilä Group.

FinlandCriminal Law
Antti Karanko
Antti Karanko

On 25 April 2014, the Court of Appeals in Vaasa, Finland dismissed bribery charges brought against a manager (the "Manager") of Wärtsilä Group ("Wärtsilä") as well as the prosecutor's claims for imposition of corporate fine and confiscation of criminal proceeds against Wärtsilä.

According to the dismissed charges, the Manager gave bribes to the CEO of a leading electricity distribution company in Kenya in 1999–2001 in order to induce the CEO to act in Wärtsilä's favor both during and after the negotiations for a Kenyan power plant project.

According to the Court, Wärtsilä's foreign subsidiary had, in accordance with a 1997 consultancy agreement, paid millions of British pounds to an offshore company, whose Kenyan CEO, at the time of the payments, was a foreign public official, as defined in the Finnish Criminal Code and the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

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