Brazil investigates foreign companies' alleged bribery

Brazil on Friday launched an investigation into alleged bribery involving foreign companies in bidding for Sao Paulo's subway, local press reported Friday.

The investigation, carried out by Sao Paulo State Public Prosecutor's Office, is part of other actions on alleged deviations to obtain Sao Paulo Metropolitan Railway Company's subway deal.

Foreign companies might have formed a trust to benefit from bid for work in Sao Paulo's transportation sector, which is a serious crime against competition, the local media quoted Marcelo Mendroni, an official from Sao Paulo's anti-trust unit, as saying.

Mendroni said if it is proved that foreign companies have committed fraud and officials were involved, penalties can go from 20 to 40 years of imprisonment.

The involved foreign companies include France's Alstom, Canada's Bombardier, Germany's Siemens, Spain's CAF, Japan Mitsui, as well as several Brazilian companies, said the report.

Meanwhile, the Justice Ministry of the state claimed that there are 45 indictments on possible irregularities in the bid.