MONTREAL — Bombardier Inc. says it intends to appeal a Brazilian administrative tribunal ruling that concluded the railway car manufacturer and 10 other companies of allegedly manipulating contract bids.
Brazil’s economic defence administrative council imposed fines of around $175 million against a “cartel” it found manipulated at least 26 tenders between 1999 and 2013 in four Brazilian states.
France’s Alstom received the largest penalty of $43.8 million and lost the right to bid on rail contracts in the South American country for five years.
Bombardier Transportation in Brazil was fined $7.9 million. It could also be prevented from receiving public subsidies for five years, but won’t be barred from obtaining public contracts.
The case involving Bombardier concerned a Sao Paulo metro line and train car maintenance.
Siemens was also targeted, but the German giant was not charged as it signed a confidential agreement with Brazilian authorities.
Companies in this story: (TSX:BBD.B)
The Canadian Press