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Sinopec clears itself from Daimler bribery case

By Yu Hongyan (chinadaily.com.cn)
Updated: 2010-03-26 13:16

China Petroleum & Chemical Corp (Sinopec) extricated itself from the Daimler bribery case, saying the employee involved in the case had been sentenced to prison years ago, the Beijing Times reported Friday, citing a company spokesman.

The US Department of Justice accused German automaker Daimler AG of violating US bribery laws by paying off government officials in at least 22 countries and regions. Sinopec and China National Petroleum Corp (CNPC) were involved in the case.

Sinopec found in 2004 the former employee had taken bribes from Daimler. Two years later, the man surnamed Du was sentenced to seven years, according to Tan Dazhong, spokesman for Sinopec's subsidiary China Petrochemical International Co Ltd (Sinopec Intl), where Du was previously employed.

Sinopec Intl has cut off business relations with Daimler since then, Tan said. His company has been asking suppliers to sign agreements on business ethics as a supplement to each purchase contract since 2007.

CNPC said it is investigating the case, according to the paper.

Daimler's operation in China is not affected by the case, and it is still working on the joint venture with Beiqi Foton Motor Co, which is expected to be completed in April, the paper said, citing people familiar with the matter.