Allegations surrounding construction and project group Leighton Holdings Limited (ASX: LEI) reached a head today with reports from Fairfax media suggesting that Bruce Munro, a top executive of the company's construction group Thiess, is wanted by Indian police.
According to the reports, three court-approved summons have been issued by Indian authorities ordering Mr Munro back to India for questioning while they also require him to provide phone records and email communications to the police.
It is alleged that Munro and Thiess promised a sub-contract worth around $90 million to Indian businessman Syam Reddy for his assistance in helping Thiess secure a multi-billion dollar coal deal in the Indian state of Jharkhand. While Mr Reddy spent a sizeable amount of money on supporting Thiess, Munro and Thiess then "cheated" him for "wrongful gains", as quoted by the newspaper.
Munro isn't the only executive in hot water from Leighton Holdings with the Australian Federal Police also circling a number of former executives for their alleged involvement in corruption and bribery that was allegedly employed to win big contracts internationally.
Notably, the company's shares are still sitting well below their levels from 2009-2011 when the incidents allegedly took place, suggesting the company's reputation remains tarnished amongst investors. It recently reported a 33% rise in net profit for the year ended 31 December 2014, boosted largely by the sale of its John Holland construction business. The stock fell 1.3% on Monday to be trading at $20.60 per share.
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