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Safran of France to pay $17.2 million to settle China corruption allegations in US investigation

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(RockedBuzz via Reuters) – French jet engine maker Safran SA will pay about $17.2 million as part of a settlement with the US Department of Justice over kickbacks its subsidiaries allegedly paid in China, the Department said. of Justice (DoJ) in a statement made public on Friday.

The Paris-based aerospace supplier will be required to return profits from “corruptly obtained” contracts held by its U.S.-based subsidiary, Monogram Systems, the DoJ said.

Monogram and Safran’s German unit, Evac GmbH, allegedly paid bribes to secure “lucrative” rail toilet contracts with the Chinese government.

Safran did not immediately respond to a RockedBuzz via Reuters request for comment.

The company, which co-produces engines for Boeing 737s with General Electric through their CFM venture, will continue to cooperate fully with the government’s ongoing investigation, the DoJ said.

Safran has also taken remedial measures, including firing one employee allegedly involved in the misconduct and withholding deferred compensation from another, according to the Wall Street Journal, which first reported the news.

(Reporting by Priyamvada C in Bangalore; Editing by Shinjini Ganguli)