KVP solicited bribes for him and others

HYDERABAD: The Federal Bureau of Investigation of the United States has charged six persons, including Congress MP KVP Ramachandra Rao and a Ukrainian businessman, with participation in an alleged international racketeering involving payment of bribes to state and central officials in India to allow mining of titanium minerals.

Dmitry Firtash is the Ukrainian businessman and the others are Andras Knopp of Hungary, Suren Gevorgyan of Ukraine; Gajendra Lal of US, Periyasamy Sunderalingam of Sri Lanka. KVP was serving as adviser to the then chief minister YS Rajasekhara Reddy.

All the six were charged with one count each of racketeering and moneymoney laundering, and two counts of inter-state travel in aid of racketeering. Five, other than Rao, were charged with one count of conspiracy to violate the Foreign Corrupt Practices Act.

According to the indictment, Firtash controls Group DF, an international conglomerate of companies. Group DF companies include: Ostchem Holding AG, an Austrian company in the business of mining and processing minerals including titanium; Global Energy Mining and Minerals Limited, a Hungarian company, and Bothli TradeTrade AG, a Swiss company,

Firtash was the leader of the enterprise and oversaw its illegal activities. He allegedly caused participation of certain Group DF companies in the project, met Indian officials, including YSR, to discuss the project and its progress; authorised payment of at least $18.5 million in bribes to state and central government officials, directed his subordinates to create documents to make it appear that money transferred for the purpose of paying these bribes was transferred for legitimate commercial purposes, and appointed various subordinates to oversee efforts to obtain the licenses through bribery.

Knopp allegedly supervised the enterprise and, together with Firtash, met Indian officials. Knopp also met Company A representatives to discuss supplying titanium products from the project.

Gevorgyan allegedly travelled to Seattle and met Company A representatives. He was also engaged in other activities, including allegedly signing false documents, monitoring bribe payments, and coordinating transfers of moneymoney to be used for bribes.

Lal, also known as 'Gaj', allegedly engaged in similar activities, reported to Firtash and Knopp on the status of obtaining licences, and recommended whether, and in what manner, to pay certain bribes to government officials.

Sunderalingam allegedly met Rao to determine the total amount of bribes and advised others on the results of the meeting, and identified various foreign bank accounts held in the names of nominees outside India that could be used to funnel bribes to Rao.

Rao allegedly solicited bribes for himself and others in return for approving licences for the project, and warned other defendants concerning the threat of a possible law enforcement investigation.

The indictment lists 57 transfers of fundsfunds between various entities, some controlled by Group DF, totaling $10,597,050 between April 28, 2006 and July 13, 2010.