Government yet to decide on use of 13 million euros paid by Alstom

Alstom
AP / Scanpix

A proposal on the use of the money was put forward to the government on Monday, but the decision was postponed, Tomas Berzinskas, spokesman for the prime minister, confirmed to BNS.

The Cabinet held the meeting behind closed doors.

London’s Southwark Crown Court ordered Alstom to pay the money to Lithuania back in 2016.

The money was transferred in July 2016 and, according to information available to BNS, will be given to Lietuvos Energijos Gamyba (Lithuanian Energy Production, or LEG), which is part of the state energy group Lietuvos Energija (Lithuanian Energy).

Alstom Power between 2004 and 2009 upgraded LEG, which was then named Lietuvos Elektrine (Lithuanian Power Plant), for 208 million euros, installing flue gas desulphurization equipment at the plant.

The UK Serious Fraud Office (SFO) several years ago accused Sweden’s Alstom Power of paying money, disguised as a consultancy agreement, to agents or officials of Lietuvos Elektrine to secure a high-value contract from the power plant. The SFO said that the trial was expected to start at Southwark Crown Court in September 2017.

Lithuanian law-enforcement officials are also conducting a large-scale corruption and bribery investigation involving Alstom, which has also upgraded the Kaunas hydro power plant for 43 million euros.

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