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The Honolulu Advertiser
Posted on: Friday, May 9, 2008

Hawaii pension fund sues Alcoa over alleged bribery

Associated Press

PITTSBURGH — A Hawai'i-based ironworkers' pension fund has sued aluminum maker Alcoa Inc. and its board of directors over purported bribery of officials in the Persian Gulf country of Bahrain.

The lawsuit filed Tuesday in U.S. District Court in Pittsburgh comes after a judge in March temporarily halted a civil lawsuit against the company while federal investigators look into the allegations.

The Hawaii Structural Ironworkers Pension Trust Fund accuses Alcoa's board in the lawsuit of "causing and/or failing to prevent Alcoa's illegal payment of hundreds of millions of dollars in illegal bribe payments" to senior Bahraini officials.

The Pittsburgh-based company's officers and directors "repeatedly misrepresented how they were overseeing, managing and operating Alcoa in a lawful and ethical manner," the pension fund said in its lawsuit.

Alcoa spokesman Kevin Lowery said he had not had a chance to thoroughly review the latest lawsuit, but that Alcoa's position on the earlier allegations had not changed.

"We have looked into this and we haven't seen any instances of wrongdoing by our employees at all," he said, adding that Alcoa was cooperating with Justice Department investigators looking into the bribery claims.

The ironworkers' pension fund, which owns Alcoa shares, is seeking unspecified damages for financial losses incurred by the alleged bribery.

It also wants reforms intended to broaden shareholder rights and tighten the company's governance and accounting practices.

The size of the fund's stake in Alcoa was not immediately known.