NAIROBI, Feb. 26 (Xinhua) -- The U.S.-based Goodyear Tyre &Rubber Company was accused of bribing Kenyan officials to win lucrative tenders to supply tyres for vehicles owned by state corporations.
Graft allegations against the American tyre company that surfaced on Wednesday might strain bilateral trade with the east African nation.
The U.S. federal government regulator, Securities and Exchange Commission (SEC) exposed unethical conduct by Goodyear Tyre &Rubber Company and ordered it to pay a 16.22-million-U.S.- dollar fine to the Treasury.
Documents from SEC that were made published in the local media indicate that Goodyear Tyre &Rubber Company paid Kenyan officials bribes amounting to 1.5 million dollars to win tenders.
The U.S. tyre firm has a local subsidiary, Treadsetters Tyre Limited, that offered bribes to senior Kenyan officials in exchange for the award of multi-million shilling tenders to supply tyres to some of the country's largest state corporations, government agencies and public listed firms.
According to newspaper reports, managers from the tyre firm paid the bribes in the period spanning 2007-2011.
Kenyan media outlets reported on Thursday that senior officials in key state corporations pocketed hefty bribes to award the American firm lucrative tenders. High ranking officials in the ministries of roads, defense and several state-owned corporations received kickbacks from the American company, according to Daily Nation reports .
The newspaper cited investigative report from SEC which implicated officials from Kenyan armed forces, ports authority and telecommunications agency for bribe taking.
Senior management from Treadsetters Tyre Limited paid the bribes in cash and later disguised the practice through justifying fake expenses.
The regulator noted that Goodyear Tyre &Rubber Company violated the U.S. Foreign Corrupt Practices Act to bribe Kenyan officials, adding the company failed to conduct due diligence when it acquired the Kenyan subsidiary.
The tyre firm was earlier accused by the regulator of bribing Angolan officials to the tune of 1.7 million U.S. dollars in order to win contracts in the Southern African nation.
Xinhua could not get a comment from management of Treadsetters Tyres Limited immediately as well as heads of state institutions implicated in the bribe-taking.
Kenya's anti-graft watchdog said it was aware of the malpractices involving the American tyre firm and State officials.
"We are aware of these graft allegations against Goodyear Tyre &Rubber company and Kenyan officials. However, we will issue a comprehensive statement once investigations are complete," said Mumo Matemu, chairman of Ethics and Anti-corruption Commission (EACC).
