Report Says Swedish Bus Manufacturer Scania Resorted to Bribery for Contracts in India

The Swedish automobile manufacturer Scania resorted to bribery in its attempts to gain contracts for buses in seven different Indian states between 2013 and 2016, according to an investigation, as reported by Reuters.

Scania, which manufactures buses and trucks, is part of Volkswagen AG’s commercial vehicle subsidiary Traton SE. It reportedly began operations in India in 2007 and had put a manufacturing unit in place in the country in 2011.

A Scania spokesperson told the news agency that an investigation in 2017 had shed light on shortcomings by its employees, including those part of senior management at the firm. “This misconduct included alleged bribery, bribery through business partners and misrepresentation,” he was quoted saying.

The spokesperson also informed that the company had since stopped selling buses in India and that its factory was shut down.

“We may have been a bit naive, but we really went for it... we really wanted to make it in India but underestimated the risks,” the company’s CEO Henrik Henriksson told Sveriges Television AB, the country’s public broadcaster. However, he added the few individuals who had resorted to any wrongdoing were no longer involved with the company and that their business partners involved had their contracts terminated.

The SVT report also referred to an Indian minister who was not identified and Reuters said the government did not respond to requests for a comment.

The report mentioned that Scania had falsified truck models by using incorrect chassis numbers and license plates so that they could be sold to an Indian mining company in a deal said to be worth $11.8 million.

“While the evidence is sufficient to prove breaches in compliance with Scania’s own business codes so that the company can take severe action accordingly, the evidence is not strong enough to lead to prosecution,” a Scania spokesperson reportedly said.

As recently as March 2019 however, Scania had reiterated its commitment to continue its business operations in India following then speculation that the company would follow MAN Trucks – another Volkswagen division – in exiting from India.