‘Bribes spotted by CTS auditors’ CHENNAI: Three days after Cognizant announced a $28 million penalty settlement in the US over a bribery case in Tamil Nadu, TOI has found that the US department of justice (DOJ) papers have named Chennai Metropolitan Development Authority (CMDA) as the Tamil Nadu agency involved in the project. CMDA records, meanwhile, show L&T as the structural engineer for the project - Cognizant KITS - at Sholinganallur in South Chennai in 2014.The US papers refer to a "government official ... in Tamil Nadu with influence over, inter alia, the issuance of planning and building permits by Chennai Metro Development Authority (sic) ... the government official had made a $2 million bribe demand to contracting firm ..."The bribe was paid in 2014 when A Karthik IAS was the CMDA member secretary and R Vaithilingam was the state housing and urban development minister.When contacted, Karthik told TOI he was unaware of this development. Vaithilingam could not be reached for comment despite repeated attempts.Cognizant's contracting firm had applied for planning permit with CMDA on behalf of Cognizant.The US stock exchange regulator Securities Exchange Commission (SEC) complained that in early 2014, the 'government official' demanded a bribe of $2 million from the contracting firm, which, in turn, informed Cognizant's Real Estate Officer. The said officer, president Gordon Coburn and chief legal officer Steven E Schwartz participated in a video conference to discuss the bribe deal.They decided to make the contracting firm pay the bribe and cover it up as bonafide construction expenses. The firm yielded to Cognizant’s demand and made bribe payment.Government order, approving issuance of planning permit, was sent to Cobourn and Schwartz’s email in June 2014. Construction was completed and facility was occupied in November 2014.The attempt to disguise the illicit payments to the contract firm was spotted by Cognizant’s auditors, SEC said to DOJ.Meanwhile, India’s National Stock Exchange (NSE) has sought a clarification from L&T after news reports came out stating that the firm was used by Cognizant to bribe government officials in Chennai and Pune.On Tuesday, L&T responded, saying they could not comment on Cognizant’s decision to enter into settlements with US DOJ and they were not aware of any evidence that supported their involvement in making the alleged improper payments.“We confirm that neither we nor any of our employees are a party to the proceedings brought in the United States,” their official response added.

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