7/4/2018, 8:46 PM (Source: TeleTrader)
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GE executive arrested in Brazil on fraud charges

General Electric's chief executive for Latin America Daurio Speranzini Jr was arrested in Brazil on Wednesday on suspicion of fraud in medical equipment tenders offered by Rio de Janeiro's Ministry of Health and the National Institute of Traumatology since 1996. The arrest warrant issued by the Brazilian federal police alleges that Speranzini engaged in the activities during his time at Philips Healthcare between 2004 and 2010 and that his "power" continued even after joining GE in 2011.

GE insisted the allegations against the official are not linked with the firm as he was "leading a different company" when he allegedly committed fraudulent activities. "GE emphasizes that it is not the target of the investigation. The company believes that the facts will be clarified by the courts and the company is at the disposition of the authorities to co-operate," GE added.

Besides arresting Speranzini, Brazilian authorities also carried out warrants for 21 other people related to 37 companies as a part of the anti-corruption probe related to fraudulent health equipment tenders in the Rio de Janeiro state. The federal police conducted searches of the premises of companies including Philips and Johnson & Johnson. J&J insisted that the company "vigorously follows" Brazilian laws.

Breaking the News / NP