Alcoa Corporation Rotten Score Breakdown

In January 2014, Alcoa Inc. and its subsidiary resolved U.S. Foreign Corrupt Practices Act enforcement actions arising from bribery of government officials in Bahrain. The SEC found that Alcoa subsidiaries used an intermediary to funnel more than $110 million in corrupt payments to Bahraini officials to maintain business with a government-controlled aluminum smelter. Alcoa lacked sufficient internal controls and the payments were improperly recorded as legitimate business expenses. Alcoa agreed to pay $175 million in the SEC resolution, while Alcoa World Alumina agreed to plead guilty in the parallel Justice Department case and pay criminal fines and forfeiture. Total U.S. criminal and regulatory payments were $384 million. Sources: U.S. Securities and Exchange Commission https://www.sec.gov/newsroom/press-releases/2014-3 U.S. Department of Justice https://www.justice.gov/archives/opa/pr/alcoa-world-alumina-agrees-plead-guilty-foreign-bribery-and-pay-223-million-fines-and