C riminal charges against other construction companies are likely to follow Phillipp Holzmann AG's admission that it conspired to rig bids on two U.S.-funded construction projects in Egypt, say government officials. It was charged with one felony count of violating the Sherman Act on Aug. 11, and unsealed Aug. 18 at sentencing. The fine will be paid over five years.
More criminal charges are likely.
The two contracts were awarded to a 60-40 joint venture between Harbert International Inc., Birmingham, and J.A. Jones Construction Co., Charlotte, N.C., a Holzmann subsidiary. The understanding was that if one of the two won the bid, the loser's fee would be paid to the other. Orr says the unnamed co-conspirators include both U.S. and foreign firms. The guilty plea relates only to Philip Holzmann's conduct. J.A. Jones attorney John Bond says the U.S. firm had no knowledge of illegal conduct.