The Ministry of the Interior, which oversees Russian law enforcement organizations, said in a statement that the chief executive, Vladimir Golubkov, had solicited a $1.5 million bribe to facilitate a loan and provide lower interest rates and other favorable terms. Such payments are believed to be widespread in Russia’s banking system, but rarely come to light.
The police also detained a vice president who they said acted as an intermediary and agreed to cooperate after she was caught accepting the first down payment of 5 million rubles, or about $160,000.
The police statements did not clarify the amount of the loan or identify the businessman who had sought the help of the police after allegedly being shaken down by the bank.
The disclosure was a setback for Société Générale in Russia. Many Western banks that came into the country before the global financial crisis have already pulled out. Many overpaid to set up businesses that proved less profitable than expected, or struggled to compete with the state-run consumer banking giant, Sberbank.
Barclays, the British bank, Swedbank of Sweden and OTP of Hungary wound down their consumer operations. Along with Société Générale’s subsidiary here, which is called Rosbank, Citibank and Raiffeisen, an Austrian bank, still have branch networks.
Doing business is complicated by widespread official and corporate corruption. Along with the risk of malfeasance by employees, banks here face the risk that the police will conduct a disruptive investigation on behalf of a competitor or as part of a shakedown. Such police raids are common enough here to have a nickname, “masky shows,” for the balaclavas the police wear.
In a statement, Rosbank confirmed that the police were searching its headquarters in Moscow on Wednesday. The search related to the work of two bank officers. A first deputy chief executive, Igor Antonov, will step in temporarily as manager, the statement said.
“Rosbank management fully cooperates with the authorities to help clarify the situation,” it said. “This does not affect Rosbank activities or clients operations.”
Article source: http://www.nytimes.com/2013/05/16/business/global/societe-generale-executive-arrested-in-russia.html?partner=rss&emc=rss