Indian Businessman Pleads Guilty to U.N. Bribery

Prosecutors Say Scheme Steered Business to 2 Firms; Official Allegedly Got Cash, Rent Discount

NEW YORK, Dec. 21 -- A businessman representing an Indian state-owned company pleaded guilty to bribing a former senior U.N. official with an unspecified amount of cash, a cellphone and a discounted Manhattan apartment in exchange for more than $50 million worth of business contracts, federal authorities announced Thursday.

Michael Garcia, the U.S. attorney for the Southern District of New York, said in a statement that Nishan Kohli, 30, admitted making the illicit payments to Sanjay Bahel, then a high-ranking U.N. purchasing official, as compensation for steering business to Kohli from 1998 to 2003. Kohli faces a maximum of 10 years in prison. Bahel last month pleaded not guilty to related charges.

Kohli's attorney, Jacob Laufer, declined to discuss his client's role in the scheme. But he said Kohli signed an agreement with federal authorities on Thursday to cooperate in their ongoing investigation into corruption at the United Nations. "He has made a mistake, and he's contrite about it," he said.

Bahel's attorney, Richard B. Herman, said his client never used his influence to favor Kohli's businesses. He "unequivocally denied" that Bahel received any cash payments. Herman also said that Bahel had already left the U.N. procurement division when he began renting an apartment from Kohli in 2003, suggesting that Bahel had no influence to sell.

Federal authorities contend that Kohli rewarded Bahel for his support by renting him a luxury apartment at a steep discount and then later sold it to him for well below its market value.

Bahel was indicted in November on charges he provided insider information on confidential U.N. contract negotiations to two companies, including the Indian state company, Telecommunications Consultants India Ltd. Garcia's statement asserts that Kohli provided Bahel with a cellphone so they could communicate about their scheme in secret.

The company signed contracts worth $54 million, including a $36 million deal to provide radio communications to U.N. peacekeepers in East Timor, Congo and other countries with U.N. missions. Bahel was also charged with improperly using his influence on behalf of another firm controlled by Kohli, Thunderbird Industries LLC, which is incorporated in the District and uses addresses in McClean and New York City. A $12 million contract to provide engineers to U.N. missions was never executed.

Bahel provided Kohli "exceptional access" to inside information on pending contracts and acted "as a vocal advocate for the companies represented by Kohli," according to Thursday's statement. "On occasion, Bahel even cancelled bids by competing companies and rebid them in order to give a competitive advantage to Kohli's business interest."