Former Bechtel Executive from Montgomery Sentenced to 42 Months in Prison

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A former Bechtel Corporation from Montgomery County was sentenced Monday to 42 months in prison for accepting millions of dollars in kickbacks tied to rigged bidding in an Egyptian power company project.

According to a release from the U.S. Department of Justice, the former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company accepted $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt.

Asem Elgawhary, 73, of Potomac, pleaded guilty on Dec. 4 to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. At Monday’s sentencing, a judge also ordered Elgawhary to forfeit $5.2 million.

From 1996 to 2011, Elgawhary was assigned by Bechtel to be the general manager at a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company. The Bechtel offshoot helped identify possible subcontractors, solicit bids and award contracts to perform power projects for Egypt’s utility.

According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. He attempted to conceal the kickback scheme by routing the payments through off-shore bank accounts, including Swiss bank accounts, under his control.

Elgawhary also sent various documents to executives falsely certifying that he had no knowledge or suspicion of any fraud at the company and that there were no possible violations of law or regulations that should have been considered for disclosure financial statements. He also admitted he lied to Bechtel attorneys when he was interviewed in April 2011.

Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.