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The pair, aged 67 and 71, from the large Australian-based engineering construction firm SMEC International, were allegedly trying to score contracts for two major infrastructure projects in Sri Lanka worth $14 million.
Between 2009 and 2016, the men allegedly conspired to arrange the payment of more than $304,000 to bribe foreign government officials, the AFP said in a statement.
The AFP has not ruled out further arrests.
Footage of the arrests showed one man being led to an AFP car in a residential neighbourhood and the other police-escorted out of Sydney Airport.
The AFP worked alongside the FBI, Royal Canadian Mounted Police, and police in India, Sri Lanka and Bangladesh throughout an investigation described as “protracted”.
Australian Securities and Investments Commission (ASIC) and Australian Trade and Investment Commission (Austrade) also assisted the operation, the AFP said.
According to its website, SMEC International has offices throughout Australia and operations across Africa and the Asia-Pacific region.
The Putney man, 67, and Newtown man, 71, were arrested on September 14 and now face possible 10-year prison sentences.
Each has been charged with one count of conspiring to bribe a foreign public official.
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Both are set to appear in Downing Centre Local Court today.
SMEC told 9news.com.au it is fully co-operating with the AFP investigation.
“SMEC has zero tolerance for bribery and corruption throughout its global operations and implements anti-bribery policies and procedures across its businesses to manage its bribery and corruption risks,” a spokesperson said.
The company said it would not give further comment, as the matter is now before court.
Detective Superintendent Helen Schneider said combatting corruption was a key priority for the AFP.
“Corruption undermines fair competition and can have disastrous consequences for developing economies, global anti-poverty and development efforts,” she said.
Investigations are continuing.
It looks like the type of place you’d whack on your travel bucket list