Telecoms equipment giant Alcatel-Lucent has agreed to pay $137m (£88.7m) to get rid of the US charges of bribing to win Latin American and Asian contracts.

This French-based firm was accused of paying bribe to government officials in Costa Rica, Honduras, Malaysia and Taiwan.

According to US Justice Department, this incidence took place in 2006 before Alcatel took over US-based Company, Lucent Technologies.

According to US authorities, the exchange of payments took place in between December 2001 and June 2006, with either no or false documentation as consultancy fees.

Alcatel and its subsidiaries were unable to inspect many "red flags" signaling the use of "sham consultants" by some employees that is what Robert Khuzami, the head of the SEC's enforcement division had to about it.

He further added, "Alcatel's bribery scheme was the product of a lax corporate control environment at the company".

US officials disclosed that Alcatel had confessed to earn about $48.1m as profits through the payments.

A joint investigation by agencies in the US, France and Costa brought these violations to light.

Alcatel has decided to pay more than $45 million as a settlement amount for SEC's charges. They will further have to pay an additional $92 million to clear up criminal charges which have charged against them by the Justice Department.