Daimler settles FCPA issue
German car producer Daimler and its Russia and China subsidiaries reached an agreement with the US Justice department to settle Foreign Corrupt Practices Act (FCPA) Charges. The settlement follows allegations of widespread corruption within the company, or rather a corporate culture that encourages staff to bribe officials to secure contracts. Daimler acknowledged that is conspired and violated the book keeping provision of the FCPA and agreed to pay penalites (criminal and civil) of around $185 million.
The justice department produced evidence that Daimler companies paid bribed in 22 countries, including China, Russia and Iraq. The total amount of bribes paid by Daimler (or should we say: received by as corrupt officials globally) is said to be in the tens of millions.
As a part of its deferred prosecution agreement, Daimler agreed to retain an independent compliance monitor for three years to oversee its implementation of an effective compliance program. The monitor is former FBI Director Louis Freeh, who was brought in two years ago to help Daimler with its compliance program after it began talks with the Justice Department.
http://www.mainjustice.com/2010/04/01/daimler-settles-fcpa-charges/
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/01/AR2010040103680.html
