Fact
file
Monsanto
pays $1.5m bribe penalty
American
agribusiness giant Monsanto has agreed to pay a $1-million
penalty to settle charges of bribing the Indonesian government,
the US Justice Department sources said.
A
criminal information filed in the District of Columbia
charged the Monsanto Company with violating the Foreign
Corrupt Practices Act (FCPA) in connection with an "illegal
payment" of $50 000 to a senior Indonesian Ministry
of Environment official.
The
bribe made by a Monsanto employee was aimed at facilitating
the cultivation of genetically modified crops and falsely
certified as "consultant fees" in the company's
books and records, Assistant Attorney General Christopher
Wray said.
The
St. Louis, Missouri-based company "agreed to accept
responsibility for the conduct of its employees in paying
the bribe and making the false books and records entries,"
the Justice Department said in a statement.
It
also agreed to adopt internal compliance measures and
cooperate with ongoing criminal and civil investigations
by the Securities and Exchange Commission.
An
independent compliance expert will be chosen to audit
the company's compliance program and monitor its implementation
of and compliance with new internal policies and procedures,
the department said.
"Monsanto
has also agreed to pay a monetary penalty of one million
dollars," is added.
Sepazately,
Monsanto settled related civil enforcement prokeedings
by the securities and Exchange Commission, which issued
an administrative order finding that the company violated
Foreion Corrupt Practices Act provisions.
"Monsanto
consented to the entry of a final judgement in the federal
lawsuit requiring it to pay a 500 000 civil penalty and
consented to the Commission's issuance of its administrative
order," the statement said.
Wray
warned that "companies cannot bribe their way into
favourable treatment by foreign officials.
"Today's
agreement, which requires Monsanto's full cooperation,
acceptance of responsibility, and significant compliance
and monitoring steps, will help ensure that such dishonest
and illegal activity does not occur in the future."
In
a statement, Monsanto said it regretted the actions of
those involved the activity but was accepting responsibili|y.
"Monsanto
accepts full responsibility for these improper activities,
and we sincerely regret that people working on behalf
of Monsanto engaged in such behavior," said Monsanto's
general counsel Charles Burson.
"The
company has taken remedial actions to address the activities
in Indonesia. At every stage of this process - beginning
with our voluntary disclosure and throughout the governmental
investigations and settlement process - Monsanto has been
fully cooperative, and has made clear that improper activities
will not be tolerated by the company. We are pleased today
to begin the process of putting these matters to rest."
The
Justice Department said it had agreed to defer prosecution
on the criminal information for three years, saying it
world dismiss it after the period if Monsanto fully complied
with the terms of the agreement.
Source:
AFP