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Issue No: 177
February 13, 2005

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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

 

 

 
 
 


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