Monsanto pays $1.5 million penalty for Indonesian bribe

Monsanto pays $1.5 million penalty for Indonesian bribe

Agence France-Presse, Washington

American agribusiness giant Monsanto has agreed to pay a US$1
million penalty to settle charges of bribing the Indonesian
government, the U.S. Justice Department said on Thursday.

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 State Minister of the 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 $1
million," it added.

Separately, Monsanto settled related civil enforcement
proceedings by the Securities and Exchange Commission, which
issued an administrative order finding that the company violated
Foreign Corrupt Practices Act provisions.

"Monsanto consented to the entry of a final judgment 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
favorable 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 responsibility.

"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 would
dismiss it after the period if Monsanto fully complied with the
terms of the agreement.