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.