U.S. govt expands Monsanto investigation

U.S. govt expands Monsanto investigation

The United States Department of Justice has expanded an investigation into issues related to Monsanto Co.'s Indonesian affiliates, the company said.

Monsanto said on Monday that the Justice Department is looking into whether a former Monsanto employee directed an outside consultant to make an improper Us$50,000 payment to an Indonesian government official in 2002.

The agricultural chemicals and biotechnology company notified the Securities and Exchange Commission of irregularities with its Indonesian affiliates in 2002 after an internal audit. Charles W. Burson, Monsanto's general counsel, said the alleged acts are "obviously contrary to Monsanto's corporate policy."

The suburban St. Louis-based company said it is cooperating with the investigation. Spokeswoman Lori Fisher said, "Neither the consultant nor the employee are still employed by Monsanto."

Fisher said Monsanto sells herbicide, conventional seed corn and has an herbicide manufacturing plant in Indonesia. Monsanto said revenue from customers in Indonesia was less than 0.8 percent of total company revenue for the eight months ended Aug. 31, 2003. The company took a $7 million net loss related to the affiliates for those eight months.

Monsanto develops agricultural products, including insect- and herbicide-resistant crops.

Monsanto stock was trading at $33.69, down 56 cents, Monday afternoon on the New York Stock Exchange.

The Department of Justice said it could neither speak to, nor confirm, an investigation. -- AP