Monsanto Co. said the Justice Department is investigating whether a former employee ordered the payment of a $50,000 bribe to an Indonesian government official in early 2002.
The investigation was sparked by Monsanto, which alerted federal regulators in late 2002 to financial irregularities at its Indonesian business. A routine internal audit by the St. Louis maker of herbicides and genetically-modified seed uncovered bookkeeping problems, which lead to the firing of some Indonesian employees.
| Mindfully.org
note: Since Monsanto's has the following "promise" about
Bribery and Kickbacks on its website, the accusation of bribery
must be mistake. But that still leaves extortion,
bullying,
lies, deception
and much,
much more. . .
Bribery and Kickbacks Bribes and kickbacks are illegal and prohibited. Bribes and kickbacks severely damage the fabric of trust that must be created in order to foster a healthy environment for our business to grow. No funds or assets of Monsanto shall be paid, loaned or otherwise disbursed as bribes, kickbacks, or other payments designed to influence or compromise the conduct of the recipient. No employee may ever solicit or accept a bribe or kickback. For a discussion of bribery in the international arena, see the section in this Code entitled Assisting in the Fight against Corruption. For a discussion of permissible gifts or entertainment, see the next section.
|
While probing that disclosure, the Justice Department apparently came across the alleged bribe. According to the company, the government is interested in whether a company employee directed an outside consultant to make a $50,000 payment to the Indonesia official.
Monsanto refused to identify the two people, who no longer work for the company, nor did the company identify the government official.
The Justice Department declined to comment.
Under the Foreign Corrupt Practices Act, which prohibits bribing of foreign officials, a company can face a maximum fine of $2 million per violation while an individual faces up to five years imprisonment. The Securities and Exchange Commission can also impose fines.
Monsanto sells Roundup herbicide and corn seed in Indonesia, which generates less than 1% of the company's annual revenues. During the year ended Dec. 31, 2003, Monsanto's world-wide sales totaled $5.06 billion.
Driven by improving financial results, and a string of quarterly earnings that met Wall Street expectations, the crop-biotechnology giant's stock has doubled over the past 12 months despite being dogged by several legal matters.
Among other things, the Justice Department for more than a year has been looking for anticompetitive practices in glyphosate herbicide, a market long dominated by Monsanto's Roundup brand of weedkiller. Roundup has come under pricing pressure from competitors since Monsanto's U.S. patent protection on the product's chemistry expired in 2000.
On another front, St. Louis chemicals maker Solutia Inc. is attempting through Chapter 11 bankruptcy proceedings launched in December to shift some environmental and retiree liabilities to its former parent. The predecessor to Monsanto spun off Solutia in 1997.
|
To
send us your comments, questions, and suggestions click
here |