Despite Newspaper's Apology, Chiquita Still Under Investigation

Douglas Frantz / New York Times 17jul98

CINCINNATI -- Overlooked in the furor that followed when The Cincinnati Enquirer last month apologized for a stinging series accusing Chiquita Brands International of engaging in corruption were the extraordinary allegations at the heart of the series-- the questionable business practices of a major corporation with broad influence in the United States and across Latin America.

This week, in their first lengthy interviews on the subject, top Chiquita executives claimed total victory and portrayed the entire package of articles as unfair and inaccurate, the untrustworthy work of a reporter who stole hundreds of voice-mail messages. But, the story says, interviews with government officials, people outside the company, and some of those quoted, along with a review of the articles, found that some of the allegations cannot be dismissed so easily, despite the questions raised about the methods used to report them.

The Securities and Exchange Commission had already initiated an inquiry into Chiquita's practices on the basis of some of the stolen taped voice-mail messages, and the government of Honduras, where Chiquita has been a power for decades, said it was reviewing some of the charges raised by the series, ranging from bribery of foreign officials to the use of dangerous pesticides at some of the company's foreign agricultural sites.

Chiquita could face penalties under the Foreign Corrupt Practices Act if it engaged in or failed to disclose bribery. A lawyer briefed on the commission's inquiries to the company said the investigation was not slowed by the disclosure that the voice mail was stolen.