Chiquita Discloses Foreign Payment to SEC and DOJ
Chiquita Brands International Inc.'s (Chiquita) Form 8-K filed with the Securities and Exchange Commission (SEC) on September 14, 2004 indicated that Chiquita has voluntarily disclosed to the SEC and the Department of Justice that in 2003 Chiquita's Greek subsidiary made a payment of approximately 14,700 euros (approximately $18,000) that may not comply with the U.S. Foreign Corrupt Practices Act (FCPA). Chiquita noted that the payment, "which was made in connection with the settlement of a local tax audit, was made in contravention of Company policies." Chiquita indicated that the SEC and DOJ have requested certain additional information from the company and that it will comply with that request and cooperate with any further inquiry or investigation. Chiquita noted that while the company "is taking corrective and disciplinary action" the company "cannot predict the outcome of this matter, including whether these agencies would view it as involving a violation of a 2001 consent agreement signed with the SEC in 2001. At that time Chiquita paid a $100,000 fine and consented to a finding that, as a result of similar payments by its former Colombian subsidiary in 1996-97, Chiquita violated the books and records and internal controls provisions of the Securities Exchange Act of 1934. At that time Chiquita signed a consent order that provided that the company cease and desist from committing or causing any future violations of these provisions of U.S. law.
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