Daimler Chrysler AG Provides Details of FCPA Enforcement Issues in SEC Annual Report
DaimlerChrylser AG stated in its annual report filed last week with the U.S. Securities and Exchange Commission (SEC) that an internal investigation of bribery claims found evidence of "improper payments" in Africa, Asia and Eastern Europe that raise concerns under the U.S. Foreign Corrupt Practices Act, German law and the laws of other jurisdictions. DaimlerChrysler AG disclosed the investigation last year in a filing with the SEC.
In order to safeguard against the recurrence of the type of conduct that resulted in these issues, Daimler Chrysler AG indicated that it has taken a series of voluntary remedial actions, including the following:
—Initiated improvements in business processes as well as in compliance, control and training activities in order to foster a culture defined by openness and honesty.
—The company is evaluating and revising policies, procedures and controls and are conducting a comprehensive review and remediation of any related books and records, tax and internal control issues identified. The company also is establishing a global compliance organization so that the company's business practices are thoroughly reviewed, and policies upgraded and enforced as necessary.
—Initiated personnel measures related to questionable transactions or behavior identified in the course of our internal investigation. These actions include the severance of employment and suspensions of several employees.
The filing also stated that if the Justice Department or SEC determines that violations of U.S. law have occurred, the agencies "could seek criminal or civil sanctions, including monetary penalties, against DaimlerChrysler and certain of its employees, as well as additional changes to its business practices and compliance programs."
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