The U.S. Justice Department and the Securities and Exchange Commission (SEC) will fine Daimler $185 million dollars (€137,706,250) for paying bribes. Full details inside.
The U.S. Justice Department and the Securities and Exchange Commission (SEC) will fine Daimler $185 million dollars (€137,706,250) for paying bribes.
The fine follows a six year investigation, which was prompted by an auditor's complaint that he was fired for protesting secret bank accounts used to pay foreign officials. Investigators discovered Mercedes gave an armored car to a Turkmenistan official, on his birthday, while the company was negotiating a contract to sell vehicles to the Turkmenistan government. Daimler also paid 10 percent kickbacks to Iraqi officials, to secure deals to sell vehicles - a violation of the United Nations' Oil for Food Program.
The report concluded Daimler engaged "in a long-standing practice of paying bribes" to secure deals in Russia, China, Turkey, Egypt, Nigeria, Iraq and 16 other countries. As a result, the company will be charged with conspiracy and falsifying records under the Foreign and Corrupt Practices Act.
According to a source familiar with the matter, Daimler will not plead guilty or admit any wrongdoing. Instead, the company will pay $93.6 million (€69,932,075) to the Justice Department and $91.4 million (€68,285,650) to the SEC.