German automaker Daimler has agreed to pay $185 million in penalties to the U.S. government for engaging in widespread bribery in foreign countries, in violation of the Foreign Corrupt Practices Act. The company paid millions in bribes in over 22 countries over a 10 year period (including in China, Croatia, Egypt, Greece, Hungary, Indonesia, Iraq, Ivory Coast, Latvia, Nigeria, Russia, Serbia and Montenegro, Thailand, Turkey, Turkmenistan, Uzbekistan, and Vietnam), in order to secure contracts with government customers for the purchase of Daimler vehicles valued at hundreds of millions of dollars.
The extent of Daimler's corruption is breathtaking. I'm sad to see that no individual has been prosecuted and that the company is essentially taking a business write-down on these penalties. There are two key lessons to be learned here -- one, corruption is alive and well in many parts of the world, with government officials only too happy to accept a discount on a nice new Mercedes in return for government contracts. Two, if you believe in the power of consumer action, don't buy a Mercedes.
Daimler to pay $185M penalty | detnews.com | The Detroit News
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