US: SK Foods faces bribery allegations

18 August 2008 | Source: just-food.com

SK Foods has been accused of bribing the purchasing agents of some of the US's largest food corporations, including Kraft Foods, Heinz, McCormick, Frito-Lay, Safeway and ConAgra.

In a civil suit filed in Sacramento, the US government accuses vegetable producer SK Foods of paying thousands of dollars in bribes to maintain sales whilst keeping prices high.

The lawsuit seeks an order forfeiting US$600,000 seized in April by the Internal Revenue Service from a broker of SK Foods products, Randall Rahal.

According to the suit, SK Foods paid bribes to purchasing managers through Rahal and his New Jersey-based company Intramark USA.

The buying managers are also accused of feeding Rahal information about rival bids.

When visited by federal agents, the suit claims buyers for Frito-Lay, Kraft and Safeway admitted receiving bribes.

While the civil suit progresses, the authorities are also considering criminal charges.

In a statement, SK Foods said it "continues to cooperate fully in the government's investigation".

When contacted by just-food, SK Foods said it was not able to comment further.