US/UKRAINE: ADM to settle bribery case

By Dean Best | 23 December 2013

Archer Daniels Midland is to pay US$54m to settle cases of bribery at a subsidiary in Ukraine.

The agri-giant said it had struck a deal with the US Department of Justice and the US Securities and Exchange Commission.

Chairman and CEO Patricia Woertz said: "In 2008, soon after we became aware of some questionable transactions by a non-US subsidiary, we engaged an outside law firm and an accounting firm to undertake a comprehensive internal investigation. In early 2009, we voluntarily disclosed the matter to appropriate US and foreign government agencies and undertook a comprehensive anti-corruption global risk analysis and compliance assessment. We have also implemented internal-control enhancements, and taken disciplinary action, including termination, with a number of employees.

"The conduct that led to this settlement was regrettable, but I believe we handled our response in the right way, and that the steps we took, including self-reporting, underscore our commitment to conducting business ethically and responsibly."

Show the press release
December 20, 2013 05:02 PM Eastern Standard Time

DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it had reached a settlement with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) of allegations under the Foreign Corrupt Practices Act (FCPA) relating primarily to conduct by a Ukraine subsidiary of ADM’s majority-owned subsidiary, Alfred C. Toepfer International.

“In 2008, soon after we became aware of some questionable transactions by a non-U.S. subsidiary, we engaged an outside law firm and an accounting firm to undertake a comprehensive internal investigation”

Under the settlement, ADM has entered into a non-prosecution agreement with DOJ and a consent decree with SEC and has agreed with these agencies to monetary relief totaling approximately $54 million, the amount for which ADM previously established a reserve.

In announcing the settlement, government regulators noted ADM’s ''timely, voluntary, and thorough disclosure of the conduct,'' ''extensive cooperation,'' and ''early and extensive remedial efforts'' to enhance its compliance program. ADM will not be required to institute a monitor, as has occurred in some past FCPA settlements with other companies.

ADM Chairman and CEO Patricia Woertz commented on ADM’s process: “In 2008, soon after we became aware of some questionable transactions by a non-U.S. subsidiary, we engaged an outside law firm and an accounting firm to undertake a comprehensive internal investigation,” she said. “In early 2009, we voluntarily disclosed the matter to appropriate U.S. and foreign government agencies and undertook a comprehensive anti-corruption global risk analysis and compliance assessment. We have also implemented internal-control enhancements, and taken disciplinary action, including termination, with a number of employees.

“The conduct that led to this settlement was regrettable, but I believe we handled our response in the right way, and that the steps we took, including self-reporting, underscore our commitment to conducting business ethically and responsibly,” Woertz said.

Original source: Archer Daniels Midland

Sectors: Commodities & ingredients, Emerging markets

Companies: Archer Daniels Midland

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