Nation/World
A kinder, gentler approach to corporate crime? | A kinder, gentler approach to corporate crime? |
|
|
| By William Freivogel, Special to the Platform | |
|
A $50,000 cash bribe paid by an agent of Monsanto Co. to an Indonesian environmental official is at the center of a story in today's New York Times about the Justice Department's more relaxed approach toward corporate crime. For more informationThe bribe story is actually several years old. The Justice Department announced Jan. 6, 2005 that Monsanto Co. had been charged with a violation of the Foreign Corrupt Practices Act (FCPA) for its involvement in an illegal payment of $50,000 to a senior Indonesian Ministry of Environment official. The Justice Department said the company had falsely certified the payment as "consultant fees" in the company's books. The company agreed to pay a $1 million fine and, according to the Justice Department press release, to "accept responsibility for the conduct of its employees in paying the bribe and making the false books and records entries, adopt internal compliance measures and cooperate with ongoing criminal and SEC civil investigations." Washington lawyer Timothy Dickinson was appointed to oversee company compliance. The government said that a "Monsanto employee responsible for certain activities in the Asia-Pacific Region authorized and directed the Indonesian consulting firm to make an illegal payment totaling $50,000 to the senior environment official to 'incentivize' him" to waive environmental requirements for Monsanto's cotton crops. The Justice Department said that the Monsanto employee "also directed representatives of the Indonesian consulting company to submit false invoices to Monsanto for 'consultant fees' to obtain reimbursement for the bribe, and agreed to pay the consulting company for taxes that company would owe." The point of today's New York Times story is that the handling of the Monsanto case is an example of the kinder and gentler approach the Justice Department has taken to corporate crime since the days of the Enron case. Former Attorney General John Ashcroft figures into this story as well. Ashcroft headed the Justice Department during the tough enforcement days, but he also has served as an overseer of corporate wrongdoers since leaving the department. The former attorney general has been criticized for the the size of the fees. As the Times put it:
Neither Dickinson nor Monsanto's spokesperson responded immediately to calls for comment. For more information about the Monsanto payments in Indonesia and the corporation's response, see the stories written at the time. |
|
| Last Updated ( Wednesday, 09 April 2008 ) |
The St. Louis Platform is now the St. Louis Beacon. You can find us at stlbeacon.org.
At the moment, we are moving all our old content from this site to the Beacon. All our new content will be published on stlbeacon.org.
For now, we are leaving these pages up to ensure that our content is accessible to you during this process. If you come here to our original address after we have finished our move, we'll send you automatically to our new home.
Thank you for your patience, and please contact us with any questions or comments.