Goodyear fined $16 million for bribery in African countries
Representatives of Goodyear reported their agreement to pay over $16 million to settle the situation that arose due to bribery. Several companies will receive financial resources in the form of securities.
On February 24, the leadership of the American Securities and Exchange Commission (SEC) warned Goodyear Tire & Rubber Company that it needs to pay a fine for violating the corruption law in the near future. The controversial situation was caused by the actions of Goodyear's subsidiary, which was caught bribing in Africa.
According to the Securities and Exchange Commission, during the consideration of the case, it was possible to reveal the fact of transferring more than $3.2 million to various officials in Kenya and Angola over 4 years to stimulate tire sales in these regions. Most of the bribes were paid in cash to bribe employees of private firms, government officials, police officers, city council members, and other local authorities.
Such expenses were officially conducted through the database as legitimate expenses in the business papers of subsidiaries and then appeared in Goodyear's reports. According to the Deputy Director of the Executive Department of the SEC, companies with a similar status should better monitor compliance with all norms and requirements, not allowing subsidiaries to hide facts of machinations in their reporting documents.
The agreement reached under pressure from the SEC states that Goodyear must lose all income acquired illegally from bribing several dozen officials. Among them are employees of Kenyan ports and armed forces, the Kenyan Air Force, the Ministries of Transport and Defense, a sugar company and a Portland cement plant, an Angolan diamond mine, electrical, mining, and mining companies.
Interestingly, Goodyear's representatives did not comment on either the SEC's findings or the fine amount - $14.123 million in illegal profits and $2.1 million in accrued interest. So, the tire manufacturer will pay the fine assigned by the SEC's Ohio division in silence. And since silence is a sign of consent, the facts of corruption did take place, and the punishment is quite justified.
On February 24, the leadership of the American Securities and Exchange Commission (SEC) warned Goodyear Tire & Rubber Company that it needs to pay a fine for violating the corruption law in the near future. The controversial situation was caused by the actions of Goodyear's subsidiary, which was caught bribing in Africa.
According to the Securities and Exchange Commission, during the consideration of the case, it was possible to reveal the fact of transferring more than $3.2 million to various officials in Kenya and Angola over 4 years to stimulate tire sales in these regions. Most of the bribes were paid in cash to bribe employees of private firms, government officials, police officers, city council members, and other local authorities.
Such expenses were officially conducted through the database as legitimate expenses in the business papers of subsidiaries and then appeared in Goodyear's reports. According to the Deputy Director of the Executive Department of the SEC, companies with a similar status should better monitor compliance with all norms and requirements, not allowing subsidiaries to hide facts of machinations in their reporting documents.
The agreement reached under pressure from the SEC states that Goodyear must lose all income acquired illegally from bribing several dozen officials. Among them are employees of Kenyan ports and armed forces, the Kenyan Air Force, the Ministries of Transport and Defense, a sugar company and a Portland cement plant, an Angolan diamond mine, electrical, mining, and mining companies.
Interestingly, Goodyear's representatives did not comment on either the SEC's findings or the fine amount - $14.123 million in illegal profits and $2.1 million in accrued interest. So, the tire manufacturer will pay the fine assigned by the SEC's Ohio division in silence. And since silence is a sign of consent, the facts of corruption did take place, and the punishment is quite justified.