Daimler ( Mercedes Benz ) Admits Bribes In Thailand

[LaoPo]

Daimler admits worldwide bribery

German carmaker Daimler has pleaded guilty to corruption in the US and will pay $185m (£121m) to settle the case.

The charges relate to US Justice Department and Securities and Exchange Commission investigations into the company's global sales practices.

Daimler, the owner of Mercedes-Benz, admitted to paying tens of millions of dollars of bribes to foreign government officials in at least 22 countries.

The company said it had now reformed the way it did business.

Offshore accounts

The offences were committed between 1998 and 2008 by Daimler's German-based exports subsidiary Export and Trade Finance, and its Russian business Mercedes-Benz Russia.

“ Today, we are a better and stronger company, and we will continue to do everything we can to maintain the highest compliance standards ”

Daimler chairman Dieter Zetsche

They were said to have given money and lavish gifts to help win contracts in countries including China, Russia, Thailand, Greece, and Iraq.

The Justice Department said that by "using offshore bank accounts, third-party agents and deceptive pricing practices, these companies saw foreign bribery as a way of doing business".

Daimler has since fired 45 employees implicated in the bribery.

The company's chairman Dieter Zetsche said the firm had "learned a lot from past experience".

"Today, we are a better and stronger company, and we will continue to do everything we can to maintain the highest compliance standards," he added.

'Deserves credit'

The case was heard in a federal court in Washington, where the presiding judge, Judge Richard Leon called the financial settlement a "just resolution".

Prosecutor John Darden added that Daimler had "showed excellent cooperation".

"The company has undertaken an effort to clean its own house," he added.

"That reflects a serious change of mind on part of Daimler. This deserves credit."

Daimler's agreement to pay $185m is broken down into $93.6m to end the US Justice Department investigation, and a payment of $91.4m to settle the civil case from the Securities and Exchange Commission, the US financial watchdog.

The company made a 2.6bn euros ($3.5bn; £2.3bn) loss last year.

Back in 2008, German industrial group Siemens paid $800m to settle a US investigation into bribes paid to government officials in Argentina, Bangladesh, Iraq and Venezuela.

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8600241.stm

Published: 2010/04/01 21:35:31 GMT

LaoPo

[Rtwo]

So I just wonder, are we going to learn who actually received the bribes? Presumably they'll eventually have to make it public, my guess is that absolutely nothing will happen here to those whose found with their snouts in the trough.

[givenall]

So I just wonder, are we going to learn who actually received the bribes? Presumably they'll eventually have to make it public, my guess is that absolutely nothing will happen here to those whose found with their snouts in the trough.

Give me a break. Bribery in Thailand, never heard that before

Thailand is like a supermarket, if you want to have a shelf in the store, then you have to pay

Edited April 2, 2010 by givenall

[onlooker]

Wonder if The Nation or Bangkok Post will sent their top investigative journalists to uncover more juicy details . ..

No, thought not.

[Gary A]

Nothing to see here people. It's Thai politics as usual. You don't tell on me and I won't tell on you. You lie and I'll swear to it.

[craigt3365]

I had a friend who worked for Mogan Stanley. Many years ago he was asked to setup a secure, high tech phone system for their ops in India. He came over with something like 50k USD cash in a bag. Handed it to the Indian phone guys and got his stuff setup in under a week...it was the only way they could get things done quickly...as we well know, it's the same here!

[slapout]

The acceptance of bribes seem to be a part of everyday life in many countries of the world. If and when the general public is shown the affect this has on the consumer and or is educated to recognize how ultimately, this takes money out of their own pocket, as well as short changeing their children/grandchildren it will continue.

[Guest]

While not condoning bribery, what the hel_l has a German company bribing officials in Thailand etc got to do with the US?

[shawndoc]

I'm guessing some of this took place while Dialmer was partial owner of Chrysler. Also as Dialmer does business in the United States and has offices there, they come under US law for things like this.

Just my guesses.

[slapout]

doc wins the door prize. The brides paid to TAT officials, Scanners at airport, etc, come under jurisdiction of US officials. For all her faults, the US has made a real attempt to control corruption via US companies or companies doing business in the US.

Its too bad that some countries ignore the final outcome of legal proceedings as they relate to their citizens. Guess they are more concerned with the influx of money than how it was accumulated.

[somtampet]

My ex company(name cannot mention) had to bribe the russian mafia to get contracts in Russia

[junkofdavid2]

Wonder if The Nation or Bangkok Post will sent their top investigative journalists to uncover more juicy details . ..

Actually, the Nation just might.

Depends, were the bribed officials red-shirts or yellow-shirts.

.

Edited April 3, 2010 by junkofdavid2

[tatt]

i agree they should expose the ppl who took the bribe. More likely to be in Ministry of Commerce: Department of Services.

[OzMick]

Those who took the bribes will be diving for cover. As for the investigation, expect a difficulty level of 1 and a performance score of 0.

[slapout]

Rat hole as much of the money outside Thailand as possible before the court returns guilty verdict, this is where it gets sticky, serve jail time, thumb noise at Thai officials as you depart Thailand while on bail, or lay low outside Thailand and enjoy the proceeds of your various ventures into pocket lining, when statue of limitations runs out, return home to a warm welcome providing you did not rat any conspirators out.

[mrbojangles]

I feel sorry for some of the big companies nowadays. Several years ago this was a practise that was mandatory if you wanted to win contracts in several countries and I have worked for companies who had to do it. If you didn't do it, you could bet your cotton socks that your competitor would. You needed to do it to survive.

Nowadays, with the global ethics business policy, it is starting to sink in that business shouldn't be done in this way, although the practice will never be totally eradicated. IMO, I don't believe Witch Hunts should be made all these years after the event has taken place. The US are probably persuing this it cos they didn't get a slice of it at the time

[Garry]

There is no common palying ground whe it comes to bribing.....example: we will give you guns, war planes, ships and technical backup for you helping us out....oops, my bad, governments don't bribe do they

[Screws]

i agree they should expose the ppl who took the bribe. More likely to be in Ministry of Commerce: Department of Services.

'Seasy. Just look for those carrying extra pairs of undies on Mundy.

[geriatrickid]

While not condoning bribery, what the hel_l has a German company bribing officials in Thailand etc got to do with the US?

If you trade on a US stock exchange or have business operations in the USA that are implicated, then US law can be triggered.

The payment of undeclared foreign bribes is illegal in the USA and the EU.

I don't believe Witch Hunts should be made all these years after the event has taken place. The US are probably persuing this it cos they didn't get a slice of it at the time

To answer your comment, please note that it can take years for a case to wind its way through the courts. there are negotiations, investigations, hearings etc.