Goodyear fined over bribery
Goodyear Tire & Rubber Company will pay more than $16 million (US) to settle charges brought by the US Securities and Exchange Commission (SEC) that the company violated the Foreign Corrupt Practices Act (FCPA) when its subsidiaries paid bribes to land tyre sales in Kenya and Angola.
According to the Corporate Crime Reporter, Goodyear failed to prevent or detect more than $3.2 million in bribes during a four-year period due to inadequate controls at its subsidiaries in sub-Saharan Africa.
Bribes were generally paid in cash to employees of private companies or government-owned entities as well as other local authorities such as police or city council officials.
The payments were falsely recorded as legitimate business expenses in the books and records of the subsidiaries, which were consolidated into Goodyear’s books and records.
The SEC finds that Goodyear’s subsidiary in Kenya bribed employees of the Kenya Ports Authority, Nzoia Sugar Company, Kenyan Air Force, Ministry of Roads, Ministry of State for Defense, and others.
Goodyear’s subsidiary in Angola bribed employees of the Catoca Diamond Mine, which is owned by a consortium of mining interests including Angola’s national mining company Endiama E.P. and Russian mining company ALROSA and others.
Goodyear must pay disgorgement of $14,122,525 – which comprises the company’s illicit profits in Kenya and Angola – plus prejudgment interest of $2,105,540.
Goodyear also must report its FCPA remediation efforts to the SEC for a three-year period.
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