Justice Dept. Accuses Daimler of Paying Bribes

[PBS Poll-435]

Justice Dept. accuses Daimler of paying bribes
By Dana Hedgpeth
Washington Post Staff Writer
Tuesday, March 23, 2010; 7:04 PM

Daimler has agreed to pay more than $180 million in fines and penalties to the U.S. government to settle charges that it violated federal bribery laws by paying tens of millions of dollars to officials in at least 22 countries to win lucrative contracts, according to a source familiar with the deal.

In a 76-page filing in federal court on Tuesday, prosecutors said that Daimler made improper payments starting in 1998 to officials in countries that included China, Russia, Egypt, Greece and Nigeria. The charges against Daimler were filed in what is known as a "criminal information filing" -- a document that typically precedes a plea agreement.

Daimler spokesman Han Tjan said Tuesday that the company had no comment, noting that there is an April 1 hearing when a judge is expected to hold a hearing on the case. The Justice Department declined to comment regarding a possible settlement.

Daimler recorded the payments its corporate books and records as special discounts or commissions, the filing said, and the improper payments continued until January 2008. Illegal transactions with a connection to the United States resulted in over $50 million in pre-tax profits for Daimler, according to the filing.

[Dappleganger]

1. Why those aren't bribes...

those are incentives for positive commerce stimulation!