Deere & Co, a global leader in the manufacturing of agricultural, construction, forestry, and turf care machinery, agreed to pay USD 9.93 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC) over bribery conducted by its Thai subsidiary, Wirtgen Thailand, to secure government contracts.
The SEC’s investigation revealed that from 2017 to 2020, Wirtgen Thailand made improper payments to officials from entities such as the Royal Thai Air Force and Thailand’s Department of Highways. These payments included cash, meals, sham consulting fees, and lavish entertainment, including massage parlor services and sightseeing trips disguised as “factory visits” in Europe. The bribes were made in violation of the company’s own strict code of conduct, which prohibits offering “absolutely anything” to improperly influence government officials.
The bribery resulted in Wirtgen Thailand being awarded multiple tenders from these agencies. For instance, Wirtgen secured two RTAF tenders in 2020 valued at approximately USD 665,000, as well as several DOH tenders in 2018 and 2019, worth millions of dollars.
Additionally, Wirtgen Thailand engaged in bribery of private customers like Customer A, involving cash payments and expensive trips under the guise of “factory visits,” generating approximately USD 1.5 million in illicit profits. Despite Deere’s corporate code prohibiting such activities, these payments were falsely recorded as legitimate business expenses.
Deere agreed to pay USD 9.93 million, which includes USD 4.5 million in civil penalties, USD 4.34 million in disgorgement, and USD 1.09 million in prejudgment interest. Deere also cooperated with the SEC and implemented improvements to its compliance and internal audit programs, including increased anti-bribery training.
Sources:
https://www.reuters.com/legal/deere-pay-993-mln-settle-us-sec-bribery-probe-2024-09-10/
https://www.sec.gov/files/litigation/admin/2024/34-100984.pdf
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