US fines Panalpina US$81.9 million for Nigerian customs bribes

SWISS-based forwarder Panalpina has admitted to violating the US Foreign Corrupt Practices Act (FCPA) by bribing customs officials in at least seven countries, notably Nigeria, and will pay US$81.9 million in fines.

The Deferred Prosecution Agreement (DPA) has agreed to defer prosecution of Panalpina World Transport (Holding) for three years with Panalpina's agreeing to regular reports to the US Department of Justice (DOT) and improving its compliance policies.

Panalpina has pleaded guilty and will pay a fine of $70.6 million in four instalments along with a seizure of profits totalling $11.3 million.

London's Daily Telegraph reported that the plea has also led to penalties for Panalpina clients Shell, Transocean, Tidewater, Pride International and Noble Corp, which fined amounts ranging to $236 million.

The companies "approved of or condoned the payment of bribes on their behalf in Nigeria and falsely recorded the bribe payments made on their behalf as legitimate business expenses in their corporate books, records and accounts".

Panalpina president and CEO Monika Ribar said in a company statement that the settlement marks the "closing of an extremely burdensome chapter" in Panalpina's history.

She said the company established a global compliance organisation to assess jointly with Panalpina's internal audit function, implementing systematic third-party due diligence and developing a whistle blowing programme with the support of the Basel Institute on Governance.
(Source:www.schednet.com)