AB InBev to pay $6 million to settle India bribery accusations
Latest News »
- 12-year-old boy dies of dengue, first fatality in Delhi: MCD
- First set of GST tax deposits nets govt Rs42,000 crore
- Essar Oil CEO resigns as Rosneft rejigs board on $13 billion takeover
- ISRO chief Kiran Kumar says looking at consortium for PSLVs
- Arun Jaitley to meet CMs to firm up NITI Aayog’s 3-year action agenda
Anheuser-Busch InBev SA (AB InBev), the world’s largest brewer, has agreed to pay $6 million to settle charges that it had violated US foreign bribery laws and “chilled a whistleblower”, the US Securities and Exchange Commission said on Wednesday. An SEC investigation found that a minority-owned joint venture of the Belgium-based company used third-party sales promoters from 2009 to 2012 to make improper payments to officials in India to boost sales and production in that country, the agency said in a statement.
AB InBev owned 49% of the joint venture, InBev India International Private Limited, at the time.
The SEC said AB InBev violated the accounting provisions of US foreign bribery laws by having inadequate internal controls to detect and prevent the improper payments, despite repeated complaints from employees. The company also failed to ensure that transactions involving the promoters were recorded properly in its books and records, the agency added.
AB InBev has improved its compliance procedures and policies, and boosted training in India, company spokeswoman Karen Couck said in a statement. The settlement involves previous conduct, she noted.
The company did not admit or deny the SEC’s findings, according to the settlement.
The SEC also said AB InBev had entered into an agreement with a former Crown employee prohibiting the person from communicating with the agency about potential anti-bribery violations. AB InBev had used the same language in other agreements with departing employees, the SEC said.
The SEC is cracking down on companies that insert language into their severance agreements that prevent outgoing employees from reporting conduct that could lead to monetary whistleblower awards from the agency.
Couck said the US Department of Justice had closed its parallel investigation into the company without taking enforcement action.
A Department of Justice spokesman declined to comment.
AB InBev, as part of the settlement, must report its foreign bribery law compliance efforts to the SEC and try to notify certain former employees that it does not prohibit them from reporting possible legal violations to the SEC, the agency said.
The settlement arrived on the same day that SABMiller, which makes Fosters and Miller beer, announced its shareholders had approved a $103 billion takeover by AB InBev.
Shareholder approval was the last major hurdle in a deal that will give the combined company control of almost a third of the global beer market.
The takeover is expected to be formally completed next month. Reuters
AP contributed to this story.