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General News of Friday, 29 December 2006

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DaimlerChrysler confirms bribery probe

German-American car manufacturer DaimlerChrysler have yet to disclose if Ghanaian officials were also being investigated for taking bribes within the company.

Ghana, Poland and Belgium were among the countries where bribes were allegedly paid.

The company's annual report for last year mentioned that it had determined that "improper payments" had been made in a number of jurisdictions, mainly in Africa, Eastern Europe and Asia in violation of the US Foreign Corrupt Practices Act, German law and the laws of "other jurisdictions".

The firm also identified potential tax liabilities to authorities in these jurisdictions.

The firm announced this week that former FBI director Louis Freeh had been brought in to help the internal probe as an "outside consultant".

Freeh is a member of the Gavel Consulting Group, which consists of former federal judges who advise corporations on legal issues. External investigations started in 2004.

Apart from an internal probe, the US Securities and Exchange Commission and German prosecutors are investigating allegations by a former DaimlerChrysler employee that the car giant held secret bank accounts for bribing officials in Africa, Eastern Europe, the Middle East and Asia.

The employee alleges he was fired after he complained about these practices.

DaimlerChrysler global corporate communications head Han Tjan confirmed on Thursday to the Cape Times that bribery in Africa was being probed, but declined to say which countries or how many would form part of the investigation.

"We are investigating bribery in Africa. It is an ongoing investigation and, therefore, I cannot comment. We … take this very seriously and we are determined to operate all our businesses with the highest ethical standards," said Tjan.

He refused to confirm or deny whether Ghana was involved.