Wed Sep 11 09:32:00 UTC 2024: ## Deere Pays $10 Million to Settle Bribery Charges Against Thai Subsidiary

**Chicago, Illinois** – Deere & Company, the American agricultural and construction equipment manufacturer, has agreed to pay a $10 million settlement to the US Securities and Exchange Commission (SEC) for bribery charges against its Thai subsidiary, Wirtgen Thailand. The charges stem from activities between 2017 and 2020.

According to the SEC, Wirtgen Thailand engaged in a scheme to bribe officials from various Thai government agencies, including the Royal Thai Air Force, Department of Highways, and Department of Rural Roads, to secure government contracts. The bribes included lavish overseas trips, cash payments, fake consulting fees, and even massage parlour services.

The SEC’s investigation found that Wirtgen Thailand’s management instructed employees to make these payments despite the company’s code of conduct prohibiting bribes. These actions violate the Foreign Corrupt Practices Act (FCPA) in the United States.

Deere’s $10 million settlement includes a $4.5 million civil fine, disgorgement of $4.34 million in improper benefits, and $1.09 million in interest. The SEC acknowledged Deere’s cooperation with the investigation, termination of employees involved in the misconduct, and enhanced compliance procedures and anti-bribery training.

“These allegations represent a clear violation of our company policies and ethical standards,” Deere stated in a press release. “They are in direct conflict with our core values — particularly our commitment to integrity — and we strongly condemn such practices.”

The SEC’s enforcement division chief, Charles Cain, emphasized the importance of companies promptly integrating newly acquired subsidiaries into their compliance and control environments. “This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place,” he said.

This settlement serves as a stark reminder of the importance of ethical conduct and robust compliance procedures within global corporations.

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