Courtesy of Benzinga.
An SEC investigation has ordered Anheuser Busch Inbev SA (ADR) (NYSE: BUD) to pay $6 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA).
According to the investigation, Anheuser-Busch “used third-party sales promoters to make improper payments to government officials in India to increase the sales and production” in India.
The brewing giant received several complaints from employees, but the SEC found that the company had “inadequate internal accounting controls to detect and prevent the improper payments.”
Anheuser-Busch reportedly “chilled” a whistleblower from communicating with the SEC, which in turn caused the fine.
The news comes on the same day shareholders approved the massive merger between SABMiller plc (ADR) (OTC: SBMRY) and Anheuser-Busch.
“For a two-year period, the company must cooperate with the SEC and report its FCPA compliance efforts while making reasonable efforts to notify certain former employees that Anheuser-Busch InBev does not prohibit employees from contacting the SEC about possible law violations,” the SEC press release read.
At time of publication, however, Anheuser-Busch’s stock was up 1.08 percent at $133.30, while SABMiller was relatively flat on the day at $58.22.
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you’d like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Posted-In: FCPA Foreign Corrupt Practices Act whistleblower protection whistleblowersNews Legal M&A Movers Best of Benzinga
