Spirits maker Diageo Plc has paid a penalty of over $16 million to US market regulator SEC for settling charges of indulging in corrupt practices in India, Thailand and South Korea- o obtain lucrative sales and tax benefits in these countries.
Saying that the company takes Securities Exchange Commission's (SEC) findings on corrupt practices "seriously", Diageo said it has strengthened systems and controls to prevent such incidents in the future.
The company said it has agreed for the settlement with SEC, related to potential violations of the US Foreign Corrupt Practices Act (FCPA).
The company operates in India through its subsidiary, Diageo India (DI), which sells well-known brands such as Johnnie Walker whisky and Smirnoff vodka.
“For many years Diageo engaged in a pervasive practice of making illicit direct and indirect payments to government officials throughout India to obtain and retain liquor sales. As a result Diageo was unjustly enriched by $11.3 million from increased sales," SEC said.
"Diageo takes the SEC's findings seriously and regrets this matter. Systems and controls have been enhanced in an effort to prevent the future occurrence of such issues...," the firm said in a statement.
Source:https://www.business-standard.com/india/news/sec-slaps-16-mn-finediageo-for-bribery/142796/on
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