Archer Daniels in hot water over FCPA investigation
ADM reserves $25M to resolve violating foreign bribery laws
By Amanda Brodhagen, Farms.com
Archer Daniels Midland Co. (ADM) told investors that it has reserved $25 million to deal with a Foreign Corrupt Practices Act investigation tied to its grain and feed exports.
ADM is a U.S.-based agribusiness conglomerate, which is the largest corn processor in the world, confirmed that they’ve been in discussions with the U.S. Department of Justice and U.S. Securities and Exchange Commission over pending criminal foreign payments made by the company and its affiliates. According to the company’s filings, the issue took place in 2008. The company said that a settlement deal will likely be reached sometime this year.
The company told its investors that they would be establishing a provision of $25 million, $0.04 per share to take care of the costs associated with future assessments related to the case. ADM has said that the payments may have violated foreign laws. The company has hired an independent auditor to assist with the investigation, which may result in terminating several employees over the issue.