Daimler, the German giant behind the Mercedes-Benz automotive and truck business, has pleaded guilty to corruption charges brought by the U.S. Justice Department and Securities and Exchange Commission and agreed to pay $185 million in penalties for its bribery practices.
In a 76-page filing in federal court, U.S. prosecutors said between 1988 and 2008, Daimler paid at least US$56 million in bribes to foreign officials in at least 22 countries that included China, Russia, Egypt, Greece and Nigeria.
The U.S. Securities and Exchange Commission (SEC) said in a statement that the carmaker “engaged in a repeated and systematic practice of paying bribes to foreign government officials to secure business in Asia, Africa, Eastern Europe and the Middle East.”
Among others, the SEC said that Daimler spent €11,000 (about US$15,000) to pay for a luxurious vacation in Europe for six Chinese officials, adding that another 16 such trips were connected with $120 million in vehicle sales to the Chinese government.
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