Saturday, March 22, 2008

Busting an Embargo Buster

Swedish truck maker AB Volvo is the latest company snared in the seemingly interminable investigation of improper payments made to Iraq under the United Nations Oil for Food Program.

The company agreed to pay $12.6 million to settle Securities and Exchange Commission charges, and another $7 million as part an agreement with the U.S. Justice Department.

Volvo, which sold its carmaking division to Ford in 1999, was accused of allowing — or ignoring — a decision by two of its subsidiaries to pay millions of dollars in kickbacks to get business in Iraq while the country was under international trade sanctions.

According to the complaint filed in federal court in the District of Columbia, no services were rendered for the fees, which went to bank accounts in Jordan. Volvo did not admit or deny the allegations.

~ read on... ~


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