Chiquita Brands International, Inc has issued the following statement from Fernando Aguirre, chairman and chief executive officer, in response to the sentencing memorandum filed by the US department of justice (DOJ) regarding the previously disclosed investigation of protection payments made by the company's former banana-producing subsidiary in Colombia.
"Chiquita is pleased that the DOJ has formally recommended that the US District Court for the District of Columbia approve the previously announced plea agreement entered into between the company and the Justice Department last March.
“Chiquita is also pleased that the government has decided not to prosecute any current or former company executives in connection with its investigation. We believe this is the right decision and one that reflects the good faith efforts of the company - and its officers, directors and employees - to address a very difficult situation involving the lives and safety of our employees.
“In recommending final approval of the plea agreement, the government credited the company for both its voluntary disclosure and its 'significant' cooperation throughout the entire investigation.
“This agreement is in the best interests of the company and reflects a responsible resolution to a difficult dilemma faced by the company several years ago.
“Chiquita looks forward to putting this difficult chapter behind it, and remains committed to the highest standards of corporate responsibility, ethical conduct and legal compliance, in the United States and around the world."
Under the terms of the agreement, the company will pay a fine of $25 million, payable in five annual installments. As previously disclosed, the company recorded a reserve in 2006 for the full amount of the fine in anticipation of reaching an agreement. The company does not anticipate that the fine will impact its ability to operate its business.
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