Daimler Guilty, Settles Bribery Investigation

As was to be expected, the US Securities and Exchange Commission and German carmaker Daimler announced the conclusion of the investigation into violations of books and records and bribery, after Daimler agreed to pay $185 million in fines and civil disgorgement, while the German and Russian subsidiaries pleaded guilty.

"Compliance has high priority at Daimler," Dieter Zetsche, Chairman of the Board of Management of Daimler said in a release. "We have learnt a lot from past experience. Today, we are a better and stronger company, and we will continue to do everything we can to maintain the highest compliance standards."

The US also imposed Judge Louis Freeh as a corporate compliance monitor for three years. He will monitor Daimler's FCPA compliance program, in addition to being Independent Compliance Advisor for organizational and policy changes since 2006.

"We have reviewed all areas of our business and consequently improved our business practices: accounting, financial reporting, internal control systems and compliance. For the future, we are positioned very well," Bodo Uebber, Daimler's CFO added.

According to the charges which led to this settlement, Daimler has engaged "in a long-standing practice of paying bribes", which help it secure deals Russia, China, Turkey, Egypt, Nigeria or Iraq. In all, Daimler engaged in such practices in 22 countries in between 1998 and 2008.

The US says Daimler's actions resulted in $50 million in pretax profits for Daimler, while for the duration of the activities the carmaker paid tens of millions and won contracts worth hundreds of millions.