Auditing and Accounting scandals

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    Auditing and Accounting scandals - Presentation Transcript

    1. CHIQUITA BRANDS INTERNATIONAL
    2. ABOUT CHIQUITA
        • Cincinnati, Ohio based company
        • Successor of United Fruit Company
        • Producer and distributor of bananas and other fresh fruit products
        • Fernando Aguirre
    3. Controversies
      • Cincinnati Enquirer : “Chiquita Secrets Revealed”
      • Payment to paramilitary groups
      • Bribery : included foreign and local officials
      • Ongoing workers rights violation
    4. CHIQUITA SECRETS REVEALED
      • Article published in the Cincinnati Enquirer
      • Reported variety of abuses involving the company
      • Mistreatment of the Central American workers, polluting the environment, shipment of cocaine into the United States, preventing the unionizing of workers
      • The Cincinnati Enquire had to publish a retraction as information was illegally obtained and not proven
    5. PAYMENT TO PARAMILITARY GROUPS
      • 1989-1997 : payments were made to Revolutionary Armed Forces of Columbia and National Liberation Army
      • 1997-2004 : payments amounting to about $1.7 million were made to United Self Defense Forces of Columbia
      • Payments were made in exchange for employee protection in the Columbian banana harvesting zone
      • Case resulted in the payment of $25 million fine by the company
    6. BRIBERY
      • The company was found guilty of bribing various officials
      • In 2001, the company was forced to pay $100,000 penalty after the Securities and Exchange commission found it guilty of bribing a foreign official in Columbia
    7. ONGOING WORKERS’ RIGHTS ALLEGATION
      • The company has been accused of endangering the health of its workers and their families
      • Allegedly, the banana firm has carelessly exposed laborers at the Coyol plantation in Costa Rica to highly toxic pesticides on multiple occasions.
      • the company is also accused of using a private militia to intimidate workers
      • The company has also ignored certain union complaints for more than a year
    SlideShare Zeitgeist 2009

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