Auditing and Accounting scandals - Presentation Transcript
CHIQUITA BRANDS INTERNATIONAL
ABOUT CHIQUITA
Cincinnati, Ohio based company
Successor of United Fruit Company
Producer and distributor of bananas and other fresh fruit products
Fernando Aguirre
Controversies
Cincinnati Enquirer : “Chiquita Secrets Revealed”
Payment to paramilitary groups
Bribery : included foreign and local officials
Ongoing workers rights violation
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
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
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
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
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