Chiquita agrees to fine for Colombia payments

Chiquita agrees to fine for Colombia payments Chiquita Brands International has reached a plea agreement with the U.S. Justice Department, to pay a $25 million fine for making illegal payments to paramilitary through its former banana-producing subsidiary in Colombia several years ago.
   'In 2003, Chiquita voluntarily disclosed to the Department of Justice that its former banana-producing subsidiary had been forced to make payments to right- and left-wing paramilitary groups in Colombia to protect the lives of its employees,' Chiquita said in a statement Wednesday. 'The company made this disclosure shortly after senior management became aware that these groups had been designated as foreign terrorist organizations under a U.S. statute that makes it a crime to make payments to such organizations. Since voluntarily disclosing this information, Chiquita has continued to cooperate with the DOJ's investigation.'
   Chiquita said it made the payments in good faith, concerned about the safety of its employees, but then realized it had a legal obligation 'to inform the DOJ of this admittedly difficult situation.'
   Chiquita said it had already set up a reserve for the full amount of the fine in 2006, and it will have no impact on the company's ability to operate.
   Under the agreement, Chiquita will be allowed to pay the fine in five annual installments.