General Cable Says It’s Complying With Bribery Agreement (1)

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By Victoria Graham

The Justice Department confirmed May 23 that it’s not investigating General Cable Corp., a Kentucky-based manufacturer and distributor of cable, aluminum, and fiber-optic wires, for possible bribery violations, Bloomberg reported.

Capitol Forum reported May 22 that General Cable was being investigated for violations of the Foreign Corrupt Practices Act, citing a Freedom of Information Act request. However, the DOJ clarified a day later that the request was a FOIA denial related to a nonprosecution agreement General Cable entered into in 2016.

General Cable has remained in compliance with its 2016 nonprosecution agreement (NPA) with the DOJ, the company said in a May 22 press release.

“We periodically communicate with the DOJ as required by the NPA, and we are not aware of any new DOJ enforcement action or investigation against the Company at this time,” the statement said.

General Cable entered into the agreement with the DOJ after authorities uncovered a series of bribery payments the company’s foreign subsidiaries made to officials in Angola, Bangladesh, Indonesia, Thailand, and China to secure and retain business. Between 2002 and 2013, General Cable “made more than $13 million in payments to third-party agents and distributors which were used to make unlawful payments to secure approximately $51 million in profits to General Cable,” according to the final agreement.

The company paid more than $20 million in penalties to the DOJ, which reflected a discounted fine since General Cable voluntarily self-disclosed the conduct and cooperated with federal investigators. General Cable also paid $55 million in disgorgement to the Securities and Exchange Commission to settle allegations of improper accounting controls stemming from the same bribe payments.

General Cable is required to maintain its compliance and ethics program and report to the DOJ every year regarding its compliance measures, under the agreement with the Justice Department, which expires in 2019.

To contact the reporter on this story: Victoria Graham in Washington at vgraham@bloomberglaw.com

To contact the editor responsible for this story: Fawn Johnson at fjohnson@bloomberglaw.com

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