Prosecutors said Chiquita began paying the right-wing AUC after a meeting in 1997 and disguised the payments in company books …….”Chiquita sold its Colombian banana operations in June 2004.”
The AUC has been responsible for some of the worst massacres in Colombia’s civil conflict and for a sizable percentage of the country’s cocaine exports. The U.S. government designated the right-wing militia a terrorist organization in September 2001.
Prosecutors said the company made the payments in exchange for protection for its workers. In addition to paying the AUC, prosecutors said, Chiquita made payments to the National Liberation Army, or ELN, and the leftist Revolutionary Armed Forces of Colombia, or FARC, as control of the company’s banana-growing area shifted.
Chiquita sold its Colombian banana operations in June 2004.
Details of the settlement were not included in court documents, but Aguirre said Chiquita would pay $25 million in fines, which it set aside this year. The company reported the deal to the Securities and Exchange Commission. A plea hearing was scheduled for Monday.
The payments were approved by senior executives at Chiquita, prosecutors wrote in court documents. Prosecutors said Chiquita began paying the right-wing AUC after a meeting in 1997 and disguised the payments in company books.
“No later than in or about September 2000, defendant Chiquita’s senior executives knew that the corporation was paying AUC and that the AUC was a violent paramilitary organization,” prosecutors wrote in Wednesday’s court filing.
Company attorneys made it clear the payments were improper, prosecutors said.
“Bottom line: CANNOT MAKE THE PAYMENT,” the company’s outside counsel advised in February 2003, according to an excerpt of a memo included in court documents.