Two American tobacco companies are paying nearly $US30 million ($A32.75 million) to settle charges that they bribed foreign officials to get lucrative overseas tobacco sales contracts.
The companies, Universal Corp of Richmond, Virginia, and Alliance One International of Morrisville, North Carolina, faced civil and criminal charges from the Securities and Exchange Commission and Justice Department, the government said on Friday.
Universal was accused of bribing officials in Thailand, Malawi and Mozambique. Alliance One is accused of bribing officials in Thailand, China, Greece, Indonesia, and Kyrgyzstan.
To settle the charges, Alliance One has agreed to pay a criminal fine of $US9.45 million ($A10.32 million) and return $US10 million ($A10.92 million) in profits. Universal has agreed to pay a criminal fine of $US4.4 million ($A4.8 million) and return $US4.5 million ($A4.91 million) in profits.
Alliance One could not be reached for comment. Universal Corp said in a statement the company voluntarily reported the problems to authorities and has cooperated with the investigation.
"We have absolutely no tolerance for this type of activity," CEO George C Freeman III said in a statement.
Universal said it had already put aside funds to cover the settlement amount, so it will not have to log a charge for its fiscal 2011 results.
Universal will use an independent corporate monitor to look over its accounting practices and will change or take up new policies as needed, the company said. The Justice Department will not prosecute Universal if it follows terms of an agreement between the department and the company for the next three years, Universal said.
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