Fiat agrees $10.6m Iraq settlement
Author: MotorTorque Team
Published: 02 January 2009
Fiat has agreed to pay £10.6m in order to settle accusations that it was involved in 'kickbacks' with Saddam Hussein's regime, and has admitted to 'regrettable incidents' in the affair, according to the Financial Times.
The US Securities and Exchange Commission who investigated the allegation, released information that revealed that Fiat and CNH Global, Fiat's subsidiary, paid over $4.3 million to Iraqi officials to the regime between 2000 and 2003 for the sale of 'humanitarian goods', which included vehicles, equipment and parts.
It is claimed that 'kickbacks' were disguised as 'after-sales service fees'.
Commenting on the settlement, a Fiat representative said, "The settlements close a regrettable incident which happened in the long-ago history of the Fiat Group,” a Fiat told Reuters news agency.
"The Fiat Group has since put in place rigorous internal controls and compliance programmes to which the group and its subsidiaries strictly adhere."
Both Fiat and CNH Global did not admit or deny any wrongdoing as part of the settlement, which saw Fiat paying two penalties which totalled $10.6m, including $5.3m in profits and $1.9m in prejudgment interest.
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