Settlements

ST-452
Goodyear Tire & Rubber Company
Goodyear Tire & Rubber Company
United States
Securities and Exchange Commission
Angola, Kenya
2015
2/24
Unknown
Legal Person
Civil
Cease and Desist Order
Disgorgement of Profits, Prejudgment Interest
$16,228,065
$14,122,525
$2,105,540
$0
$0
NA
$0
NA
Art.16
Art. 1, Art. 2, Art. 8
Falsification of Books and Records; Internal Controls Violations
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission, Goodyear Tire & Rubber Company "failed to prevent or detect more than $3.2 million in bribes during a four-year period due to inadequate FCPA compliance controls at its subsidiaries in sub-Saharan Africa. Bribes were generally paid in cash to employees of private companies or government-owned entities as well as other local authorities such as police or city council officials. The improper payments were falsely recorded as legitimate business expenses in the books and records of the subsidiaries, which were consolidated into Goodyear’s books and records. [ ] The SEC’s order finds that Goodyear’s subsidiary in Kenya bribed employees of the Kenya Ports Authority, Armed Forces Canteen Organization, Nzoia Sugar Company, Kenyan Air Force, Ministry of Roads, Ministry of State for Defense, East African Portland Cement Co., and Telkom Kenya Ltd. Goodyear’s subsidiary in Angola bribed employees of the Catoca Diamond Mine, which is owned by a consortium of mining interests including Angola’s national mining company Endiama E.P. and Russian mining company ALROSA. Others bribed in Angola worked at UNICARGAS, Engevia Construction and Public Works, Electric Company of Luanda, National Service of Alfadega, and Sonangol." (Source: SEC Press Release, "SEC Charges Goodyear With FCPA Violations," February 24, 2015, at https://www.sec.gov/news/pressrelease/2015-38.html.)