WASHINGTON, Sept. 17, 2007

Chiquita Fined $25M For Funding Terrorists

Federal Court Fines Chiquita Brands For Payments To Colombian Narcoterrorist Groups

  • Chiquita bananas are piled on display at Heinen's grocery store in Bainbridge, Ohio on Aug. 3, 2005. A federal court accepted a plea agreement between the Justice Department and Chiquita Brands International Inc. that imposes a $25 million fine on the company for payments it made to Colombian insurgent groups, Monday Sept. 17, 2007. Photo

    Chiquita bananas are piled on display at Heinen's grocery store in Bainbridge, Ohio on Aug. 3, 2005. A federal court accepted a plea agreement between the Justice Department and Chiquita Brands International Inc. that imposes a $25 million fine on the company for payments it made to Colombian insurgent groups, Monday Sept. 17, 2007.  (AP)

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(AP)  A federal court on Monday accepted a plea agreement between the Justice Department and Chiquita Brands International Inc. that imposes a $25 million fine on the company for payments it made to Colombian narcoterrorist groups.

U.S. District Judge Royce C. Lamberth approved the agreement, reached in March, which also places the company on probation for five years. The fine is the largest ever imposed under U.S. counterterrorism laws.

The Justice Department said in a sentencing memo last week that it had decided against charging 10 company executives involved in the payoffs. That decision was made "based solely on the merits and the evidence" against them, a department spokesman said Sept. 12.

Chiquita said in a court filing Friday that it was forced to make the payments and was acting only to ensure the safety of its workers.

"Chiquita was extorted," the company said. "The threats facing Chiquita were very real, a point the government does not... contest."

Chiquita voluntarily alerted the Justice Department in April 2003 of the deals, which by that time had been ongoing for 15 years. The banana company admitted to paying about $1.7 million between 1997 and 2004 to the United Self-Defense Forces of Colombia, known as AUC for its Spanish initials.

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 AUC a terrorist group in September 2001.

Additionally, 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's shares fell 22 cents, or 1.4 percent, to $15.13 Monday.


© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Add a Comment See all 13 Comments
by keithle1 September 17, 2007 10:11 PM PDT
Talk about your bad PR.
Reply to this comment
by xzavierbrown September 17, 2007 11:19 PM PDT
sometimes these overpaid CEOs do not think..not worth the money they are getting paid..

here is a hint...*25 million dollars could buy a lot of security and clout..
Reply to this comment
by feelfree1 September 18, 2007 1:04 AM PDT

Re: "Chiquita Fined $25M For Funding Terrorists"

If Chiqita was funding "terrorists", shouldn''t their assets be frozen and seized, and their executives be tortured, off in some secret prison somewhere?

Could we have an update on the "terrorist" groups and individuals (airplane bomber- Luis Posada Carriles for example) that are approved by the Bush regime?
Reply to this comment
by edward1975-2009 September 18, 2007 1:48 AM PDT
What next, US found guilty of funding and arming Bin Laden in Afghanistan. Wait a minute, that really happened. My Bad.
Reply to this comment
by cride1 September 18, 2007 2:41 AM PDT
***. You gotta be kidding. I can''t live without eating a Chiquita banana a day.
Reply to this comment
by Krazcarl September 18, 2007 4:37 AM PDT
In some forgien countries it''s the price of doing business.
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by jjp735i September 18, 2007 5:59 AM PDT
Chiqita could grow there bananas elsewhere. They paid because they liked the cheap labor.
Reply to this comment
by olebd September 18, 2007 7:03 AM PDT
$25 million? No problemo, they will just pass that cost off to the consumers (they sell a lot of fruit) How silly.
Reply to this comment
by afmca September 18, 2007 9:02 AM PDT
Hey it had nothing to do with funding terrorism - this was just a simple marketing campaign to start selling banana flavored crack. Then junkies will have a start on their 5 fruits and veggies a day. It was a public service to address a serious, but little publicized, health concern.
Reply to this comment
by mandyzfelix September 18, 2007 10:13 AM PDT
"was just a simple marketing campaign to start selling banana flavored crack."

HAHAHAHA...nice.
Reply to this comment
by socrates392 September 18, 2007 12:21 PM PDT
Another victory for the patriot act!
Reply to this comment
by cbslogin12 September 18, 2007 12:40 PM PDT
Michael Chertoff, the Secretary of the Department of Homeland Security, did nothing as Assistant U.S. Attorney General, when he discovered that a this U.S. company was making payments to a terrorist group.

http://www.debbieschlussel.com/archives/2007/08/outrage_homelan_2.html
Reply to this comment
by sanfelz September 18, 2007 8:19 PM PDT
Mr Bush and General Petreaus are very proud of the former insurgent tribes in Anwar province joining the U.S. in fighting Al-Qaeda. Let us not forget that a few months ago these same tribes were terrorists. And bribes, in one form or another, are a regular part of doing business in this country.
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