Highways Dept to probe alleged bribery involving US tractor company
John Deere subsidiary Wirtgen Thailand to be investigated for allegedly bribing Thai officials in cash and in kind
The Highways Department is investigating a report that Wirtgen Thailand Ltd, a subsidiary of Deere & Company, the US-based manufacturer of John Deere agricultural tractors, made improper payments to department officials and to the Royal Thai Air Force.
Sarawut Songsivilai, the department’s director-general, said on Wednesday that he had just been notified of the issue and has ordered a probe into the facts.
Reuters reported on Tuesday that Deere had agreed to pay US$9.93 million (336 million baht) to settle US Securities and Exchange Commission (SEC) charges that its Thailand subsidiary offered massage parlour services and other improper gifts to win government business, and engaged in commercial bribery.
The SEC said payments were made even though the unit’s code of conduct prohibited giving “absolutely anything” to influence government officials.
Payments made from late 2017 through 2020 allegedly took the form of cash, meals, sham consulting fees, sightseeing ventures disguised as “factory visits” in Switzerland and other European countries, and massage parlour “entertainment”.
The SEC said Deere's conduct violated the books and records and the internal accounting controls provisions of a federal anti-bribery law, the Foreign Corrupt Practices Act.
The report said Deere’s payment includes a $4.5 million (151.8 million baht) civil fine, the disgorgement of $4.34 million (146.4 million baht) of improper benefits, and $1.09 million (36.7 million baht) of interest.
It also reflected Moline, Illinois-based Deere’s cooperation with the SEC, termination of employees involved in misconduct, and upgrades to compliance procedures and anti-bribery training.
Wirtgen Thailand Ltd registered in the Kingdom on July 25, 1997 with capital of 176 million baht to conduct wholesale and retail businesses involving moving and construction machinery.
The bribes were allegedly paid during the tenures of two former transport ministers: Arkhom Termpittayapaisith and Saksayam Chidchob. The Highways Department has had three directors-general, namely Thanin Somboon, Anon Luangboriboon, and its latest incumbent, Sarawut, during this period.
