(News Bulletin 247) – Philips has agreed to pay more than $62 million in order to put an end to suspicions of corruption concerning its activities in China, the American stock market policeman announced last night.
The Dutch specialist in health equipment will pay 15 million dollars in civil fines as well as more than 47 million dollars in damages, specifies the Securities and Exchange Commission (SEC).
According to the SEC, its Chinese subsidiaries have granted exceptional price reductions to distributors, allowing them to generate excessive margins in order to finance undue payments to officials.
The SEC investigation also found that employees, distributors and sub-distributors of Philips’ China subsidiaries engaged in improper practices aimed at influencing hospital officials to write technical specifications likely to favor the products of the Dutch group in the context of calls for tenders.
Under the terms of the agreement, Philips has neither admitted nor denied any wrongdoing.
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