Settlement reported to be close in foreign government bribery scandal
24 March 2010

Daimler is reported to be preparing to pay a fine of £121m after it three of its subsidiaries were accused of paying bribes to foreign governments.

The allegations were made in court papers filed in the United States, and suggest Daimler made the payments - totalling tens of millions of dollars - to 22 governments between 1998 and 2008.

The payments are reported to have been made to persuade the governments - including China, Russia, Egypt and Greece - to buy Daimler vehicles.

One of the most damaging accusations is that Daimler paid kickbacks to Iraqi government officials to secure deals to sell vehicles, violating the United Nations' Oil for Food Program.

American law prohibits companies which operate in the US from making improper payments to officials of other countries. The US Justice Department has pursued other major companies on similar corruption charges recently, including Siemens.

Daimler has made no comment on the matter, beyond acknowledging payments that raised legal concerns.

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