AB-InBev fined USD 6 million to settle bribery accusations

The practice of slipping bureaucrats a back hander is coming under increased scrutiny by US regulators. Not just in the US, but in foreign countries too. A minority-owned joint venture of AB-InBev used third-party sales promoters from 2009 to 2012 to make improper payments to officials in India to boost sales and production.

On 28 September 2016, AB-InBev agreed to pay USD 6 million to settle charges that it had violated US foreign bribery laws and “chilled a whistleblower”, according to the US Securities and Exchange Commission (SEC), which had conducted the investigation.

AB-InBev owned 49 percent of the joint venture, Crown Beers India, at the time.

The SEC said AB-InBev violated the accounting provisions of US foreign bribery laws by having inadequate internal controls to detect and prevent the improper payments, despite repeated complaints from employees. The company also failed to ensure that transactions involving the promoters were recorded properly in its books and records, the agency added.