Panasonic Draws U.S. Bribery Probe
Baku, April 1 (AZERTAC). U.S. authorities are investigating whether a unit of Japanese electronics giant Panasonic Corp paid bribes abroad to land business, according to company documents reviewed by The Wall Street Journal.
The legal department for Panasonic Avionics Corp., a subsidiary based in Lake Forest, Calif., that makes in-flight entertainment and communications systems for airlines, has instructed certain executives and employees to preserve documents that may be relevant to the U.S. government's investigation.
A Jan. 20 retention notice, which was reviewed by The Wall Street Journal, told recipients to hold on to documents "concerning any benefits or gifts provided, or the payment of anything of value, by Panasonic or PAC to any airline employee or government officials."
The notice also requested the preservation of documents "reporting rumors, concerns and/or complaints regarding any alleged acts of bribery of corruption by Panasonic or PAC employees."
The Jan. 20 notice said that Panasonic intends to "cooperate fully" with the government investigation, and that the existence of the inquiry doesn't indicate that the company broke the law.
In an emailed statement on Friday, a Panasonic spokesman said, "It is Panasonic Avionics Corp.'s policy not to comment on government investigations."
A second notice, dated March 25, said that Panasonic had received a subpoena from government investigators earlier in the month.
According to that notice, the subpoena sought communications between Panasonic Avionics and a number of its consultants and middlemen, as well as documents related to payments to those third parties.
The notices were sent to dozens of executives and employees based in Asia, Europe and the Middle East and they both reference the 1977 Foreign Corrupt Practices Act, which bars U.S. companies and companies listed on U.S. stock exchanges from paying bribes to foreign government officials.
The law, which covers direct payments and gifts to foreign officials, as well as those made by third parties on behalf of the company, is jointly enforced by the Securities and Exchange Commission and the Justice Department. The two agencies frequently collaborate on cases.
The company's retention notices didn't specify which government agency sent the subpoena.
Spokesmen for the SEC and the Justice Department declined to comment on Friday.
The government seldom discloses the status of cases.
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