Goodyear pays $16 million to settle S.E.C. foreign bribe charges

Goodyear Tire & Rubber Co. has paid $16 million to settle charges by the U.S. Securities and Exchange Commission that it violated the Foreign Corrupt Practices Act, when its subsidiaries paid bribes to land tire sales in Kenya and Angola. The SEC said Goodyear failed to prevent or detect more than $3.2 million in bribes during a four-year period.  The alleged bribes were  paid to the employees of private companies, government-owned entities or other local authorities and were recorded as legitimate business expenses.

Goodyear said that in 2011, it had received tips about improper payments in Kenya through its confidential ethics hotline and in Angola from an employee. The company launched an investigation and “voluntarily disclosed” its results to the Department of Justice and the commission.

“As a result of its review, the company has implemented, and is continuing to implement, appropriate remedial measures,” the statement continued. “Goodyear divested its ownership interest in the Kenyan business in 2013 and the company is in the process of selling the Angolan business.”

Jeffrey Newman represents whistleblowers