Tyson admits bribing Mexican DVMs, must pay $5.2 million in fines

Washington

— Two government veterinarians in Mexico made more than $90,000 from Tyson Foods to turn the other cheek at one of its poultry processing plants, but now the bribes will cost the company $5.2 million in fines from the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).

According to the DOJ, Tyson de Mexico representatives paid about $90,000 from 2004 to 2006 to two veterinarians employed by the Mexican government who were in charge of inspecting the company’s Mexican food processing plants. The payments were made directly to the veterinarians and also to their wives, who were listed on Tyson’s payroll even though they didn’t work there, says the justice department.

Justice officials say the payments were meant to keep the veterinarians from disrupting operations at a chicken processing plant in Gomez Palacio, Mexico. The estimated profit made by Tyson as a result of the bribes is about $880,000, according to the justice department.

In addition to a $4 million DOJ fine, Tyson must implement “rigorous internal controls” and cooperate fully with the justice department. In recognizing Tyson’s voluntary disclosure of the crime, the justice department says it will dismiss the criminal charges in two years if the company abides by the terms of its agreement.

Tyson officials say the improper payments began before the parent company acquired interest in Tyson de Mexico. The company adds that no products were shipped to the United States from the plant, nor were there any food safety issues with the meat processed during that time.

Tyson stopped the payments in 2006 following an internal investigation and voluntarily reported its findings to the justice department and the U.S. Securities and Exchange Commission (SEC). A $1.2 million penalty for a “disgorgement payment” also was levied by the SEC.