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Chiquita admits payments to alleged Colombian terrorists

Chiquita admits payments to alleged Colombian terrorists

   Chiquita Brands International, a producer of bananas and other fresh fruit, said its subsidiary in Colombia made protection payments to alleged terrorist groups.

   In April 2003, Chiquita’s management and audit committee voluntarily disclosed to the U.S. Justice Department that such payments had been made.

   More than a year later, Chiquita publicly said the Justice Department was investigating the conduct of the company and some of its officers.

   Fernando Aguirre, Chiquita’s chief executive, told financial analysts his company had responded “very seriously” to the investigation. “We believe it’s manageable,” he added.

   Aguirre noted, “this issue only involves our Colombia subsidiary.”

   Chiquita ships bananas from northern Colombia, a region partially controlled by the outlawed United Self-Defense Forces of Colombia, a group that has killed thousands of people for suspected links with Marxist rebels.

   Payoffs to illegal armed groups are not uncommon in Colombia. Chiquita notified the Justice Department after learning that pursuing such accommodations with terrorists was a criminal violation of U.S. law.