Fiat Settles Saddam Hussein Regime Lawsuit

Italian automaker Fiat will pay no less than $17.8 million to settle a lawsuit claiming three of its subsidiaries transferred around $4.3 million to Iraq in order to “obtain contracts to provide Iraqi Ministries with industrial pumps, gears and other equipment,” a report issued by Times Online reads. The complain filed by America's Securities and Exchange Commission, formerly known as SEC, claims that Iveco, CNH Italia and CNH France made so-called “improper payments” between 2000 and 2003.

“The payment meant that money was diverted to Iraqi-controlled accounts rather than to a United Nations third-party account set up for the purchase of humanitarian goods,” the aforementioned source mentioned in the report published today.

The Italian manufacturer gained approximately $5.3 million using the contracts obtained with the help of those “improper payments”, the SEC court filing explains. The lawsuit was filed on Monday, Times Online wrote, against the three aforementioned Fiat subsidiaries.

Fiat only confirmed the accusations, explaining that such a thing is impossible nowadays when the company is conducting more severe controls on the majority subsidiaries it currently owns. However, it acknowledged that although it happened a long time ago, it's disappointing to see such a large company as Fiat involved into Iraqi bribe claims and promises to eradicate similar attempts that may happen in the future.

“The settlements close a regrettable incident which happened in the long-ago history of the Fiat Group. The Fiat Group has since put in place rigorous internal controls and compliance programmes to which the group and its subsidiaries strictly adhere,” a Fiat spokesman commented on the settlement.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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