Diebold Reserves $18 Million for Possible Bribery Settlement

By on February 5, 2013
Diebold Inc. announced last week that the company has set aside $18 million for the settlement of an investigation by U.S. authorities into possible foreign bribery.

The company, which makes ATMs and security systems, revealed last summer that it had been involved in talks with the U.S. Department of Justice and the SEC to resolve possible claims involving violations of the Foreign Corrupt Practices Act (FCPA), a federal law designed to prohibit illicit payments by companies to foreign officials in exchange for business advantages.

Preliminary year-end results released Thursday said that the company had not yet reached a formal agreement with either agency but it has set aside roughly $18 million in anticipation of any eventual settlement.  Diebold admits that any final settlement could differ from its current estimation.

In 2010, Diebold disclosed that it was looking into payments by a Russian subsidiary which may have violated the FCPA,. The company has since fired numerous higher-ups of the Russian subsidiary.