Tyson Foods Settles Investigation Into Mexican Operations

Tyson Foods said it has resolved a matter with the U.S. government involving Tyson’s "voluntary disclosure" of improper payments related to an export program at the company’s Mexican poultry subsidiary.

Springdale-based Tyson will pay $5.2 million to the U.S. Department of Justice and U.S. Securities Exchange Commission and participate in a two-year probationary period related to compliance monitoring.

In early 2007, Tyson said it voluntarily reported that improper payments of more than $100,000 had been made by Tyson de Mexico to two Mexican government veterinarians, both directly and through their spouses. The veterinarians were responsible for certifying chicken products for export as part of a voluntary government inspection program.

Tyson said the payments occurred before it acquired an interest in the company now called Tyson de Mexico. The company also contends that the payments were allowed under Mexican law when the veterinarians were in private practice, but that they should have been discontinued when the doctors began working for the federal government.

After disclosing the payments to federal officials, Tyson said the investigations led to claims of violations of the Foreign Corrupt Practices Act.

"We’re committed to abiding by the law as well as our company’s core values, which call on all of our people to operate with integrity," said David L. Van Bebber, executive vice president and general counsel for Tyson Foods. "While we’re disappointed mistakes were made, corrective action has been taken and the improper payments were discontinued."

Tyson de Mexico, based in Gomez Palacio in north central Mexico, includes three poultry processing plants. It produces protein-based and prepared foods that comprise about one percent of Tyson Foods’ total net sales.