FREIGHT forwarder Panalpina has agreed to pay the US government US$375,000 to settle allegations that the company bribed employees of a customer to swing business their way.

The settlement resolves allegations that Panalpina provided kickbacks in the form of meals, drinks and tickets to sports events and golf outings to employees in construction firm Kellogg Brown & Root's transport department, in order to gain favourable treatment on subcontracts to provide logistical support for US military operations abroad, reports London's International Freighting Weekly.

Panalpina was cited as saying: "The majority of the alleged expenses involved the purchase of soda, meals and golf green fees.

"Under the terms of the settlement agreement, neither Panalpina nor the US government admit or deny any of the allegations, but have mutually agreed to close the investigation and dismiss the complaint."

The US has previously settled claims with Eagle Global Logistics (EGL, now CEVA) related to the same $5 million lawsuit.

Panalpina said that it had launched an internal probe and that employees allegedly involved were no longer working at the company.

The Swiss forwarder said it also expected a settlement to be reached with the US government over alleged facilitation payments in Nigeria under the Foreign Corrupt Practices Act this year. Panalpina has since withdrawn from Nigeria, saying it could no meet high service standards without resorting to facilitation payments.

It has set aside US$123 million to cover the settlement and fines relating to the US antitrust investigation.

Panalpina in the second quarter saw air freight volumes surge by 36 per cent year on year and ocean freight volumes increase by 19 per cent. It also increased profitability per freight unit quarter-on-quarter.

Source: shipping online