Ralph Lauren Admits Bribery At Argentina Subsidiary

[camberiu]

Ralph Lauren Corp. has agreed to pay $1.6 million after finding that its subsidiary in Argentina repeatedly bribed customs officials, federal authorities announced Monday.


Full story

 

[Napoleon]

SHOCKING that the subsidiary thought that that was the best way to do business here.

I hope those people lost their jobs.

 

[Crema Americana]

SHOCKING that the subsidiary thought that that was the best way to do business here.

I hope those people lost their jobs.

Not just the ones doing the bribing, but the ones accepting the bribes. Funny that it's the United States Justice System that looked into it, so chances of the latter happening are pretty much nil.

In the end though, in the face of unfair laws and regulations, I'm not sure anyone should lose their job but rather perhaps the import system here needs to be changed. Maybe I'm becoming more Argentine than I thought.

 

[Parvati]

The fine comes from the US since it is an American based company and it should behave better.
Regarding the local customs officials, it is normal to take in gifts from smaller companies, and RL is a small company for all trade purposes. The gifts are the only way you can get your product back to the First Come First Served line. Larger companies don't give gifts, they have agreements and contracts based on volume of transported goods. So, BASF, BAYER, GM and so on will not give a gift but because they move a lot of products. They pay special prices and have better deals in their contracts so they get moved to the front of the line. They have priority. This bumps many smaller importers back... so they give a gift to get their product back in the line. Should it happen? No, but it does.

 

[ajoknoblauch]

Excellent summary of the topic: http://www.exportlawblog.com/archives/4927

 

[Rich One]

The female Customs Agent mentioned by the AFIP as one of the agents handlng RL imports claims she was not involved but was all coordinated thru the Central Government ???

 

[Napoleon]

The female Customs Agent mentioned by the AFIP as one of the agents handlng RL imports claims she was not involved but was all coordinated thru the Central Government ???

If this is true, I would find it absolutely SHOCKING as well!!

 

[ajoknoblauch]

If this is true, I would find it absolutely SHOCKING as well!!

I could never have imagined this in Argentina, and am utterly disillusioned.