Asia-Pacific

Schnitzer Steel paying $15.2m over bribes in Asia

(AP)
Updated: 2006-10-17 09:21

Brian Gard, spokesman for Schnitzer, said the company could not discuss any personnel issues.

But at least one unnamed senior Schnitzer executive was mentioned in the SEC's investigation.

After the company discovered the situation, the executive prohibited further payments but allowed two previously promised payments to go forward, according to the SEC's cease-and-desist order.

The order states that the executive also authorized an increase in entertainment expenses to be used in lieu of the payments, and that employees then gave mill managers additional gifts, including a $10,000 gift certificate and a $2,400 watch.

Federal regulators said they are still investigating the people involved and there could be further action taken against them.

"This is definitely a case that emphasizes that companies need to monitor what is going on with their foreign subsidiaries," Carlos Vasquez, staff attorney for the SEC, said in a telephone interview from San Francisco, California.

Schnitzer is also required to add a compliance officer and improve its self-monitoring.

The company said it has adequate reserves, set aside in the first and third quarter, to pay for the costs.

Schnitzer stock rose $1.05, or 3.27 percent, to close Monday at $33.14 on the Nasdaq Stock Market.