After a $500 million penalty in the US, Teva Pharmaceutical will be fined NIS75 million in Israel for involvement in a corruption scandal in Eastern Europe, and Mexico.
On Monday, the State Prosecutor’s Office signed a conditional arrangement with the pharmaceutical giant, in which it would admit for its involvement in the affair.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
According to the findings of an investigation conducted first in the United States and continued in Israel, the company paid “corrupt payments” to public employees in Russia and Ukraine. In addition, the company made improper payments in Mexico, thereby generating a profit of $220 million.
Some of these payments, paid by foreign subsidiaries – which are wholly owned by the Company – were not described as they were in the companies’ records and were actually presented as legitimate expenses, while the company records were consolidated into Teva’s reports.
Two years ago, Teva was involved in an arrangement with law enforcement agencies in the United States, in which it paid a fine and returned $500 million in revenue.
Following the findings of the American investigation, it was decided to open an investigation in Israel to examine the implications of the affair in Israel, an investigation conducted by Lahav 433.
According to the arrangement signed by the law, Teva admits its involvement in the affair, as it admitted in the United States. The amount of a financial sanction would justify the criminal proceedings against the pharmaceutical giant or any company associated with it.
As part of the investigation, the company has already paid substantial sums to law enforcement agencies in the United States, which were paid following an agreement signed with the US authorities. Now, a similar arrangement has been made in Israel. As part of the settlement with Teva, Teva took responsibility for its share in the offenses and will pay the money as a practical expression of taking responsibility for the actions.
The State Prosecutor’s Office reported that the company cooperated during the investigation. Teva also “took actions that included the termination of its problematic business relationships with a number of external factors, the termination of the employment of the relevant employees involved in the illegal activity, the replacement of the management of several subsidiaries and the cessation of operations in several countries.”
The State Attorney’s Office noted that the financial situation of the pharmaceutical giant has become part of the punitive considerations: “In view of these considerations and the conditions of the arrangement and the special circumstances of this case, the state believed that signing the arrangement with Teva met the public interest under the circumstances.”
