Panasonic Avionics Corporation today announced that it has entered into an agreement with the U.S. Department of Justice (DOJ) to resolve a charge under the U.S. Foreign Corrupt Practices Act (FCPA).
Panasonic Corporation (Panasonic) has also entered into a settlement agreement with the U.S. Securities and Exchange Commission related to a previously disclosed investigation of the FCPA and other securities laws violations at Panasonic Avionics.
Panasonic and Panasonic Avionics will pay a combined total of approximately $280.6 million to the U.S. government in connection with these resolutions. Panasonic Avionics has also agreed to engage an independent compliance monitor for a period of two years, after which Panasonic Avionics will self-report for one year.
“We are pleased to have resolved these investigations; we have taken extensive steps over the past few years to strengthen Panasonic Avionics’ compliance programs and internal controls, and we welcome an independent compliance monitor to assess our progress,” said Hideo Nakano, CEO of Panasonic Avionics.
Remedial actions taken include:
- Installing a new executive management team, including a new Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and Chief Compliance Officer
- Strengthening internal financial controls
- Developing an enhanced compliance program under the leadership of the new Chief Compliance Officer
- Hiring a global team of compliance, finance and audit experts
- Substantially reducing, and enhancing the controls around, the use of third-party agents and consultants
“This is an ongoing effort and the company will continue to strengthen its compliance programs and internal controls,” added Nakano. “With these investigations behind us, we are confident that Panasonic Avionics is well- positioned for long-term success under our new management team.”