SEC investigating Kraft for corruption in India

Tuesday, 8 March 2011 00:02 - - {{hitsCtrl.values.hits}}

Reuters: The US Securities and Exchange Commission is investigating Kraft Foods Inc for possible corruption at an Indian facility of its Cadbury unit, the company said in a regulatory filing.

Kraft, the marker of Maxwell House coffee, Oscar Meyer lunchmeats and Velveeta cheese, received a subpoena from the SEC on 1 February, the filing said.

The subpoena, issued in connection with the Foreign Corrupt Practices Act, requests information about company dealings with Indian government agencies and officials related to obtaining approvals for operations of the facility.

Kraft, which bought Cadbury in February 2010, said in the filing that it is cooperating with the US Government in the investigation. The company said it does not expect that costs of any resolution will effect its financial results.