Chiquita’s past in Colombia returns to courtrooms

In a decision that could have far-reaching implications for corporate accountability in the agricultural sector, a Colombian court has sentenced seven former Chiquita Brands executives, including American Charles Dennis Keiser, to prison and imposed $3.4 million in fines. The court found them guilty of aggravated conspiracy for making covert payments to the United Self-Defense Forces of Colombia (AUC) — a paramilitary group linked to widespread human rights violations — during the country’s civil conflict between 1990 and 2004 in the Urabá region, a key banana-producing area.

The case draws renewed attention to the risks tied to operating in conflict zones and the responsibility companies bear in local dynamics. Chiquita’s alleged payments were made while the company was sourcing bananas from Colombia, a major export country for fresh produce.

In a related ruling last year, a U.S. jury held Chiquita liable for financing the AUC, awarding $38.3 million to the families of eight victims. The lawsuit, backed by EarthRights International, underscores the growing legal and reputational risks for companies with supply chains in politically sensitive regions.

source: barrons.com

photo: chiquita.es