Volvo agrees to penalty over Iraq Oil-for-Food
March 20, 2008 
Reuters
Original Source: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSWBT00862520080320

WASHINGTON, March 20 (Reuters) - Swedish truck and vehicle maker Volvo AB (VOLVb.ST: http://www.reuters.com/stocks/quote?symbol=VOLVb.ST Quote, http://www.reuters.com/stocks/companyProfile?symbol=VOLVb.ST Profile, http://www.reuters.com/stocks/researchReports?symbol=VOLVb.ST Research) has agreed to pay a $7 million penalty as part of an agreement with the U.S. Justice Department in connection with a probe of the U.N. Oil for Food program for Iraq, the Justice Department said on Thursday.
Under the agreement, Volvo acknowledges responsibilities for the actions of its subsidiaries, Renault Trucks SAS and Volvo Construction Equipment AB, who are accused of violating the Foreign Corrupt Practices act. The Justice Department said the subsidiaries paid kickbacks to the Iraqi government under Saddam Hussein to obtain contracts for the sale of trucks and heavy construction equipment.
(Reporting by Randall Mikkelsen, editing by Phil Berlowitz)