On April 24, 2003, a board member of Chiquita International Brands disclosed to a top official at the Justice Department that the king of the banana trade was evidently breaking the nation's anti-terrorism laws.
Roderick M. Hills, who had sought the meeting with former law firm colleague Michael Chertoff, explained that Chiquita was paying "protection money" to a Colombian paramilitary group on the U.S. government's list of terrorist organizations. Hills said he knew that such payments were illegal, according to sources and court records, but said that he needed Chertoff's advice.
Chiquita, Hills said, would have to pull out of the country if it could not continue to pay the violent right-wing group to secure its Colombian banana plantations. Chertoff, then assistant attorney general and now secretary of homeland security, affirmed that the payments were illegal but said to wait for more feedback, according to five sources familiar with the meeting.
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Sources close to Chiquita say that Chertoff never did get back to the company or its lawyers. Neither did Larry D. Thompson, the deputy attorney general, whom Chiquita officials sought out after Chertoff left his job for a federal judgeship in June 2003. And Chiquita kept making payments for nearly another year.
What transpired at the Justice Department meeting is now a central issue in a criminal probe...
Chiquita's executives left the meeting convinced that the government had not clearly demanded that the payments stop.
Why, there's a legitimate debate about United Fruit/Chiquita bribing the AUC because they are not al qaeda; Chiquita serves as stabilizing force in the region; and this all thus serves legitimate US interests.
Justice officials have acknowledged in court papers that an official at the meeting said they understood Chiquita's situation was "complicated," and three of the sources identified that official as Chertoff. They said he promised to get back to the company after conferring with national security advisers and the State Department about the larger ramifications for U.S. interests if the corporate giant pulled out overnight.
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But legal sources on both sides say there was a genuine debate within the Justice Department about the seriousness of the crime of paying AUC. For some high-level administration officials, Chiquita's payments were not aiding an obvious terrorism threat such as al-Qaeda; instead, the cash was going to a violent South American group helping a major U.S. company maintain a stabilizing presence in Colombia.
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Then, on April 24, the company executives met with Justice officials, including Chertoff. They disclosed the payments and Justice officials said they were against the law. Hills said he agreed, but stressed that Chiquita would have to withdraw from the country if it did not pay AUC, and noted this could affect U.S. security interests in that region.
United Fruit/Chiquita's arms-running side operation is news to me. I guess the malfeasance must just stop with arms and bribes. Probably no drug running involved.
An Organization of American States report in 2003 said that An Organization of American States report in 2003 said that An Organization of American States report in 2003 said that Chiquita participated in smuggling thousands of arms for paramilitaries into the Northern Uraba region, using docks operated by the company to unload thousands of Central American assault rifles and ammunition.
Iguaran, whose office has been investigating Chiquita's operations, said the company knew AUC was using payoffs and arms to fund operations against peasants, union workers and rivals. At the time of the payments, AUC was growing into a powerful army and was expanding across much of Colombia and, according to the Colombian government, its soldiers killed thousands before it began demobilizing.
Chiquita participated in smuggling thousands of arms for paramilitaries into the Northern Uraba region, using docks operated by the company to unload thousands of Central American assault rifles and ammunition.
Iguaran, whose office has been investigating Chiquita's operations, said the company knew AUC was using payoffs and arms to fund operations against peasants, union workers and rivals. At the time of the payments, AUC was growing into a powerful army and was expanding across much of Colombia and, according to the Colombian government, its soldiers killed thousands before it began demobilizing.
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