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On February 10, General Cable Corp. disclosed in an 8-K that it had increased its already-accrued $24 million reserve to $28 million related to potential disgorgement the company anticipates having to pay the SEC for FCPA violations in Angola, Thailand, India, and Portugal. The 8-K stated that $28 million represented the estimated profit gained from transactions with FCPA implications, but that the disgorgement reserve may increase to $33 million because the company has also identified other transactions that may raise FCPA concerns. In September 2014, the fiber-optic cable manufacturer previously disclosed its internal investigation of payment practices with respect to employees of public utility companies in Angola, Thailand, India, and Portugal and stated that it was cooperating with the DOJ and SECs investigations into those practices.
Just a month after announcing its internal investigation of possible FCPA violations, news reports indicate that General Cable Corporation's review will be completed or substantially completed by the first quarter of 2015. The company also announced that it "plans to exit all of its Asia Pacific and African manufacturing operations," although it did not link the exit — which affects nine plants in Asia and five plants in Africa, and approximately 17% of its total sales — to its FCPA investigation. In September, the Kentucky-based cable manufacturer announced that it was investigating its payment practices with respect to employees of public utility companies in Angola, Thailand, India and Portugal due to possible FCPA concerns. News reports indicate that, to date, the company has spent millions on the review, which has included a review of over 450,000 documents and interviews of over 20 individuals. The company also disclosed that it was cooperating with investigations by the DOJ and SEC.
In a Form 8-K filed on September 22, General Cable Corporation stated that it is reviewing its payment practices with respect to employees of public utility companies in Angola, Thailand, India and Portugal due to possible FCPA concerns. The cable manufacturer, which is based in Kentucky, determined that "certain employees in [its] Portugal and Angola subsidiaries directly or indirectly made payments at various times from 2002 through 2013 to officials of Angola government-owned public utilities that raise concerns under the FCPA and possibly under the laws of other jurisdictions." The investigation also covers General Cable's use and payment of agents in Thailand and India, which the company also believes may have implications under the FCPA or other laws. According to General Cable's filing, it voluntarily disclosed the issues to the SEC and the DOJ, whose investigations are ongoing.
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