Delphi Automotive PLC said it reported potential Foreign Corrupt Practices Act violations in China to U.S. authorities.
The U.K.-based auto parts supplier said in an SEC filing Thursday that it found potentially improper payments by employees in China earlier this year.
The investigation of the payments is ongoing and Delphi is cooperating with the U.S. agencies, the company said.
Delphi’s FCPA disclosure in its Form 10-Q said:
During the first quarter of 2014, Delphi identified certain potentially improper payments, made by certain manufacturing facility employees in China, that may violate certain provisions of the U.S. Foreign Corrupt Practices Act (the “FCPA”). Under the oversight of Delphi’s Audit Committee of the Board of Directors, Delphi has engaged outside counsel to assist in the review of these matters, and to evaluate existing controls and compliance policies and procedures. This review remains ongoing. Violations of the FCPA could result in criminal and/or civil liabilities and other forms of penalties or sanctions. Delphi has voluntarily disclosed these matters to the U.S. Department of Justice and the SEC, and is cooperating fully with these agencies. Although Delphi does not expect the outcome of this review to have a material adverse impact on the Company, there can be no assurance as to the ultimate outcome of these matters at this time.
Julie DiMauro is the executive editor of FCPA Blog and can be reached here.