The Crimes of Chiquita

1. In 1984 the United Fruit Company (UFCO) was renamed Chiquita Brands International. While I will not delve too deeply into the transgressions of the UFCO, I will say that the country I was born and spent 18 years of my life in, Guatemala, owes much of the political turmoil in it’s modern history to the United Fruit Company. In 1954, democratically elected Jacobo Arbenz was ousted by a CIA-orchestrated coup that was put into motion by the political influence of the United Fruit Company. All of this is documented very well in the book Bitter Fruit.

2. In 1998, Chiquita’s systemic abuses were documented by an expose in the Cincinatti Enquirer, entitled “Chiquita Secrets Revealed”. The Cincinatti Enquirer was forced to run a dramatic retraction because Michael Gallagher obtained a lot of the information illegally by hacking into the company’s voice mail system, but none of the factual claims in the 18 page series have been disputed or proven wrong. The expose covers a variety of abuses including mistreating Central American workers, polluting the environment, allowing cocaine to be brought into the United States on it’s ships, bribing foreign officials, evading the laws of foriegn countries, and forcibly preventing it’s workers from unionizing.

3. In 2001, Chiquita was forced to pay a $100,000 penalty after the Securities and Exchange Commission found it guilty of bribing a foreign official in Colombia.

4. In 2007, Chiquita plead guilty to paying $1.7 million to the Auto-Defensas Unidas de Colombia (AUC) which I have written about many times.

Source

  • Chiquita secretly controls dozens of supposedly independent banana companies. It does so through elaborate business structures designed to avoid restrictions on land ownership and national security laws in Central American countries. The structures also are aimed at limiting unions on its farms.
  • Chiquita and its subsidiaries are engaged in pesticide practices that threaten the health of workers and nearby residents, despite an agreement with an environmental group to adhere to certain safety standards.
  • Despite that environmental agreement, Chiquita subsidiaries use pesticides in Central America that are not allowed for use in either the United States or Canada, or in one or more of the 15 countries in the European Union.
  • A worker on a Chiquita subsidiary farm died late last year after exposure to toxic chemicals in a banana field, according to a local coroner’s report.
  • Hundreds of people in a Costa Rican barrio have been exposed to a toxic chemical emitting from the factory of a Chiquita subsidiary.
    Employees of Chiquita and a subsidiary were involved in a bribery scheme in Colombia that has come to the attention of the U.S. Securities and Exchange Commission (SEC). Two employees have been forced to resign.
  • Chiquita fruit-transport ships have been used to smuggle cocaine into Europe. Authorities seized more than a ton of cocaine (worth up to $33 million in its pure form) from seven Chiquita ships in 1997. Although the company was unaware and did not approve of the illegal shipments, problems were traced to lax security on its Colombian docks.
  • Security guards have used brute force to enforce their authority on plantations operated or controlled by Chiquita. In an internationally controversial case, Chiquita called in the Honduran military to enforce a court order to evict residents of a farm village; the village was bulldozed and villagers run out at gunpoint. On a palm plantation controlled by a Chiquita subsidiary in Honduras, a man was shot to death and another man injured by guards using an illegal automatic weapon. An agent of a competitor has filed a federal lawsuit claiming that armed men led by Chiquita officials tried to kidnap him in Honduras.
  • Chiquita Chairman and CEO Carl H. Lindner Jr., his family and associates made legal but controversial contributions to political figures at a time the company desperately sought U.S. backing in a trade dispute over banana tariffs in Europe.
  • In a statement issued through its attorneys, Chiquita said the company “has been an active and enthusiastic engine for a better way of life throughout the region (and) is a leader in preserving, enhancing and cleaning the environment through Central America.”

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