Clear Channel Outdoor settles China bribery charges -SEC (updated)

Clear Channel Outdoor Holdings

28/09/2023 21:38

(Adds details after first paragraph, byline)
    By Kanishka Singh
       WASHINGTON, Sept 28 (Reuters) - The U.S. Securities and
Exchange Commission said on Thursday that advertising company
Clear Channel Outdoor Holdings  CCO.N  agreed to pay more than
$26 million to resolve charges it bribed Chinese government
officials to obtain outdoor ad contracts in violation of U.S.
law.
        Company representatives did not respond immediately to
requests for comment.
  
    The SEC complaint alleged that the company violated the U.S.
Foreign Corrupt Practices Act through the actions of its agent,
Clear Media Limited, which at the time was a Clear Channel
majority-owned subsidiary in China.
        The SEC said from at least 2012 through 2017, Clear
Media bribed Chinese government officials to obtain contracts
required to sell advertising services to public and private
sector clients for display on public bus shelters and other
outdoor displays. 
  
        The regulator also said that from at least 2012 through
2019, Clear Channel failed to ensure that sufficient internal
accounting controls were in place at Clear Media.
  
        "Clear Media bribed Chinese officials with expensive
gifts and entertainment and used off-book consultants to obtain
contracts from Chinese authorities," Charles Cain, a senior SEC
official, said in a statement.
  
        Without admitting or denying the SEC findings, Clear
Channel agreed to cease and desist from committing or causing
future violations, pay disgorgement plus prejudgment interest
totaling about $20.1 million, and pay a $6 million civil
penalty, the SEC said.
  
    

 (Reporting by Kanishka Singh and Chris Prentice; Editing by
Richard Chang)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248;))