MUNICH (Bloomberg) -- Volvo Car Corp. CEO Hakan Samuelsson will settle a German investigation into corruption allegations linked to his time as CEO of truckmaker MAN SE by paying 500,000 euros ($668,000) to charity.
Volvo CEO Samuelsson to pay $668,000 to settle MAN corruption probe
The probe was opened last September in Munich after the former head of MAN's audit department testified in a related trial that he had informed Samuelsson in a 2006 meeting about "possible corrupt practices" regarding business deals in Slovenia.
"I would have preferred to go through with the trial as I don't have any doubt about my innocence," Samuelsson said today. "But this wouldn't have been compatible with my role as Volvo CEO, and I want to leave Germany with passably positive impressions."
MAN, Europe's third-largest truckmaker, agreed to pay 150 million euros in 2009 to resolve an inquiry into possible bribes paid by its truck and turbo units. Investigators raided 59 company sites and seven private homes looking into allegations of illegal conduct from 2002 to 2009. The probe yielded several indictments against employees and managers.
Samuelsson was chairman and CEO of MAN between 2005 and 2009. He started his current job at Volvo last October.
"I have an agreement that the case will be closed with a payment of 500,000 euros to social institutions," Samuelsson said.
Thomas Steinkraus-Koch, a spokesman for the prosecutors, confirmed the talks with Samuelsson to pay the money to charity. The settlement will only be final once the payment is actually made, he said.
The Swedish business newspaper Dagens Industri reported the deal earlier today.
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