Direct reporting network December 23rd news [] (Beijing Youth Daily) Avon China bribery scandal for years. This Wednesday, chief legal adviser Avon JeffBenjamin in Manhattan federal court hearing admitted during the period from 2004 to 2008, senior staff, and Avon Chinese had a total of 9600 pen gift bribery. It is understood, there is not only the problem Avon bribing officials in the China, in Brazil, Mexico, Argentina, India and Japan and other countries of the institutions also exist to officials pay money problems.

Avon sent to officials accused of luxury

This Wednesday, chief legal adviser Avon JeffBenjamin in Manhattan federal court hearing admitted during the period from 2004 to 2008, senior staff, and Avon China had to Chinese government official gifts, and not in the accounting records accurately reflect the costs associated with. Benjamin said, "Avon China wrong in this regard, violating its own policy, also in violation of Avon Corporation policy."

Relevant information shows, according to the securities and Exchange Commission (SEC) American charges, Avon had to help get China officials direct selling license, avoid fines and suppression of negative reports the official bribery. SEC said, Avon to Chinese official bribery bribery 9600 pens, a total of $1650000. The allegations mentioned, 2007 a pen reimbursement records conference of government officials and entertainment spending $8100, it was Avon China for a garment or related certificate and negotiations. Charges also said, Avon had to China officials to provide Chinese tennis open tickets, gifts category including LV products, Gucci packet and Tiffany pen etc..

AVON in the bribery scandal has for many years

AVON agreed to pay $135000000 in civil and criminal charges related to achieve reconciliation, reconciliation payments is half criminal fines, the other half is for civil charges on the SEC raised the reconciliation. In fact, AVON China bribery scandal for years.

AVON is the world's largest beauty products Direct Selling Company, the website shows $10000000000 in annual income. Direct selling in China banned in 1998, a few years after the lifting of the ban, the 2006 AVON became the first company in China to obtain direct selling license. Since 2011, there have been negative news that AVON bribery. In 2011, foreign media found in the AVON audit report, AVON employees in 2005 to Chinese officials and third party consultation mechanism of suspicious funds paid hundreds of thousands of dollars, record part of the funds on the invoice is the official gifts, while AVON is seeking access to China's direct selling license.

It is understood that AVON not only have to bribe officials in China, in Brazil, Mexico, the Argentina, India and Japan and other countries of the institutions also exist to officials pay money problems.

AVON shares were rated as junk stocks

In the bribery scandal long-term under the influence of AVON performance continued to decline. Displayed in the AVON just announced third quarterly reports, income 2138000000 yuan, drops 8% compared to the same period, Latin America income fell 12%, the North American market fell 16%.

And its performance in China has also been poor, AVON 2010 losses of more than $10000000 in china. According to the 2014 second quarter earnings, China because of greatly reduced the number of stores, sales drop 30%. Last November 3rd, the international credit rating agency Standard & Poor's will the United States cosmetic Direct Selling Company AVON rating from "BBB-" down to "BB+", to junk status, may have the risk of delisting. (Kuang Xiaoying)▲

(original title: AVON China 5 years on a bribe of 5 pen was accused of sending luxury to officials)

Editor: Xiaohong