Avon Bribery Case Moves From China to India, Japan and Other Countries

Avon Products Inc.'s internal investigation related to the bribery of Chinese government officials has gone beyond China as evidence have surfaced regarding improper payments to government officials of other countries such as India, Japan, Brazil, Mexico and Argentina.


Jimmy Beh, chief financial officer of Avon Products Inc.'s Chinese unit was among company officials fired last year for alleged improper spending related to travel with Chinese government officials, reports the Wall Street Journal.


Those fired as well were S.K. Kao, the former general manager of Avon's Chinese unit; C.Q. Sun, the former head of corporate affairs for China; and Ian Rossetter, the former head of global internal audit and security, the Journal learned.


The newspaper says that since June 2008, Avon has been investigating whether certain travel, entertainment and other expenses in China might have "been improperly incurred."


The investigation was triggered by a concerned staff who wrote to Avon Chief Executive Andrea Jung alleging improper spending related to travel with Chinese government officials, says the Journal.




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