Monsanto to pay $A1.96m bribe penalties

As part of the settlement awaiting court approval, "Monsanto accepts full responsibility for these improper activities, and we sincerely regret that people working on behalf of Monsanto engaged in such behavior," said Charles Burson, general counsel for the St Louis-based company.

Monsanto said the Justice Department investigated whether a former senior US-based Monsanto manager directed an outside consultant to make a $US50,000 ($A65,436.46) bribe to an Indonesian government official in 2002.

The bribe, which the unidentified manager told the consultant to keep secret, was meant to influence an Indonesian official to repeal or amend an unfavourable decree.

It required an environmental impact study before any authorisation was granted to allow cultivation of genetically modified crops by Monsanto, the company and the Justice Department said.

Despite the bribe, the official never rescinded or altered the decree.

Monsanto did not further identify the former Monsanto manager.

The Justice Department said that person was responsible for certain activities in the Asia-Pacific region.

The manager and consultant later lied to get a reimbursement for the bribe and tried to disguise the payment as a consulting fee, the company said.

"Companies cannot bribe their way into favourable treatment by foreign officials," Christopher Wray, assistant attorney general for the criminal division, said in a statement.

"(The settlement) will help ensure that such dishonest and illegal activity does not occur in the future."

Monsanto also said at least $US700,000 ($A916,110.46) in other illegal or questionable payments were made to various Indonesian government officials between 1997 and 2002.

Such payments were financed, at least in part, through unauthorised, improperly documented and inflated sales of Monsanto's pesticide products in Indonesia, the company said.

During the past four years, Monsanto's net combined revenue from customers in Indonesia was less than 1 per cent of the company's total revenue.

Monsanto said it learned of the irregularities in 2001 and notified the Securities and Exchange Commission and Justice Department after an internal investigation.

Burson has called the alleged acts "obviously contrary to Monsanto's corporate policy."

Monsanto said it had fired employees involved in the matter - along with the questioned consultant - and restructured its Indonesian affiliates.

The company said it had also tapped a new director of business conduct, among other things.

Monsanto agreed to pay a $US500,000 ($A654,364.61) penalty in settling the SEC probe and pay twice that amount under its deal with the Justice Department.

In both cases, Monsanto must retain for three years an independent compliance consultant to review and evaluate the company's compliance with the Foreign Corrupt Practices Act (FCPA).

If Monsanto complies, the Justice Department will permanently drop deferred charges of violating the anti-bribery and bookkeeping provisions of the FCPA.

Burson said that dating to the launch of the government probes, Monsanto has cooperated.

"(Monsanto) has made clear that improper activities will not be tolerated by the company," Burson said.

"We are pleased today to begin the process of putting these matters to rest."