Saturday 4th of May 2024

the banana bandit .....

the banana bandit .....

‘The Chiquita banana company, one of the world's biggest and most powerful food companies, has admitted paying "protection" money to Colombian paramilitary groups identified by the US government as terrorist organisations - and has agreed to pay a $25m (£13m) fine to wrap up a federal investigation.

The settlement was quickly denounced as too lenient by human rights groups, which have long said that Chiquita's bananas are "stained with blood", accusing the company of paying paramilitary groups not only to protect workers, but also to target union leaders and agitators perceived as going against the company's commercial interests.

They also pointed to President George Bush's policy that anyone financing a terrorist organisation should be prosecuted as vigorously as the terrorists.’

Chiquita Banana Company Is Fined $25M For Paying Off Columbian Paramilitary Groups

for all those unfamiliar with the bent banana company, Wikipedia tells us …..

Chiquita Brands International Inc. NYSE: CQB is a Cincinnati, Ohio-based producer and distributor of bananas and other produce, under a variety of subsidiary brand names, collectively known as Chiquita. Chiquita is the successor to the United Fruit Company and is the leading distributor of bananas in the United States. The company also owns a German produce distribution company, Atlanta AG, which it acquired in 2003. Chiquita was formerly controlled by Cincinnati billionaire Carl H. Lindner, Jr., his majority ownership of the company ended as a result of Chiquita Brands International exiting a prepackaged Chapter 11 bankruptcy on March 19, 2002.

The trademark logo for Chiquita was created by Dik Browne, who is best known for his Hägar the Horrible comic strip. Monica Lewis voiced the famous "Chiquita Banana" advertising campaign.

In 1975, a SEC invesitgation revealed that the company had bribed the Honduran President (dictator): Oswaldo López Arellano and Italian officals. The scandal was named Bananagate.

In the 1980's, the company (then known as United Brands Company) was involved in a leading Competition Law case when they were found to abuse their dominant position in the banana and fruit supply markets by the European Commission.

for those too young to know about United Fruit …. watch out for familiar names …..

In 1871, U.S. railroad entrepreneur Henry Meiggs signed a contract with the government of Costa Rica to build a railroad connecting the capital city of San José to the port of Limón in the Caribbean. Meiggs was assisted in the project by his young nephew Minor C. Keith, who took over Meigg's business concerns in Costa Rica after Meiggs' death in 1877. As an experiment, Keith had begun planting bananas along the train route in 1873.

When the Costa Rican government defaulted on its payments in 1882, Keith had to borrow £1.2 million from London banks and from private investors in order to continue the difficult engineering project. In 1884, the government of President Próspero Fernández Oreamuno agreed to give Keith 800,000 acres (3,200 km²) of tax-free land along the railroad, plus a 99-year lease on the operation of the train route. The railroad was completed in 1890, but the flow of passengers proved insufficient to finance Keith's debt. On the other hand, the sale of bananas grown in his lands and transported first by train to Limón and then by ship to the United States, proved very lucrative. Keith soon came to dominate the banana trade in Central America and in the Caribbean coast of Colombia.

In 1899, Keith lost $1.5 million when the New York City broker Hoadley and Co. went bankrupt. He then travelled to Boston, Massachusetts, where he arranged the merger of his banana trading concerns with the rival Boston Fruit Company. Boston Fruit had been established by Lorenzo Dow Baker, a sailor who, in 1870, had bought his first bananas in Jamaica, and by Andrew W. Preston. The result of the merger was the United Fruit Company, based in Boston, with Preston as president and Keith as vice-president. Preston brought to the partnership his plantations in the West Indies, a fleet of steamships (the "Great White Fleet"), and his market in the U.S. North-East. Keith brought his plantations and railroads in Central America and his market in the U.S. South and South-East. At its founding, United Fruit was capitalized at $11,230,000.

In 1901, the government of Guatemala hired the United Fruit Co. to manage the country's postal service. By 1930, the Company had absorbed more than 20 rival firms, acquiring a capital of $215,000,000 and becoming the largest employer in Central America. In 1930, Sam Zemurray (nicknamed "Sam the Banana Man") sold his Cuyamel Fruit Co. to United Fruit and retired from the fruit business. In 1933, concerned that the company was mismanaged and that its market value had plunged, he staged a hostile takeover. Zemurray moved the company's headquarters to New Orleans, Louisiana, where he was based. United Fruit went on to prosper under Zemurray's management; Zemurray resigned as president of the company in 1951.

Corporate raider Eli M. Black bought 733,000 shares of United Fruit in 1968, becoming the company's largest shareholder.

In 1969 Zapata Corporation, a company in which George H. W. Bush held significant interest, acquired a controlling interest in United Fruit. The president of Zapata was Robert Gow, a friend of the Bush family. Robert's father, Ralph Gow, was on United Fruit's board of directors.

In June 1970, Black merged United Fruit with his own public company, AMK (owner of meatpacker John Morrel), to create the United Brands Company. United Fruit had far less cash than Black had counted on and Black's mismanagement led to United Brands becoming crippled with debt. The company's losses were exacerbated by Hurricane Fifi in 1974, which destroyed many banana plantations in Honduras. On February 3, 1975, Black committed suicide by jumping out of his office on the 44th floor of the Pan Am Building in New York City. Later that year, the U.S. Securities and Exchange Commission exposed a scheme by United Brands to bribe Honduran President Oswaldo López Arellano with $1.25 million, and the promise of another $1.25 million upon the reduction of certain export taxes. Trading in United Brands stock was halted and Lopez was ousted in a military coup.

After Black's suicide, Cincinnati-based American Financial, one of billionaire Carl H. Lindner, Jr.'s companies, bought into United Brands. In August 1984, Lindner took control of the company and renamed it Chiquita Brands International. The headquarters was moved to Cincinnati in 1985.

Throughout most of its history, United Fruit's main competitor was the Standard Fruit Company, now the Dole Food Company.

The United Fruit Company (UFCO) owned vast tracts of land in the Caribbean lowlands. It also dominated regional transportation networks through its International Railways of Central America and its Great White Fleet of steamships. In addition, UFCO branched out in 1913 by creating the Tropical Radio and Telegraph Company. One of the company's primary tactics for maintaining market dominance was to control the distribution of banana lands. UFCO claimed that hurricanes, blight and other natural threats required them to hold extra land or reserve land. In practice, what this meant was that UFCO was able to prevent the government from distributing banana lands to peasants who wanted a share of the banana trade. The fact that the UFCO relied so heavily on manipulation of land use rights in order to maintain their market dominance had a number of long term consequences for the region. For the company to maintain its unequal land holdings it often required government concessions. And this in turn meant that the company had to be politically involved in the region even though it was an American company.

UFCO had a mixed record on promoting the development of the nations in which it operated. In Central America, the Company built extensive railroads and ports and provided employment and transportation. UFCO also created numerous schools for the people who lived and worked on Company land. On the other hand, it allowed vast tracts of land under its ownership to remain uncultivated and, in Guatemala and elsewhere, it discouraged the government from building highways, which would lessen the profitable transportation monopoly of the railroads under its control.

In 1954, the Guatemalan government of Colonel Jacobo Arbenz Guzmán was toppled by a group of Guatemalan army officers who invaded from Honduras with the covert assistance of the U.S. Central Intelligence Agency (see Operation PBSUCCESS). Before that, the directors of UFCO had lobbied to convince the Truman and Eisenhower administrations that Colonel Arbenz intended to align Guatemala with the Soviet bloc. Besides the disputed issue of Arbenz's allegiance to Communism, the directors of UFCO may have feared Arbenz's stated intention of purchasing uncultivated land from the company (at the value declared in tax returns) and redistributing it among Native American peasants. The American Secretary of State John Foster Dulles was an avowed opponent of Communism whose law firm had represented United Fruit. His brother Allen Dulles was the director of the CIA. The brother of the Assistant Secretary of State for InterAmerican Affairs John Moors Cabot had once been president of United Fruit. The overthrow of Arbenz, however, failed to benefit the Company. Its stock market value declined along with its profit margin. The Eisenhower administration proceeded with antitrust action against the company, which forced it to divest in 1958. In 1972, the company sold off the last of their Guatemalan holdings after over a decade of decline.

Company holdings in Cuba, which included sugar mills in the Oriente region of the island, were expropriated by the 1959 revolutionary government led by Fidel Castro. By April 1960 Castro was accusing the company of aiding Cuban exiles and supporters of former leader Fulgencio Batista in initiating a seaborn invasion of Cuba directed from the United States.[1] Castro warned the U.S. that "Cuba is not another Guatemala" in one of many combative diplomatic exchanges before the failed Bay of Pigs invasion of 1961. Despite significant economic pressure on Cuba, the company was unable to recoup cost and compensation from the Cuban government.[1]

The United Fruit Company was frequently denounced by leftist leaders and intellectuals, who accused it of bribing government officials in exchange for preferential treatment, exploiting its workers, contributing little by way of taxes to the countries in which it operated, and working ruthlessly to consolidate monopolies. Latin American journalists sometimes referred to the company as el pulpo ("the octopus"), and leftist parties in Central and South America encouraged the Company's workers to strike. Major Latin American writers such as Carlos Luis Fallas of Costa Rica, Miguel Ángel Asturias of Guatemala, Gabriel García Márquez of Colombia, and Pablo Neruda of Chile, denounced the Company in their literature.

The business practices of United Fruit were also frequently criticized by journalists, politicians, and artists in the United States. Little Steven released a song called "Bitter Fruit" about the company's misdeeds. In 1950, Gore Vidal published a novel (Dark Green, Bright Red), in which a thinly fictionalized version of United Fruit supports a military coup in a thinly fictionalized Guatemala. This reputation for malfeasance, however, was somewhat offset among those who worked for it or in the regions it controlled by the Company's later efforts to provide its employees with reasonable salaries, adequate medical care, and free private schooling. In the 1960s and 1970s, the Company and its successor, United Brands, created an Associated Producers Program that sought to transfer some of its land holdings to private growers whose produce it commercialized. As the Company gradually lost its land and transportation monopolies, its status as a capitalist bête noire declined.

Diane K. Stanley, a former U.S. diplomat and the daughter of a Welsh-born employee of the United Fruit Co. in Guatemala, argues in the book For the Record: The United Fruit Company's Sixty-six Years in Guatemala, published in 1994, that the negative perception of the company's influence in Guatemala is largely undeserved, and could be due in part to the unwillingness of left-wing journalists and writers to critically examine the legacy of the administrations of Presidents Arévalo and Arbenz. According to her:

Most accounts about the banana company have also failed to describe the significant contribution that United Fruit made to Guatemala's human and economic development. In addition to providing employment to tens of thousands of workers and paying them the nation's best rural wages, the Company also offered its employees excellent medical care, rent-free housing, and six years of free schooling for countless children. By clearing and draining thousands of acres of jungle that are today among the country's most productive farm lands, United Fruit converted Guatemala into a major banana producer, thereby ending the country's unhealthy dependence on its exports of coffee. The Company's pioneering work in eliminating malaria and other tropical diseases early in the twentieth century also demonstrated that Guatemala's sparsely inhabited coastal areas offered rich, previously unexploited agricultural zones. Ultimately, the taxes and salaries that the United Fruit Company paid, and the millions of dollars of foreign exchange earnings that it annually generated, impacted in an important way on Guatemala's economy. [2]

Stanley also argues that while the company did orchestrate "an effective media campaign against the Arbenz government, it is clear that the Eisenhower administration was intent on ousting what it considered to be a Communist beachhead that threatened U.S. national security. Spurred on by John Foster Dulles, his vehemently anti-Communist secretary of state, President Eisenhower would have moved to depose Arbenz even if the United Fruit Company had never operated in Guatemala."[3]

nothing’s changed …. It’s just being perpetrated on a larger scale …..

yankee terrarists .....

‘Chiquita Brands International's recent admission that it paid off a Colombian group on the U.S. terrorist list has spotlighted a practice once hush-hush in Colombia, Washington's closest ally in Latin America.

Several other U.S.-based corporations, including Atlanta-based Coca-Cola and the Alabama-based coal company Drummond Co., face civil lawsuits alleging their Colombian operations worked with the same group to kill several trade unionists.

But the guilty plea by Chiquita, a company with a long and infamous history in Latin America, has focused attention on the payoffs that Colombian and foreign companies make to the illegal armed groups fighting the country's 40-year-old civil war, especially in remote areas where those groups hold sway.

"Funding a terrorist organization can never be treated as a cost of doing business," said U.S. Attorney Jeffrey A. Taylor, who headed the prosecution against Chiquita, on the day the Cincinnati-based company pleaded guilty to engaging in transactions with specially designated global terrorists.’

Payoffs To Colombian Terrorists Scrutinized

the real cost of bananas .....

A federal judge recently refused to dismiss a civil suit filed against Chiquita which charges that the company paid leftist (FARC) guerrillas operating near its plantations in Columbia -- during a period when the FARC killed four American missionaries, according to CNN.

The company's position -- which it has held consistently since it voluntarily disclosed the payments to the Department of Justice -- has been that both left-wing guerrillas and right-wing paramilitaries forced the company in an extortionate manner to make the payments "to protect the lives of its employees."

But that's become an increasingly untenable position -- especially since some of the same paramilitaries who took the payments have come in from the cold, disarming and submitting to Columbia's "Justice and Peace" process -- which allows them to receive reduced jail time for confessing to all of their terrorist crimes. The problem for Chiquita -- and now for Dole (and potentially for Del Monte) -- is that the confessions reveal a much different story.

One of the ex-paramilitaries -- Jose Gregorio Mangones Lugo (aka "Carlos Tijeras") -- was the former commander of the William Rivas Front of the United Defense Forces ("AUC") -- the group that operated in northern Columbia, in the zone where the companies and their suppliers grew bananas. In a sworn statement Tijeras described the AUC's relationship with the multinational banana companies as "an open public relationship" involving everything from "security services" to the kidnapping and extrajudicial assassination of labor leaders fingered by the companies as "security problems."

Tijeras' statement -- which reads like the confessions of a corporate death squad leader and directly refutes his paymasters' version of events -- has now been entered into the record in a case filed against Dole last April in California by attorneys with Conrad and Scherer:

"I've been told that Chiquita has asserted that they paid the AUC funds, but that this was coerced and was a form of extortion. I have also heard that Dole claims to have never paid us any funds. Both of these assertions are absolutely false. In fact, my agreement with Chiquita and Dole was to provide them with total security and other services."

http://www.alternet.org/story/145696/hiring_death_squads_is_coming_back_to_haunt_u.s._companies

going bananas...

from the independent

When international food company Dole brought a lawsuit against a small-budget documentary featuring Nicaraguan banana plantation workers who alleged they had been left infertile by a banned pesticide, it appeared as if the film-maker would be beaten.

But Bananas*!, which is billed as a court-case thriller in the same vein as Erin Brockovich, became a sensation around the world. It gained so much support, from the global film industry, campaigning journalists and the Swedish parliament, that Dole withdrew its case against the film's Swedish director, Fredrik Gertten.

Now the film, which had its first UK screening at the Institute of Contemporary Arts (ICA) in central London last night and will run until 25 April, is to be followed by another documentary, relaying Mr Gertten's hair-raising experiences and his defence of freedom of speech.

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the ongoing cost of brain food .....

Chiquita, the global banana producer, was ordered this week to face a federal court over their role in paying off right wing death squads in Colombia. Villagers allege that the death squads used “random and targeted violence in exchange for financial assistance and access to Chiquita’s private port for arms and drug smuggling,” according to a lawsuit filed on their behalf by EarthRights International and Cohen Milstein.
The lawsuit, which is based on the Alien Torts Claims Act (ATCA), is likely to go forward, even though the statute is being considered by the U.S. Supreme Court in a case against Royal Dutch Petroleum in Nigeria that may limit the use of the act against corporations under U.S. law. (see U.S. Supreme Court: Can Multinationals Be Sued for Crimes?) The 223 year old ATCA allows foreigners to sue in U.S. courts for violations the "law of nations.”

Cincinnati-based Chiquita has been growing bananas in Colombia since 1899. For over four decades these operations have been under attack – first by the Fuerzas Armadas Revolucionarias de Colombia (FARC), a left-wing guerrilla group, and then by Autodefensas Unidas de Colombia (AUC), a paramilitary group created by ranchers and drug traffickers.

Court documents show that Chiquita executives paid off both groups. FARC was paid between $20,000 and $100,000 a month. Chiquita has also admitted to making over 100 payments totaling $1.7 million to the AUC or affiliated organizations over seven years.
The villagers have accused the AUC of  a number of human rights abuses including torturing and killing at least 40 people in the town of Mapiripan in July 1997 and then killing 36 people and torturing dozens in a February 2000 operation.

Court documents also show that a shipment of 3,000 AK-47 assault rifles and 5 million rounds of ammunition from Nicaragua in 2001 was invoiced to Chiquita. The armaments were delivered to Chiquita warehouses and then trucked to the AUC by Chiquita, according to the legal papers.

Chiquita, which was represented by Eric Holder, admitted the payments and paid a fine of $25 million. (Holder has since been appointed U.S. attorney general in 2009 by Barack Obama)

In a ruling issued earlier this week, U.S. federal judge Judge Kenneth Marra in Florida ruled that the charges of  “cruel, inhuman, or degrading treatment; violation of the rights to life, liberty and security of person and peaceful assembly and association; and consistent pattern of gross violations of human rights” would be heard in court.

Benjamin Brown of Cohen Milstein told CorpWatch that the “exciting” news was that Marra would allow his clients to use Colombian law in the case, which would mean that even if the Supreme Court did not allow the Shell lawsuit to proceed under U.S. law, the Chiquita lawsuit would likely not be affected.

“We're thrilled that the judge has recognized that our claims against Chiquita for violations of Colombian law can proceed in this lawsuit,” added Marco Simons of EarthRights in a press statement. “The plaintiffs have been waiting for justice for a decade and more, and this is one more step in the right direction for them to finally have their day in court.”

A number of lawsuits have been brought against corporations under the Alien Torts Claims Act. EarthRights International has been able to use the statute to negotiate a settlement in December 2004 with Unocal on behalf of thirteen villagers for alleged human-rights violations, such as forced labor, in the construction of the Yadana gas pipeline project in Burma.

The U.S. Supreme Court heard the case of Kiobel v. Royal Dutch Petroleum on February 28, 2012, but did not make a decision. Instead it ordered plaintiffs to return to court in October 2012 for additional arguments.

Chiquita Banana To Face Colombia Torture Claim