Fruit Giant Chiquita Brands Admits to Paying Colombian Paramilitary Group on U.S. Terror List

The Cincinnati-based fruit company Chiquita has found itself at the center of another major controversy over its practices in Latin America. On Monday Chiquita admitted it had paid off the group AUC, the United Self-Defense Forces of Colombia which is considered a terrorist organization by the U.S. government. Chiquita has agreed to pay the U.S. government a fine of $25 million dollars on the condition that it doesn't have to reveal the names of the executives involved. The $25 million dollar penalty comes out to around half of what Chiquita received from selling its Colombian subsidiary in 2004. Chiquita has defended the payments, saying it fell victim to an extortion racket that threatened its employees.

* James Thompson: "The payments made by the company at all times were motivated by the company's good faith and desire and concern for the safety of all of its employees. Nevertheless, we recognize the obligation to disclose the facts and circumstances of this admittedly difficult situation to the United States government and the Department of Justice."

Colombian authorities have taken a different view. Colombia's attorney general has said he will seek the extradition of eight Chiquita employees allegedly involved in making the payments. The attorney general, Mario Iguaran said: "The relationship was not one of the extortionist and the extorted but a criminal relationship... When you pay a group like this you are conscious of what they are doing."

Colombian prosecutors have also accused Chiquita of providing arms to the right-wing paramilitary groups that were then used to push leftist rebels out of an area in northern Colombia where Chiquita had its banana plantations.

This is not the first time Chiquita has been accused of criminal activity in Colombia and Latin America -- and for more on this story we are joined by three guests:

* Adam Isaacson, Director of the Colombia program at the Center for International Policy.
* Igancio Gomez, renowned Colombian journalist. Director of investigations for the Colombian public affairs television show "Noticias Uno." Speaking to us from Bogota.

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