(Adds WPP response, details)
By Katanga Johnson
WASHINGTON, Sept 24 (Reuters) - Britain's WPP has
agreed to pay more than $19 million in a settlement with U.S.
authorities relating to bribery allegations and accounting
controls for its subsidiaries, including in India and China.
The world's largest advertising firm did not admit or deny
allegations that it violated provisions of the Foreign Corrupt
Practices Act but agreed to pay the penalty, the U.S. Securities
and Exchange Commission said.
The SEC order found that WPP failed to ensure that
subsidiaries it acquired implemented its internal accounting
controls and compliance policies.
WPP implemented an aggressive business growth strategy that
included acquiring majority interests in many localized
advertising agencies in high-risk markets, it said, citing
potential conflicts in India, China, Brazil and Peru during a
period between 2013 and 2018.
WPP said it had changed its business practices since then.
"As the Commission's Order recognises, WPP's new leadership
has put in place robust new compliance measures and controls,
fundamentally changed its approach to acquisitions, cooperated
fully with the Commission and terminated those involved in
misconduct," the company said in a statement.
WPP founder Martin Sorrell, who declined to comment to
Reuters on the settlement, led the company for more than 30
years before he quit in April 2018. He was replaced as chief
executive by Mark Read, another company veteran.
WPP failed to "promptly or adequately respond to repeated
warning signs of corruption or control failures at certain
subsidiaries," the SEC said.
In one example cited by the commission, a subsidiary in
India continued to bribe Indian government officials in return
for advertising contracts even though WPP had received seven
anonymous complaints relating to the conduct.
"A company cannot allow a focus on profitability or market
share to come at the expense of appropriate controls," said SEC
FCPA Unit Chief Charles Cain.
Friday's move comes as the nation's top securities watchdog
seeks to stamp out abuses in U.S. markets due to a lack of
required controls by companies.
(Reporting by Katanga Johnson; Editing by Chizu Nomiyama, Keith
Weir and Dan Grebler)