Springdale, Ark - Food processing giant Tyson Foods Inc said its agreement Monday to plead guilty to federal charges of giving illegal gifts to former U.S. Agriculture Secretary Mike Espy would allow the company to continue to do business with the federal government.
"Under the terms of the agreement, the company will not be debarred or restricted from doing business with the USDA, the Department of Defense or any other government agency," Tyson Foods said in a statement issued at its headquarters here.
"Tyson looks forward to having this long, costly, distracting matter concluded," it said.
Tyson spokesman Ed Nicholson declined to estimate the amount of business the poultry and pork processor does with the U.S. government but said it was substantial.
"We do quite a bit of business with the military and the food and nutrition programs for children," he said.
In an agreement between Tyson and Independent Counsel Donald Smaltz announced earlier, Tyson pleaded guilty to one criminal charge that it gave four gratuities to Espy in 1993 and 1994, when the company had several matters pending before the Agriculture Department.
One such matter was an emergency interim rule requiring processors to place safe handling instructions on all raw meat and poultry packaging labels.
The illegal gifts that Tyson Foods admitted giving to Espy included footbal tickets and air travel on a corporate jet.
Tyson agreed to pay a $4 million fine and $2 million in restitution to cover costs incurred in the investigation.
Following Monday's plea entered by senior company chairman Don Tyson, Judge Ricardo Urbina set a January 14 sentencing date to determine whether to accept or modify the plea agreement reached by Tyson and Smaltz.
Espy pleaded not guilty in September to charges that he accepted some $35,000 in gifts from companies that the Agriculture Department regulates. On December 15, Urbina threw out three of the 39 charges against Espy.
Tyson Foods said that under Monday's plea agreement Smaltz would "close and terminate the investigation of Tyson Foods and all of its people, with the exception of Jack Williams and Archie Schaffer, both of whom received target letters from Mr. Smaltz this past summer.
"The Company continues to believe in the innocence of and will continue to support these individuals should further action be taken against them," Tyson Foods said.
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