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Quincyfacility under ConAgra investigation

by Matthew Weaver<br>Herald Staff Writer
| February 13, 2007 8:00 PM

Company unsure of release's origins

QUINCY — Following a press release of unknown origin, a potato processing facility confirms an investigation at its Quincy site.

Omaha, Neb.- based ConAgra Foods spokesperson Stephanie Childs confirmed last week her company is conducting an "internal and ongoing" investigation of its facility in Quincy.

Based on the investigation, she said one employee was terminated while ConAgra Foods continues to investigate allegations regarding violation of code of contact policies and one was placed on paid administrative leave.

"But this is a limited and focused investigation that is internal to ConAgra and between our employees and us," Childs said.

She was unable to provide further information about the ongoing investigation.

According to a press release, attributed to a Food Processor News Network, ConAgra Foods security personnel from Omaha and from Kennewick conducted a surprise security raid of the ConAgra potato processing facility in Quincy Feb. 2.

"There are a number of inaccuracies in that document," Childs said. "We don't know who the source of that document is, at all."

The release alleges the raid was the culmination of a multi-week internal investigation by ConAgra Foods security of the "Potato Field Department" at the Quincy facility. During the surprise visit, according to the release, ConAgra security seized files, computers and cell phones from the offices of the department, which is responsible for contracts and purchasing potatoes from farmers.

The release claims the main target of the Quincy investigation was two high-level employees of the department, where one employee was terminated and another placed on administrative leave pending further investigation.

The release alleges the employees were forcing various ConAgra Foods Quincy plant vendors, such as local potato farmers and potato haulers to pay kickbacks in exchange for favorable treatment to the vendors. It is also alleged the employees were running the scam at the Quincy plant for several years and had manipulated vendors into paying hundreds of thousands of kickback dollars.

"That is not a ConAgra Foods press release," Childs said. "We do not know who originated the press release and we have a number of concerns regarding the allegations and inaccuracies in that document. Of note and of concern to us is the fact two of our employees' cell phone numbers are listed as contacts. They are in no way involved as far as we know."

As far as Childs knows, the situation is not something the company encountered before, but she said she's been with ConAgra for four months.

If any growers, suppliers or vendors have any concerns, Childs advised they contact their regular contact at ConAgra Foods or the ethics point hotline, asking their regular contact for details about the hotline if they don't already have the information.

"Part of the reason we have a code of conduct is to ensure we are operating our business in the best manner possible," Childs said. "That includes, if there are violations of that code of conduct, the appropriate persons are made aware of those violations so we can look into it. We take the situation very seriously."