Additional Audit Policy Incentives

The EPA touts its poHcy of not referring potential criminal activity for prosecution if a company otherwise complies with the Audit Policy. 

The EPA s Audit Policy Interpretive Guidance gives an example that is an important reminder of the limits of the Audit Policy. According to the Interpretive Guidance, Chiquita Brands International self-reported a criminal violation committed by its subsidiary, John Morrell and Company. While the government chose not to prosecute Chiquita Brands International, it did prosecute and convict John Morrell and Company and several corporate officials for conspiracy and Clean Water Act (CWA) felonies.  

A further caution comes from the fact that the EPA provides recommendations not to prosecute to the Department of Justice or United States Attorneys Office, which are not boimd by the EPA recommendation. 

The EPA also offers the incentive of not routinely asking for copies of a company s audit reports, provided the EPA learned of the potential violation through self-reporting.  

The EPA has a more lenient self-reporting policy for small businesses and small governments, designed to encourage those entities to become more environmentally conscious and to ask for assistance when they need it. 

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