Chiquita Banana Company Ordered to Pay Colombian Victim's Families Millions for Funding AUC Narco Terrorists

History of the AUC

While the AUC claimed to have been created to defend landowners from attacks and extortion attempts by left-wing rebels, the paramilitary group more often acted as a death squad for drug traffickers. It’s foundations as force was against Pablo Escobar as part of Los Pepes.

At its height, the AUC had an estimated 30,000 members who engaged in intimidation, drug trafficking, extortion, forced displacement and killings. It also launched brutal attacks on villagers they suspected of supporting left-wing rebels.

The group demobilized in 2006 after reaching a peace deal with the government, but some of its members went on to form new splinter groups which continue to be active, using narco trafficking as their main source of funding.

Several AUC members were and became notable drug kingpins even after the demobilization including the Castaño brothers,  Salvatore Mancuso and former Escobar trafficker Diego “Don Berna” Murillo.

United Fruit Company

After the overthrow of Árbenz, a military dictatorship was established under Carlos Castillo Armas. Soon after coming to power, the new government launched a concerted campaign against trade unionists, in which some of the most severe violence was directed at workers on the plantations of the United Fruit Company.

Despite UFCO’s government connections and conflicts of interest, the overthrow of Árbenz failed to benefit the company. The Eisenhower administration proceeded with antitrust action against the company, which forced it to divest in 1958. In 1972, the company sold off the last of its Guatemalan holdings after over a decade of decline. In 1968, after Eli Black bought over 700,000 shares of the company, it was rebranded to United Brands Company. On February 3, 1975, Black committed suicide by jumping out a window from the 44th floor of the Pan Am Building in New York City. Later that year, the U.S. SEC exposed a scheme by United Brands (dubbed Bananagate) to bribe Honduran President Oswaldo López Arellano with $1.25 million, plus the promise of another $1.25 million upon the reduction of certain export taxes.

Trading in United Brands stock was halted, and López was ousted in a military coup. In the 1980s, the UFCO rebranded itself under Chiquita Brands International.

Chiquita said in a statement released after the verdict that the situation in Colombia was “tragic for so many, including those directly affected by the violence there, and our thoughts remain with them and their families.”

“However, that does not change our belief that there is no legal basis for these claims,” it added. The company said it remained confident that its legal position would ultimately prevail.

Agnieszka Fryszman, one of the leading lawyers for the plaintiffs, meanwhile praised the families she represented, saying that they had “risked their lives to come forward to hold Chiquita to account, putting their faith in the United States justice system.” She added that “the verdict does not bring back the husbands and sons who were killed, but it sets the record straight and places accountability for funding terrorism where it belongs: at Chiquita’s doorstep.”

Another lawyer for the Colombian families, Leslie Kroeger, said that “after a long 17 years against a well-funded defence, justice was finally served”.

A second case against Chiquita brought by another group of plaintiffs is due to start on July 15, 2024.

Sources BBC, DOJ, United Fruit Company Wikipedia