(Photo: Michael Steele/Getty Images)
A contract between Nike and Athletics Kenya from 2011 has caused some people to question the company.
Under its terms, the athletics company would pay the Kenyan athletics federation $100,000 in honorariums each year and a one-time payment of $500,000, which was referred to as a “commitment bonus.” The New York Times reports that the bonus was immediately withdrawn by Kenyan officials and kept off the books.
Nike NKE -0.34% maintains that it hasn’t done anything illicit, but a former federation employee claims that it was a bribe. The company isn’t currently being investigated by U.S. authorities, but Kenya’s Directorate of Criminal Investigations is looking into the matter. “Why was such a huge sum of money paid as commitment?” an anonymous detective told the Times. “It’s only Nike who can tell us.” The organization has requested more information from Nike, but the company has supposedly refused to oblige.
The original article can be found at fortune.com