Avon might have made more improper payments: report

CHICAGO (Reuters) - Avon Products Inc <AVP.N> faces more woes as its internal bribery investigation uncovered the company may have made improper payments in countries besides China, the Wall Street Journal reported on Wednesday.

There is evidence of millions of dollars of questionable payments to officials in Brazil, Mexico, Argentina, India and Japan in amounts that are "not insignificant," the newspaper reported, citing a person familiar with the matter.

The issues occurred as recently as 2010 and as long ago as 2004, the Wall Street Journal reported. According to the report, one employee in those markets was suspended and there are more suspensions to come.

New York-based Avon, the world's largest direct-seller of cosmetics, could not be immediately reached for comment.

The company has already come under fire for the costly investigation into potential bribery that began in China in 2008. It spent about $96 million in 2010 on its investigation into bribery allegations, just above a target of $85 million to $95 million, and has said in the past it planned to spend a similar amount on that probe this year. It spent about $35 million on the investigation in 2009.

In its quarterly report, filed on Tuesday, Avon said the company fired four employees that were put on administrative leave in 2010.

Avon also said that, pending the outcome of its investigation and compliance reviews, more personnel actions might be taken going forward.

Avon is shaking up its structure to improve business in markets such as Latin America, its largest unit with more than 42 percent of sales last year. In February, it made plans to cut six business units down to two, one focused on developed markets and one focused on developing areas.

Avon shares fell 1.9 percent to close at $30.32 in trading on the New York Stock Exchange.

(Reporting by Jessica Wohl; editing by Andre Grenon)