DAIMLERCHRYSLER has admitted making a series of “improper payments” after an internal investigation sparked by a whistleblower’s allegations that the carmaker used slush funds to bribe foreign officials.

The world’s fifth-biggest carmaker said that the payments raised “concerns under the US anti-corruption law, German law and the laws of other jurisdictions”. It said in its annual report that the payments had been made primarily in Africa, Asia and Eastern Europe.

The company has taken charges related to the payments, which reduced last year’s operating profit by €16 million and income by €64 million (£44 million).

It accepted that it faced possible tax liabilities for wrongly classifying or omitting payments and expenses. It said: “DaimlerChrysler is taking action to address and resolve the issues identified in the course of our investigation to safeguard against the recurrence of improper conduct. This includes evaluating and revising its governance policies and internal control procedures.”

The carmaker is being investigated by US financial regulators and criminal investigators. The US Securities and Exchange Commission can impose heavy fines on DaimlerChrysler or bar trading of its shares if it finds evidence of widespread bribery.

• General Motors is to sell most of its stake in Suzuki back to the Japanese carmaker, raising about $2 billion (£1.14 billion) to fund its restructuring.

  GM will sell back about 17 per cent of Suzuki, leaving it with a 3 per cent holding. It had been speculated in Asia that GM would sell its entire holding after it made a similar move with Fuji Heavy Industries last year.

  The market welcomed the move, which is seen as having been partly driven by Jerry York, a new GM board member and an aide to Kirk Kerkorian, the carmaker’s largest individual shareholder. Mr York has been pressing GM to pull out of some of its international interests. He has been pushing for speedy action to tackle the company’s problems. Last year GM lost $8.6 billion.

  Commerzbank said that the cash from Suzuki could be used to fend off a strike at GM’s key parts supplier, Delphi. The investment bank believes that GM could face a bill of about $3 billion to cover its difficulties with Delphi.

  The carmaker is expected to make a pre-tax gain of between $550 million and $750 million on the sale. Himanshu Patel, of JPMorgan, said in a note to investors: “We see a $2 billion cash injection as meaningful even in the light of GM’s robust corporate liquidity.”

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