Colombian warlord says US firms paid death squads for bananas

A jailed warlord has accused the US multinationals Del Monte, Dole and Chiquita of funding rightwing death squads while sourcing bananas from war-torn regions of Colombia.

Salvatore Mancuso, a leader of illegal paramilitary groups, which massacred thousands of people, said each company paid his men one US cent for each box of bananas they exported. Mancuso did not explain why the payments were made but it was common practice for Colombian businesses to pay the paramilitaries a so-called "war tax" - a form of extortion as well as protection against attacks.

Del Monte did not immediately respond to the allegation. A spokesman for the California-based Dole Food denied it. "Accounts implicating Dole with illegal organisations in Colombia are absolutely untrue," said Marty Ordman.

In a deal with the US justice department, Chiquita recently acknowledged paying paramilitaries $1.7m (£860,000) over six years. It was fined $25m. Chiquita claimed the payments were to protect its workers but campaigners claim some money was used to finance the assassination of union leaders who lobbied for better pay and conditions.

Mancuso made the allegations in testimony that was part of a deal with the Colombian authorities. Journalists were not allowed in court but the testimony was confirmed by his lawyer, Hernando Benavides, and Jesús Vargas, a lawyer for victims of paramilitary violence.

The warlord also accused coal companies and two Colombian drinks firms, Postobón and Bavaria, of paying the illegal militias for permission to operate.

Ranchers and drug barons formed the paramilitaries in the 1980s to protect their land from leftwing guerrillas. The paramilitaries grew into a powerful force that trafficked drugs, stole land and slaughtered peasants.

Mancuso's testimony will add Del Monte and Dole to the list of multinationals that could face congressional hearings in Washington as well as prosecution in the US and Colombia.