Tag Archive for ‘Foreign Corrupt Practices Act’
The New York Times reported this week that Walmart allegedly engaged in a vast campaign of bribery to expand the company’s Mexico business in the early 2000s, potentially violating U.S. law. The scheme was allegedly overseen by a Walmart executive, Eduardo Castro-Wright, described by The Times as “the driving force behind years of bribery” totaling millions of dollars.
Five more journalists from a Rupert Murdoch-owned British tabloid were arrested as part of an ongoing bribery investigation. The arrested journalists, all from the The Sun, were later released, and have yet to be charged with any crimes. But the arrests have once again raised questions about whether Murdoch’s News Corporation might face prosecution for bribery in the U.S. under the Foreign Corrupt Practices Act.
The embattled media conglomerate News Corporation and its independent directors have not only hired top criminal defense lawyers, they’ve also hired former Justice Department prosecutors well-versed in U.S. bribery law. The new hires are a sign that the company is taking the Justice Department’s preliminary investigation rather seriously.
Even as anger over governmental corruption has exploded into protests across the Middle East, the U.S. Chamber of Commerce has been working to weaken the U.S. Foreign Corrupt Practices Act, a law that bans companies from bribing foreign officials.
The UK’s Bribery Act 2010, set to take effect in April, goes much further than the U.S. Foreign Corrupt Practices Act, which has been used aggressively by American prosecutors against multinational companies in bribery cases worldwide. Among other provisions, the new law creates a “failure to prevent bribery” offense which applies whether or not any conduct in the bribery scheme took place in the UK.
A new measure designed to combat corruption in resource-rich countries by requiring mining and energy companies to disclose payments to foreign governments was highlighted this week by U.S. President Barack Obama in a speech at the United Nations Millennium Development Goals Summit in New York. The requirement is a provision of the Dodd-Frank financial reform bill signed into law by Mr. Obama in July.
The Securities and Exchange Commission charged that from 2000 to 2003 two GE subsidiaries — along with two other subsidiaries of public companies that have since been acquired by GE — participated in a $3.6 million kickback scheme with Iraqi government agencies to win contracts to supply medical equipment and water purification equipment.
The settlement is the latest related to a four-company joint venture that was awarded $6 billion in contracts to build liquid natural gas facilities on Bonny Island, Nigeria. U.S. officials said a total of $1.28 billion in penalties has been obtained to date in connection with the Bonny Island bribery scheme.
French engineering firm Technip S.A. agreed to pay a total of $338 million to settle criminal and civil charges brought by U.S. enforcement agencies for its participation in a scheme to bribe Nigerian government officials to obtain more than $6 billion in contracts to build liquefied natural gas facilities on Bonny Island, Nigeria.
Only about one-third of the 38 countries that have agreed to prosecute foreign bribery cases under the Organization for Economic Development’s Anti-Bribery Convention have sanctioned individuals or companies since the Convention was adopted 10 years ago, according to a report issued by the OECD.