U.S. Cracks Down on Corporate Bribes (overseas)

Wall Street Journal ^ | May 26, 2009 | Dionne Searcey

[reaganaut1]

The Justice Department is increasing its prosecutions of alleged acts of foreign bribery by U.S. corporations, forcing them to take costly steps to defend against scrutiny.

The crackdown under the Foreign Corrupt Practices Act, or FCPA -- a post-Watergate law largely dormant for decades -- now extends across five continents and penetrates entire industries, including energy and medical devices. Among the companies currently under Justice Department review: Sun Microsystems Inc. and Royal Dutch Shell PLC, according to the companies' disclosures.

At least 120 companies are under investigation, according to Mark Mendelsohn, a deputy chief in the Justice Department division overseeing the prosecutions, up from 100 at the end of last year.

The effort began in the wake of a series of business scandals earlier this decade, including the collapse of Enron, that stirred up a new corporate-reform movement.

Today, companies across the U.S. are working to figure out if they are at risk. In some instances, companies have called the Justice Department to come clean, in hopes of obtaining leniency.

"If we call them before they call us, it's not where they want to be," Mr. Mendelsohn said.

The law prohibits U.S. companies from paying, or offering to pay, foreign-government officials or employees of state-owned companies to gain a business advantage. It covers nonmonetary gifts or offers in addition to cash payments, and is worded broadly enough that it's spawning an army of consultants, some of whom once prosecuted bribery cases for the Justice Department, who offer to interpret the gray areas.

...

The gray areas of the law sometimes apply to actions -- for example, the giving of seasonal gifts -- that can be common in some countries. This has left corporations concerned about other practices, such as picking up the cost of trips or meals for foreign officials.

[reaganaut1]

Policing the behavior of U.S. companies overseas should not be a priority for the U.S. Justice Department, especially during a major recession. The Obama administration acts like business is the enemy.

Bribes are ugly, but they are often necessary around the world and in the U.S. just to get government workers to do their jobs and let business proceed. As the article explains, defining a "bribe" is not always clear.

[theDentist]

IN some places, to NOT offer a bribe is an insult...

[rhombus]

After 9/11 I had a liberal apologist try to explain to me how “gift giving” was central to many Islamic cultures. To me, it seemed like he was promoting bribes and extortion as a legitimate way to avoid conflict and promote world stability. Interesting that a liberal Government is now prosecuting the private sector for the same thing. I expect this same liberal Government has already and will continue to pay bribes and extortion to avoid any embarrassing world conflict. But the private sector? Apparently, no way in hell will this be allowed.

[Redleg Duke]

Wasn’t this one of Carter’s main goals as well as the elimination of the 3-martini lunch?

[odin2008]

Someone should tell Pelosi and Hillary.....They’ve been busy overseas...

[bmwcyle]

defining a "bribe" is not always clear

It is spelled "Murtha".

[mefistofelerevised]

These boneheads in DC have never been to foreign country to so business. No bribe, no contract. They are advance payments to do business and make money. Companies don't like passing out cash, but know it is the law of the land in other lands. The US gov needs to stay out of it.

[ASOC]

LOL

Bribes are a crime in the US

In France, they are a tax dedeuction.

[PSYCHO-FREEP]

You mean sort of like Lobbyists regularly do for all the Democrats and RINOS in this country?

Let the Witch Hunt and trials begin.