| Foreign Corrupt Practices | Droste '62/Philo '89/Patois '63 | 8/11/99 |
Jim:
Germans have no quarrel with kickbacks? Are we making our
companies
non-competitive? Shouldn't the Taiwanese determine whether
laws have
been broken?
Philo:
Do we really have a law against offering kickbacks on
other countries? How odd.
Patois:
The Foreign Corrupt Practices Act of 1977 is the
defining legislation. (see
http://www.ljx.com/practice/intrade/0504fcpa.html)
I rejoined the Fluor Corporation in 9/77 as their Controller of
the ARAMCO
Saudi Arabian Gas Project, at the time, the largest single
Engineering/Construction project in history at $6.2B. That
was big money,
outside of the US government, in those days. Part of my
responsibility was
subcontract compliance on $1.8B in subcontracts that had been let
In-Kingdom. We and ARAMCO were committed to the precept
that these
contracts with local and regional contractors could be let and
managed
without the necessity of "baksheesh". Both of our
home office organizations
were heavily involved in the Congressional markups, and followed
this bill
to fruition.
Fortunately, we had the backing of the Royal family, as
corruption had been
so much a part of the landscape that it was second nature.
We lost a few,
usually where Royal's were involved, but won many. One
time, we went
without power for four days before we could get the local sheik
of ConEd
with the program. Several American contractors, and a
number of third
country national's, were summarily dismissed and lost
multi-million dollar
contracts because they tried to be like the "natives."
This legislation has had a very practical effect. It lowers
the cost of
delivered goods and services, thus leaving more of a given
country's
prosperity available to all the people, instead of the favored
few. It
allows us to compete on a more level playing field. It
forces foreign
competition to take notice and cut out some of their intended
kickbacks. It
gives US company representatives a palatable excuse for not
participating,
citing fear of prosecution.
Surprised that this was not included in a post-modern law
curriculum.
.
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