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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