The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Public Procurement

  • From Vol. 5 No.17 (Aug. 31, 2016)

    How Anti-Corruption Compliance in the Indian Pharmaceutical Industry Can Protect Consumers

    India’s pharmaceutical industry enjoys an enviable reputation globally. According to industry reports, India’s pharmaceutical market is the third largest in the world in terms of volume and thirteenth largest in terms of value. India also leads the world in the manufacturing and export of generic drugs. But, there is significant risk in the Indian business environment regarding non-compliance with the law and in particular the anti-corruption and bribery laws. In a guest article, Shankh Sengupta and Pallav Shukla, partner and associate in Trilegal’s Delhi office, discuss how multinational companies can leverage their anti-corruption compliance programs to help fix this problem, making the pharmaceutical market safer for consumers worldwide. See also “Regional Risk Spotlight: Jay Holtmeier of WilmerHale Explains How to Navigate Bureaucratic Corruption Risks in India” (Sep. 23, 2015).

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  • From Vol. 5 No.15 (Jul. 27, 2016)

    Regional Risk Spotlight: What Companies Need to Know About Internal Investigations in South Africa

    Japanese conglomerate Hitachi recently paid a $19 million penalty for corruption related to its work with a local partner in South Africa. That case highlighted the FCPA risks associated with South Africa’s local content requirements, but the country also has rigorous anti-corruption, anti-terrorism and data privacy laws that can further influence a company’s assessment of corruption risk and how it performs internal investigations. The FCPA Report recently spoke with Vlad Movshovich and Meluleki Nzimande of South African law firm Webber Wentzel to learn more about South Africa’s current enforcement environment and what companies need to know in order to manage their anti-corruption risk. See “Lack of Training and Due Diligence Leads to $19 Million Penalty for Hitachi” (Oct. 7, 2015).

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  • From Vol. 4 No.12 (Jun. 10, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Seven Steps to Take During and After a Procurement Process (Part Three of Three)

    Winning a contract through a public procurement process presents a tremendous opportunity for a company trying to enter or expand in an emerging market – the World Bank estimates that procurements account for approximately two-thirds of spending in such areas.  However, these rich sources of business do not come without risk.  Procurement processes require companies to interact with foreign officials and often involve third-party agents or local partners, providing ample opportunity for bribery.  The FCPA Report is publishing a three-part article series to help companies mitigate the corruption risks that arise before, during and after the public procurement process.  This third and final article in the series details seven steps a company should take to protect itself during and after a procurement process.  The first article examined how procurement works and when and how bribery occurs during the procurement process.  The second article provided six steps a company should take prior to engaging in a procurement process.  See also “The World Bank’s Wide Reach and Its Growing Anti-Corruption Program,” The FCPA Report, Vol. 3, No. 11 (May 28, 2014).

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  • From Vol. 4 No.11 (May 27, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Steps to Take Prior to Entering into a Procurement Process (Part Two of Three)

    The World Bank estimates that in high-risk countries, public procurement can account for up to 60 to 70 percent of all government expenditures.  As companies continue to expand globally, more view engaging in public procurements as a tremendous growth opportunity.  However, such activity is inherently risky given the necessary interaction with government officials.  How can a company get a slice of the public procurement pie while mitigating bribery risk?  This three-part article series is designed to educate companies on the risks they face when participating in a public procurement process and help provide a framework for an implementable anti-corruption policy relevant to that process.  The first article examined how procurement works and when and how bribery occurs during the procurement process.  This, the second article in the series, details six steps a company should take prior to engaging in a procurement process.  The third article will explore additional actions the company should take during and after the process. 

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  • From Vol. 4 No.11 (May 27, 2015)

    Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal

    The fallout from the Petrobras bribery scandal, which has been brewing since mid-2013, continues to grow.  In April, Petrobras finally released its 2014 financial statements, which included significant corruption-related write-downs and impairments.  A recent program presented by Mayer Brown and its Brazilian affiliate, Tauil & Chequer Advogados, offered a look at the history of the Petrobras scandal, including developments since the release of the 2014 financials.  The panelists also reviewed enforcement actions being taken by Brazil’s securities regulators; economic ramifications of the scandal; and the risks and opportunities arising out of that scandal.  See also “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 6 (Mar. 18, 2015); “Brazil’s Evolving Anti-Corruption Environment,” The FCPA Report, Vol. 4, No. 9 (Apr. 29, 2015).

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  • From Vol. 4 No.10 (May 13, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Understanding the Procurement Process (Part One of Three)

    The World Bank estimates that governments in developing countries spend $820 billion a year on procurement, presenting huge, but precarious, opportunities for multi-national companies positioned to provide goods and services for those governments.  The 2014 OECD Foreign Bribery Report found that 57% of the global foreign bribery enforcement actions it studied involved bribes to obtain public procurement contracts.  This three-part article series is designed to help companies mitigate the risks associated with participating in a public tender.  This, the first article in the series, examines how procurement works, the riskiest points of the process and common bribery schemes related to procurement.  The second article will detail six steps a company should take before engaging in the procurement process; and the final article will explore additional actions a company should take during and after the procurement process.  See “Key Compliance Takeaways from the OECD Foreign Bribery Report,” The FCPA Report, Vol. 3, No. 25 (Dec. 17, 2014). 

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    Brazil’s Evolving Anti-Corruption Environment

    It has been over a year since the landmark Brazilian Anti-Corruption Act (BAA) has taken effect, and as the widespread investigation into Petrobras reveals, there is both official and grassroots disgust with the corruption that has historically plagued Brazil.  How have these current developments (which also include investigations into bribery involving the recent World Cup, the upcoming Olympics, and the aerospace conglomerate Embraer) affected the Brazilian corruption landscape and the risks of doing business there?  During a recent program presented by The Network, Matteson Ellis, a member of Miller & Chevalier, discussed those risks in the current anti-corruption environment in Brazil, detailed the new BAA regulations and offered strategies for assuring compliance with the FCPA and the BAA when doing business in Brazil.  See also “Corruption Risk and the Changing Legal Climate in Latin America,” The FCPA Report, Vol. 3, No. 4 (Feb. 19, 2014).

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  • From Vol. 3 No.12 (Jun. 11, 2014)

    How Defense Offsets Intersect with the FCPA

    Defense offsets are agreements to do future business in a country in consideration for awarding a defense contract, either directly related to the procurement contract, such as producing part of the product sold in the receiving country, or indirectly related, such as building schools or transferring technology.  In recent years, these agreements have become more opaque and more complex, and given the requisite government interaction, are increasingly fertile ground for the bribery of foreign officials.  In a guest article, David L. Scher and R. Scott Oswald, principal and managing principal, respectively, at the Employment Law Group, examine the relationship between defense offsets and the FCPA and how to mitigate the corruption risk.  See also “Transparency International UK 2012 Defence Industry Anti-Corruption Index Highlights Industry-Wide Deficiencies in Anti-Corruption Practices and Disclosure,” The FCPA Report, Vol. 1, No. 10 (Oct. 17, 2012). 

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  • From Vol. 3 No.10 (May 14, 2014)

    FCPA Compliance in Non-Controlled Joint Ventures

    Transnational joint ventures – especially where the company owns a minority stake and does not control the venture – are fraught with corruption risk because the company is “on the hook” for the actions of the joint venture abroad.  At a recent panel, FCPA experts noted that companies are increasingly aware of this risk and are acting on it.  Mark Mendelsohn, a partner at Paul Weiss, moderated the discussion about joint venture corruption risks and compliance strategies at Practising Law Institute’s Foreign Corrupt Practices Act and International Anti-Corruption Developments 2014 program.  The panel featured James Bamford, a Founder and Managing Director at joint venture advisory firm Water Street Partners; Timothy Dickinson, a partner at Paul Hastings; and Kathryn Cameron Atkinson, a member of Miller & Chevalier.  See also “Strategies for Mitigating the FCPA Risk of Entering Into Joint Ventures,” The FCPA Report, Vol. 2, No. 9 (May 1, 2013).

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  • From Vol. 3 No.6 (Mar. 19, 2014)

    Eye-Opening Report Helps Companies Tackle European Corruption Risks  

    "Breathtaking” is how one European Commissioner characterized the corruption described in the European Commission’s February 2014 Anti-Corruption Report, which details each E.U. Member State’s efforts in fighting corruption and provides advice for improving the effectiveness of those efforts.  In a guest article, Antonio Suarez-Martinez and James Maton, partners in Edwards Wildman Palmer LLP’s London office, analyze the Report and the relevant takeaways for companies doing business in Member States.  For more insight from Edwards Wildman, see “Collateral Consequences of Bribery: When Can Ethical Competitors Initiate Suit in the U.S. and U.K.?,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013).

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  • From Vol. 1 No.7 (Sep. 5, 2012)

    Fines, Victims, the Three Buckets of FCPA Costs and FCPA Reform: An Interview with Mike Koehler, the FCPA Professor (Part Two of Two)

    The FCPA Report recently interviewed Mike Koehler, Assistant Professor at Southern Illinois University School of Law, author of the popular blog the FCPA Professor and outspoken critic of the current FCPA enforcement regime.  This article includes the second part of our interview with Professor Koehler.  In this part, Professor Koehler addresses recent Supreme Court precedent affecting corporate fines; the potential for fines to be paid to victims instead of the U.S. Treasury; the cost-benefit analysis of FCPA compliance and the three buckets of FCPA costs; his distinction between license/permit cases and government procurement cases and its importance for compliance policies and procedures; and the prospect of FCPA reform, a topic on which Professor Koehler disagrees with Judge Sporkin.  For the first part of our interview with Professor Koehler, see “Compliance Implications of the Current Enforcement Climate: An Interview with Mike Koehler, the FCPA Professor (Part One of Two),” The FCPA Report, Vol. 1, No. 6 (Aug. 22, 2012).

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