FCPAméricas Blog
2014 World Cup, 2016 Olympics, and Corruption Risk: Perspectives from Brazil
5.23.2012
What are the anti-corruption compliance issues now emerging in Brazil given that the country is scheduled to host the 2014 World Cup and the 2016 Olympics? FCPAméricas asked this question to five prominent Brazilian compliance professionals.
Their answers, provided below, highlight three key issues. First, public procurement for things like stadium construction has created significant opportunities for corruption (see more on risks in public procurement here). Second, hospitality issues are beginning to arise now that companies will have the chance to host others at the many scheduled events (see a discussion on hospitality and entertainment here). Third, the resulting corruption risks are now a topic of frequent conversation and focus in Brazil, an issue on which FCPAméricas has previously written. The very fact that corruption is an issue on people’s minds, alone, appears to be an important development.
Carlos Henrique ... Read more
FCPA Actions that Hit Home
5.18.2012
As a legal matter, the FCPA addresses only the supply side of bribery. This means that the effects of corruption are irrelevant to whether or not a violation has occurred. But considering effects is still important. If nothing else, it calls to mind why such a law exists in the first place.
More often than not, FCPA enforcement actions involve acts of corruption whose effects can seem distant. An oil services company that pays customs officials through third parties to expedite the entry of its goods (see Noble Corporation). A technology unit of a multinational corporation that pays millions to win a billion dollar contract to supply a country’s citizens with identification cards (see Siemens Argentina). A spirits company that pays to have its products prominently displayed at state-owned liquor stores (see Diageo). It might not be readily apparent how these acts really affect the everyday lives of Nigerians, Argentines, or Ind... Read more
Business Pushback against Brazil Foreign Bribery Bill
5.15.2012
In January 2012, FCPAméricas reported on how Brazil is currently considering an overhaul of its foreign bribery law (see Another BRIC in the Anti-Corruption Wall). In March, we reported on how a special committee created by the Brazilian Congress to analyze the bill made revisions to the draft that bolstered certain provisions (see Road to Corruption Overhaul). Reports now indicate that Brazilian businesses have begun a significant lobbying effort to weaken the bill. These interests have already made some progress in getting it sidelined.
Key features of the Draft Bill 6.826/2010 under consideration by the Brazilian Congress would dramatically strengthen the country’s bribery laws. For example, the bill would establish the direct civil liability of corporations making them liable for the acts of their directors, officers, employees, and agents under the theory of respondeat superior. It would also create strong sanctions, establish credit for voluntar... Read more
