FCPAméricas Blog
The Mañana Syndrome? Mexico Delays Implementing the OECD Anti-Bribery Convention
1.19.2012
Mexico recently received a poor bill of health with respect to fighting foreign bribery. A recent OECD Working Group report assessed the implementation of Mexico’s commitments under the OECD Anti-Bribery Convention and highlighted “deficiencies” and “shortcomings” in implementing the Convention’s requirements. While it acknowledged “some improvements to [Mexico’s] legislative framework for fighting bribery” and Mexico’s “efforts to promote awareness, prevention and detection of foreign bribery within the private sector,” it paints overall a picture of delay.
This was the OECD’s third such report for Mexico.
These results are significant as OECD Working Groups do not conduct such country reviews very often – only once every several years for each country. Moreover, Mexico’s results are in direct contrast to the progress that other countries are currently making (see discussions on Brazil and Turkey).
Why Mexico’s... Read more
The Anatomy of Corruption in Public Procurement
1.17.2012
Public procurement presents significant risk under the U.S. Foreign Corrupt Practices Act (FCPA). Cases like Siemens Argentina, Siemens Venezuela, Johnson & Johnson, and Tenaris highlight the risk. Large amounts of money are at stake when the government procures things like roads, computer systems, oil extraction services, medical equipment, power stations, and textbooks. Companies must interact directly with government officials. And government officials have pockets of discretion that can give rise to manipulation of the process. When corruption is involved, procurement decisions are no longer based on price, experience, and quality.
I investigated corruption and fraud for The World Bank for several years in multiple countries known for high corruption risk. Almost every one of these investigations invo... Read more
Another BRIC in the Anti-Corruption Wall (Brazil considers foreign bribery law overhaul)
1.12.2012
The Brazilian Congress is now considering Draft Bill 6.826/2010 that would dramatically strengthen its foreign bribery law. This is a significant development – the result of years of effort by Brazilian authorities working closely with their OECD, United States, and other counterparts. It is also timely. Sophisticated Brazilian-based multinationals are quickly expanding internationally, and encountering corruption risk. At the same time, Brazil is grappling with corruption on the domestic front: the President’s administration has lost six Ministers to corruption allegations since June 2011, and the country consistently ranks high on corruption risk indices.
Brazil’s effort is part of a broader movement. Countries that have adopted the OECD Anti-Bribery Convention... Read more
