FCPAméricas Blog
New Pemex Corruption Risks
2.29.2016
Over the years, companies providing goods and services to Petróleos Mexicanos (Pemex), Mexico’s state-owned oil & gas company, have faced numerous FCPA risks. Pemex is considered an “instrumentality” of a foreign government under the FCPA since it is controlled by the Mexican Government. As a result, its officials are considered “foreign officials” under the FCPA, and improper payments made to them directly or indirectly implicate FCPA liability.
FCPA enforcement actions involving Pemex have traditionally related to contracting with Pemex to provide goods and services. Software company Paradigm B.V. paid $1 million in FCPA penalties based, in part, on consultant payments and gifts and travel expenses for a Pemex ... Read more
New FCPA Risks in Mexico’s Historic Energy Reform
2.28.2016
In 2013, the Mexican Congress approved constitutional amendments to open oil & gas exploration and production to foreign investment, ending the monopoly of Petróleos Mexicanos (Pemex). In the second half of 2015, the Comisión Nacional de Hidrocarburos (CNH), the entity created by the Ministry of Energy to supervise the award of E&P blocks to private companies, completed the first three phases of auctions. Private companies are now setting up operations, and more auction rounds will continue into 2016 and beyond.
For companies winning these opportunities, the corruption risk landscape is proving to be somewhat new. Traditionally, the participation of oil and gas companies in the country has been limited to providing goods and services to Pemex, who served as the country’s only operator. Service companies grew well accustome... Read more
The Head of DOJ’s Fraud Section Speaks
2.16.2016
On February 9, 2016, Andrew Weissmann, the head of DOJ’s Fraud Section, provided an informative keynote speech at a conference sponsored by the Global Investigation Review in Washington, D.C. Below is a summary of some of the main topics addressed.
List of compliance questions. Weissmann said that the DOJ will publish in the next weeks a list of questions that companies can expect to be asked when being assessed by the DOJ’s new compliance consultant. Weissmann explained that some questions may not apply in certain cases and others may be asked as well. Weissmann previewed the list, highlighting four specific categories of questions DOJ will ask:
What does a low level emp... Read more
