DOCSLIB.ORG

Corruption in Times of COVID-19: a Regional Perspective on Public Procurement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Corruption in Times of COVID-19: a Regional Perspective on Public Procurement CORRUPTION IN TIMES OF COVID-19: A REGIONAL PERSPECTIVE ON PUBLIC PROCUREMENT MAY 20, 2020 Members of the Lawyers Council for Civil and Economic Rights Carolina Zang, Argentina | Zang, Bergel & Vines Abogados José A. Martinez de Hoz (Jr.), Argentina | Martinez de Hoz & Rueda Luciana Tornovsky, Brazil | Demarest Abogados Roberto Quiroga, Brazil | Mattos Filho Pablo Guerrero, Chile | Barros & Errázuriz Paula Samper Salazar, Colombia | Gómez-Pinzón Abogados Vivian Liberman, Costa Rica | BLP Mary Fernández, Dominican Republic | Headrick Rizik Álvarez & Fernández Hernán Perez Loose, Ecuador | Coronel & Perez Abogados Alfonso Carrillo, Guatemala | Carrillo & Asociados Carlos Del Río, Mexico | Creel, García-Cuellar, Aiza & Enríquez Valeria Chapa, Mexico | Assistant Vice President, Senior Legal Counsel AT&T México Ramón Ricardo Arias, Panama | Galindo, Arias & López Alberto Rebaza, Peru | Rebaza, Alcázar & De Las Casas Antonia Stolper, Unites States | Shearman & Sterling Todd Crider, United States| Simpson Thacher & Bartlett Marcela Hughes, Uruguay Fernando Pelaez-Pier, Venezuela | Hoet Pelaez Castillo & Duque Jaime Chavez Alor, Coordinator | Vance Center for International Justice The Lawyers Council for Civil and Economic Rights brings together private practice law professionals in the Americas to support the rule of law, combat corruption and to support the work of the civil society. The membership of the Lawyers Council consists of lawyers who have distinguished in the private practice in their respective countries and who have demonstrated constant civic commitment in their careers. The Lawyers Council is managed by the Cyrus R. Vance Center for International Justice. The Vance Center promotes global justice by engaging legal professionals around the world to support the work of civil society and an ethically active legal profession. It is a non-profit program of the New York City Bar Association that brings together leading law firms and other partners around the world to promote international justice initiatives and provide pro bono legal representation to civil society organizations that fight for social justice. Coordinator of the publication: Jaime Chávez Alor, Latin America Policy Manager, Vance Center. Please send questions and comments to [email protected] Corruption in Times of COVID-19: a Regional Perspective on Public Procurement Executive summary ............................................................................................................................1 Introduction ......................................................................................................................................2 A Regional Perspective .......................................................................................................................3 1. Argentina | Carolina Zang, Zang, Bergel & Vines Abogados ............................................................. 3 2. Brazil | Luciana Tornovsky and Eloy Rizzo, Demarest Advogados .................................................... 4 3. Chile | Pablo Guerrero, Barros & Errázuriz ....................................................................................... 5 4. Colombia | Paula Samper Salazar, Gómez-Pinzón Abogados ........................................................... 6 5. Costa Rica | Vivian Liberman and Juan Carlos Tristán, BLP Legal ..................................................... 7 6. Dominican Republic | Mary Fernández, Headrick Rizik Alvarez & Fernández .................................. 8 7. Ecuador | Hernán Pérez Loose, Coronel & Pérez Abogados ............................................................ 8 8. Guatemala | Alfonso Carrillo, Carrillo & Asociados .......................................................................... 9 9. Mexico | Carlos Del Río and Leonel Pereznieto, Creel, García-Cuellar, Aiza & Enríquez ............... 10 10. Panama | Ramón Ricardo Arias, GALA Galindo, Arias & López .................................................. 11 11. Peru | Alberto Rebaza, Hector Gadea, Sergio Mattos and Camilo Clavijo, Rebaza, Alcázar & De Las Casas ................................................................................................................................................. 12 12. United States of America | S. Todd Crider, Simpson Thacher & Bartlett, and Antonia Stolper, Shearman & Sterling. .............................................................................................................................. 13 13. Uruguay | Marcela Hughes ......................................................................................................... 15 14. Venezuela | Fernando Pelaéz-Pier .............................................................................................. 15 Lawyers Council recommendations .................................................................................................. 17 Recommendations to the legal community ............................................................................................ 17 Integrity and anti-corruption recommendations .................................................................................... 18 References ....................................................................................................................................... 19 Executive summary The COVID-19 pandemic and resulting economic crisis counterweight and monitoring the actions of the have led to an unprecedented assertion of power by executive helping to guarantee good governance and governments across Latin America and the world. clean public spending. Continued vigilance to uncover Unfortunately, exceptional or emergency powers potential misallocation of funds and commitment to intended to expedite crisis response, including as to investigating allegations of corruption as they arise health services, economic relief, and other critical will be essential in each of our societies to signal needs, have also opened up opportunities for abuse whether there is real political will to continue this that have the potential to significantly setback the essential struggle against corruption. fight against corruption. Even though governments have been operating under these exceptions for a Despite efforts in the region, it is clear that the relatively short time, in at least 12 of the 14 countries mechanisms to combat corruption are insufficient. analyzed, there have been allegations of, or Most countries in the region already have serious announced investigations into, corruption relating to corruption risks, and the fact that relaxing the public procurement directly linked to the pandemic provisions of public procurement creates immediate response. Indeed, the relaxation of normal spaces for corruption, shows that there are no monitoring and procurement procedures threatens efficient means to prevent corruption and that many long-fought-for anti-corruption safeguards. governments have not developed their anti- corruption commitment to a culture of integrity. The reality is that, far from impairing an effective response to crisis, transparency and active monitoring In this report, which provides a regional update as to of the allocation of relief funds and procurement public procurement in the pandemic, the Lawyers activities are critical to an effective use of resources Council for Civil and Economic Rights is calling on the and to preserving public confidence and support in legal community throughout the region, including this crisis. Corruption generates or increases distrust lawyers in the private sector (both law firms and of citizens in the government, causing governance companies), bar associations, pro bono problems in a time when complying with clearinghouses and law schools, to be vigilant and governmental edicts can be lifesaving. active in support of anti-corruption efforts relating to COVID-19 and to work in support of civil society Civil society organizations and the media have made actors who are leading the fight for transparency and public the misuse of resources destined to combat fairness. The legal community can help in many ways the pandemic, leading to administrative and criminal including: filing for release of public records; making investigations for corruption. In several countries, public statements on the importance of the corruption cases have resulted in resignations and continued fight against corruption; publishing articles dismissals of high-level politicians and public officials. and op-eds; demanding accountability of government The crisis has also presented an opportunity to test leaders and prosecutors; supporting watchdog the division of powers and checks and balances, both organizations; and analyzing laws and bidding political and judicial. Only in a few countries are the procedures to make sure that they comply with basic legislative branches acting as an important political transparency requirements and integrity standards. 1 Introduction On March 11, 2020, the World Health Organization decision-making, including providing health services, characterized the COVID-19 outbreak as a pandemic. economic relief, and other critical needs. These As of May 18, 2020, more than 4.7 million cases of emergency powers often bypass procurement rules COVID-19 have been reported in 187 countries and and other standard processes to make exceptional regions.1 On February 26, the pandemic came to use of public resources, creating imminent risks of Latin America when Brazil confirmed a case in São increased corruption
Load more

Recommended publications
  • 2019 FCPA/Anti-Corruption Year in Review
    FCPA/Anti-Corruption Developments: 2019 Year in Review January 21, 2020 FCPA/Anti-Corruption Developments: 2019 Year in Review Lucinda A. Low and Brittany Prelogar (eds.)1 Introduction US Foreign Corrupt Practices Act (FCPA) enforcement authorities announced a steady stream of individual and corporate enforcement matters throughout 2019, some with eye-popping fines. Overall, the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) reported 50 FCPA-related actions (including 31 by the DOJ and 19 by the SEC) over the course of the year. The $2.9 billion in total fines, penalties, and disgorgement imposed in corporate FCPA settlements in 2019 nearly matched the record-breaking $2.91 billion imposed in 2018 in such matters. The DOJ also announced a slew of new charges against individuals and racked up a number of trial victories in existing cases. Mega settlements reached by two companies made up nearly two-thirds of the $2.9 billion total corporate penalties imposed in 2019. In the first quarter of the year, Mobile TeleSystems PJSC (MTS) agreed to pay $850 million in penalties and disgorgement to resolve charges against it, joining the ranks of fellow companies Telia and VimpelCom among the top FCPA fines to date for conduct relating to the Uzbek telecommunications sector. In a strong book-end to the year, Telefonaktiebolaget LM Ericsson (Ericsson) and its subsidiary, Ericsson Egypt Ltd. (Ericsson Egypt), agreed to pay more than $1 billion in penalties and disgorgement to resolve DOJ and SEC investigations for conduct in multiple countries. Enforcement against individuals, especially by the DOJ, was also particularly robust in 2019.
    [Show full text]
  • Nixon's Caribbean Milieu, 1950–1968
    Dark Quadrant: Organized Crime, Big Business, and the Corruption of American Democracy Online Appendix: Nixon’s Caribbean Milieu, 1950–1968 By Jonathan Marshall “Though his working life has been passed chiefly on the far shores of the continent, close by the Pacific and the Atlantic, some emotion always brings Richard Nixon back to the Caribbean waters off Key Biscayne and Florida.”—T. H. White, The Making of the President, 19681 Richard Nixon, like millions of other Americans, enjoyed Florida and the nearby islands of Cuba and the Bahamas as refuges where he could leave behind his many cares and inhibitions. But he also returned again and again to the region as an important ongoing source of political and financial support. In the process, the lax ethics of its shadier operators left its mark on his career. This Sunbelt frontier had long attracted more than its share of sleazy businessmen, promoters, and politicians who shared a get-rich-quick spirit. In Florida, hustlers made quick fortunes selling worthless land to gullible northerners and fleecing vacationers at illegal but wide-open gambling joints. Sheriffs and governors protected bookmakers and casino operators in return for campaign contributions and bribes. In nearby island nations, as described in chapter 4, dictators forged alliances with US mobsters to create havens for offshore gambling and to wield political influence in Washington. Nixon’s Caribbean milieu had roots in the mobster-infested Florida of the 1940s. He was introduced to that circle through banker and real estate investor Bebe Rebozo, lawyer Richard Danner, and Rep. George Smathers. Later this chapter will explore some of the diverse connections of this group by following the activities of Danner during the 1968 presidential campaign, as they touched on Nixon’s financial and political ties to Howard Hughes, the South Florida crime organization of Santo Trafficante, and mobbed-up hotels and casinos in Las Vegas and Miami.
    [Show full text]
  • Practice Group
    ROPES & GRAY WHITE PAPER Mexico March 19, 2014 Anti-Corruption Developments in Mexico OVERVIEW While corruption in Mexico has been widespread and well known for some time, the implications of that corruption on foreign companies doing business in Mexico became headline news when, on April 21, 2012, the New York Times broke the story that Wal-Mart de Mexico, Wal-Mart’s largest foreign subsidiary, had allegedly paid more than $24 million in bribes to Mexican officials.11 Wal-Mart de Mexico made these corrupt payments in order to obtain expedited building permits.2 The New York Times followed this article with another on December 17, 2012, this time alleging that Wal-Mart de Mexico bribed a Mexican official to change the zoning map so that it could build a store in an area that recently prohibited commercial development.3 The ongoing investigations that followed by the U.S. Congress, the U.S. Securities and Exchange Commission, and the U.S. Department of Justice cost Wal-Mart $157 million in fiscal year 2013 for the ongoing probe into the allegations.4 Mexican President Enrique Peña Nieto, who took office on December 1, 2012, has indicated that his administration is dedicated to addressing the corruption perceived to be rampant in a country where bribery can be a part of daily life.5 Mr. Peña Nieto is currently leading a reform of the state oil monopoly Pemex, which has long been viewed as one of the most corrupt institutions in Mexico (a 2003 New York Times article notes that Pemex executives estimated that the company loses at least $1 billion a year to corruption).6 Pemex has been referred to as the “Niagara Falls of corruption, it flows from everywhere and it’s not new;”7 a “sewer of corruption;”8 and a “slush fund for politicians.”9 In December 2013, Mr.
    [Show full text]
  • OECD Bribery Awareness Handbook for Tax Examiners
    OECD Bribery Awareness Handbook for Tax Examiners The Bribery Awareness Handbook, first issued in 2001, provides practical guidance to help tax inspectors and investigators identify suspicious payments likely to be bribes so that the denial of deductibility can be enforced, and bribe payments detected and reported to the appropriate domestic law enforcement authorities. The 2009 OECD Recommendation on Tax Measures for Further Combating Bribery of Foreign Public Officials in International Business Transactions will further strengthen the role of tax authorities in the combat against bribery, as it requires explicit legislation to prohibit the tax deductibility of bribes and promotes enhanced cooperation between tax authorities and law enforcement agencies to counter corruption. To mark the 10th anniversary of the entry into force of the OECD Anti-Bribery Convention, and to contribute to the newly launched global awareness-raising campaign to counter foreign bribery, the OECD has reissued the handbook, including the new recommendation. Other useful tools Money Laundering Awareness Handbook for Tax Examiners and Tax Auditors www.oecd.org/ctp/taxcrimes/laundering OECD Manual on the Implementation of Exchange of Information for Tax Purposes www.oecd.org/ctp/eoi/manual Tax Co-operation 2009: Towards a Level Playing Field - 2009 Assessment by the Global Forum on Transparency and Exchange of Information www.oecd.org/ctp/htp/cooperation OECD Bribery Awareness Handbook for Tax Examiners Centre for Tax Policy and Administration 2009 This handbook is available in 18 languages from www.oecd.org/ctp/nobribes OECD Bribery Awareness Handbook for Tax Examiners ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation.
    [Show full text]
  • 1 - DM3\7281688.3 Representatives, Etc.) to Conduct Themselves Consistently with This Policy, Including by Complying with All Applicable Anti-Corruption Laws
    EVAXION BIOTECH A/S ANTI-CORRUPTION, ANTI-BRIBERY AND OFAC POLICY STATEMENT AND COMPLIANCE GUIDE ANTI-CORRUPTION, ANTI-BRIBERY Introduction and Policy Statement It is the policy of Evaxion Biotech A/S., its subsidiaries and affiliates (collectively, the “Company”) to comply with the U.S. Foreign Corrupt Practices Act (“FCPA”), the United States Anti-Kickback Statute (“AKS”), physician self-referral laws (Stark Laws), the United States False Claims Act, Sections 122 and 299(2) of the Danish Criminal Code consolidated by Act no. 976 of 17 September 2019 (in Danish: Straffeloven) (“Danish Criminal Code”), the United Kingdom Bribery Act 2010 as amended, United Nations Convention against Corruption (“UNCAC”), the Council of Europe Criminal Law Convention on Corruption, and the Organization for Economic Cooperation and Development Anti-Bribery Convention (“OECD Anti-bribery Convention”) and all other applicable anti-bribery and anti-corruption laws. The Company prohibits bribery and other corrupt practices in any form, whether committed directly or indirectly, and whether involving government officials or private parties. This Anti-Corruption, Anti-Bribery and OFAC Policy Statement and Compliance Guide (“Policy”) is not designed to be all encompassing, but instead is intended to expand and supplement the provisions of the Company’s existing Code of Conduct, the Company’s various policies on interactions with Health Care Professionals and Health Care Organizations, as well as the PhRMA Code on Interactions with Health Care Professionals. This Policy clearly sets forth the Company’s policy prohibiting any activity in support of prohibited practices. Additionally, by providing a basic understanding of the relevant laws, the Policy provides guidance to assist in identifying situations that risk violating the FCPA, AKS, FCA, or other applicable anti- corruption laws and, therefore, ensure that appropriate action is taken.
    [Show full text]
  • Developments in U.S. and International Efforts to Prevent Corruption
    PUBLIC INTERNATIONAL LAW Developments in U.S. and International Efforts to Prevent Corruption KATHLEEN M HAMANN, PHILIP UROFSKY, NICOLE M. HEALY, ALEXANDRA WRAGE, AND MARGARET AYRES* I. Introduction Both the international community and the United States continued to expand their policy and enforcement efforts globally in 2005, culminating with the entry into force of the United Nations Convention Against Corruption (UNCAC)' on December 14, 2005. The *This report has previously been drafted by the Task Force on International Standards for Corrupt Practices. This year, the Task Force became the Committee. Due to the necessary brevity of this report, the Committee will be issuing a more comprehensive version that includes more in-depth analysis of U.S. cases and coverage of ongoing domestic and global policy initiatives. To view the complete report, please visit the Committee website at www.abanet.org/dch/committee.cfm?com = IC700600. Kathleen M Hamann, Philip Urosky, Nicole M. Healy, Alexandra Wrage, and Margaret Ayres contributed to this summary. Kathleen Hamann is an attorney in the Government Contracts, International, and White Collar Practice Groups at Powell Goldstein, LLP, specializing in international criminal laws and regulations. Prior to entering private practice, she was a foreign and civil service officer for the Department of State, where she developed international policy to combat international corruption and crime. Philip Urofsky is Special Counsel in the Business Fraud & Complex Litigation Group at Cadwalader Wick- ersham & Taft LLP. He was previously a prosecutor in the Fraud Section at the Department of Justice, where he was responsible for supervising and conducting investigations and prosecutions of violations of the Foreign Corrupt Practices Act.
    [Show full text]
  • Using Corrupt Practices As Foreign Policy Tools
    CORRUPTION AS STATECRAFT Using Corrupt Practices as Foreign Policy Tools Transparency International (TI) is the world’s leading non-governmental anti-corruption organisation, addressing corruption and corruption risk in its many forms through a network of more than 100 national chapters worldwide. Transparency International Defence and Security (TI-DS) works to reduce corruption in defence and security worldwide. Author: Dr Karolina MacLachlan Research provided by: Nikolai Topalov Transparency International Anti-Corruption Center, Armenia Transparency International Bosnia & Herzegovina Editors: Katherine Dixon, Leah Wawro, Deirdre Mahony With thanks for feedback and assistance to: Transparency International EU N-OST Public Eye This report was funded by Open Society European Policy Institute as well as UK aid from the UK government. © 2019 Transparency International. All rights reserved. Reproduction in whole or in parts is permitted, providing that full credit is given to Transparency International and provided that any such reproduction, in whole or in parts, is not sold or incorporated in works that are sold. Written permission must be sought from Transparency International if any such reproduction would adapt or modify the original content. Published July 2019. Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of February 2019. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes
    [Show full text]
  • The Kleptocrats?
    FEATURED VS. THE KLEPTOCRATS? BY TOM MAYNE AND PETER ZALMAYEV 20 | HARRIMAN When we examine U.S. anti- corruption efforts related to this region, the overwhelming focus has been on Russia, due to the allegations of state-sponsored election meddling and the introduction in 2012 of the Magnitsky Act, which sanctioned those involved in a specific scandal—the imprisonment and resulting death of a lawyer who had been working on a Russian corruption case. This was expanded in 2018 with the introduction of the Global he presidency of Joe who sat on committees that Magnitsky Act, which allows the Biden comes at a determine foreign aid budgets. If U.S. to sanction any foreign actor time when there is a the problem were just a question involved in corruption and human growing awareness of corrupt foreign actors, Western rights abuses anywhere in the world. of “kleptocracies”— law enforcement agencies could Yet, before December 2020, only two Tcountries where a ruling elite embezzles seize assets, refuse visas, or jail these individuals from the former Soviet state funds at the expense of the people. individuals. Yet the problem is more Union had been sanctioned: the The damage caused by this corruption insidious, and key to understanding daughter of the former president of isn’t just local; it also has a corrosive kleptocracies is the West’s role in Uzbekistan and a Latvian oligarch. effect on democratic countries. enabling such theft in the first place. This is surprising, given that countries Oligarchs from abroad who buy luxury People tend to think of kleptocracies such as Azerbaijan, Turkmenistan, and apartments and mansions (which often as geopolitical backwaters—of little Kazakhstan have consistently poor sit empty) raise property prices past importance to the West, save for their scores on international corruption what the average citizen can afford.
    [Show full text]
  • The State and Illegality in Indonesia in Illegality and State the the STATE and ILLEGALITY in INDONESIA
    Edited by Edward Aspinall and Gerry van Klinken The state and illegality in Indonesia THE STATE AND ILLEGALITY IN INDONESIA The popular 1998 reformasi movement that brought down President Suharto’s regime demanded an end to illegal practices by state offi cials, from human rights abuse to nepotistic investments. Yet today, such practices have proven more resistant to reform than people had hoped. Many have said corruption in Indonesia is “entrenched”. We argue it is precisely this entrenched character that requires attention. What is state illegality entrenched in and how does it become entrenched? This involves studying actual cases. Our observations led us to rethink fundamental ideas about the nature of the state in Indonesia, especially regarding its socially embedded character. We conclude that illegal practices by state offi cials are not just aberrations to the state, they are the state. Almost invariably, illegality occurs as part of collective, patterned, organized and collaborative acts, linked to the competition for political power and access to state resources. While obviously excluding many without connections, corrupt behaviour also plays integrative and stabilizing functions. Especially at the lower end of the social ladder, it gets a lot of things done and is often considered legitimate. This book may be read as a defence of area studies approaches. Without the insights that grew from applying our area studies skills, we would still be constrained by highly stylized notions of the state, which bear little resemblance to the state’s actual workings. The struggle against corruption is a long-term political process. Instead of trying to depoliticize it, we believe the key to progress is greater popular participation.
    [Show full text]
  • Mail-In Voter Fraud: Anatomy of a Disinformation Campaign
    Mail-In Voter Fraud: Anatomy of a Disinformation Campaign The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Benkler, Yochai, Casey Tilton, Bruce Etling, Hal Roberts, Justin Clark, et al. Mail-In Voter Fraud: Anatomy of a Disinformation Campaign, 2020. Citable link https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37365484 Terms of Use This article was downloaded from Harvard University’s DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at http:// nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of- use#LAA Mail-in Voter Fraud: Anatomy of a Disinformation Campaign The Disinformation Campaign Surrounding the Risk of Voter Fraud Associated with Mail-in Ballots Follows an Elite-Driven, Mass Media Model; Social Media Plays a Secondary Role in 2020. Yochai Benkler, Casey Tilton, Bruce Etling, Hal Roberts, Justin Clark, Robert Faris, Jonas Kaiser, and Carolyn Schmitt1 ​ SUMMARY AND OVERVIEW The claim that election fraud is a major concern with mail-in ballots has become the central threat to election participation during the Covid-19 pandemic and to the legitimacy of the outcome of the election across the political spectrum. President Trump has repeatedly cited his concerns over voter fraud associated with mail-in ballots as a reason that he may not abide by an adverse electoral outcome. Polling conducted in September 2020 suggests that nearly half of Republicans agree with the president that election fraud is a major concern associated with expanded mail-in voting during the pandemic.
    [Show full text]
  • Rice-Cake Expenses in Korea and the Foreign Corrupt Practices Act
    Washington International Law Journal Volume 6 Number 3 7-1-1997 Cultural Differences in the Crusade Against International Bribery: Rice-Cake Expenses in Korea and the Foreign Corrupt Practices Act Joongi Kim Jong Bum Kim Follow this and additional works at: https://digitalcommons.law.uw.edu/wilj Part of the Comparative and Foreign Law Commons, and the International Trade Law Commons Recommended Citation Joongi Kim & Jong B. Kim, Cultural Differences in the Crusade Against International Bribery: Rice-Cake Expenses in Korea and the Foreign Corrupt Practices Act, 6 Pac. Rim L & Pol'y J. 549 (1997). Available at: https://digitalcommons.law.uw.edu/wilj/vol6/iss3/3 This Article is brought to you for free and open access by the Law Reviews and Journals at UW Law Digital Commons. It has been accepted for inclusion in Washington International Law Journal by an authorized editor of UW Law Digital Commons. For more information, please contact [email protected]. Copyright C 1997 Pacific Rim Law & Policy Association CULTURAL DIFFERENCES IN THE CRUSADE AGAINST INTERNATIONAL BRIBERY: RICE-CAKE EXPENSES IN KOREA AND THE FOREIGN CORRUPT PRACTICES ACT Joongi Kimt Jong Bum Kim: "Even if an object sent as a gift is very small, once one becomes sentimentally indebted then one's actions will already be swayed by one's personal feelings"--Chong Yakyong, Korean Confucian Scholar (1762-1836) "They say the gods themselves are moved by gifts"-Euripides Abstract: The expanding global movement against overseas bribery has emerged as one of the foremost issues in international trade. This paper explores the complex issues surrounding this multilateral anti-bribery movement, particularly focusing on one of the central concerns at the heart of this debate: what type of different cultural perspectives and legal traditions exists regarding questionable payments and whether they need to be respected.
    [Show full text]
  • Anti-Corruption Tool Kit, Chapter 5,Enforcement, Cicp 15
    5 Enforcement NTI-CORRUPTION TOOL KIT A Version 4, last edited 11 November 2002 Enforcement 5 V. ENFORCEMENT Introduction One key problem faced by those investigating corruption is that, unlike many traditional crimes such as robbery or murder, there is no clear victim to complain or overt occurrence likely to be reported by witnesses. In corruption cases, those with direct knowledge of the offence generally profit in some way, making them unlikely to report it. Corruption is not a “victimless” crime, but the only victim in many cases is the general public interest, which is not aware of the crime or in a position to report or complain about it. For this reason, any anti-corruption strategy should include elements intended to bring to light the presence of corruption. These include elements intended to encourage those who witness or are aware of corruption incidents to report them and incentives to complain about sub-standard public services which may be due to corruption, supported by more general education about corruption, the harm it causes and basic standards that should be expected in the administration of public affairs. Also included are elements that generate information and evidence of corruption in other ways, such as audit and inspection requirements. In some cases, there are relatively direct victims of corruption, such as the unsuccessful participants in a corrupt competition for a public contract or employment position, and strategies should also encourage these victims to be aware of the possibility of corruption and report it when suspected. In encouraging those aware of corruption to report it, the greatest challenge is often the fact that those who are victimised directly are often vulnerable to intimidation or retaliation from the offenders, either because they belong to vulnerable groups, or because of the relationship to the offenders which made them aware of the corruption in the first place.
    [Show full text]