March 25, 2014
March 25, 2014 — The U.S. Foreign Corrupt Practices Act (FCPA) seeks to prevent multinational businesses from increasing their revenue abroad by paying illegal bribes
to officials with state-owned and controlled businesses. When companies rely on bribery or kickbacks to win overseas contracts, they place honest competitors at an unfair disadvantage. To redress foreign bribery, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provides for handsome rewards to whistleblowers who collaborate with the Securities and Exchange Commission (SEC) about foreign bribery operations.
Marubeni Pleads Guilty to Foreign Bribery Charges Involving Indonesian Power Services Contract
A Japanese corporation providing power generation services around the globe has pleaded guilty to FCPA charges alleging that the company engaged in a foreign bribery operation in Indonesia. Marubeni Corporation, the U.S. Justice Department
reports, will pay an $88 million fine as a result of its misconduct.
In 2002, Marubeni was competing for a $118 million contract — the Tarahan project — to provide power generation services to Indonesia. To secure the deal, Marubeni, its employees and others paid bribes to an Indonesian Parliament member as well as members of Perusahaan Listrik Negara (PLN), an electricity company owned and controlled by Indonesia. As part of the scheme, Marubeni and a partner hired two different consultants whose primary consulting services involved making the actual bribe payments to Indonesian officials.
In 2003, after PLN officials indicated that the first consultant had been slow to show them the money, Marubeni determined he was ineffective in his bribery duties. To address the problem,
Marubeni and its consortium partner cut the first consultant’s commission to one percent of the contract value, down from three percent. The remaining two percent was then used to hire a second consultant, more skilled in the art of bribery. Eventually, the persuasions of Marubeni and its partner were successful and they were able to obtain the lucrative Tarahan contract.
Inside Workers Tip Off SEC to Foreign Bribery Operations
Waters & Kraus
represents whistleblowers nationwide in high profile qui tam litigation. Our aggressive lawyers have long experience collaborating with the government in qui tam litigation and we understand how to safeguard your rights during the process. We’ve worked with many informants in your position — truly courageous whistleblowers who also have felt as though they’re in a difficult spot. Contact us
by email or call our FCPA attorneys at 855.784.0268 to learn how we can join together to accomplish what’s right.