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World's Biggest Bribe scandal

Started by GravitySucks, March 30, 2016, 09:52:52 AM

GravitySucks

"World's biggest bribe scandal" 6 month investigation by Fairfax Media and Huffington Post based on leaked confidential emails. Centered around the oil industry.

http://www.theage.com.au/interactive/2016/the-bribe-factory/day-1/the-company-that-bribed-the-world.html

albrecht

Quote from: GravitySucks on March 30, 2016, 09:52:52 AM
"World's biggest bribe scandal" 6 month investigation by Fairfax Media and Huffington Post based on leaked confidential emails. Centered around the oil industry.

http://www.theage.com.au/interactive/2016/the-bribe-factory/day-1/the-company-that-bribed-the-world.html
Interesting. But I think it is foolish to think these backwards cultures are suddenly going to become Western style democracies and turn their back on a culture and system of government built on tribalism, baksheesh, clanism, corruption, strong-men politics, etc. I'm saying it is "right" but if we don't find "ways," around our rules it simply means that American and European companies lose out to companies from other countries, like China.

I don't know. All the BAE/Saudi stuff seemed bigger, maybe, in so far it involved a single company, not multiple companies. Of course who knows the full extent since investigations dropped after some settlements and British/Saudi "national security" and "diplomatic" concerns. Even just the DOJ settlement of $400 million points to how big some of it was. Also since they weren't convicted of bribery the DOJ settlement means they are banned from future business/contracts.

GravitySucks

Quote from: albrecht on March 30, 2016, 11:30:42 AM
Interesting. But I think it is foolish to think these backwards cultures are suddenly going to become Western style democracies and turn their back on a culture and system of government built on tribalism, baksheesh, clanism, corruption, strong-men politics, etc. I'm saying it is "right" but if we don't find "ways," around our rules it simply means that American and European companies lose out to companies from other countries, like China.

I don't know. All the BAE/Saudi stuff seemed bigger, maybe, in so far it involved a single company, not multiple companies. Of course who knows the full extent since investigations dropped after some settlements and British/Saudi "national security" and "diplomatic" concerns. Even just the DOJ settlement of $400 million points to how big some of it was. Also since they weren't convicted of bribery the DOJ settlement means they are banned from future business/contracts.

I learned about that first hand through two incidents.

1. I took the PMP exam which is an international certification. The only questions I missed were in the Ethics category. Having worked in the military and government contractor most of my career, I answered them according to US law. Got several of them wrong because gratuities are commonplace around the workd and an accepted practice.

2. I worked for a medium/large size company that was being bought by Lockheed. During the audit, the company self-identified a $2 million gratuity paid to an African country to secure a contract there. Lockheed dropped their offer. Lost a lot of money when our stock tanked. Another company bought us a year later, after we had paid a large fine, but about $5 a share less than Lockheed had offered.

albrecht

Quote from: GravitySucks on March 30, 2016, 11:57:40 AM
I learned about that first hand through two incidents.

1. I took the PMP exam which is an international certification. The only questions I missed were in the Ethics category. Having worked in the military and government contractor most of my career, I answered them according to US law. Got several of them wrong because gratuities are commonplace around the workd and an accepted practice.

2. I worked for a medium/large size company that was being bought by Lockheed. During the audit, the company self-identified a $2 million gratuity paid to an African country to secure a contract there. Lockheed dropped their offer. Lost a lot of money when our stock tanked. Another company bought us a year later, after we had paid a large fine, but about $5 a share less than Lockheed had offered.
Ha, I can see why Lockheed would have some concerns considering their history! I'm all for our rules and understand the idea behind them (in the end corruption can often result in higher prices, inefficiencies, or shoddy products in addition to reinforcing bad governments and damaging the people or share-holders.) But, on the other hand, it is hard to change traditions that existed before we even had countries and where do you "draw the line" (clearly there is some difference between say relationship building, say, some ball game tickets, rounds of golf, dinners, etc and handing over a sack of cash) and it makes our companies less competitive against others companies, or countries, who don't care about our rules. 


VtaGeezer

Quote from: GravitySucks on March 30, 2016, 11:57:40 AM
I learned about that first hand through two incidents.

1. I took the PMP exam which is an international certification. The only questions I missed were in the Ethics category. Having worked in the military and government contractor most of my career, I answered them according to US law. Got several of them wrong because gratuities are commonplace around the workd and an accepted practice.

2. I worked for a medium/large size company that was being bought by Lockheed. During the audit, the company self-identified a $2 million gratuity paid to an African country to secure a contract there. Lockheed dropped their offer. Lost a lot of money when our stock tanked. Another company bought us a year later, after we had paid a large fine, but about $5 a share less than Lockheed had offered.

I'll back that up.  I was involved in marketing and bidding foreign military contracts in the 70s and 80s and the French and Germans literally laughed at American firms knowing we'd face federal charges if we even mentioned matching their "gratuities" to the generals and admirals.  BTW, the Thais, Koreans and Arabs call them "commissions".

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