Financial Transparency Coalition

In late 1975 a Securities and Exchange Commission investigation into Lockheed Corporation revealed that the aircraft manufacturer had paid at least $22 million in bribes to foreign government officials and political organizations. At the time, this was not illegal and it resulted in a scandal, investigation, and a revelation that hundreds of other businesses were routinely involved in this practice. In response to the Lockheed scandal, Congress enacted the Foreign Corrupt Practice Act (FCPA) in an effort to “bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business...

The fallout from the scandal surrounding the discovery that Wal-Mart headquarters suppressed an internal investigation when it discovered its Mexican subsidiary had been systematically paying bribes has been swift and significant. According to an investigative piece in the New York Times, Wal-Mart used bribes not only to obtain permits for its stores, but to reduce the time required for those permits, from months to days or weeks. The public outcry to denounce the corporation has been loud. But not everyone has joined the opprobrium. Many have said, either implicitly or explicitly, that Wal-Mart was doing business the way business needs...

Raymond W. Baker, the director of Task Force member Global Financial Integrity, has written a letter to Rep. Jim Sensenbrenner (R - WI) warning him against introducing legislation to weaken the Foreign Corrupt Practices Act (FCPA). The letter, which has received coverage from The Wall Street Journal and Just Anti-Corruption suggests there will be political ramifications to for the Congressman should he follow through with his promise to introduce legislation to ammend the nation's flagship anti-corruption law. Just Anti-Corruption (subscription required) reports:

WASHINGTON (IPS) – Changes to a key anti-bribery law that applies to international commerce, proposed by the U.S. Chamber of Commerce, could have disastrous consequences, hurting multinational firms, human rights, and the U.S.'s place of respect as an early adopter of the legislation, opponents to the changes argued here Friday.