Tuesday, 11 December 2012

US FOREIGN CORRUPT PRACTICES ENSURES THAT THERE ARE CORRUPT PRACTICES IN INDONESIA



Corruption handling in the United States (US) is basically not much different from Indonesia, expect its legal history, namely the US Foreign Corrupt Practices (FCPA) which was passed into law in 1977. Since the date it was passed into law until now, FCPA has been amended for two times, namely 1988 and 1998. The two amendments are related to Foreign Corrupt Practices Act (1998) and Foreign Corrupt Practices adjusted to the Development (OECD) convention in 1998. “There are some US companies which commit a large amount of bribery in Indonesia. There are also individuals who were committing bribery. Everything can be seen in the website”, Dan forth Newcomb, corruption expert at Shearman & Sterling LLP, New York, US, told Business News (9/18)..

FCPA has involved some big cases, for example judicial review on mufti-jurisdiction anti corruption case against Nokia filed by Siemens AG. And. There is as a case involving ABB Volvo in the process of the United States Department of Justice (DOJ) in oil for food program. The ABB case is involving DOJ’s investigation on Narks Hydro/Statoil Titan Corporation, Daimler Chrysler AG, Bonny Island in Nigeria, Faro Tech. Inco, and Oil State International Inc.

US jurisdiction covers extraterritorial jurisdiction (outside US territory) which is applicable for US corporations and citizens. This also includes US corporations under non-US holding companies. But, it also includes US citizens working outside the US in non-US corporations. While, its territorial jurisdiction (within US territory)  is applicable for non-US corporations and US citizens. This also includes non-US corporations and individuals who commit actions in the US territory, including non-US citizens working in US or non-US corporations in the United States. “So, after the amendment, which is more than 20 years, there is a law that prohibits bribery outside the US.”

US corporations are committing bribery not only in Indonesia, but also in other countries including China. Those corporations have various kinds of business, such as energy, forestry, etc. “Our jurisdiction is not only in Indonesia, and there is also investigation and punishment imposed on the corporations.

While, jurisdiction within the US territory can not 100% become an experience on how to handle corruption in the US. For example, a law firm in New York cannot provide legal assistance on corruption case in State of Vermont. United States is a federal country with stronger autonomy of the states. This might be different with Indonesia. Indonesia’s and US ‘geographical conditions are different. Because Indonesia is an archipelagic country consisting of around 17.000 islands. While, United States is one big island un separated by seas. “But, the application of corruption eradication law is not directly related to geographical condition.”

Corruption handling in Indonesia is no different from the one in the United States, namely transparency, public and media support, legal system, etc. we should keep politics away from detention and investigation processes as interference will distort corruption handling. “We did not have any institution like KPK (Corruption Eradication Commission). But, corruption handling in our country is under coordination of the DOJ and the Securities and Exchange Commissions (SEC).”

While criminal provisions on bribery criminal act in the US is not much different from the one in Indonesia. Corruption act, as defined in FCPA, is a continuation of the act of giving, offering, promising, or validating the giving of something of “value” to “foreign officials” or political parties, political parties’ leaders, candidates, or anyone whatsoever. While, the affirmative interpretation is: A reasonable expenditure is promotion, demonstration, product and service explanation. And, affirmative interpretation also explains about implementation or execution of contract with government. Payment to foreign government officials is legal if it permitted by the law of the host country. “While, regulations on dead sentence do not exist in the United states. FCPA stipulates provisions on heavy punishment quantitatively and qualitatively. It means that we catch the corruption committed involving high officials and all related parties”.


Business News - September 21, 2012

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