As highlighted in this prior post, in 2019 Russia-based Mobile TeleSystems PJSC (MTS) agreed to resolve an $850 million DOJ/SEC FCPA enforcement action based on the same alleged core conduct in several other Uzbekistan telecom focused FCPA enforcement actions. (See here and here).
As a condition of settlement, MTS was required to retain an independent compliance monitor.
The company recently disclosed:
Even though DOJ and SEC enforcement officials clearly have the ability (through various technology means) to convey information relevant to the Foreign Corrupt Practices Act to a broad audience, enforcement officials continue to appear at conferences hosted by for profit companies in which audience members need to pay to hear our public officials speak. (See here).
So long as this concerning dynamic persists, the FCPA community is served by practitioners performing a valuable public service by summarizing remarks of enforcement agency officials.
Today’s post is from Arnold & Porters attorneys Jonathan Green, Ryan Hartman, and Dan Bernstein.
Under scrutiny again, guilty plea, and for your listening enjoyment.
It’s all here in the Friday roundup.
Under Scrutiny Again
As highlighted in this prior post, in 2019 Russia-based Mobile TeleSystems PJSC (MTS) agreed to resolve an $850 million DOJ/SEC FCPA enforcement action based on the same alleged core conduct in several other Uzbekistan telecom focused FCPA enforcement actions. (See here and here). As a condition of settlement, MTS was required to retain an independent compliance monitor.
This recent Wall Street Journal article titled “Miners Try to Get Covid 19 Vaccines Into Areas Where Shots Are Scarce” highlights how various mining companies are spending millions of dollars to support COVID-19 vaccination efforts in countries in which they do business including “offering support to local governments during the pandemic, from conducting screening and mobile testing to donating extra beds for hospitals and clinics.”
Examples of good corporate citizenship or decisions made to advance a business interest?
After all, as stated in the article “by helping governments administer the shots, many companies hope they can rapidly rescale production depressed by the pandemic …”. As one mining executive stated in the article: “For us to operate efficiently and smoothly, we need to minimize the disruptions due to things like lockdown. Being part of a vaccination program makes complete business sense.”
There is very little in common with COVID vaccination rates and FCPA compliance – except that the government encourages both.
Yet in one instance, the government provides meaningful incentives to induce action and in the other instance the government does not.
As to COVID vaccinations, states are offering the following incentives to encourage more people to get vaccinated: lotteries, scholarships, pre-paid grocery cards, fishing and hunting licenses, passes to state parks, even custom hunting rifles and shotguns. Several states are automatically entering people who have been vaccinated into lotteries that pay out $1 million or more.
