Issues To Consider From The Comcel Enforcement Action
Prior posts here, here, and here highlighted the recent $118.2 million Foreign Corrupt Practices Act enforcement action against Comunicaciones Celulares S.A. (“Comcel” doing business as TIGO Guatemala), a subsidiary of Millicom International Cellular, S.A, concerning bribery schemes in Guatemala.
This post continues the analysis by highlighting additional issues to consider.
Guatemala
The Comcel enforcement action is believed to be just the second FCPA enforcement action in history to concern conduct in Guatemala.
As highlighted here, a portion of the wide-ranging 2016 FCPA enforcement action against Odebrecht / Braskem concerned conduct in Guatemala – specifically payments to government officials in order to secure public works contracts.
A Closer Look At The Comcel Enforcement Action
This previous post briefly highlighted the FCPA enforcement action against Comunicaciones Celulares S.A. (“Comcel”), a subsidiary of Millicom International Cellular, S.A. (“Millicom” – a telecommunications company incorporated and headquartered in Luxembourg with its principal place of business in Florida).
This post takes a closer look at the $118.2 million enforcement action.
In terms of background, Comcel was doing business as TIGO Guatemala and was a mobile and fixed telecommunications service provider with its principal place of business in Guatemala. During the relevant period, TIGO Guatemala was jointly owned by Millicom (55%) and a Panamanian company (“Panama Company” (45%) (Telecomunicaciones Digitales, S.A. (Cable Onda or Tigo Panama).
On or about November 12, 2021 , Millicom purchased Panama Company’s share of TIGO Guatemala for approximately $2.2 billion. Since then, TIGO Guatemala has been wholly-owned by Millicom.
Issues To Consider From The Trafigura Enforcement Action
This previous post covered the net $100.2 million FCPA enforcement action against Trafigura concerning conduct in Brazil.
This post highlights additional issues to consider.
Timeline
Trafigura was under FCPA scrutiny since at least early 2019 (see here from the prior post).
Thus, from start to finish the company was under scrutiny for approximately 5 years.
The FOREIGN Corrupt Practices Act
Since 2021, the DOJ has resolved 19 corporate Foreign Corrupt Practices Act enforcement actions.
The “Foreign” in Foreign Corrupt Practices Act refers to the location of the bribe recipient (as in “foreign” non-U.S. officials).
However, the “Foreign” in Foreign Corrupt Practices Act might as well refer to the location of the bribe payor as well – in other words the location of the company resolving the FCPA enforcement.
As highlighted below, of the 19 DOJ corporate FCPA enforcement actions since 2021, 14 of the 19 enforcement actions (74%) have involved foreign companies.
Set forth below are the 19 corporate DOJ FCPA enforcement actions since 2021 along with a general description of the company involved.
Next Up … Trafigura
First it was Sargeant Marine in 2020 (see here for the prior post).
Then it was Vitol in 2020 (see here for the prior post).
Then it was Glencore in 2022 (see here for the prior post).
Then it was Freepoint Commodities in 2023 (see here for the prior post).
Then it was Gunvor in 2024 (see here for the prior post).
Next up in the list of commodities trading (or related) companies to resolve an FCPA enforcement action is Trafigura (a company which has been under FCPA and related scrutiny for years). After accounting for various credits for related foreign law enforcement actions, the net FCPA settlement amount is approximately $100.2 million (a criminal fine amount of $53.66 million and a forfeiture amount of $46.51 million).