Do They Know? Do They Even Care?
In recent years, some who comment on FCPA issues and then hit the “publish” button on their computers are overtly partisan.
I sometimes wonder whether these individuals are aware that the topic they are writing about has been an FCPA topic for several decades or – even if they are aware – whether they even care.
Case in point is this latest rant from a “commentator” seemingly upset that the U.S. is open to exploring relationships in the Democratic Republic of Congo given the abundance of critical minerals in that country.
Another FCPA Enforcement Action Related To South Africa’s Broad-Based Black Economic Empowerment Program
It has been highlighted numerous times on these pages. The root cause of certain Foreign Corrupt Practices Act enforcement actions is a local law or regulation that force companies into a relationship that is not necessarily market driven – but a distortion of the market.
Pointing out this root cause is not meant to excuse the conduct at issue in an FCPA enforcement, but only to put it in the proper perspective.
As explained in this useful summary from Baker & McKenzie, South Africa’s “broad-based black economic empowerment (B-BBEE) is a policy and legislative framework which seeks to redress the historic economic inequalities created primarily as a result of the implementation of apartheid in South Africa.”
McKinsey Entity Resolves Net $61.425 Million FCPA Enforcement Action
The DOJ has announced that McKinsey and Company Africa (Pty) Ltd (“MCKINSEY AFRICA”), a wholly owned and wholly controlled subsidiary of McKinsey & Company (an international consulting firm) has resolved a Foreign Corrupt Practices Act enforcement action based on alleged bribery schemes in South Africa.
The conduct at issue largely focuses on Vikas Sagar (a citizen of India, a lawful permanent resident of the United States, a resident of South Africa) who was a partner and senior partner of McKinsey working in McKinsey’s office in Johannesburg, South Africa, and a stockholder, employee, and agent of McKinsey. In connection with the same conduct alleged in the McKinsey enforcement action, the DOJ also announced the unsealing of a guilty plea in which Sagar pleaded guilty to conspiracy to violate the FCPA’s anti-bribery provisions. (The criminal charges against Sagar were filed in December 2022).
Shelf Space
Shelf space at a grocery store or other retail store is probably not something one thinks much about.
Until one does.
A recent article in the Wall Street Journal titled “Grocers Get Picky on Shelf Space for Suppliers” highlights how the “contest for supermarket and grocery shelf space is heating up as brands … vie for a shrinking number of spots in the aisles.”
FCPA Enforcement Actions Related To South Africa’s Broad-Based Black Economic Empowerment Program
It has been highlighted numerous times on these pages. The root cause of certain FCPA enforcement actions is a local law or regulation that force companies into a relationship that is not necessarily market driven – but a distortion of the market.
Pointing out this root cause is not meant to excuse the conduct at issue in an FCPA enforcement, but only to put it in the proper perspective.
As explained in this useful summary from Baker & McKenzie, South Africa’s “broad-based black economic empowerment (B-BBEE) is a policy and legislative framework which seeks to redress the historic economic inequalities created primarily as a result of the implementation of apartheid in South Africa.”