A Focus On Vietnam
Set forth below are the general details of fifteen FCPA enforcement actions (all since 2008) which have involved (in whole or in part) conduct in Vietnam.
The enforcement action concerned conduct in China, India, Indonesia, United Arab Emirates, and Vietnam.
As to Vietnam, the allegations stated that: “Albemarle corruptly obtained contracts at two state-owned oil refineries in Vietnam through the use of an intermediary sales agent who requested increased commissions to pay bribes to PetroVietnam and refinery officials and to structure tender requirements to favor Albemarle. […] In 2016, Albemarle also used Vietnam Intermediary Company and its connections to PetroVietnam officials to corruptly obtain business at another state-owned refinery in Vietnam, Nghi Son Refinery and Petrochemicals LLC (“NSRP”). NSRP was owned by a joint venture that included, among others, PetroVietnam and Kuwait Petroleum International, also a state-owned entity.”
Chemical Company Albemarle Resolves A Net $218.4 Million Enforcement Action
As highlighted in this prior post, in February 2018 Albemarle Corp. (a North Carolina based chemical company) disclosed Foreign Corrupt Practices Act scrutiny.
More than 5.5 years later, the DOJ and SEC announced a net $218.4 million FCPA enforcement action against the company.
The resolution included a DOJ non-prosecution agreement (pursuant to which the company agreed to pay a $98.2 million criminal penalty and $16.6 million in forfeiture) and an SEC administrative order (pursuant to which the company agreed to pay approximately $103.6 million in disgorgement and prejudgment interest).
A Focus On Vietnam
President Biden recently traveled to Vietnam.
One purpose of the visit was to “elevate [the U.S.] relationship to Vietnam’s highest designation for foreign partners – a comprehensive strategic partnership – from its lowest.” (See here for the Wall Street Journal article).
According to the article, “while the new status is symbolic, it is aimed at giving American companies, including defense contractors, reassurance that the recent warming relations will endure, and promote Vietnam as a dependable location for U.S. manufacturing operations abroad.”
This is the latest example (see here for a similar recent post) of the U.S. government promoting doing business in a country with high levels of perceived corruption and a country that has been the focus of numerous FCPA enforcement actions.
Set forth below are the general details of fourteen FCPA enforcement actions (all since 2008) which have involved (in whole or in part) conduct in Vietnam.
South Korea’s KT Corp. Resolves $6.3 Million FCPA Enforcement Action
KT Corporation is a Seoul, South Korea based telecommunications company with American Depositary Shares registered with the SEC and traded on the New York Stock Exchange.
Yesterday, the SEC announced that the company agreed to pay $6.3 million “to resolve charges that it violated the Foreign Corrupt Practices Act by providing improper payments for the benefit of government officials in Korea and Vietnam.”
In summary fashion, this administrative order finds:
Novartis Joins The Repeat Offender Club – This Time Paying Approximately $347 Million To Resolve An FCPA Enforcement Action
What happens when the Greek, Swiss, and South Korean subsidiaries of a Swiss company engage in improper conduct in Greece, Vietnam and South Korea? Why of course, approximately $345 million flows into the U.S. treasury.
Yesterday, Novartis joined the long and growing list of FCPA repeat offenders as the DOJ and SEC announced (see here and here) a combined approximate $347 million enforcement action. (As highlighted in this prior post, in 2016 Swiss pharmaceutical company Novartis coughed up $25 million to resolve a SEC FCPA enforcement action focused on the conduct of its indirect Chinese subsidiaries).
Yesterday’s enforcement action included a DOJ component (in which the company agreed to pay approximately $234 million) and a SEC component (in which the company agreed to pay approximately $113 million).