A question often posed at FCPA conferences to U.S. enforcement attorneys is – “how do you find out about potential FCPA violations?” The usual answers are: a company self-reports, a competitor or disgruntled employee blows the whistle, or foreign law enforcement agencies contact the DOJ or SEC. I’ve never heard though of a foreign legislator issuing a press release and sending a letter to the DOJ and the Commerce Department accusing a U.S. company of violating the FCPA. That is until now.
Earlier this week, Senator Mar Roxas (Philippines) issued a press release (see here ) demanding that Pfizer Inc. open its records to a congressional committee investigating Pfizer’s lobbying of the Philippine government in connection with the passage and implementation of the Cheaper Medicines Law (the “Law”). In addition, the release notes that Roxas also sent separate letters to the U.S. Department of Justice and the U.S. Commerce Department. According to the release, in the letters Roxas states his belief that Pfizer’s activities in connection with passage and implementation of the Law “are unethical and violate not only Philippine Anti-Corruption Laws, but also the U.S. Foreign Corrupt Practices Act” and he specifically requests “any assistance that [the DOJ] can extend in looking into allegations of bribery against Pfizer…”.
Time will tell whether a future FCPA enforcement action against Pfizer is on the horizon. If there is one, it will not be the first time a U.S. company is subjected to FCPA scrutiny for its efforts to influence foreign legislation impacting its business. In January 2005, Monsanto Co. agreed to pay $1.5 million to settle an FCPA enforcement action based on allegations that it made improper payments to a senior Indonesian environmental official to persuade the official to repeal an environmental impact study requirement that was making it difficult for the company to sell its genetically modified crops in that country. (See here , here  and here ).