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Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

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Senior Editor

Richard L. Cassin
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Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
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Eric Carlson
Contributing Editor

Police Corruption And The FCPA

We’re sometimes asked what part of the FCPA we’d change if we had the power to do that. 

Usually we say we don’t have a problem with the words of the FCPA, but that we might change respondeat superior, for example, to give companies a fighting chance to defend themselves.

But that answer isn’t the whole story.

There are a couple of words in the statute that concern us. In the facilitating payments exception, under the definition of ‘routine governmental action,’ the list includes ‘providing police protection.’ Those words, we think, ought to go.

We understand why the FCPA allows payments for police protection. Congress wanted Americans abroad to be able to bribe local cops if that’s what it took to be safe. And that made sense.

Still, we’re uncomfortable with Americans and U.S. companies bribing police anywhere. It perpetuates petty corruption and makes it harder for local politicians, civil society groups, and citizens to reform their own systems.

Beyond that, police corruption is a special scourge. It means people without money and power can’t depend on the police to protect them from human predators.

As Transparency International has said, “When people live in fear of violent crime and in states where organised crime has co-opted the institutions that are supposed to protect them, they are denied their basic human rights. These include the right to liberty, security of person, equal protection before the law, and freedom of peaceful assembly.”

Yet TI’s Global Corruption Barometer shows that more people pay bribes to police than any other public servants, and that police corruption is worsening. The 2010 report said about a third of the respondents who had contact with police had paid a bribe. And since 2006, the number of people reporting bribes to police has almost doubled.

The countries on the list above have the worst police corruption, with Nigeria’s police perceived as the most corrupt. But no country is immune. The News of the World scandal involved allegations of police corruption in the U.K.

We found a couple of FCPA enforcement actions that mentioned payments to police. Alcatel, in Nigeria, paid police for security services. Apparently the payments were too large to be facilitating payments. And a defendant named Faheem Mousa Salam offered $60,000 to an Iraqi police official to sell armored vests and a map printer. He pleaded guilty to a conspiracy count in 2007 and was sentenced to three years in prison.

It’s not the big bribes to police we’re thinking about. Those are clearly illegal and are swept up in FCPA enforcement actions.

But small bribes to police — ‘facilitating payments’ — are permitted by the FCPA and happen every day. And that’s making life tougher for some of the poorest and weakest people on the planet.

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1 Comment

  1. This is why you're out of touch with reality. Perhaps you should leave the ivory tower and get on the ground and actually try to do business in the third world.

    Any chance the police get to pull over a white skinned passanger, they will do it. typically they will go away for anything from $5 to a bag of apples.

    Bottom line: no bribe, and americans end up jail. Why do you want to hurt american business?

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