This page has been archived and commenting is disabled.

US Companies: Bribery Probe

Pivotfarm's picture




 

Follow ZeroHedge in Real-Time on FinancialJuice

It’s illegal but who gives a damn. As if we abided by the law these days. People annex countries when they want to so why worry about a little bit of bribery? Why worry about bestowing favoritism on somebody, patronage to those in the places that decide? It’s no longer just the Papal nephews that get a look in from the nepotism being practiced around the world today. Now, it’s the children of high-flying officials in China that are getting the best seats in US companies. Really, let’s agree, they’re all doing it. Today, we’re just admitting that it’s happening, that’s the only difference. There’ll be a few that stand up and cry for freedom and democracy but most will just wave a few papers in the air and breath out hot bunk so that it makes it look as if they are really trying to clear it up.

The Securities and Exchange Commission as well as the Justice Department in the US have been enquiring about the dealings of certain companies that are now hiring children of high-level Chinese officials. Jobs for the boys? Not, quite; but, most certainly jobs for the kids of the boys. We all know it’s a corrupt world. We all know that it’s who you know rather than what you know that will get you to the top. It won’t necessarily keep you there unless you are the son or daughter of somebody that is so high up that they could do whatever they wanted.

Just last week the mobile chip manufacturer Qualsomm Inc. announced that it was facing civil action over bribery of officials of state-owned companies and agencies. A spokesperson stated that they were filing a rebuttal since they believed that they were not in violation of the Foreign Corrupt Practices Act. If found to have carried out illegal practices and bribery of officials the company will face fines for having used preferential hiring, the giving of gifts and providing other benefits amounting to a total value of $250,000. Hardly anything to write home about and probably the tip of the iceberg, but nonetheless corrupt. It doesn’t mean because it’s not a lot, that we shouldn’t put an end to preferential hiring. It’s fine if you are the child of the rich and famous or the government official; tough if you aren’t.

Action taken against Qualcomm might also lead to giving up profits made during that time. China is a major target for growth of the US company and their revenue increased by 4% year-on-year in the second quarter to$6.37 billion. Net income was also up by 5% year-on-year to $1.96 billion.

There were complaints last year regarding the company from industry groups to the Chinese government (allegedly because Qualcomm were using their market position, charging higher fees for patent licenses). The Chinese authorities carried out two surprise raids and took documents away. Isn’t that always the way? While you’re small and insignificant, nobody could give a damn who and how you bribe. By the time you get bigger and have a lion’s share of the market, the bribery has become so much part and parcel of the road you took to get to that top-spot, that you can’t stop doing it. You’re addicted and so it carries on. The competition is ready to pounce and take a chunk by any which way they can. So, complaints are lodged against you. Fines could reach between 1 and 10% of the company’s revenue for last year.

The Justice Department and the SEC believe that Qualcomm may have taken advantage of its market position and bribed officials to maintain that lion’s share and keep revenues. If they (and others that are being investigated) are shown to have employed children of officials or giving preferential treatment to people in return for turning a blind eye to certain practices, then they will be in violation of the Foreign Corrupt Practices Act. Apparently, it has been illegal to bribe a foreign government official since the law was enacted in the1970s. But, as Qualcomm defense lawyers suggest proving that corruption took place on both the company’s part and also on the side of the government official will be hard to do.

They could always bribe the US government officials with a few benefits in kind or preferential treatment, couldn’t they? Everybody has their price!

Originally posted: US Companies: Bribery Probe

Day Trading Data Sheets Futures and Forex

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 04/29/2014 - 13:05 | 4708411 semperfi
semperfi's picture

in the U.S. we no longer are governed by the rule of law

Tue, 04/29/2014 - 12:08 | 4708070 marathonman
marathonman's picture

Do we know anybody in violation of the 'Domestic Corrupt Practices Act'?  I know.  Stupid question.

Tue, 04/29/2014 - 10:46 | 4707691 elwind45
elwind45's picture

Give us another name and you can keep the money!

Tue, 04/29/2014 - 10:23 | 4707580 TrustbutVerify
TrustbutVerify's picture

How bizarre that the counties with the highest paid jobs are around Washington, DC.  

Tue, 04/29/2014 - 10:04 | 4707508 Comte d'herblay
Comte d'herblay's picture

Soon it will be, "Illegal to give a damn".  

Tue, 04/29/2014 - 09:51 | 4707449 Emergency Ward
Emergency Ward's picture

They hate us for our incorruptible public servants.

Tue, 04/29/2014 - 09:09 | 4707270 DeadFred
DeadFred's picture

What I want to see is some tables showing the political contributions of the companies that the DoJ are going against for the violations of the Foreign Corrupt Practices Act compared with those of their competitors that are not being targeted. I hear rumors that there are some interesting trends. Any investigative reporters interested? CNN? MSNBC? Thought not.

Tue, 04/29/2014 - 09:39 | 4707389 doctor10
doctor10's picture

yawn-get back to me about the federal, state employees, congresscritters kids with "scholaships" and "jobs" etc

 

IMHO-you draw a paycheck at the federal, state, local level from we the poeple-your bank accounts and meeting schedulues are on line and open to your constituents for the tenure of your service

Tue, 04/29/2014 - 08:03 | 4707057 Obamanism
Obamanism's picture

The money for Bibery must have come from somewhere and there must be a email/paper trail, lets use the Government machine to track down the truth.......

1. Were the bribes tax-deductable? If so what section does the declarition come under?

2. Does the NSA have the details of either phone converstations or email traffic of the parties involved American and Foreign.

 

Oops is that a drone I hear overhead.......

Tue, 04/29/2014 - 08:24 | 4707111 d edwards
d edwards's picture

Now what is required of those being "probed" is to pay off the "probers"-that's the way the game is played in the 0bamao regime.

Tue, 04/29/2014 - 07:47 | 4707020 Lumberjack
Lumberjack's picture

Federal judges plead guilty Juris imprudence: Litigants reeling after judges admit conflicts of interest

 

http://www.publicintegrity.org/2014/04/28/14630/federal-judges-plead-guilty

 

When Linda Wolicki-Gables and her husband appealed a lawsuit all the way to the second-highest court in the nation against Johnson & Johnson over a malfunctioning medication pump that had been implanted in her body, the couple had no idea that one of the judges who decided their case had a financial stake in the giant multinational company.

Eleventh U.S. Circuit Court of Appeals Judge James Hill owned as much as $100,000 in Johnson & Johnson stock when he and two other judges ruled against the Gables’ appeal in the precedent-setting case.

For the Gables, a different decision in the 2011 appeal could have helped them win a verdict for as much as $20 million, a sum that would have vastly improved the quality of her care, according to their attorney, T. Patton Youngblood Jr. Today, the Florida woman is a partial paraplegic, he said, largely confined to her home with only her husband to care for her.

The Center also found that Hill ruled on three other appeals involving companies in which he owned stock, violating clear rules governing the federal courts. In all four instances, the court rulings favored his financial interest. In a statement released by the court, Hill said he was not aware of those stock holdings at the time due to the complexity of his family’s trusts.

Tue, 04/29/2014 - 09:18 | 4707311 detached.amusement
detached.amusement's picture

ah yes, trusts, such useful little black boxes

Tue, 04/29/2014 - 07:00 | 4706948 Walt D.
Walt D.'s picture

Nepotism. I'm glad that does not happen here. We just have to turn a blind eye to Michelle Obama when President Obama was Senator Obama, Joe Biden's son, Harry Reid's son, Tom Daschle's wife, Diane Feinstein's husband, Hugh Rodham. Oh, and we also need to ignore the "revolving door".

Tue, 04/29/2014 - 08:17 | 4707094 Obamanism
Obamanism's picture

The dumb down public think that "Nepotism" is a new type of pizza.

First we need to make an example of insider trading by our political masters

It is not insider trading when congress does it.

http://www.zerohedge.com/news/2014-02-27/want-outperform-market-just-tra...

 

Of course NSA should monitor all the people  the congress person calls just before a big vote, their Broker then their family to see how they profit or the shares obtained after the vote for a reduced price, or the selling of shares by the family to stop them losing money.

Tue, 04/29/2014 - 06:53 | 4706939 Walt D.
Walt D.'s picture

What a joke. The US political system is riddled with corruption. One man's bribe is another man's campaign contribution. The end result is the same.

Tue, 04/29/2014 - 12:29 | 4708201 kchrisc
kchrisc's picture

Not "riddled," but IS courrupt.

Do NOT follow this link or you will be banned from the site!