What Can India Learn from the U.S. Battle on Bribery?

By siliconindia   |   Monday, 20 February 2012, 23:13 IST   |    7 Comments
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The Gabon case in U.S. has been closely followed by the major Corporations with multinational operations. Though no defendants have been convicted at trial, the case grabbed the attention of companies and businessmen in the country. U.S. had settled many other corporate bribery cases with enormous fines such as the German MNC, Siemens AG which in 2008, paid $1.6 billion in joint U.S. and German fines to settle bribery charges. Daimler AG had to pay a fine of $185 million to settle charges in 2010. U.S. government’s serious approach towards multinational bribery is so evident in these high-profile cases and if reports are to be believed, the successful enforcement has made certain business groups to lobby the U.S. Congress to limit the anti-bribery laws.

India should also take a few lessons from the various anticorruption techniques the U.S. government follows such as enlisting private sector allies and assistance in anti-bribery enforcement. In many high-profile bribery cases settled in the U.S., the companies had to retain outside monitors to supervise their anti-bribery efforts. They were required to hire legal or law enforcement professionals to manage their future activities. It should also be noted that the U.S. advisory sentencing guidelines recommends strong lighter penalties for companies that have strong anti-bribery programs in place. As the focus is more on corruption by government officials than the corporate sector in India, the government can hire law firms, top consultants, and accountants to have a check on the government deals, independently audit its function and recommend plans to reduce corruption.