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CAPE TOWN - What is the US Foreign Corrupt Practices Act? 

In the wake of the SAP scandal, where the company admitted to paying a number of kickbacks in order to secure contracts with state-owned enterprises Transnet and Eskom, we look at the US Foreign Corrupt Practices Act.  The US legislative Act serves a purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. 


The anti-bribery provisions of the FCPA prohibit the willful use of the mails or Sale of commodities between different states that is corruptly and also applies to:

Any offer, payment, promise to pay, or authorisation of the payment of money or anything of value to any person. 


If this payment is offered or given, while knowing that all or a portion of such money or thing of value directly or indirectly, be given to a  to a foreign official to influence the foreign official in his or her official capacity, or induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.