CGF ARTICLES, OPINIONS & EDITORIALS
The Foreign Corrupt Practices Act (1977): No peanut gallery (2013-09-26)
February 20,
2015 3662 3662 
Article by CGF Research and reviewed by Edward Nathan Sonnenbergs
It’s rather ironic that the introduction of the Foreign Corrupt Practices Act of 1977 (‘FCPA’) -- a United States (US) federal law -- was passed into US law by the 39th elected US President, Jimmy Carter, who was by all accounts considered part of the country’s ‘working class’ people.
With a very modest upbringing, as a child Carter lived in a public community house which was subsidised by the US government as part of a housing scheme for the poor. The Carter’s understood the plight of the poor and similar to today -- no matter where in the world -- the poor and impoverished communities remain the most affected segment of society impacted by the scourge of corruption.
Considering that governments are meant to, amongst other, establish law and order, while also providing the necessary infrastructure and support to build and maintain a sustainable society; laws such as the FCPA may need to be bolstered even further if they are to
truly achieve their purpose. Corruption finds its roots within systems of injustice, mistrust and suspicion and its practice creates a sense of insecurity and despondency. Left unchecked, corruption worsens the plight of the poor and exacerbates poverty and misfortune; corruption further widens the chasm of poor governance and lawlessness. It is therefore critical that governments and their employees are seen to be, and are, employing sound governance practices which are as far as possible, devoid of corruptive tendencies and unethical behavior.
Notably, the ambit of corruption is broadly defined within the United Nation’s Manual on anti-corruption as
“abuse of public office for private gains”. Other definitions include the term to mean “a behavior on the part of office holders in the public or private sector whereby they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed.”
As the name suggests, the Foreign Corrupt Practices Act is intended to combat the bribery of foreign government officials. The Act was signed into US law on December 19, 1977, and was amended in 1998 by the International Anti-Bribery Act of 1998 which was designed to implement the anti-bribery conventions of the Organisation for Economic Co-operation and Development (OECD). The FCPA applies to
any person who has a certain degree of connection to the US and who engages in foreign corrupt practices.
Whilst the FCPA is a foreign piece of legislation to South Africa, its extra-territorial provisions could have serious implications upon the manner in which South African companies that have a business link or association with the United States of America engage and conduct themselves with government officials, particularly in jurisdictions where there are high levels of corruption.
