FCPA forces IT companies to act against corrupt practices
With the US government becoming stringent in the scrutiny of Foreign Corrupt Practices Act (FCPA) violations, many multinationals of US origin in India are facing the heat.
Industry sources say that the heat on IT MNCs was turned on after Oracle was penalized $2 million by US authorities, in August 2012, for FCPA violations in India. The Oracle India subsidiary was accused of secretly setting aside money to make unauthorized payments to local vendors.
As a result many IT companies have made local compliance stringent and made it mandatory for senior managers to sign the FCPA clause. A few of them are now educating and training their senior managers about FCPA.
Following which we have seen IBM India also crack down on erring employees and partners. Buzz is that the recent exit of senior managers at a security company is also due to FCPA violations.
So watch out!