FCPA forces IT com­pa­nies to act against cor­rupt prac­tices

CRN - - SHADOW RAM -

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!

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.