By Ajibola Amzat
The United States has passed a law to prosecute and punish public officials or their families involved in bribe-taking from an American or American company, or any person while in the territory of the United States.
According to Transparency International U.S., the law known as the Foreign Extortion Prevention Act (or FEPA) would “make it a crime for a foreign official—including any employee of a foreign government or any current or former senior official of a foreign government’s executive, legislative, judicial, or military branches or any immediate family member or close associate thereof—to demand or accept a bribe from an American or American company, or any person while in the territory of the United States, in connection with obtaining or retaining business.”
With this law, the US Government comes one critical step closer to helping provide real justice for victims of corruption around the world, said Scott Greytak, Director of Advocacy for Transparency International, US.
He added: “ FEPA is a landmark, bipartisan law that holds the potential to help root out foreign corruption at its source. It is arguably the most sweeping and consequential foreign bribery law in nearly half a century.
“People living in more than 120 countries face serious corruption problems, according to Transparency International’s annual Corruption Perceptions Index. Many are governed by kleptocracies where corrupt officials routinely steal resources from their citizens with impunity.
“FEPA has the potential to disrupt these dynamics by empowering the U.S. Government to criminally prosecute any foreign official who demands or accepts a bribe from any American or American company, anywhere in the world.”
Current U.S. law makes it a crime for an American or American company to offer a bribe to a foreign official, yet does nothing to punish a foreign official who demands or accepts such a bribe.
Research shows that the vast majority of bribe-demanding foreign officials are never criminally prosecuted by their home governments.
When these corrupt officials face little threat of prosecution by either their home governments or the U.S. Government, U.S. companies face serious criminal liability for their involvement in such schemes.
Transparency International U.S. applauds this legislative development, emphasizing the potential of FEPA to uproot foreign corruption at its core.
Greytak hailed FEPA as a landmark, bipartisan legislation with the potential to significantly impact the fight against foreign corruption.
He said FEPA is arguably the most sweeping and consequential foreign bribery law in almost half a century.
He further highlighted the critical role this law plays in disrupting corrupt practices by empowering the U.S. Government to criminally prosecute foreign officials involved in demanding or accepting bribes from American entities, regardless of the location.
Transparency International’s annual Corruption Perceptions Index reveals that over 120 countries grapple with severe corruption issues, often governed by kleptocracies where officials engage in corrupt practices with impunity, stealing resources from their citizens.
FEPA is seen as a crucial tool to address these dynamics by extending the reach of U.S. jurisdiction to prosecute any foreign official engaged in corrupt dealings with American individuals or companies worldwide.
The existing U.S. legal framework criminalizes the act of Americans or American companies offering bribes to foreign officials. However, it falls short of penalizing foreign officials who demand or accept such bribes.
The case in point is the indictment of the former Vice President Atiku Abubakar who allegedly obtained $500,000 to facilitate a contract for an American company iGate and Mody’s company in Nigeria.
While his accomplice, the American lawmaker from Louisiana William Jefferson was jailed for 13 years for receiving bribes, Atiku remains free.
According to evidence at trial, from August 2000 to August 2005, Jefferson used his position as an elected member of the U.S. House of Representatives to corruptly seek, solicit and direct that things of value be paid to himself and his family members in exchange for his performance of official acts to advance the interests of people and businesses who offered him the bribes. The things of value, according to evidence at trial, included hundreds of thousands of dollars’ worth of bribes in the form of payments from monthly fees or retainers, consulting fees, percentage shares of revenues and profits, flat fees for items sold and stock ownership in the companies seeking his official assistance.
In contrast, the Vice President Atiku contested in the 2023 presidential election in Nigeria.
FEPA seeks to rectify this imbalance by equipping the U.S. Government with the authority to take legal action against foreign officials engaged in corrupt practices, thereby enhancing the deterrence and prosecution of such activities. The enactment of this law underscores the U.S. commitment to combating corruption globally and promoting accountability for both domestic and foreign actors involved in corrupt activities.
