ABUSES OF CORPORATE POWER - HEARINGS BEFORE THE US CONGRESS SUBCOMMITTEE ON PRIORITIES AND ECONOMY IN GOVERNMENT, 94TH CONGRESS, 1ST & 2ND SESSIONS, JANUARY 14 AND 15, MARCH 2 AND 5, 1976

• NCJ Number: 46130
• Author(s): ANON
• Date Published: 1976
• Length: 203 pages
• Corporate Author: US Congress
• Sale Source: National Institute of Justice/
• Publication Type: Legislative/Regulatory Material
• Language: English
• Country: United States of America

Annotation

THE ABUSES AND MISBEHAVIOR OF CORPORATIONS ARE DISCUSSED AS THEY RELATE TO SUCH CORPORATE CRIMES AS BRIBERY, KICKBACKS, ILLEGAL CAMPAIGN CONTRIBUTIONS, AND OTHER IMPROPER USES OF CORPORATE FUNDS.

Abstract

THE HEARINGS CONCENTRATED ON CASES WHERE CORPORATIONS HAVE WRONGFULLY USED THEIR FUNDS AS A MATTER OF POLICY, WITH THE APPROVAL AND ACTIVE PARTICIPATION OF TOP CORPORATE MANAGEMENT. AS MANY AS 50 MAJOR CORPORATIONS HAVE BEEN SUED OR ARE UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION OR HAVE VOLUNTARILY ADMITTED INVOLVEMENT IN ILLEGAL OR IMPROPER PAYMENTS. SOME OF THE ILLEGAL PRACTICES DISCUSSED WERE: BONUSES TO SELECTED CORPORATE EMPLOYEES WHICH WERE REBATED FOR USE IN MAKING ILLEGAL DOMESTIC POLITICAL CONTRIBUTIONS; USE OF AN OFFSHORE CORPORATE SUBSIDIARY AS COVER FOR A REVOLVING CASH FUND FOR DISTRIBUTING DIVERTED CORPORATE FUNDS FOR BOTH DOMESTIC AND FOREIGN POLITICAL ACTIVITIES; ANONYMOUS FOREIGN BEARER STOCK CORPORATIONS USED AS DEPOSITORIES FOR SECRET ILLEGAL KICKBACKS; PAYMENTS TO FOREIGN CONSULTANTS WHICH WERE USED FOR ILLEGAL DOMESTIC POLITICAL CONTRIBUTIONS AND COMMERCIAL BRIBERY; MILLIONS OF DOLLARS PAID TO CONSULTANTS ALLEGEDLY USED TO BRIBE FOREIGN GOVERNMENT OFFICIALS IN ORDER TO PROCURE BUSINESS. IN RESPONSE TO A LETTER FROM THE SUBCOMMITTEE, THE GENERAL ACCOUNTING OFFICE (GAO) CONDUCTED A STUDY ON SUBCONTRACTING KICKBACKS AND PRICING SUBCONTRACTS UNDER $100,000. GAO RECOMMENDED THAT THE SECRETARY OF DEFENSE DIRECT PROCUREMENT TEAMS TO GIVE GREATER ATTENTION TO DETERMINING WHETHER CONTRACTORS ARE CONDUCTING ADEQUATE PRICE-COST ANALYSIS FOR PROCUREMENTS UNDER $100,000. THE STATE DEPARTMENT PROPOSED TWO NEW ACTIONS FOR DEALING WITH INTERNATIONAL BRIBERY PROBLEMS: A MULTILATERAL AGREEMENT TO BE NEGOTIATED WITHIN THE UNITED NATIONS SYSTEM TO HELP DETER AND PUNISH SUCH ACTIVITIES BY ENTERPRISES, AGENTS, AND GOVERNMENT OFFICIALS; AND A FRAMEWORK FOR BILATERAL COOPERATION WITH FOREIGN LAW ENFORCEMENT AGENCIES WITH WHICH ARRANGEMENTS CAN BE MADE FOR THE EXCHANGE OF EVIDENCE. INCLUDED IN THE APPENDIX IS A LETTER CONCERNING THE STATE DEPARTMENT'S ROLE IN THE MATTER OF AGENTS' FEES IN SAUDI ARABIA AND A LETTER REGARDING A CLAIM AGAINST THE REPUBLIC OF HAITI BECAUSE OF BREACH OF CONTRACT.