Corruption & defense
industry
http://en.wikipedia.org/wiki/Arms_industry
OFFSET DEALS CAN POSE HIGH
FCPA RISKS FOR DEFENSE INDUSTRY
Offset Deals Can Pose High FCPA Risks
For Defense Industry
December 02
18:312014
The purpose of this article is to
highlight the potentially high Foreign Corrupt Practices Act compliance risks
posed by offset transactions for a number of companies in the defense industry
and to discuss how to mitigate these risks through an effective anti-corruption
law compliance program. My perspective on this comes from working as an
in-house and outside counsel for a number of companies in the U.S. aerospace
and defense industry for almost three decades and conducting FCPA due diligence
on numerous proposed offset brokers and offset projects.
In doing this work, I found most offset brokers to be
honest and creative companies and individuals with considerable skill and
expertise in putting together some very complex deals to satisfy defense
companies’ offset obligations in a fairly unique and arcane area separate from
the main defense procurement competition. I also found that offsets can play a
critical role in defense procurement and that a well-designed offset project
can be a key discriminator in winning a defense procurement competition based
on the legitimate contribution it makes to the purchasing country’s economy and
the political benefit that the purchasing country’s government derives from the
offset project with its citizens...
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