Follow The US Lead On Anti-Graft Law Enforcement: Thai Opinion

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EDITORIAL

Follow the US lead on anti-graft law enforcement

The Nation

Despite the existence of local laws and the US Foreign Corrupt Practices Act, there seems no end to the number of alleged corruption cases in the news

The US Chamber of Commerce has reportedly pressed for the amendment of the US Foreign Corrupt Practices Act (FCPA), which bars American companies from paying bribes to win business contracts. The amendment, the chamber said, is aimed at better clarifying certain legal confusions to facilitate American corporations doing business overseas.

Some are concerned that the amendment will send a mixed message to foreign countries that US lawmakers will try to weaken the FCPA, but American lobbyists in favour of the amendment argue that the proposed change will simply make the law clearer in order to facilitate American activities amidst intensifying global competition.

The FCPA has reflected a high standard of corporate governance because it has been more or less effective in preventing business-related corruption among American companies.

There have been a number of investigation cases in Thailand that have occurred as a result of this act. For instance, in 2005, the US Department of Justice and the US Securities and Exchange Commission investigated the alleged bribing of Thai officials linked to the sale of airport bomb-detectors.

The latest case involves two tobacco companies allegedly bribing Thai officials working with the Thailand Tobacco Monopoly (TTM). Former Tourism Authority of Thailand governor Juthamas Siriwan was also implicated by the US Justice Department in a bribery scandal involving two Americans who won contracts to manage the 2004 Bangkok International Film Festival (BIFF).

The law has shown the Thai business partners of US companies and individuals that it is a serious tool to promote good corporate governance.

A new survey by Deloitte LLP on anti-corruption practices shows that companies have increased their focus on preventing and detecting corrupt activities and have amended their global operations in response to the increasing number of prosecutions under the FCPA and the increased size of penalties.

To those in Thailand, the FCPA has shown how the US authorities have seriously pursued corruption charges, which are considered obstacles in promoting competitiveness. The cases often involve the awarding of a lucrative business contract. The bribery money blocks qualified investors from winning new business based on merit. This all comes at the expense of consumers, who fail to receive the best service and are stuck with bad choices.

Thai governments have tried to address business-related corruption via legislation such as the Joint Venture Act BE 2535. However, corruption charges are still numerous because of lax enforcement of the law. Indeed many corruption cases disappear after the initial scandal no longer makes headline news.

The Thai Board of Trade has also campaigned to combat business-related corruption and bribery because it also realises that this can impede fair competition and prevent good companies from flourishing. Bribery is double-ended, involving the party who offers the money and the recipient who accepts it. If businesses abide by ethical practice and do not offer money to officials, corruption will not take place.

The Thai authorities must impose high penalties on parties involved in bribery, especially Thai business partners found to be involved with bribery cases brought up by the US Justice Department. This will send a signal that Thailand will no longer tolerate this kind of corruption.

However, it is no secret that many corruption cases in Thailand involve people in high positions of power. This has made it difficult for local investigators to pursue cases to a final, positive conclusion. Consequently, corruption allegations have become a daily routine in Thailand, with some officials and politicians (on very ordinary salaries) becoming filthy rich with no clear explanation as to how they acquired the wealth.

-- The Nation 2011-12-02

[BCP]

It looks like a simple case of the greenback (or Baht) versus what is right. Economics over morals and as usual money will win.

Edited December 2, 2011 by BCP

[atyclb]

US companies doing business with/in Thailand need to develop a system similar to "lobbying" so influence and corruption can appear legal