Jackals & International Bribery

International bribes-men and assassins coerce and extort political leaders and officials to align powerful business agendas. John Perkins labels these corruptors as Jackals. When foreign governments' plans interfere with business, they summon the Jackals.

Frontline exposes Jackals in an April 4th segment Black Money. Frontline reported that BAE Systems violated the International Anti-Bribery Treaty when the British company solidified an eighty billion dollar arms contract with Saudi Arabia. BAE syphoned off over two billion dollars for Saudi princes' leisure expenses and personal accounts. Prince Bandar bin Sultan and his lawyer refute the bribery accusations. They argue that payments were made directly to the Saudi government and not diverted to individuals' expense books.

Prince Bandar's claims pose a great ethical question regarding laws and bribery in countries where royal families control politics. Under these circumstances, what constitutes a Prince's palace as a government building versus a private residence? Is owning a private jet a matter of national security (our president controls one)? It is a difficult ethical task to distinguish the fine line between bribery and excessive & irresponsible government spending.

So who has the power to end international bribery when it hides behind government facades?

The US Department of Justice (DOJ) has jurisdiction for any investigation involving companies publicly traded on the New York Stock Exchange or on any other American stock market.  The DOJ legally can punish individuals for paying off officials, but they cannot prosecute officials for accepting bribes. The structure of this law invites illegal activities to continue. 

When considering whether or not to bribe officials, companies examine their game theory choices. Knowing that foreign officials willingly accept money in exchange for business, firms can elect to pay a bribe and risk prosecution OR firms can shun corruption and lose a competitive edge.  Unfortunately, the probability of getting caught is often smaller than the dollar amount forfeited in competitive edge.

By refusing to punish those accepting kickbacks, US law allows a payola business model to exist. This forces companies to wholeheartedly consider the pros and cons of bribery. The law needs to assign blame and create disincentives for ALL parties involved in order to hamper the multinational bribery circuit.

Jackals & International Bribery