Argentina is experiencing a political and economic renaissance that’s drastically changing its business landscape. There’s a new focus on open markets, transparency and accountability in both the public and private sectors.
Entries in Remediation (28)
In-house counsel, compliance officers and the external counsel who support them are trained to be risk averse when it comes to anti-corruption and other types of compliance, and with good reason.
For only the second time in FCPA history, the DOJ Monday made a public announcement that it wouldn't prosecute a company that cooperated in building a case against a former officer.
Aaron Bornstein wrote in the prior post of the potential to use recovered bribe proceeds or stolen assets to fund BOTA-inspired programs in developing countries. That possibility is real, and important. But recognize that the majority of FCPA settlements do not involve traceable and recoverable assets -- the money is typically long gone. So if we are to create more BOTAs, we must fund them with the money that is available in your more typical FCPA settlement.
The BOTA Foundation was able to take the $115 million from the corruption case associated with James GIffen and use it effectively and efficiently to assist more than 200,000 poor children, youth and their families in Kazakhstan.
BOTA had three programs, with its largest, the Conditional Cash Transfer (CCT) Program, briefly explained in the previous post. Funds from the Pictet and Cie bank account associated with James Giffen and President Nazarbayev were used in two other ways to help poor children and youth in Kazakhstan: via a NGO grants program, called the Social Service Program (SSP), and through a scholarship program known as the Tuition Assistance Program (TAP).
The background of BOTA Foundation was explored in previous posts. Starting with this post I would like to explain what BOTA actually did in its five and a half years of operation.
BOTA was the first foundation ever established as a result of an FCPA case, and the question explored in this post is how it was set up.
The BOTA Foundation explained (Part Five): The roles of the U.S., Switzerland, and the World Bank in BOTA's creation
In the case of BOTA, it took four to tango: the governments of Kazakhstan, the United States, Switzerland and the World Bank. For Kazakhstan, as explained in the previous post, BOTA provided a face-saving "out" for President Nazerbayev. Talks between the U.S., Switzerland and Kazakhstan on the disposition of the $84 million, plus accrued interest, in the Swiss Pictet and Cie Bank, started in 2003, shortly after James Giffen was arrested and charged with violating the Foreign Corrupt Practices Act.
The story of the failed FCPA prosecution of James Giffen is likely familiar to many readers of the FCPA Blog. Following a three-year investigation by the DOJ that started in 1999, in March 2003 Giffen was arrested as he was boarding a Paris bound plane at JFK.