heroine has recently been the center of an alleged bribery issue with Confederation of All India Traders (CAIT) is leading the case. Taking the issue even further, CAIT on Thursday sent a memorandum to The Chairman, Gary Gensler. United States Securities and Exchange Commission Which is the regulatory body of the United States Foreign Corrupt Practices Act (FCPA) federal law. CAIT also sent a similar memorandum to David Last, who heads the fraud section of the FCPA, as well as Charles Cain, who heads the FCPA unit at the Securities and Exchange Commission (SEC).
In the memorandum titled: “Representation for the investigation of Amazon under the Foreign Corrupt Practices Act”, CAIT National Secretary General Praveen Khandelwal addressed the United States Securities and Exchange Commission, Washington DC, USA and urged There should be fair investigation in the matter.
Khandelwal has given several examples where similar cases of bribery of foreign officials have been reported in India and Africa. He also pointed out that in those past cases the SEC has been very proactive with its efforts to rectify the issue. Therefore, he requested that the same be tried for the present case with respect to Amazon. Despite the fact that Amazon is conducting its own internal investigation into the matter, it was the CAIT’s authority that this was not a fair or unbiased approach as it claims that Amazon had allegedly ‘misbehaved’ in the past.
CAIT memorandum to United States Securities and Exchange Commission Chairman Gary Gensler: (issued September 23, 2021)
1) We would like to request you to take note of the news spread about Amazon Inc. allegedly bribing government officials in India. This news was first reported by a reputed and credible news agency and was titled ‘Amazon Whistleblower’ Alleging that India’s lawyers had bribed officials on 20 September 2021. By going through the details mentioned in the news, we are of the opinion that there has been a serious violation of the Foreign Corrupt Practices Act and such action should be investigated immediately. The report of the said newspaper is attached herewith as Annexure A.
2) To the best of our understanding of the FCPA, we understand that it has an additional territorial jurisdiction and that it is illegal to authorize any enterprise to bribe foreign government officials to obtain or maintain business outside the USA That is, there is a restriction for making corrupt payments.
3) We wish to make a representation that this alleged conduct of Amazon warrants an immediate investigation from the US Securities and Exchange Commission and the Department of Justice to conduct an independent and impartial investigation.
4) We understand that there have been similar situations in the past in which JVs/ventures that used the resources of their lawyers and other agents to bribe government officials in African countries were punished under the FCPA . In addition, payment of a bribe by a third party (in this case, allegedly an attorney) on behalf of the enterprise (Amazon) does not exempt Amazon from civil or criminal liabilities set forth under the Foreign Corrupt Practices Act.
5) In the context of the precedents set by the SEC, we would also like to bring up the case of Beam Suntree Inc., which used third-party distributors to make illegal payments to government officials in India, Embraer, which paid its agents, and fraudulently did. Its accounting records in India and Pride International Inc. bribed judicial officers to influence customs litigation in India. These cases show that the SEC has taken a proactive stance towards multinationals that have tried to misappropriate funds and violate the provisions of the FCPA. We are Amazon Inc. in India. I would like to request for an equal level of in-depth inquiry into the alleged malpractices of paying bribes through legal advisors and consultants.
6) We would also like to highlight the Resource Guide to the US Foreign Corrupt Practices Act, prepared and circulated by the US Securities and Exchange Commission. This guide mentions that one of the common red flags associated with third party interactions that result in a breach of the FCPA includes excessive commissions to third party agents or consultants. We would like to highlight that the same news also quoted that an independent consultant appointed by Amazon claimed that Amazon was his biggest customer that he would receive above Rs. 20 crores (INR 2 billion) per year from them. The complaint by the whistleblower specifically stated that the money was being funneled under the aegis of legal expenses by Amazon to bribe government officials. This red flag is clearly highlighted in the present case, and we seek your intervention in this Amazon investigation.
7) In addition, we would also like to bring to your attention that even though this alleged conduct is being investigated by Amazon, Amazon’s history of misbehaving with whistleblowers makes it difficult for an impartial investigation on their part. We therefore request you to conduct a fair and thorough investigation against Amazon for this alleged violation of the provisions of the FCPA and to uphold the sanctity of this law.
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