Reference no: EM133399290

The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business. The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents. Oil Fields-R-US, operating oil and gas rigs on and off shore outside the U.S., is under scrutiny for paying $1 million as a consulting fee to Carlos Guzman the Minister of the Interior of Colombia who subsequently issued drilling permits. The work performed by Guzman was based on his assessment of exploration for oil and gas in dense tropical forests. As a result, the Department of Justice (DOJ) filed criminal charges against Oil Fields-R-US, requiring the company to pay $5 million for the drilling permit that will result in $500 million in profits over the next 10 years. Make your strongest argument against prosecution and payment of a fine, despite the fact that Oil Fields-R-US, whose securities are listed in the United States to meet its accounting provisions designed to operate with the anti-bribery provisions of the FCPA, did not report the payment of the consulting fee as required by the FCPA to (a) make and keep books and records that accurately and fairly reflect the transactions of the corporation and (b) devise and maintain an adequate system of internal accounting controls.