CRS, in a report titled "Foreign Corrupt Practices Act: Congressional
Interest and Executive Enforcement," quoted the indictment as saying that Xe
executives allegedly completed forms that claimed the weapons had been sold
to Abdullah and his entourage. Xe has been responsible for major U.S. security
training programs in Iraq and Jordan.
"When the defendants subsequently realized they were unable to account
for the disposition of the firearms, they falsified four separate Alcohol,
Tobacco, and Firearms Form 4473s for submission to federal authorities," the
indictment said. "The defendants falsely completed the forms to give the
appearance that the weapons had been purchased by them as individuals."
Authored by legislative attorney Michael Seitzinger, the report cited
difficulties in enforcing U.S. law against foreign bribery and other alleged
corruption. The report, dated Oct. 21, also pointed to prosecution of major
companies that operated in Iraq.
In July, General Electric agreed to pay $23.4 million to settle a
complaint brought by the U.S. Securities and Exchange Commission. GE was
alleged
to have bribed Iraqi government officials to win contracts for supplying
medical and water purification equipment under the United Nations
oil-for-food program.
"It has been reported that the General Electric case is the fourth
biggest such anti-bribery case brought in the oil-for-food program, after
the cases filed against Siemens, Chevron, and Innospec," the report said.
Congress has sought to toughen penalties of the Foreign Corrupt
Practices Act, passed in 1977. Violations for bribes were raised from $1
million to $2 million per company and from $10,000 to $100,000 per
individual.
Prison terms have remained at five years. The legislation has been
criticized for ignoring the bribe policy by companies in other Western
countries.
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