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In Blow to Global Anti-graft Efforts, Trump Pauses US Law Banning Overseas Bribes
Emmanuel Addeh in Abuja
The United States President, Donald Trump, has signed an executive order directing the Justice Department to pause prosecutions of Americans accused of bribing foreign government officials while trying to win or retain business in their countries.
Trump’s order pauses enforcement of the nearly half-century-old Foreign Corrupt Practices Act (FCPA) and has directed Attorney General, Pam Bondi, to review current and past actions related to the law and prepare new guidelines for enforcement.
THISDAY checks showed that in the past, some notable US companies conniving with Nigerian government officials had been prosecuted for bribery and corruption under the FCPA.
In 2009, KBR, a former subsidiary of Halliburton, pleaded guilty to violating the Act by paying approximately $182 million in bribes to Nigerian officials to secure contracts for a liquefied natural gas plant on Bonny Island. KBR agreed to pay a $402 million criminal fine, while Halliburton and KBR jointly paid $177 million to settle civil charges with the US Securities and Exchange Commission (SEC).
In 2010, Technip, a French engineering company listed on US stock exchanges, was charged by the SEC for bribing Nigerian government officials over a decade to win construction contracts worth over $6 billion. The company agreed to pay $338 million to settle the charges.
Further checks showed that in 2012, the SEC charged Thomas F. O’Rourke, former controller and head of internal audit at Noble Corporation, for approving bribe payments to Nigerian customs officials and improperly recording them as legitimate expenses. O’Rourke agreed to settle the charges and pay a penalty.
In 2024, Gunvor Group, an international commodities trading company, pleaded guilty and agreed to pay several millions of dollars to resolve an investigation by the US Department of Justice into violations of the FCPA. The company admitted to paying monies to officials in multiple countries in Africa to gain access to oil markets.
Before now, these cases underscore the US government’s commitment to enforcing anti-corruption laws and holding companies accountable for illicit activities abroad.
The law, enacted in 1977, prohibits companies that operate in the United States from bribing foreign officials. Over time, it has become a guiding force for how American businesses operate overseas, Reuters reported.
“It’s going to mean a lot more business for America,” Trump told reporters while signing the order in the Oval Office. Trump wanted to strike down FCPA during his first term in office. He had called it a “horrible law” and said “the world is laughing at us” for enforcing it.
The FCPA is a US law that prohibits American companies, individuals, and foreign firms listed in the US from bribing foreign officials to secure business deals. It also mandates accurate financial records to prevent fraud. The FCPA has led to major corporate investigations worldwide.
“US companies are harmed by FCPA overenforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” a White House fact sheet said.
“It turns out that in practicality it’s a disaster,” Trump said in the Oval Office while signing the order. “Nobody wants to do business with the Americans,” he added.
In its reaction, anti-corruption watchdog, Transparency International, said FCPA made the United States a leader in addressing global corruption.
Trump’s executive order “diminishes – and could pave the way for completely eliminating – the crown jewel in the US’ fight against global corruption,” Executive Director of Transparency International, US, Gary Kalman, said in a statement.
A senior research scholar at Columbia University and former anti-corruption coordinator at the State Department, Richard Nephew, said on X: “This is a horrible idea that US companies do not want.
“Sure, you may find one or two, but most appreciate the fact that FCPA allows them to be firm in refusing bribes because most private sector companies — sensibly — see bribery as an unproductive cost.”
However, the White House fact sheet said the law makes American companies less competitive. “US companies are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” the fact sheet said.
Trump’s directive calls for “revised, reasonable enforcement guidelines” from the Justice Department that will not hamper American firms competing abroad, the factsheet added.
Over the years, a wide range of multinational firms have come under Justice Department scrutiny over the law, including Goldman Sachs and Glencore.
In 2024, the Justice Department and the Securities Exchange Commission filed 26 FCPA-related enforcement actions, and at least 31 companies were under investigation by year end, the White House fact sheet said.
