Case: Internal Corruption in Asia
An international technology manufacturer with facilities in Malaysia received a tip from a vendor that four companies (including his own) had paid kickbacks of awarded contract value to several of the manufacturer’s Facilities Department employees for many years. They also learned that the four companies had colluded with the current and past Facilities Department managers to rig the bids for every services contract that had been awarded to the four companies for the past two decades.
An internal investigation into the allegations was launched in the U.S. and Malaysia. Investigative techniques employed included reviewing relevant business records and documents; collecting and reviewing company email accounts and email archives; remotely interrogating and copying company owned computer hard drives issued to suspects to obtain documentary evidence; and interviewing witnesses and managers of the suspected employees.
Investigators in the U.S. and Malaysia amassed a large body of incriminating evidence that implicated the two named suspects and four other employees, including the Director of the Facilities Department. All six of the employees were terminated. The client averted millions of dollars of future losses they would have paid in inflated contracts and avoided future violations of the Foreign Corrupt Practices Act committed by its employees soliciting and receiving millions of dollars of kickback payments from vendors. All four vendor companies were forbidden from being awarded future contracts and all of their employees were barred from doing any future business with the client.