US defence contractor DynCorp has fired one of its top lawyers, after it was revealed earlier this week that the company had violated the US Foreign Corrupt Practices Act when it tried to speed up the issuance of visas and licenses related to its work for the US government overseas.
The company said it made a filing with the US Securities and Exchange Commission (SEC) on November 9 after it had discovered that as much as US$300,000 had been spent in a single questionable transaction. It also self-disclosed to the US Department of Justice. The SEC filing was not disclosed until earlier this month.
The money was paid to a subcontractor “in connection with servicing a single existing task order that the company has with a US government agency”, DynCorp said. The funds were used to expedite the issuance of a limited number of visas and licences from foreign government agencies, the company added.
Douglas Ebner, a spokesman for DynCorp, decline to further elaborate on the violation, but he told the Wall Street Journal that it makes clear to its employees that business must always be conducted legally and ethically.
“We found this internally, and voluntarily brought it to the Department of Justice and the SEC. We feel that it is very important to be proactive,” he added. The company said it has hired a consultant to investigate the matter further.
Both the SEC and the US Department of Justice declined to comment.
In a separate filing, the company also said that it had terminated the employment Curtis Schehr, a senior vice president, executive counsel, and the company’s chief compliance officer. DynCorp declined to comment on whether it was related to the FCPA violation.
Sunday, 6 December 2009
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