Singapore bribery scandal involving US Navy

bribery and corruption

US Navy commander Jose Luis Sanchez pleaded guilty to federal bribery charges last week. The charge related to gifts and services he received from Glenn Defence Marine Asia (GDMA), a Singapore-based contractor who supplied services to the Navy.
Sanchez is the fifth defendant to plead guilty to charges concerning bribes of sex workers, cash, luxury hotel rooms, plane tickets and concert tickets in exchange for service contract tip offs to GDMA CEO Glenn Francis.

Sanchez also allegedly revealed sensitive information on ship movements and recommended refuel and resupply calls at ports operated by GDMA. Seven defendants have been charged by the US Department of Justice (DOJ), including members of the Naval Criminal Investigative Service (NCIS) and other senior Navy Officers. The bribery scheme began in September 2009, the DOJ alleges. Sanchez was first arrested in 2013. At the time, the Washington Post said “the unfolding investigation is shaping up as the biggest fraud case in years for the Navy.”

Over the past 25 years the GDMA has reportedly earned over USD$200 million from US Navy contracts. The DOJ alleges $20 million of these earnings were obtained through bribery. “Commander Sanchez sold out his command and country for cash bribes, luxury hotel rooms and the services of prostitutes,” said Leslie Caldwell, chief of the DOJ’s criminal division. “After today’s guilty plea,” Caldwell said, “instead of free stays at the Shangri-La hotel, Sanchez is facing many nights in federal prison.”

This case demonstrates the need for all companies to ensure they can effectively monitor and address corruption within their own organisation. Does your companies have mechanisms in place to deal with corporate misconduct? Speak to GRC Solutions today about our Anti-Bribery and Corruption courses.

 

Source: FCPA Blog