Legislation Introduced in U.S. Congress Would Debar FCPA Violators From Contracting With U.S. Government

U.S. Representative Peter Welch (D-VT) recently introduced legislation that could prohibit individuals and companies convicted of bribing foreign officials from contracting with the U.S. government.

The Overseas Contractor Reform Act (H.R. 5366) would require any individual, partnership or corporation found to be have violated the Foreign Corrupt Practices Act of 1977 to be proposed for debarment from any contract or grant awarded by the federal government within 30 days after a final judgment of such violation.

According to Representative Welch's office, the legislation was introduce in response to an ongoing investigation into whether Xe Services – formerly known as Blackwater Worldwide – bribed Iraqi officials.

"Simply put, those convicted of bribing foreign officials have no business doing business with the federal government," Welch said. He added that "companies that flagrantly violate the rule of law ... ought to be stripped of their ability to profit off of American contracts."

The bill, which currently has no cosponsors, has been referred to the House Committee on Oversight and Government Reform.