Common use of Payments to Government Officials and Personnel Outside of the U Clause in Contracts

Payments to Government Officials and Personnel Outside of the U. S. The Foreign Corrupt Practices Act prohibits the making or offering of any monetary payment, gift or other thing of value to foreign officials, political parties, or candidates for foreign political office for the purpose of obtaining or retaining business with a person, business concern or government agency. Employees of HII shall conduct business in strict compliance with the requirements of this Act as follows: - Under no circumstances shall an employee of HII make a payment to a government employee or official or political candidate if he or she knows or has reason to believe that it is for the purpose of obtaining or retaining business for HII. Payments to distributors, sales agents, consultants or representatives with the knowledge or with reason to believe that any portion of such payments will be passed along to a government employee or official or political candidate are also prohibited. Requests for commissions or payments that are unusual or not supported by fair consideration shall be reviewed with the Law Department. - In some countries, certain industries such as paper mills, mines, and utilities are owned or controlled by government-owned corporations. Officers, directors, and employees of these industries are therefore considered government employees. Thus, employees of HII cannot make or offer payments, gifts, or other valuable consideration to these individuals in order to obtain or retain business for HII.