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CA Investigates Israeli Subsidiary for Corruption

CA has directed the removal of the leadership of its Israeli subsidiary CA Israel reports the Globes Online. The issue resolves the use of local consultants to get contracts with the Israel's Ministry of Defense. Much of the business that US companies do with the Israeli military utilizes U.S. aid thus guaranteeing the return of the dollars to the U.S. This means that the various U.S. laws and regulations against bribery and corruption apply to the work. U.S. companies are banned from being required to hire "local consultants" to help get work. In the past this often would mean you pay a country's defense minister's brother-in-law a finders fee or hire their son as a consultant to aid in getting work. This was seen as nothing but outright bribery of the foreign officials so it came to be frowned upon. In fact the UK has a major criminal case involving BAE and Saudi Arabia working the way through its court system related to this practice. For more on CA see their website.

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