Spain and the US are to date Argentina’s largest investors.
Spanish-owned Repsol YPF Oil company was recently nationalized by the Argentine government in an attempt to gain control over the country’s natural resources. Wall Street analysts have warned that with such action Argentina risks scaring off investment needed to bolster growth against fallout from Europe's debt crisis.
Spain and the US are to date Argentina’s largest investors.
Those companies that seek to do new business ventures and those that continue to do business with the newly nationalized entity may have to consider re-evaluating business practices in order to remain in compliance with the provisions of the FCPA and the UK Bribery Act. In many cases, company managements fall under the category of government officials. Business dealings with these new corporate officers and government officials will probably be scrutinized even more.
A past problem with government-owned enterprises in Latin America has been the acceptance of bids from third-party vendors that exceeded the fair market value of the cost of the goods or services being provided.
To what extent will a company be able to wine and dine these government officials? The dust will have to settle before a compliance policy can be implemented for this situation; but, as noted above, any compliance policy will need to consider this change and adjust accordingly.
