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Uber to investigate bribery allegations affecting their Asian operations

By Liu Hongzuo - on 20 Sep 2017, 12:13pm

Uber to investigate bribery allegations affecting their Asian operations

Since August, the U.S. Justice Department has been looking into Uber’s possible violations of their Foreign Corrupt Practices Act. In response, Uber recently employed a law firm to review their Asia-based business operations, said a source familiar with the matter.

O'Melveny & Myers LLP – the law firm contracted by Uber – is examining records of foreign payments and interviewing Uber’s employees, tackling questionable business dealings that were not disclosed promptly. The attorneys are focused on at least five Asian countries - China, India, Indonesia, Malaysia and South Korea.

This Bloomberg report stated that an Uber employee bribed police figures in Jakarta, Indonesia, with multiple, small payments to continue operating in the region, with these transactions showing up on the employee’s expense reports. Uber fired the employee, and Uber’s head of Indonesia business has since left the private-car hailing firm.

According to Reuters, a similar investigation is carried out in Malaysia, where the law firm understands any possible financial arrangements tied to the Malaysian government, which in turn may have affected the legislation and policies for ride-hailing.

Possible bribery dealings in China and South Korea are currently unclear, and investigations are still ongoing.

Source: Bloomberg, Reuters