A Fighter Ace and the Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act (FCPA) had a transformative effect on the operations of United States public companies, prohibiting bribery of foreign officials and requiring adequate internal controls. A pivotal event leading to the new law involved Lockheed’s actions in Germany, notably, sales of their F-104 Starfighter. A major opponent to the F-104 was Erich Hartmann, a former German fighter pilot, who attained recognition as the greatest fighter ace in history. His objections to the F-104 brought public attention to Lockheed and to government officials in Germany. This paper examines how corruption affects economic activity, the FCPA and its connection to German fighter ace, Erich Hartmann, and a brief history of Germany from World War II to the present. This examination is highly relevant to internal auditors and corporate managers by increasing their understanding of the impact of corruption in countries where their companies operate and of the events leading to the world’s most important anti-corruption law