ABSTRACT
Some companies reported having created off-the-books accounts, or “slush funds,” to handle commissions and payments to foreign government officials. Some paid large sales commissions to agents overseas and later found that some of these had gone to foreign officials. Others have acknowledged making direct payments to foreign officials, both as “grease” to minor functionaries and gifts to high-level policy-makers. Federal agencies were sufficiently concerned to move to inhibit further concealment and questionable practices. The Internal Revenue Service also reviewed corporate tax returns for evidence that questionable payments might have been concealed and deducted as a cost of doing business. The other companies, with the exception of General Dynamics, have acknowledged making overseas payments, though of smaller amounts. United Technologies has disclosed that some of its corporate entities, particularly Otis, made over $10 million in overseas payments, “some of which were questionable,” between 1971 and 1976.
