TEMPO.CO, Washington, D.C - US weapon manufacturer Smith & Wesson was fined with US$2 million for bribing officials in Indonesia, Pakistan and other countries to gain sales deals.

The US Securities and Exchange Commission (SEC) accused the company, whose weapons are popular in law enforcement and military agencies, of facilitating bribes of US$11,000 and free firearms to Pakistan in 2008 to obtain a supply contract.

A year later, the SEC said Smith & Wesson employees made bribes in Indonesia to win a contract with a local police department, though the contract was later annulled.

"Other attempts to pay off officials via third-party agents were made in Turkey, Nepal and Bangladesh," the SEC said. Overall, Smith & Wesson’s bribery went on from 2007 to 2010.

The SEC found that the company’s actions, whether successful or not in gaining business, have violated the US Foreign Corrupt Practices Act, which aims to eliminate bribery and corruption as a crucial factor in international business competition.

Smith & Wesson did not admit or deny SEC’s accusation, but they agreed to pay the fines to settle the charges.

The SEC said the company had stopped the sales transaction when it learned the bribery by its employees. "This is a wake-up call for small and medium-size businesses that want to enter into high-risk markets and expand their international sales," said Kara Brockmeyer of the SEC Enforcement Division.

"When a company makes the strategic decision to sell its products overseas, it must ensure that the right internal controls are in place and operating," she added.

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