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Trump’s suspension of anti-corruption law signals dangerous shift towards global State Capture practices

Tebogo Khaas
By Tebogo Khaas
26 Feb 2025
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By sidelining the Foreign Corrupt Practices Act, Donald Trump has opened the floodgates for a new era of economic warfare where the highest bidder — not the best business practices — determines the future of global investments.

US President Donald Trump’s move to suspend enforcement of the Foreign Corrupt Practices Act is not just an attack on ethical business practices — it is an open invitation for global State Capture corruption to escalate to unprecedented levels.

By effectively disabling one of the world’s most powerful anti-bribery mechanisms, Trump has signalled to multinational corporations, corrupt political elites and kleptocratic regimes that the US government will no longer stand in the way of illicit financial flows, bribery, and the wholesale purchase of political influence.

The consequences will be profound, not just for the US economy but for the global fight against corruption and State Capture. 

State Capture occurs when private interests, often backed by corrupt corporate entities, exert undue influence over a country’s policies, legal systems and institutions to serve their own agendas rather than the public good. This is achieved through bribery, manipulation of regulatory frameworks and co-opting key political and business figures.

Countries plagued by State Capture experience weakened governance, economic instability and a concentration of wealth and power in the hands of a few elites — at the expense of democracy and development. 

The Foreign Corrupt Practices Act, enacted in 1977, has long served as a critical tool in preventing US companies from engaging in corrupt practices abroad. It has been instrumental in exposing bribery schemes that fuel State Capture, from Brazil’s Operation Car Wash scandal to South Africa’s Gupta-linked corruption networks.

By freezing enforcement of the act, Trump has created a permissive environment for these destructive practices to thrive unchecked.    

The act has been a cornerstone of international anti-corruption efforts, often working in tandem with institutions like the OECD Anti-Bribery Convention, the UN Convention Against Corruption, and the World Bank’s anti-corruption initiatives.

US enforcement of the Foreign Corrupt Practices Act has set a global standard, compelling other countries to follow suit. By sidelining the law, Trump has sent a clear message that corruption is now a legitimate business tool, potentially triggering a domino effect where other nations deprioritise their own anti-corruption measures, fearing economic retaliation or loss of competitive advantage. 

Trump’s recent demand that Danielle Sassoon, the Acting US Attorney for the Southern District of New York, drop corruption charges against mayor Eric Adams sends a clear message: those who serve his interests will be shielded from accountability.

This sets a dangerous precedent and signals impunity for future violators of the act. Sassoon, who chose to resign rather than comply with Trump’s unconstitutional directive, was soon followed by two assistant US attorneys in a courageous and principled stand. 

With fewer legal consequences for engaging in bribery and illicit dealings, major multinational corporations will have even greater leverage to influence policy and regulation in their favour.

Weak regulatory frameworks


In developing countries where regulatory frameworks are already weak, US corporate elites will find it easier to bribe politicians, rig public tenders, and secure monopolistic control over key industries such as energy, mining, and telecommunications. This will further entrench economic inequality and stifle competition, leading to stagnation rather than development. 

Corruption is not just an economic issue; it is a direct threat to democracy. As State Capture corruption escalates, political leaders will be increasingly beholden to private interests rather than their citizens. In countries already battling high levels of graft, this could lead to more authoritarianism, as corrupt leaders dismantle oversight mechanisms to protect themselves and their benefactors.

The result will be weaker judicial systems, compromised law enforcement, and a shrinking space for civil society and investigative journalism. 

Trump’s decision to scale back the Foreign Corrupt Practices Act will give China, Russia, and other global powers a significant strategic advantage in securing influence in developing nations.

Unlike the US, which previously at least paid lip service to anti-corruption efforts, China’s Belt and Road Initiative and Russia’s oligarch-driven investments operate with fewer ethical constraints. By removing restrictions on US corporations, Trump has opened the floodgates for a new era of economic warfare where the highest bidder — not the best business practices — determines the future of global investments. 

In February 2025, Trump issued an executive order imposing sanctions on the International Criminal Court, falsely accusing the body of attacking Israel and the United States. These measures include freezing the assets of ICC officials and restricting their entry into the United States. Amnesty International condemned the sanctions as “reckless” and “a brutal step”, warning that they undermined the integrity of the international justice system.

Policy shifts


African nations, in particular, stand to suffer greatly from Trump’s policy shifts and mercurial leadership style that seems to favour venal corporates. The continent has long been a battleground for State Capture, with foreign corporations — mostly US-domiciled — exploiting weak governance structures to secure lucrative contracts, often at the expense of national development.

The Gupta State Capture scandal, facilitated by multinational corporations such as ABB, Bain & Company, China Rail Corporation, Deloitte, Hitachi, KPMG, McKinsey and SAP, demonstrated the devastating effects of corruption on governance, public services, and economic growth.

With the US stepping away from enforcing anti-bribery laws, similar scenarios will become more common, eroding progress made by African nations in building transparent institutions. 

While Trump’s justification for suspending the Foreign Corrupt Practices Act is to make US companies more competitive, the long-term consequences could be dire. Corruption distorts markets, discourages ethical investment, and ultimately leads to economic instability.

If American businesses are perceived as willing participants in corrupt practices, they will face increased scrutiny from European and Asian markets that still enforce anti-bribery laws. This could result in US companies losing credibility, while ethical investors seek opportunities elsewhere. 

Moreover, the rise in State Capture will contribute to greater economic inequality, social unrest and political instability, which in turn will lead to increased migration crises, violent conflicts, and economic recessions — challenges that the US itself will not be immune to. 

As the US tech and media elite seek to evade the law while spreading falsehoods on their platforms and plundering the US public purse for personal enrichment, they usher in worldwide chaos.

Blatant betrayal


Trump’s decision to undermine the Foreign Corrupt Practices Act is a blatant betrayal of the global fight against corruption. It is a gift to kleptocrats, oligarchs, and corporate criminals who seek to enrich themselves at the expense of entire nations. Rather than making US businesses more competitive, it will accelerate the erosion of democratic institutions, deepen global inequality, and embolden those who see corruption as a means to power. 

If this policy remains unchecked, it will mark a turning point in global governance — one where bribery replaces merit, corruption dictates policy, and State Capture becomes the norm rather than the exception. The world cannot afford to let this happen.

For all of our foreign policy missteps, none compare to the sheer scale of betrayal inflicted on the US’s allies and supporters by the Trump administration.

As for South Africa, let us strive to make our democracy work! DM

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