Bribery & Corruption Mike Neumann ITS Training (UK) Ltd.

The Bribery Act The Act came into force on the 1 st July It repeals : Public Bodies Corrupt Practices Act Prevention of Corruption Act Prevention of Corruption Act The new offences cover activity in public bodies and private businesses. Anyone who tries to improperly influence another person by giving money, gifts or hospitality, or tries to cause them to act wrongly by bribing them, commits an offence.

A Bribe… A 'Bribe' in the context of the Bribery Act s.1 is defined as offering or promising a financial reward or other advantage. The person who bribes also intends that their bribe will cause the improper performance of a relevant function. It is also an offence to offer a bribe as a reward for improper performance of a relevant function. Finally, if a person offers a bribe to another, and knows or believes that the other person is acting improperly by accepting it, they commit an offence.

Being Bribed Requesting, agreeing to receive or accepting a bribe, intending that a relevant function or activity will be improperly performed. Receiving a bribe where this in itself constitutes an improper performance. Receiving a bribe as a reward for improper performance. Acting improperly, in the expectation that they'll receive, or as a consequence of, a bribe.

Relevant Functions… Public functions – LAs, government, tax (functions described within HRA). Business activity – commercial data, contracting, trades or professions. Employment activity – anything a person is contracted to do in their job. Activity of any body of people – incorporated or unincorporated.

Relevant Functions… For any these functions to be a relevant function, they have to be carried out : in good faith – you act with honesty and integrity. impartiality – you show no favouritism, nepotism or bias of any kind. by virtue of being in a position of trust – you have the responsibility to act in the financial interests of another and not against them.

Improper Performance In relation to the a relevant function : there is a expectation that it will be performed in a certain way ; and it is performed in breach of the expectation ; and the expectation is a reasonable one. Improper performance of an activity includes : carrying out improper actions ; or failing to properly perform a relevant function.

Foreign Officials Section 6 involves bribes to foreign governmental officials, or officials of international organisations, intending to influence them, to gain business or a business advantage. It was introduced to bring the UK law into line with a multilateral effort in the international community to prevent this sort of corruption. Unlike the offences under ss.1 and 2, this offence only relates to bribes being offered and not to accepting them.

Stop That Right Now! If a person connected with a commercial business organisation bribes another, the organisation will be guilty of an offence, unless it can prove that it had adequate procedures in place to prevent this happening. If an organisation were accused, it would need to prove (on the balance of probabilities) that it had fulfilled its legal requirement to prevent bribery.

Failure to Prevent Bribery Proportionate procedures Top-level commitment Risk Assessment Due Diligence Communication (including training) Monitoring and review Applies to commercial organisations only but (a) best practice and (b) what if you trade?

Blow that Whistle! A criminal offence has been committed, is being committed or is likely to be committed. A person has failed, is failing or is likely to fail to comply with any legal obligation to which he is subject. A miscarriage of justice has occurred, is occurring or is likely to occur. The health or safety of any individual has been, is being or is likely to be endangered. The environment has been, is being or is likely to be damaged. Information tending to show any matter falling within any one of the above has been, is being or is likely to be deliberately concealed.

Disclose to… The employer - It must be made in good faith and be from a reasonable suspicion that the alleged malpractice has occurred, is occurring or is likely to occur ; A regulator (e.g. HSE) - It must also be honestly and reasonably believed that the information and any allegations contained are substantially true ; Other bodies (Police, media, MP etc.) - In addition, no personal gain will be made from the disclosure ; and It must be reasonable for the disclosure to be made.

Dirty Laundry in Public? Reasonably believe that they would be victimised if the matter was raised internally. Reasonably believe that the disclosure relates to a criminal offence. There is no prescribed regulator and it is believed that the information would be concealed or destroyed. That the concern has already been raised with the employer or regulator (and nothing done). The concern is of an “exceptionally serious” nature.

So Disclose to… The employer As long as your ‘whistle’ is : made in good faith ; and you have a reasonable suspicion that the alleged malpractice :  has occurred ;  is occurring ; or  is likely to occur… …you are protected!

Bribe or a Gift? When is a gift not a gift? Are low-value gifts OK? Should the small stuff be recorded? What should you do if you refuse a gift? Who checks the register? Are your organisation’s rules clear?

When is a Gift not a Gift? Are these ok? Small box of chocolates? Bottle of wine? ‘Product Training’ at a nice hotel? A golf day? A £50 donation to charity on your behalf? Buying you dinner?

Using Contractors Is it OK to buy IT kit for yourself from your IT supplier? What if it’s the market price? What if they offer you a special price? What about using a contractor to build your extension? Is it ok if you get a number of quotes & they are just one amongst many? What about if they offer the service to all staff via an ad on the noticeboard?

The Small Stuff How low is low-value? Should you record the low-value stuff? What about regular low-value goods? What about conference give-aways? Party time? Free bar? Sponsored wine and cheese?

Sorry – I Can’t Accept That… Is it a bribe if you say no? Should you record what you turn down? Who checks the record? What action should be taken in respect of :  regular gifts?  refused gifts?  gifts that should never have been accepted? Ensure that clear process maps show everyone what to do!

Declaration of Interests Tell them the rules Get them to complete a form Review the entries on the form Include a requirement to report any changes Repeat the process annually

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