13. Bribery Flashcards
What are the Main Principles of the Bribery Act?
- The offences are:-
o Making a bribe.
o Receiving a bribe.
o Bribery of a foreign public official.
o Failure of a corporate entity to prevent bribery on its behalf. - The legislation applies to all UK Entities and includes associated Persons for example sub-consultants
and external advisors. - There are six principles of prevention companies should put in place:-
o 1. Proportionate Procedures.
o 2. Top Level Commitment.
o 3. Risk Assessments.
o 4. Due Diligence.
o 5. Communication.
o 6. Monitoring & Review.
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
- The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
- For example if there is a real and present risk or danger to “life, limb or liberty”.
- If you or your companions are under immediate physical threat.
- You should put safety first, make the payment and report the matter immediately.
- Or as soon as is practicable to your manager or your ethics compliance contact.
You are attending a Main Contractor organised business conference where it is announced the you have been randomly selected as the winner of this months prize draw. Its an i-pad air. How would you act in this scenario?
- I would be extremely uncomfortable accepting the prize in this scenario.
- The prize is of a significant value and could be interpreted as a bribe.
- Furthermore due to working on a project with the Main Contractor at the time of this scenario,
accepting the prize would have been highly inappropriate and could be interpreted as having an affect
on my business conduct during the project. - I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice.
- I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this
incident I would report this to my line manager.
You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?
- In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.
- Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out.
- Since they won’t be present, this will not be a genuine business event.
- Consequently, I would decline this hospitality at the Project Team’s expense
A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
- Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is
against Company policy and could be an offence under the UK Bribery Act. - If this were the first time, it would be OK just to decline and explain that such an invitation is
inappropriate. - However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement
What is the legislation that governs bribery?
Bribery Act 2010
What constitutes of an offence under the Bribery act?
An offence of bribing another person
An offence of being bribed
An offence of bribery of foreign public officials
A corporate offence of failing to prevent bribery
What are the obligations of members regarding money gifts?
Declare certain items to my employer such as gifts, hospitality, entertainment, expenses
What is a bribe?
- The exchange of something of value in return for someone doing or agreeing to do something improper in a business context
What legislation exists in relation to bribery in the UK?
Bribery Act 2010
What is the purpose of the current UK legislation on bribery?
Criminalises bribery in the UK, making it a criminal offence to directly or indirectly:
- Offer, promise or give a bribe
- Request, agree to receive or accept a bribe
What are the penalties under the current bribery legislation?
A maximum 10 years’ imprisonment and/or an unlimited fine
Who does the current bribery legislation affect?
Near-universal jurisdiction, allowing for prosecution of UK individuals or companies doing business overseas, as well as overseas individuals or companies doing business in the UK
What standard are judgements under the current bribery legislation based upon?
Judgments are decided based on the ‘reasonable person’ test
How can bribes affect surveyors?
Can be vulnerable to bribes because of the role they play in facilitating transactions, checking owners/contractors are complying with legislation and awarding construction contracts