The Bribery Act 2010

Question 1

Why was The Bribery Act 2010 introduced?

Answer 1

To address concerns relating to how a business conducts transactions. Including private individuals.

Question 2

How can a breach of this act be pursued?

Answer 2

As it is part of the criminal law, any breach may be pursued in the public interest by government bodies such as the Crown Prosecution Service. Alleged breaches will go to criminal court and need to have sufficient evidence to be beyond reasonable doubt.

Question 3

What types of prosecution can be a consequence of these breaches?

Answer 3

Fines to imprisonment. More serious cases taken to the crown court can involve very large fines in excess of a million GBP and a maximum of 10 years imprisonment.

Question 4

What does Section 1 of the Bribery act 2010 cover?

Answer 4

It states that it is an offence for an individual to perform an offer of bribery with the intention to induce the other party into improperly performing a function. This is relevant for both before and after the event.

Question 5

Describe the Mushtaaq case and it’s outcome.

Answer 5

Mushtaaq took a driving test and failed. He then tried to bribe the examiner with cash to alter his fail to a pass. The examiner refused this and reported to incident. Mushtaaq was taken to court and given a suspended sentence.

Question 6

What’s does section 2 of the Bribery act 2010 cover?

Answer 6

The request, acceptance or agreement of a bribe by an individual intending that, in consequence, the relevant function or action should be improperly performed.

Question 7

Describe the Munir Patel case and it’s outcome.

Answer 7

Patel worked for the magistrates court. He accessed secure files on the company’s data base and found lists of people with pending speeding tickets. He contacted the individuals to request a payment in order to prevent the speeding charges being processed. He was eventually caught and thus prosecuted.

Question 8

What does section 3 of the Bribery act 2010 cover?

Answer 8

It sets out conditions for a function or activity including:
- Any function of a public nature.
- Any activity performed in the course of a persons employment.
- Any activity commenced with business.
- Any activity performed by or on behalf of a body of persons.

Question 9

What does section 4 of the Bribery act 2010 cover?

Answer 9

It focuses on what is meant by improper performance. The key here is the statement about the ‘breach of a relevant expectation’ - it requires consideration for what is expected in a particular activity. Links with section 5.

Question 10

What does section 5 of the Bribery act 2010 cover?

Answer 10

If a particular situation is examined, what would an ordinary, reasonable person expect from that situation.

Question 11

What does section 6 of the Bribery act 2010 cover?

Answer 11

It extends liability for bribery outside of the UK. It draws attention to where a bribe is given to influence an official in a business setting and can be made directly or indirectly by a third party. - subject to improper performance rule.

Question 12

What does section 7 of the Bribery act 2010 cover?

Answer 12

Failure of a commercial organisation to prevent bribery. (The corporate offence). It states that there should be “in place adequate procedures designed to prevent persons associated” with a commercial organisation from committing bribery. The defence for this would be to show that the company has shown due diligence to prevent bribery occurring. (Principle 4)

Question 13

Describe the Sweett case and it’s outcome.

Answer 13

Company was transacting outside of the UK.
They had failed to put adequate procedures in place to prevent bribery. Ultimately it was discovered that bribery had taken place, thus they were reported and prosecuted.

Question 14

What does section 10 of the Bribery act 2010 cover?

Answer 14

Sets out requirements for the involvement of the Directors of public prosecutors and the Director of the serious fraud squad in taking cases to court.

Question 15

What does section 11 of the Bribery act 2010 cover?

Answer 15

Sets penalties for breaches of the law.
- if a case is heard at the magistrates court, the limit is 12 months imprisonment or a fine set out in a separate schedule.
- if a case is tried at the crown court, it maximum is 10 years imprisonment and or a fine.

Question 16

What does section 13 of the Bribery act 2010 cover?

Answer 16

Explains the available defence and identifies certain exemptions relating to government intelligence services.

Question 17

What do both section 14 & 15 of the Bribery act 2010 cover?

Answer 17

Relates to the procedures associated with corporate and partnership offences.

Question 18

What does principle 1 - proportionate procedures explain?

Answer 18

That a company needs to begin by assessing any risk of bribery occurring. Once any vulnerabilities are discovered, they will need to install policies and protocols to prevent bribery from happening. The procedures adopted should be proportionate to the risk.

Question 19

What does principle 2 -top level commitment cover?

Answer 19

The commitment to prevent bribery must come from the top - usually the board of directors. They should also be responsible for monitoring and reviewing the policies and codes issued. It advises that companies should adopt a “zero tolerance” policy to bribery with severe consequences for breaches.

Question 20

What does principle 3 - Risk assessment cover?

Answer 20

The requirement for a risk assessment to help expose where the company may be exposed to bribery. Top level management should oversee these. Also relates to principle 4 - due diligence as it is one thing to implement procedures but it is another to ensure they are working.

Question 21

What does principle 4 - Due diligence cover?

Answer 21

Establishes the requirement for careful monitoring of procedures adopted to prevent bribery. Risk assess, establish adequate procedures and then review measures to ensure they are working.

Question 22

Describe the Skansen case for due-diligence.

Answer 22

Company was tendering for some work. An employee at the company had a connection with Skansen, therefore choosing Skansen to work with. A series of payments were then made between the company and Skansen. A new CEO then took over. The CEO was asked to agree to some payments, however something did not seem right so an internal investigation was raised. The result of the investigation was then reported to the police.

Question 23

Why was the outcome of the Skansen case the way it was?

Answer 23

The ruling was that Skansen did not spot the bribery until the new CEO took over, therefore it was inferred that they did not show due-diligence to help prevent it in the first place. Although Skansen self-reported, they were not granted a deferred prosecution. The reasoning behind this is due to them not adequately maintaining their procedures throughout the life-span of the company. Taking the Rolls Royce 2017 case for example, they had adequate procedures and showed due-diligence prior to discovering the bribery occurrence. This meant they were granted a deferred prosecution.

Question 24

What does principle 5 - communication and training cover?

Answer 24

The requirement for a company to put adequate training into vulnerable areas to convey the importance of the “zero tolerance” policy. It is also suggested that general training be provided to new employees, however the targeting approach should still be adopted.

Question 25

What does principle 6 - monitoring and reviewing cover?

Answer 25

That procedures should be overseen by senior management.