A few years back, as a trainee solicitor, I was asked to write an article / blog on the new Bribery Act just coming into force in the UK (Bribery Act 2010). Unfortunately I never quite got round to writing it and the moment somehow passed.
Bribery and corruption have never, however, gone off the agenda . In the aftermath of this week's dreadful Russian plane crash from Sharm el-Sheikh, it now seems possible, or likely, that a bomb in the hold was responsible for bringing the plane down. On London's LBC phone in radio show this morning, there were some anecdotes from tourists at the airport(s) in Egypt being able to bypass security with a bribe of as little as £20. If these anecdotes are true, then clearly this points to a potential way in which a bomb could have evaded security and been placed in the plane's hold. Further investigation will, hopefully, find out what actually happened.
This brought to mind an interesting discussion on global corruption I heard on BBC Radio 4's 'The Bottom Line' back in June (podcast currently available at http://www.bbc.co.uk/programmes/b05xhyrr#play). Evan Davis, the presenter, started the programme with a moral dilemma (don't you just love these? Political philosophers have them in abundance). You are at a foreign airport in a poor country on a business trip. The queue for the passport desk is huge, more like a crush. Then a smartly dressed man comes up to you and says, 'follow me, we can go to the express queue if you give me $10'. What do you do? a. Give him $10 and follow him gladly, b. Smile politely and decline his offer or c. Report him to the FBI for corruption.
This is central to the dilemma businesses face both in the UK and when operating internationally. Cash exchanging hands in brown envelopes is rarely seen in practice. What is more common is lavish hospitality or weekends away. There might also be a 'facilitation' payment. But at what point does a gift become a bribe?
Egypt was singled out in the discussion as a country where corruption was widespread, where facilitation payments were common and (it was alleged) the clique around the leader and his family were 'above the law' and not subject to the normal rules. It is seen as impossible to do business in Egypt without a member of the ruling regime as a business partner, possibly paid a 'retainer' to facilitate local contacts. There is, of course, a great culture of hospitality in Egypt and the Middle East, where relationships are often based on patronage and personal relationships. Agreements with handshakes, 'my word is my bond', based on a network of social connections may all be commonplace. But when does this hospitality, trust and flexibility in business based on social connections, become corruption? It's sometimes a fine line.
The UK Bribery Act 2010 has universal jurisdiction - that is, it applies to UK companies operating abroad as well as foreign companies doing business in the UK. It is among the strictest legislation in the world. It introduced strict liability for companies and partnerships failing to prevent bribery, together with strict penalties for either bribing or failing to prevent bribery. UK companies therefore have to be very careful when doing business both in the UK and abroad to avoid criminal prosecution.
Ensuring that business is transparent and based on the rule of law, is vital to a country's economic prosperity - and potentially a country's safety and security. In countries where corruption is rife, it costs the economy millions and keeps that country in poverty instead of prospering.
In India, the Radio 4 panel cited corruption in the telecoms bidding process which allegedly cost the Indian government £100 million equivalent. That is £100 million not available to spend on vital infrastructure, healthcare and education. Unemployment and collapse of infrastructure all can result from corrupt practices. Prominent anti-corruption campaigners in India include Anna Hazare, who famously employs the Gandhian tactic of fasting to achieve publicity for the anti-corruption cause (www.annahazare.org). There is also the website www.ipaidabribe.com to catalogue and highlight corruption in India.
The rule of law is not a principle of the West, to be foisted on other countries. I am with Lord Bingham, when he comments that the law might sometimes be an ass, but most people would rather live in a country 'which complies, or at least seeks to comply, with the principle I have stated (ie. belief in the rule of law) than in one which does not'[1] - rich, poor, middling and emerging countries alike - with equality before the law as central.
The advice from the panellists on R4 included: do not accept anything, even a drink or a business lunch (takes away even the perception of preferential treatment), hold business meetings in an office and make sure any relationship with a supplier is with the company and not you as a person.
Next time in an airport queue, think very hard before accepting any offer of jumping or bypassing the queue, however tempting.
[1] Tom Bingham,'The Rule of Law' 2010 p.9
www.ipaidabribe.com
www.annahazare.org
http://www.transparency.org.uk/
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An archive of the blog posts at indiainlondon.com which is no longer maintained. We hope you enjoy delving back into some of our past musings and thoughts.
Saturday, 7 November 2015
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