Bribery damages international trade and business, undermines societies, and blights economic development. Like fraud, it damages free enterprise and adds costs to business. It is estimated that corruption adds up to 10% to the total cost of doing business globally, and up to 25% of the cost of procurement contracts in developing countries. In other words, on these averages, Bolivian taxpayers may be paying up to 25% more for public works and business transactions. The public, as well as business, loses.
Britain will take an important step to combat bribery – in the United Kingdom and globally – when on 1 July the new UK Bribery Act comes into force. It consolidates previous legislation and introduces two new offences of giving bribes or receiving bribes: an offence of bribery of foreign public official for business reasons, and an offence relating to those organisations that fail to prevent bribery committed on their behalf (for example, by agents).
My government believes that taking a firm stance on bribery will not just tackle the problem, but also provide an incentive to business development. This is especially the case in the developing world where bribery and corruption represent a real drag on business and social prosperity.
A British company that resorts to bribery will be liable for action in British courts. As will any foreign company that has business in the UK, and is known to engage in bribery anywhere in the world. The Bribery Act will not eradicate bribery on its own. But it sends out an important signal that corruption in business is unacceptable. The Bolivian government has made clear its commitment to dealing with corruption. We hope other countries will join us in making their laws stronger and tackling bribery head-on.