The UK Bribery Act

The following is a guest blog from John McKendrick, a UK Barrister and UK Bribery Act expert who was in Jamaica as part of a regional anti corruption programme.

Around the High Commissioner’s elegant dining table his guests all agree corruption is bad a thing. During similar conversations around different tables, nearly everyone has the same perspective. I’ve rarely met someone who considers corruption neutral or not a negative force in society. The mystery remains, therefore, why, if we all agree corruption is a bad thing, it remains so prevalent in so many countries around the world?

Over the last few weeks I have been visiting El Salvador, Panama, Trinidad, Guyana and Jamaica to discuss both the extent of the problem in the region and to help find common ground to develop effective strategies to reduce the levels of bribery that exist.

A key message that we have been working on is spreading the word that a clear nexus exists between strong institutions, an effective rule of law and transparency, on the one hand, and economic growth, on the other.

Domestic and international investors seek to avoid the ‘economic hazard’ of placing their capital at risk in jurisdictions where their investment can be threatened by corruption and in many cases, if they continue to invest, they do so, but with higher costs, which are ultimately passed on to citizens and tax payers.

Business relations require a complex series of transactions between the private and public sector, whether they relate to the enforcement of contractual obligations or accessing permits and obtaining public contracts. Access to capital requires strong state institutions such as land registries, tough regulation of banks, shares and securities and effective insolvency and bankruptcy laws. Sustainable growth is compromised or limited without an effective rule of law.

In a globalised and inter-dependent world all countries must cooperate to limit the scourge of corruption. The UK Bribery Act 2010 is an effective and tough law that targets companies wherever incorporated or registered around the world, if they carry out their business or a part of their business in the United Kingdom.

The UK authorities will prosecute such companies if a person associated with such a commercial entity is involved in bribery. It’s irrelevant if the board of directors was unaware. Successful convictions can result in a statutory unlimited fine.

Whilst all sectors of society can contribute to limit the problems of bribery, the private sector is advised to ensure it has in place ‘adequate procedures’ to combat bribery and corruption. The UK Bribery Act 2010 requires this for all companies that carry out a part of their business in the UK.

Bribery is not just a problem for public officials. All society must contribute to reduce its pernicious effect on retarding economic growth. So whatever table you are sat around, be it a dining table, the breakfast table or a boardroom table, it’s time not just to agree bribery is bad but take concrete action to give effect to this key message.