ТОПИК - UK government backtracks over bribery

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 UK government backtracks over bribery

UK government backtracks over bribery

Bribery by UK companies operating abroad is being reduced by “education rather than prosecution” after the government said it would not strictly enforce laws introduced just two years ago. The World Bank has estimated the annual global cost of corruption at more than $1500bn, although experts say it is hard to quantify. But Jack Straw, the Foreign Secretary, told diplomats last year, in internal advice which has only now come to light, that business should be ‘sensitized’ to its responsibilities. He said the government would ‘prefer to change behavior by education rather than prosecution’.

Laws making it easier for British companies to be prosecuted in the UK for overseas corruption came into force two years ago, after the government came under pressure from the US, which has long had a ban on corporate corruption in the developing world. Only a month before the new UK laws came into effect, Foreign Office staff were instructed to tell executives that ‘bribery is bad for business. The payment of bribes is unacceptable.’

But there has yet to be a single prosecution under UK laws. Only four allegations have been referred to the National Criminal Intelligence Service, and only one is under active investigation. The government’s position appears in tune with companies’ claims that they need flexibility to operate in counties where small bribes are commonplace. The CBI, the employers’ body, said last night it was ‘important to have a sensitive approach, because business has to deal with the world as it is, not as it would like it to be.’

Some executives complain that First World standards do not suit the realities of doing business in developing countries. They argue that strict enforcement will deter investment. Susan Hawley, a consultant to the Corner House, a think-tank, said: ‘It’s shoking that the government does not favor prosecutions – the laws are not really going to be taken seriously until there are some high-profile cases.’

The Foreign Office has encourage staff to report serious allegations, but in effect advised them to turn a blind eye to payments of small backhanders to speed up services such as customs clearance. ‘Whilst small payments … are strictly illegal, we do not envisage circumstances in which there would be a prosecution’, the memo sent by Mr Straw last year states. The Foreign Office said its policy of educating British companies about corruption reflected the fact that it look the issue seriously. ‘It is absurd to suggest that we do not treat our work on enforcement … with the utmost importance,’ an official said.