UK Bribery Act Advice - No space for corruption

The UK Bribery Act Advice, 2010 has another victim and this time it’s Macmillan Publishers. The Serious Fraud Office after inquiry found that the company made a bribery to secure a deal to print textbooks in South Sudan. On the basis of this finding the High Court ordered the company to pay £11.3m for this unlawful act.

The company Macmillan on the other hand has said that they regret this happened. The publishing company now faces a 6-year ban and will not be allowed to bid any contracts financed by the World Bank.

The UK Bribery Act is said to be the strictest of the law replacing the old Corrupt Practices Act 1889, and the Prevention of Corruption Act 1906 and Prevention of Corruption Act 1916. This and now the companies have to be careful when they do business in and out of the UK. To make it look simple, UK government has come out with guide 'Adequate Procedures' that highlights the issues which individuals and companies may feel complicated.  The section 9 of the Act contains an explanation of government policy on the functioning of the offense and failure on the part of companies to prevent corruption at home or abroad.

The UK Bribery Act Management for a transparent business transaction

The UK Bribery Act Management 2010 will have the companies in the UK to have a strict control on areas they feel where corruption or bribery can take place. The act is said to replace the old law that was in practice since World War I. After the Royal assent the law was suppose to be in practice by April, 2011 but was postponed to July 2011 and now it stands effective.

The UK Bribery Act 2010 under section 7 underlines 6 fundamental policies that will attract this act for companies that fail to comply. The new law is out to deal with organization they or their representatives are found to be associated with any act of bribery.

Companies can defend itself if they are able to show if they have implemented adequate procedures in place to curb bribery to the offense under section 7. The section 9, the UK Bribery Act 2010 was a necessity the government has come out with this guidance so companies know where to and how to implement this law. Companies not only in the UK, but those in US are said to be affected if they have a office here in the UK.

The UK Bribery Act Summary - Punishment and Penalty?

The Bribery Act Summary UK, 2010 came into force this July; introducing strict new laws on the making and receiving of bribes, as well as on the part of the companies if they fail to take adequate procedure to prevent bribery.

So let’s have a quick round about what exactly the UK Bribery Act is all about:

What is the new law?

The UK Bribery Act is one of the stringent laws worldwide, and they have charted some of the strictest punishment for the following offences:

    Section 1: Active offence of bribing another person

    Section 2: Passive offence of being bribed

    Section 6: Bribing a Foreign Public Official

    Section 7: Company offence of failing to prevent bribery.

Who will be affected?

It is applicable to everyone both individuals and companies. One important aspect of the new law is its extra-territorial effect. This is important because it not only applies to UK business but to business they operate with office in UK.

Penalties if found guilty?

    Unlimited fines;

    Sentence up to 10-years,

    Directors' disqualification, and

    Blacklisting of businesses from public sector contracts

   

Failing to curb bribery

The Bribery Act 2010 has provision to punish companies if they fail to curb bribery from taking place. Under the law a company will be held responsible if anyone acting on their behalf commits a bribery offence. Such persons can be your employees, agents, consultants, subsidiaries and joint venture partners to name a few. As said above the only defense the company can put forward is to show they has adequate procedures in place to prevent bribery offences.