Latest Headlines

Fear of misuse of funds should not halt humanitarian aid to Pakistan

Thursday, 19 August 2010

As international concern mounts about the humanitarian disaster that is engulfing Pakistan, there are also concerns that emergency relief may have been slow to take off because of widespread fears that funds may not reach those who need it.

The UK is one of Pakistan’s largest aid donors and today the UK and Pakistan chapters of the global anti-corruption coalition, Transparency International, join forces to urge the UK Government, the public and aid agencies not to hold back on their emergency response for fear that funds might be misused.

Syed Adil Gilani, Chairman of Transparency International Pakistan, and Chandrashekhar Krishnan, Executive Director of Transparency International UK, have issued the following statement:

‘Nature’s fury has made millions of poor Pakistani citizens victims of one of this century’s worst humanitarian disasters. That tragedy would be compounded if fears about corruption were to reduce aid from the UK government and public. We believe the answer is to have adequate safeguards for greater transparency, monitoring and accountability in the disbursement of emergency relief as well as aid for longer-term reconstruction efforts.’

Citizens should also be involved in decision-making, those reporting corrupt behaviour should be protected, and the corrupt punished. Corruption should not be a reason for withholding aid in desperate humanitarian crises. Transparency International’s handbook for dealing with such crises, and important recommendations made in the wake of the devastating 2005 earthquake in northern Pakistan, show how corruption risks can be reduced so that aid reaches those who need it most.‘

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Welcome surge in UK anti-bribery activity must be sustained

Wednesday, 28 July 2010

The UK’s record on tackling foreign bribery has improved significantly over the last year according to Transparency International (TI) the global coalition against corruption.

Its latest report rates 36 signatory countries on their enforcement of the OECD Anti-Bribery  Convention1 and shows that the UK has moved into the ‘active enforcement’ category for the first time. Along with Denmark, Germany, Italy, Norway, Switzerland and the United States – the UK is now among the seven countries actively enforcing the Convention.   

TI rated 20 countries in the ‘little or no enforcement’ category. Nine countries - including G8 members France and Japan – are rated moderate enforcers of the Convention.

Commenting on the turnaround in the UK’s enforcement record Chandrashekhar Krishnan, Executive Director of Transparency International UK, said:

‘This is welcome news for the UK’s reputation despite the disappointing announcement last week that the new Bribery Act’s commencement is to be delayed until April 2011.  The improvement in UK performance reflects the recent surge in activity by the enforcement authorities who have now brought 10 cases – up from zero in 2008.

‘If the UK is to sustain its new-found reputation for being tougher on foreign bribery, law enforcement authorities need the necessary political support and additional  resources.  It’s also vital that the consultation on the official government guidance on compliance with the new Bribery Act should not result in any weakening of its provisions.

‘From the global perspective, it is extremely disturbing that half the countries who have signed up to the OECD Anti-Bribery Convention are doing virtually nothing to enforce it.  Pressure must be brought to bear to raise their game and help create a more level playing field for active enforcers.‘

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New Guidance to Help Companies Achieve Zero Tolerance for Bribery

Thursday, 22 July 2010

Anti-corruption NGO Transparency International UK, supported by FTI Consulting, Inc., the global business advisory firm, and Halcrow, the international infrastructure consultancy, has today published detailed Guidance to help companies meet the challenges of the new UK Bribery Act.  The Bribery Act marks an historic step change in the UK’s fight against corporate bribery, most of whose victims are the poorest people in the poorest countries. 

The Guidance, which includes case studies, sample policies and a step-by-step implementation checklist, is intended to provide comprehensive guidance for companies seeking to comply with the Bribery Act and maintain good practice anti-corruption procedures. Companies following the Guidance will, in the view of Transparency International, have implemented ‘adequate procedures’ for compliance with the Bribery Act. 

The Guidance is based on the well-established Business Principles for Countering Bribery and other Transparency International tools that companies all over the world are already using to benchmark their anti-bribery systems.  

The Bribery Act introduces an offence of corporate failure to prevent bribery, unless a company can prove that it had ‘adequate procedures’ in place to prevent bribery.  The Secretary of State for Justice is required, by section 9 of the Bribery Act, to provide official guidance on ‘adequate procedures’.  The corporate offence of failing to prevent bribery can only come into force after the Government’s guidance has been issued.  It was originally envisaged that the official guidance would be issued on 1 July 2010, but the Government has  recently announced a revised publication date of early 2011, and that the Bribery Act will come into force in April 2011.

If companies get it wrong, the new law means both companies and directors face potentially disastrous financial and reputational consequences. Unlimited fines will be imposed on companies and prisons sentences of up to ten years for directors.

Ian Trumper, Senior Managing Director at FTI Consulting, Inc. and Board Member of Transparency International UK, comments:

"The provisions of The Bribery Act represent a major step change towards the prosecution of companies and directors for failing to stop the payment of bribes.  Effective corporate governance can no longer be seen as an aspiration. The Guidance is designed to help corporates take responsibility for implementing strong anti-corruption policies both to help them withstand any investigation into bribery claims, as well as play their part in eradicating corporate bribery in the long term."

Chandrashekhar Krishnan, Executive Director of Transparency International UK, says:

"The new Bribery Act means that companies must embed ethical practices throughout their organisations or face potentially disastrous consequences. The best defence for companies is to adopt and enforce policies for zero tolerance of bribery supported by robust anti-bribery systems. But changing an organisation’s culture can’t be done overnight. That’s why we are making this Guidance available ahead of the Bribery Act’s commencement so that companies can get a head start."

Disappointment at delayed implementation of Bribery Act

Tuesday, 20 July 2010

Press Release

For immediate release

Commenting on today's announcement by Rt Hon Kenneth Clarke, Secretary of State for Justice, that implementation of the Bribery Act will be delayed until April 2011, and that there will be a “short consultation exercise” on the content of official guidance, Chandrashekhar Krishnan, Executive Director of Transparency International UK said:

'While guidance will be helpful for companies by clarifying some grey areas, it is extremely disappointing that the Government has chosen to delay implementation of the Bribery Act.  Meanwhile, the victims of corporate bribery, usually the poorest people in the poorest countries, will continue to suffer. There is absolutely no reason that effective guidance could not have been published in time for the Act to commence in 2010.  The danger is that under the guise of consultation attempts may be made by those who want to pursue 'business as usual' to water down the Bribery Act.  Having made positive noises about the need to ensure British aid and development spending is not wasted through corruption, the coalition Government is in danger of undermining its own policy.  The jury is now out on its commitment to fighting corruption.'

In the absence of the long-promised official guidance from the Government, on Thursday 22 July Transparency International UK will publish its own guidance on the Bribery Act to allow companies to get a 'head start' in tightening up their anti-corruption procedures.