The Bribery Act 2010 is due to come into effect very soon but are you prepared for the change it will bring?
Increasingly, public sector tenders require the supplier to explain their anti-bribery and anti-corruption processes and procedures. Despite a number of delays The Bribery Act is now due to come into force on 1st July 2011. The purpose of the Act amongst other things will be to:
- provide a more effective legal framework to combat bribery in the public or private sectors
- create two general offences covering the offering, promising or giving of an advantage, and requesting, agreeing to receive or accepting of an advantage
- create a discrete offence of bribery of a foreign public official
- create a new offence of failure by a commercial organisation to prevent a bribe being paid for or on its behalf (it will be a defence if the organisation has adequate procedures in place to prevent bribery
- replace the fragmented and complex offences at common law and in the Prevention of Corruption Acts 1889-1916
- require the Secretary of State to publish guidance about procedures that relevant commercial organisations can put in place to prevent bribery on their behalf
- help tackle the threat that bribery poses to economic progress and development around the world.
The Ministry of Justice published updated procedure guidance on 30th March 2011 that can be put into place by commercial organisations. The report advises that an organisation can form a case against the offence of failing to prevent bribery providing that they can prove adequate procedures are in place in the organisation. This is under section 7 of the Bribery Act 2010.
The guidance sets out six principles that will assist commercial organisations with planning, implementing, monitoring and reviewing their business to ensure it is bribery free.
The principles are:
- Proportionate procedures
- Top level commitment
- Risk assessment
- Due diligence
- Monitoring and Review
After each principle there are suggested practical guidelines to help your organisation address them. This designates control to the organisations to review their business and undertake the relevant risk assessments to determine whether or not their procedures are sufficiently robust. If your organisation does not meet the required standard, you are advised to implement anti-bribery procedures as soon as possible.
The guidance presents a risk based approach to adopting the sufficient procedures and acknowledges that different procedures will suit different organisations depending on
- size of the company
- markets in which the business operates in
- the nature of the company’s business partners and transactions.
If you are flummoxed with your obligations under this new act or are having difficulties with any aspect of your bids and tenders, Win That Bid is simply a phone call away.