The announcement to delay the Bribery Act for some is a relief for others a failure of good government. Either way it will eventually come into force and so this additional breathing space is a good chance to get to grips with what is on the horizon.
At its simplest “bribery is a form of corruption, implying money or gift given that alters the behaviour of the recipient. All except the most hardened racketeers will agree it’s not a great thing to do. It’s essentially already illegal its just the new act codifies the old law (brings into one place and) its critics say widens the potential scope of the crime.
Putting a £50 note in your passport when trying to clear customs without a Visa is a pretty clear example of a payment altering behaviour. So to are the urban myths of rolling dollar bills into drawings to secure government contracts. But what about the staple of the British “summer” that is corporate entertainment, at Henley, Wimbledon, Ascot, the Open where does that sit with the new Act? Does lavishing smoke salmon expensive tickets and champagne seeking to alter behaviour to the point of being corrupt? In short it’s not clear.
What is clear is that the government needs to look at this issue properly and set out some sensible guidelines. For those that already have their marketing plan set up there is some comfort. When the Act was being discussed the Director of the SFO stated for that “ most routine, inexpensive corporate hospitality” would “generally” not be considered to be caught by the Act. Good news unless you are the one business which falls into the exceptional case category. The key test really is this: but for the act (of bribery) be it payment of hard cash or an inducement disguised in another form (such as excessive corporate hospitality) would the company have won the relevant business or contract. Ie was the act critical in the decision making process. If the answer to that is “no” then the decision to treat a key decision maker to a day out at the races looks less odious and less at risk of falling foul of the legislation.
There are plenty of other aspects to consider, but that’s enough for now. If you want to discuss any of the above by all means get in touch.
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