UK - Bribery Act

The UK Bribery Act 2010 (the Act) was passed in the final days of the outgoing administration on 9 April 2010. It has yet to come into force, but is scheduled to do so later this year.

The Act introduces four new offences:

  • Bribing
  • Being Bribed
  • Bribing a Foreign Public Official; and
  • Failure to prevent corruption within an organization

It is the last offence on the above list that should particularly concern all corporates. The offence can be committed by any corporate entity, regardless of place of incorporation, if it carries on a business, or part of a business, in the UK. Carrying on a business is not confined to having a branch or office in the UK; business can be carried on through agents, distributors or employees.

The offence is one of strict liability; if an act of corruption occurs within the organisation, the offence has been committed. The only defence is to show that the corporate had 'adequate procedures' in place to prevent bribery. In light of this, all corporates should review and consider their ethical policies and procedures to determine if they are 'adequate'.

More detailed information on the Act can be found on our website.

Hewlett-Packard under investigation for bribery

Hewlett-Packard (HP) is being investigated by the German, Russian and US authorities over allegations that it paid almost $11 million in bribes to win a contract with the Russian government. The allegations relate to a $47 million contract to supply computer systems to the Russian prosecutor general's office, which HP won in 2003.

It is alleged that the corrupt payments were centred in a German subsidiary of HP, and were hidden by a series of money transfers through connected companies in jurisdictions such as the US, Belize and the British Virgin Islands. The fact that the money transfers are global increases the risk of sanctions in a number of jurisdictions. A number of former HP staff are apparently under investigation, including HP's former head of sales for Russia and the former Soviet Union.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.