Transcript Powerpoint Presentation

DATE:
VENUE:
Scope of this session:
How Does “the Bribery Act 2010” concern us.
• Bribery an offence and its category in the Act
• Who is Associated.
• Action by PDS to mitigate the Risk.
• Penalties & Sanctions under the Act.
• Are Gifts allowed?
• Are Corporate Hospitality and Facilitation
Payments Bribe?
• Do’s and Don’ts.
• Q&A
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PDS Group has companies like Poeticgem,
FX, Poetic Knitwear incorporated in UK.
The Act extends to apply to the subsidiary,
holding, associate, all employees, business
partners etc.
Affects public and private sector dealings.
Affects small and large businesses.
Affects customer relationships for
something done anywhere on planet Earth.
Even affects customers for things done on
their behalf without their knowledge.
Only limited defences apply.
Bribery law changed in the UK on 1 July
2011.
Active offence: promising or offering a
bribe (section 1).
Passive offence: receiving or accepting
a bribe (section 2).
A bribe is a financial or other advantage
offered, promised or given to induce
another person:
• to perform improperly a relevant
function or activity; or
• to reward someone for improper
performance of a relevant function or
activity; or
• Knows or believes that the
acceptance of the advantage would
constitute the improper performance
of a relevant function or activity.
The receiver requests, agrees to receive or
accepts a financial or other advantage and:
• Intends that a relevant function or
activity is performed improperly (by
anyone); or
• That is a reward for improper
performance of a relevant function or
activity (by anyone); or
• That request, agreement or receipt
constitutes improper performance of
a relevant function or activity; or
• In anticipation, a relevant function or
activity is performed improperly by
him or by someone with his assent or
acquiescence.
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Irrelevant whether person benefiting from the bribe is the same as or different from the person performing the
function or activity.
Bribe can be given/ taken directly or indirectly through a third party.
Offence can apply regardless of whether receiver knows or believes the performance of the function or activity is
improper.
Offence of bribing a foreign public
official (section 6).
The corporate offence: failure to
prevent bribery (section 7).
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This offence is committed where a person
offers, promises or gives a financial or other
advantage to a foreign public official or
someone with that official’s consent with the
intention of influencing the official in the
performance of his or her official duties.
A “foreign public official” includes any person,
whether elected or appointed, who performs
public functions in any branch of foreign
national, local or municipal government
(whether in a legislative, administrative or
judicial role).
A “foreign public official” would also include
persons working for international
organisations such as the World Bank.
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A commercial organisation is guilty of an
offence if someone “Associated” with it bribes
another person intending to obtain or retain a
business or advantage for it.
It is a defence to show that the business had
in place “adequate procedures” designed to
prevent persons associated with the business
from undertaking such conduct.
Can apply to businesses located or
incorporated anywhere if they do some
business in UK, even if bribe occurred outside
of UK.
Responsibility for bribes made on business’s
behalf.
Any of the following shall be considered as Associated with the
relevant commercial organisation
• Someone performing services on behalf of it, in any capacity.
• Act says it may, for example, be an employee, agent or subsidiary.
• Whether someone is providing services on its behalf is determined by
reference to all relevant circumstances.
• An employee is presumed to be providing services on its behalf.
• It could include joint venture partners, subcontractors, suppliers, other
service providers.
• It is unlikely to include someone merely supplying goods.
• In a contract chain, likely to be responsible not only for bribery
procedures with immediate person in chain, but require them to do the
same down the chain.
• liability doesn’t arise merely through corporate ownership. UK parent not
liable just due to getting dividend from subsidiary that had paid bribe.
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Unlimited fines.
Individuals on indictment can be jailed for up to 10 years.
Confiscation of property of criminal conduct.
Any senior officer of a company is also guilty if the section 1/2/6 offence is
committed with their consent or connivance.
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Senior officer would, for example, be a director, secretary or manager.
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Debarment from participation in certain public sector contract tenders.
Civil claim?
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Remedies for losing out to a bribe:
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Civil claim?
Report to Serious Fraud Office.
PDS is actively taking following actions to Mitigate the Risk:
• Anti-Bribery clauses have been introduced in the Code of Conduct for
employees and suppliers.
• Suitable training is being imparted to all the employees and
communicated to suppliers.
• Navex Hotline has been introduced to report violations including bribery.
• A complete compliance mechanism has been set-up to avert such risk
and senior Industry experts are involved to manage the same.
• Employees and Suppliers have been warned of serious action including
cancelling of contract if found guilty of Bribery and such other offence
• Suitable clause has been introduced in agreement for vendors to abide by
the Code which includes Anti-bribery clause.
• The limit of taking or paying gift has been clarified to the Employees
Taking and giving gifts on appropriate occasions are not absolutely
prohibited. However, it is suggested to AVOID it. If at all it is required
to be taken or given, please follow the following guidelines:
• Maximum Value of Gift: USD 25. However, even if the gift is of less than
USD 25, but it has ability to influence the person in violation of applicable
law, then it is completely prohibited.
• How should be given or accepted: It ishould be given openly and not in
closed or covered kind of environment which would uselessly raise doubt
on the receiver and provider.
• When: The gift must be taken or given on usual customary
circumstances and not generally. Such as New Year, any important
festival, Supplier meet; etc.
• Approvals : If the Gift for any specific person is required to be of value
more than the limits prescribed, appropriate approval must be taken in
advance from the Vice Chairman.
• Disclosures: If for any compelling reason you have accepted a gift of
value more than USD 25, disclose it immediately to your CEO and
Compliance Head. Also submit it with Company HR until permitted by
CEO to use it
Corporate Hospitality: It includes matters such as hosting an event for
customers at a hotel with a view to forging better relations or hosting the
successful completion of a transaction with customers etc .
Is it Prohibited? No not absolutely prohibited. But, the following tests must be
cleared before providing the same:
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Does it commensurate with that provided by others?
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Is it beyond what might be reasonably expected generally within the sector?
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Is this likely to have a bearing on decision making
 bona fide – genuinely done or false entry
 Proportionate – societal status, circumstance etc.
 Promotional – product promotion or advertising
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Is the provision of hospitality to provide an advantage, and given with the
intention of inducing a person to perform a relevant function improperly or
knowing that acceptance of that advantage is itself improper performance?
Facilitation Payment: It includes payments for routine functions to facilitate or
speed up bureaucratic functions that officials are otherwise obligated to perform
FACILITATION PAYMENTS ARE ABSOLUTELY PROHIBITED.
DO’s:
• Please update yourself regularly on the Code and Policies of the
Companies on relevant matters.
• Discuss with your reporting manager/ Compliance Manager (preferably in
writing), in case of any doubt or clarification is required.
• Inform your customer/supplier about the Policy of the company while
avoiding to take gift.
• Disclose the gift with complete details if such gifts have been taken or
given of value more than the limits prescribed. Preferably submit it to HR
of the Company.
Don’ts
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Do not pay or take bribe in any circumstance.
Avoid taking or giving gifts.
Do not give or take gift in violation of the company Policy/ Code.
Do not enter into any transaction which may lead to bribing directly or
indirectly even if you are not directly part of it.
• Do not indulge in any kind of facilitation payments.
Q & A….open