Confusion threatens new anti-bribery regime – DLA

MORE anti-corruption legislation could be on the way just three months before the implementation of the Bribery Act, a West Midlands legal expert has warned.

Charles Arrand, partner in the litigation and regulatory team in the Birmingham office of law firm DLA Piper, urged businesses to review their procedures and warned how the position on plea bargaining was “mired in confusion”.

His comments followed the conviction of BAE Systems over a Tanzanian purchase of radar equipment.

The company was ordered to pay £725,000 in fines and costs at Southwark Crown Court after pleading guilty to a breach of the Companies Act 1985 by failing to keep accurate accounting records.

Questioning why there was no corruption charge when the inference was bribes had been paid by an agent, the judge, Mr Justice Bean, heard the prosecution had no evidence to show that BAE took part in a conspiracy to corrupt decision makers or that the agent had bribed officials.

However, the end result was that the Government of Tanzania paid an inflated price for the radar equipment, with the agent’s fees representing 30% of the contract price.

BAE will make an ex gratia payment to Tanzania of £30m, less the financial penalty imposed by the judge, and, as part of the deal, the Serious Fraud Office will terminate all ongoing investigations into BAE.

Mr Arrand cautioned: “It is now more important than ever that companies and individuals considering whether to self-report or co-operate with the SFO take specialist legal advice as early as possible.

“With the implementation of the Bribery Act 2010 imminent, it is vital that companies review their anti-bribery and corruption programmes.

“The best way to avoid coming under the spotlight in future is to ensure that they have ‘adequate procedures’ in place to prevent bribery.

“The SFO will have fewer resources at its disposal. Now more than ever it needs companies and individuals to come forward and co-operate.

“Yet it expects them to participate in a system which is clouded with uncertainty and disapproval of the courts.”

Mr Arrand said it was hoped publication of the Attorney General’s guidelines prosecutors in connection with the new Bribery Act would shed further light on matters.