Foreign bribery: A national embarrassment

On Friday, the Organization for Economic Cooperation and Development's (OECD) working group on bribery published a special review of the UK’s record in fighting foreign bribery. It is disturbing reading for the British government, for citizens who are concerned about how British companies operate abroad – and for companies themselves.

The working group stated that it was "disappointed and seriously concerned" about the UK’s record in tackling foreign bribery, in a highly condemnatory 79-page report. The report makes it clear that the UK continues to be seriously delinquent in enforcing the 1997 OECD Anti-Bribery Convention, which the UK signed in December 1997. It also warns that the country’s poor reputation may now start to damage British business, as commercial partners and multilateral development banks would require increased due diligence from UK companies.

Is this condemnation deserved? Yes, for three reasons. First, the UK is a laggard in enforcing the OECD convention compared with its major peers. There have been only two cases in the UK since the convention came into force, both in the last month. In contrast, there have been 19 cases in France, 43 in Germany, and 103 in the USA.

Secondly, the UK has failed to enact new anti-corruption legislation. The hotch-potch of existing legislation, some dating back to 1889, makes it difficult even for well-intentioned law enforcement agencies to prosecute successfully. The government has promised year after year that there would be a new anti-corruption law, but eleven years after signing the OECD convention we still do not have one.

Thirdly, the government’s attitude has been complacent, ignoring warning signals that Britain is slipping down the international corruption rankings, and that other countries have started to investigate and enforce more vigorously. This insouciance is reflected in the chaotic passing around of the position of ministerial anti-corruption champion. In 18 months this has passed from the department for internation development to the department for business, enterprise and regulatory reform (BERR), and finally to the ministry of justice (with a secretariat remaining in BERR, for reasons that are unclear). This is not the mark of a government with a strong political will to tackle corruption.

More positively, the government has added resources to investigative agencies, primarily the overseas anti-corruption unit at the City of London police. However, it has claimed as a result that the UK is now leading the way in tackling corruption. This is fiction that cannot disguise years of inaction and the need for systemic reform.

The Law Commission’s proposals for a new anti-corruption bill, due in late November, will be the litmus test of whether the government has the will to raise its game.

Transparency International (UK) would like to see three things. Most importantly, a new anti-corruption law that is fully OECD-compliant, enacted in the fourth session of this parliament. We need more prosecutions of companies and individuals who pay bribes to foreign public officials (several investigations are currently pending). Finally, it is time for sustained political commitment, particularly from Jack Straw, the new anti-corruption champion, to implement the government’s wider international anti-corruption strategy. Further procrastination is not an option. Every month of delay aggravates the UK’s embarrassment and damages British companies.