March 11, 2011
After continued pressure from business groups, the Government has agreed to remove controversial aspects of the up coming Bribery Act.
The Ministry of Justice will issue Bribery Act guidance later this year that will be markedly different from that originally proposed in 2010.
The new guidance allows companies to avoid prosecution for some facilitation payments, or payments made to officials for performing duties they should normally carry out as part of their job.
According to a report in the Daily Telegraph, the "adequate procedures" firms now have to abide by in order to keep in line with the law, will make allowances for "the use of so-called facilitation payments".
This means that officials will not be completely prevented from receiving payment to "perform a function he or she should carry out normally", much like the system already seen in the USA.
Controversial plans to reform corporate hospitality have also been shelved, and the Ministry of Justice guidance will spell out how normal hospitality, sporting events, lunches and dining out will not be encompassed by the new law.
"A lot of what is in there will be welcomed by business. Some concerns remain though – such as the liability for acts performed by contracted or sub-contracted parties," said one source that has seen the new guidance.
For more information on the Bribery Act and how it will alter your business practices, contact our experts today.
