Bribery Act persecuting ‘ambitious’ UK companies

This entry was posted on Monday, November 21st, 2011 at 5:56 pm

The Director General of the CBI, John Cridland, has warned that the Bribery Act could have significant negative effects on British business, suggesting that the ‘over zealous’ policing by the Serious Fraud Office (SFO) of companies with services in foreign companies could be costing the UK economy £20 billion.

The caution comes amid continued concern over the impact that the Bribery Act 2010 could have on the freedom of British companies to operate without fear of recrimination. This fear, it has been argued, perpetuates diminished ambition and productivity – a fatal combination in the context of the current financial climate.

Cridland said that the Act, in conjunction with the cap on immigration outside the European Union, was undermining economic recovery. The reason for this is simple – that British companies are less likely to export goods to countries where demand for small bribes by front-line officials is commonplace, but which is determined to be corporate fraud by domestic authorities.

He said that the bribing of officials simply to get products into a country does not constitute the serious fraud that the SFO maintains. Indeed, not making such payments gives off the image that, despite the government’s rhetoric, Britain is not ‘open for business’.

A charge of serious fraud, Cridland suggested, was appropriate when a company entered a country and bribed officials in order to secure work contracts. However, if ‘a matter of a few dollars’ was exchanged with a port official in order to secure the efficient trade route of a company’s products, then the SFO should not push for persecution on the grounds of corporate fraud.

If you are concerned that the new Bribery Act measures may harm your company or have been accused of corporate fraud, we can help. David Phillips & Partners have over 25 years of experience and specialise in providing expert defence in fraud cases of all types, including tax fraud, VAT fraud and white collar fraud.