Bond Pearce

If you haven't already done so, it would be advisable to look now at what systems and controls you have in place to deal with procurement bribery risks.

The SFO reported yesterday on the sentencing of four men found guilty of conspiracy to corrupt in relation to private (i.e. not government related) oil/gas contracts worth £70 million.   The case involved a petrochemical company who used a procurement agency to put engineering contracts out to tender.  An individual at the agency provided sensitive information to external "consultants" who then in turn offered that information to contract bidders disguised as "consultancy services" in return for corrupt payments.

On 30 January, the four individuals were sentenced to varying ranges of imprisonment between 5 years and 12 months.  Two were disqualified from acting as company directors for ten years and three will be subject to confiscation proceedings under the Proceeds of Crime Act.  Although this was not a prosecution under the Bribery Act as the offences pre-dated 1 July 2011, the sentences are useful in showing how the Courts will deal with individuals involved in commercial bribery.

Paragraph 4.15 of the new BS10500 standard for "adequate procedures" under the UK Bribery Act states that as part of their anti-bribery management system organisations "shall implement procurement and other commercial controls which minimise the risk of the organisation, or any of its personnel or others acting on its behalf or for its benefit, paying or receiving a bribe."  Such procedures will involve tight controls on the flow of information to and from contract bidders,  due diligence on the appointment of any agents dealing with procurement issues and checks on what systems those agents have to reduce bribery risks.   Ensuring that a company knows and accurately records what it is receiving when it pays for "consultancy services" will be essential.

For more information, please contact our Bribery Act team.

Share RSS Print

Other News

Bond Pearce LLP is a leading commercial law firm providing regulatory, corporate, commercial, real estate and dispute resolution services to some of the UK’s pre-eminent organisations. We are recognised nationally particularly for our work in the energy, commercial insurance, real estate and retail sectors, and for our approach to client service. © Copyright 2011 Bond Pearce LLP. All rights reserved. 3, Temple Quay, Temple Back East Bristol, BS1 6DZ