TravelMole Guest Comment: Travel firms warned of new anti-bribery law
The UK Bribery Act, which comes into force in April 2011, has serious implications for travel firms. Here, Richard Mumford, asb law partner for dispute resolution, outlines the ins and outs of the new law.
"The timing of the UK Bribery Act (the Act) cannot be faulted, ramping up significantly the consequences of improper business practices involving bribery and corruption at a time when economic realities increase the potential for impropriety.
The Act makes it an offence to give or receive a bribe, for example, any benefit, in cash or in kind, in order to influence an individual to improperly perform an activity. The Act is widely drawn to catch many forms of perceived ills, and what is or is not improper will be decided on a case by case basis so individuals must be clear about the purpose of a payment, who is receiving it, and its effect. The offence does not require intent; it is based upon the effect of what is done.
This will be felt keenly in overseas operations. Getting things done in foreign jurisdictions frequently involves payments to local officials or fixers, often dressed up as ‘consultancy’ or ‘administrative’ fees, to persuade them to use their influence to make something happen.
Often these are, quite simply, bribes and will be illegal.
How UK companies interact with officials and the business community at home is just as important. ‘Oiling the wheels’ isn’t uncommon, but historically acceptable practices could now be considered a criminal offence.
Gifts and lavish hospitality are familiar in the travel industry, but benefits in kind can also be considered bribes. That all expenses paid family trip to a luxury Caribbean villa whilst you think about adding the owner’s resort to your programme? Think carefully how this might look as far as the Act is concerned.
Guilty as charged
Bribing another person, being bribed, and bribing a foreign public official are all offences committed by the individual(s) making or receiving the payment. However, a corporate entity can now be charged with ‘failing to prevent’ bribery, making a business liable for the acts of its employees, agents or subsidiaries.
Clearly it’s in the interests of all affected companies to develop and communicate a comprehensive and effective zero-tolerance policy towards bribery that includes all employees and agents, and to make use of the lead time until the Act comes into force (April 2011) to install adequate procedures and train staff. A conviction of bribery will not only damage a firm’s reputation, it could also result in an unlimited fine or a significant jail term for the giver or receiver of any advantage."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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