All posts in the Corruption & bribery category

Removing the dishonesty element from the criminal cartel offence – not such a bad idea after all?

On 15 March 2012 BIS published its plans for an overhaul of the UK’s competition laws and enforcement arrangements. One aspect of these plans concerns the reform of the criminal cartel offence, s188 of the Enterprise Act 2002. The key proposal is to remove the dishonesty criterion so that the offence would be committed by those who agreed to price-fix, bid-rig or limit supply with another participant (purportedly a competitor) without revealing this to the public. This proposal has been widely criticized by competition and criminal lawyers, who have denounced it for its apparent illiberality and injustice. Despite this opposition, I crawl out onto a narrow and perilous ledge of assent to what BIS wants to do.

IBA Conference on “Lawyers in the fight against corruption – views from the frontline”

On 12 and 13 March I attended the 10th Annual International Bar Association Conference on “Lawyers in the fight against corruption – views from the frontline” at the OECD Conference Centre in Paris. The conference was well attended by lawyers and professionals from 42 countries, including from as far afield as Costa Rica, Jordan and Nigeria. Speakers included both prosecution and defence lawyers, as well as representatives of companies who spoke about the practical difficulties they face in their attempts to combat corruption in the supply chain.

Why cheating in sport is still a problem and what it means for the Olympics

Notwithstanding the shock felt by many cricket fans over the recent Pakistani spot-fixing case, cheating and corruption has long been a problem in sport. Ever since Hanse Cronje admitted taking money from betting syndicates in India and around the world more than a decade ago, the integrity of the modern game of professional cricket has been tarnished.

Santa – is it a fair cop?

It’s June at the North Pole.  A grey haired, bearded man sits in his board room, head in hands.  On the table lies a crumpled piece of paper on which the words “Secretary of State, Extradition Request” and “UK ” are just visible.  Around him hover his advisers, a selection of elves dressed in green suits, [...]

New anti-fraud strategy released

Last month the Home Office presented a new “cross-sector strategy and activity programme” entitled “Fighting Fraud Together – the strategic plan to reduce fraud.” The report, signed by 38 organisations including MPs, charities and businesses, sets out a new plan to reenergise the fight against fraud.

The report starts with a collective statement of intent signed by a representative of each organisation to give “fresh impetus” to fighting criminals “who attack us”. The figures are startling: the 2011 National Fraud Authority Annual Fraud Indicator estimates a loss of £38.4bn, of which £12.2bn is lost from the public sector (thereby impacting on already constrained budgets), £12bn from the private sector, £1.3bn from charitable organisations and £4bn from individuals.

Urgent new guidance needed on use of Twitter in criminal trials

The problems that Twitter can pose in legal proceedings has been highlighted in the recent corruption trial of the Pakistani cricketers. Given that Twitter enables anything said in court to be instantly broadcast, it is surprising that its use does not currently fall under any of the specific statutory provisions which deal with the publication of photographs, sound recording or non-contemporaneous reports of criminal trials. And in criminal trials, where assertions made (no matter how spurious) can be made public before a defence counsel can get to his feet to object, the problems are particularly serious.

The Bribery Act 2010 – is the SFO turning from prosecutor to regulator?

The emerging views on where the Bribery Act is leading us were discussed this week at a seminar held by 5 St Andrew’s Hill. James Vine took attendees through the main sections of the Act and considerations such as facilitation payments and referral fees. Then Dominic Connolly considered potential penalties, ancillary orders, confiscation and civil recovery. Corporate hospitality has to date been the big concern – it sends companies flocking to compliance courses as they’re whipped up into a frenzy by the media. It is not, however, that relevant to most of the Act. In fact, James Vine commented that the Act ‘might have more teeth than some journalists and lawyers have suggested…’

Negotiated justice – a light at the end of the tunnel for both sides?

The Solicitor General is conducting a preliminary consultation about the way in which an English version of Deferred Prosecution Agreements (DPA’s) might work. This is good news because such agreements do have a valuable role to play in law enforcement where investigation budgets are tight and it is also good news for companies who often need a way out of a costly and uncertain criminal investigation. But the debate must be fully informed. The public needs to know what is being contemplated.

Time for an effective long term strategy for the SFO?

The announcement of the appointment of Simon Duckworth from July this year as a new non executive director to the Serious Fraud Office (SFO) is a welcome move at a time when the government has signally failed to provide the organisation with a clear strategy for its future. The government’s stated commitment to fighting fraud effectively is now open to serious question.

Proposed changes to criminal cartel offence – a good thing?

Are proposed changes to the criminal cartel offence a good thing? BIS published a consultation paper on 16 March 2011 containing its proposals for amending the criminal cartel offence introduced by the Enterprise Act 2003. The paper does not propose changing the status quo whereby only an individual, not a company, can commit the offence. At the moment, to obtain a conviction, the OFT must prove not only knowing participation in cartel conduct but also dishonest participation. The paper outlines four options for what should replace this dishonesty element.