Uk Bribery Act 2010 And Doing Business In Qatar

The Bribery Act 2010 ("the Act") creates a number of new offences which may impact United Kingdom (UK) nationals and corporations doing business in Qatar. It mirrors to a large extent the US Foreign and Corrupt Payments Act. Both are designed to enhance business credibility in the light of global recession and loss of public confidence from events since 2008.

Bribery is defined as a financial or other reward designed to induce or reward the improper performance of a business or public duty which should be performed in good faith or impartiality or from a position of trust. In other words, but for the bribery, the business or public duty would not have been performed. The bribery has therefore influenced the decision maker resulting in lack of good faith. All actions in respect of public duty and business are potentially caught by these provisions as well activities of an individual in the course of their employment. · Potential application in Qatar Section 6 of the Act makes it a criminal offence to bribe a "foreign public official" with the intent to influence that public official in their decision making. The provisions could have huge implications for UK business seeking any business or officials acting in the course of public duty. Public procurement and tendering is a case in point that could fall foul of Section 6.While straight payments of cash not necessary would be likely caught by the Section 6 more debatable would be "entertainment" or "hospitality" which might be a necessary element of proving expertise. For example a business seeking tenders might fly over a number of public officials to showcase their other projects. Hospitality and some entertainment would be a necessary part of such business. However if the public officials walk away with lavish gifts and free holidays that could be seen as something designed to "influence "the foreign official. However if the local laws permit such actions on part of the public officials then no offence under the Act can be committed.

Safeguarding your business from prosecution Business can and should take appropriate measures to ensure compliance with the Act. Section 7 provides that a commercial organization (corporate and partnerships included) which carries on business in the UK can be prosecuted under the Act if a person associated (including potentially independent contractors) with it bribes another person intending to obtain or retain business or an advantage in the conduct of business for that organisation.

However there is a clear defence to a commercial organisation which has taken adequate steps and introduced measures to ensure that the Act is complied with. The UK government has recommended six steps which can be taken by a commercial organization to enable it to raise a defense. These are:-

(a) Proportional procedures, a commercial organization must show that it has put in place adequate but proportionate procedures to combat bribery. (b) Top level commitment to prevent bribery, there must be commitment and evidence of commitment to deal with the risk of bribery from senior management (c) Risk assessment, clear professional analysis of risks of bribery, where, when and how it might happen. (d) Due diligence of persons involved or likely to be involved in the transaction, in other words "know your people". (e) Communication, the anti-bribery systems and procedures must be made known to employees, agents, contractors and suitable training provided which must be evidence by records. Simply having a policy will never be enough. (f) Monitoring and review, there must be ongoing monitoring of the above and failures noted and addressed and where necessary procedures and systems reviewed and training offered.

While the guidance to the Act accepts that bribery cannot be eliminated, commercial organization can take effective steps to avoid prosecutions and all the costs associated with prosecutions.