[ Update: Bribery Act ]
Bribery and construction
Could the forthcoming Bribery Act have an impact on your business? Jeremy Glover, a partner at specialist construction law firm Fenwick Elliott, outlines what you need to know to comply with the latest anti-corruption legislation
I
n 2010, the UK government passed a new Bribery Act. This was due to come into effect in April 2011. However, as a result of a significant number of concerns raised about the Act, on 31 January 2011, the Ministry of
Justice announced that the implementation was going to be delayed to enable government to prepare and issue fresh guidance about what some of the provisions actually meant. However, the government also made it clear that this was only going to be a temporary delay, and there seems little doubt that the Bribery Act will be in force well before the end of the year. Indeed, it is fair to say that this Act, which is an attempt
to bring together all existing legislation, has attracted a lot of attention. In the main, this is because of the breadth of the legislation, which will make companies liable for the conduct of those ‘associated’ with their business. And that can mean not just employees, but maybe agents, partners
or subsidiaries. Here, we outline the new Act and set out some practical advice on the steps a company can take to both detect corruption and provide a defence against the new legislation. First, do not be under any illusion. The government is
serious. Richard Alderman, director of the Serious Fraud Office, who will be tasked with enforcing the new legislation, said: ‘Society is entitled to expect of the corporates these days that they have adequate anti-bribery processes and that those processes are carried out throughout the corporation. If there is a significant failure, then it is a board-level failure.’
The standard forms – FIDIC and the World Bank The standard forms do of course deal with corruption. Clause 15.6 of the FIDIC Pink Book notes that the employer shall be entitled to terminate the contract ‘If the Employer
The legislation will make companies liable for those ‘associated’ with their business
March 2011 ECA Today 51
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