Article X uk government backtracks over bribery

By Jean Eaglesham

Bribery by UK companies operating abroad is being reduced by ‘education rather than prosecution’ after the government said it would not strictly enforce laws introduced just two years ago. The World Bank has estimated the annual global cost of corruption at more than $1500bn (£789bn), although experts say it is hard to quantify. But Jack Straw, the Foreign Secretary, told diplomats last year, in internal advice which has only now come to light, that business should be ‘sensitised’ to its responsibilities. He said the government would ‘prefer to change behaviour by education rather than prosecution’.

Laws making it easier for British companies to be prosecuted in the UK for overseas corruption came into force two years ago, after the government came under pressure from the US, which has long had a ban on corporate corruption in the developing world. Only a month before the new UK laws came into effect, Foreign Office staff were instructed to tell executives that ‘bribery is bad for business. The payment of bribes is unacceptable.’

But there has yet to be a single prosecution under UK laws. Only four allegations have been referred to the National Criminal Intelligence Service, and only one is under active investigation. The government’s position appears in tune with companies’ claims that they need flexibility to operate in countries where small bribes are commonplace. The CBI, the employers’ body, said last night it was ‘important to have a sensitive approach, because business has to deal with the world as it is, not as it would like it to be.’

Some executives complain that First World standards do not suit the realities of doing business in developing countries. They argue that strict enforcement will deter investment. Susan Hawley, a consultant to The Corner House, a think-tank, said: ‘It’s shocking that the government does not favour prosecutions – the laws are not really going to be taken seriously by the business community until there are some high-profile cases.’

The Foreign Office has encouraged staff to report serious allegations, but in effect advised them to turn a blind eye to payments of small backhanders to speed up services such as customs clearance. ‘Whilst small payments … are strictly illegal, we do not envisage circumstances in which there would be a prosecution,’ the memo sent by Mr Straw last year states. The Foreign Office said its policy of educating British companies about corruption reflected the fact that it took the issue seriously. ‘It is absurd to suggest that we do not treat our work on enforcement … with the utmost importance,’ an official said.

Task 1. Look through the article. In which order does this information appear?

1. The UK introduced laws against corruption under the influence of the US.

2. The UK Foreign Office will not prosecute in cases of corruption involving small payments.

3. The cost of corruption to business worldwide is nearly £800 billion per year.

4. Some say that you can’t apply the laws of advanced industrial countries to developing countries, but others disagree.

5. No one has been prosecuted under UK anti-corruption laws yet.

Task 2. Correct the statements about expressions from the article. (Not all the words in italics below can be found in English.)

1. Persecution is when the authorities accuse someone of a crime at a trial.

2. If the authorities inforce laws, they organize trials for people who break them.

3. If you esteem an amount, you calculate it.

4. If you sensibilise someone to their responsibilities, you make them more aware of what they are and how important they are.

5. The noun related to ‘corrupt’ is corromption.

6. When you tell someone about what they should do, you give them advise.

7. The way that people behave is their behavement.

Task 3. Choose the best alternative to complete the statements about the expressions in italics.

1. If a law or regulation comes into force or comes into effect, it

8. is obeyed by everyone.

ii) becomes valid.

iii) becomes out of date.

2. If you come under pressure from someone, they try to

1. influence you.

ii) talk to you.

iii) communicate with you.

3. An allegation is an

i) instruction.

ii) communication.

iii) accusation.

4. If an activity is under investigation by the authorities, it is being

i) examined.

ii) ignored.

iii) encouraged.

5. If someone’s thinking is in tune with someone else’s, they generally

i) disagree with each other.

ii) agree with each other.

iii) don’t care about each other.

Task 4. Match the verbs 1 – 5 to the ideas a) – e) that they go with in the article.

1. deter a) services

2. favour b) prosecutions

3. report c) circumstances

4. speed up d) allegations

5. envisage e) investment

Task 5. Now match the verbs 1 – 5 in Task 4 to their meanings.

1. tell the authorities about something

2. make something less attractive

3. make something happen more quickly and easily

4. imagine or foresee something

5. want or prefer something

Task 6. Over to you. What is the key message of the article?

Task 7. Render the article.