Shaky pillars: bribery and the law in the UK

Phone-tapping scandal: the wider implications

Developments continue to unfold in the UK’s phone hacking scandal which has seen employees of a global media corporation accused of accessing the private information of several thousand people, including murder victims, politicians and relatives of those caught up in the 2007 London bombings.

However, as the scandal escalates, more and more evidence is emerging of complex undercurrents of corruption across the UK’s media, police, and political establishment.

Last week, the plot thickened with allegations that journalists were making payments to police in exchange for confidential information. While some forms of unethical behaviour are not necessarily illegal, bribery is a criminal offence that can be prosecuted under UK legislation.

Corruption in the UK

TI-UK’s recent report, Corruption in the UK, revealed that corruption is a bigger problem than recognised and that there is an inadequate response to its growing threat. Corruption in the UK is not endemic, but the phone hacking case emphasises the key finding of the report: there is no person, department or institution with the remit of coordinating the response to corruption within the UK. It is obviously time for that to change.

The scandal shows that even in a well-functioning democracy where corruption levels are perceived to be low, weaknesses in institutions considered pillars of integrity can lead to breaches of trust if there is insufficient vigilance.

Political parties and parliament were singled out for concern in the Corruption in the UK report. While the media and police sectors were regarded as institutionally strong, some notable weaknesses were identified:

• Although police corruption is not systemic, there can be strong incentives for individual officers to become involved, and trading in information is one of the prime risk areas in police corruption; and
• Within the UK media, accountability and integrity of media employees are issues of particular concern.

Scandal underlines need for strong anti-bribery laws

The UK Bribery Act came into force on 1 July 2011, replacing anti-bribery laws dating back to 1889, 1906, and 1916. The new Bribery Act gives authorities the scope to investigate companies, senior staff and board members and hold them liable for the actions of employees or associated persons who paid or offered bribes.

Before the new law came into force it proved difficult to prosecute companies and senior officers for failing to prevent bribery, although it did allow the prosecution of individuals who pay and receive bribes.

The new UK law is therefore a great step towards preventing corruption and abuse of power. US anti-bribery law (the Foreign Corrupt Practices Act) has many of the features of the UK’s strong new law, which acts as a deterrent to potential bribery, and an incentive for companies to ensure their staff comply with anti-bribery codes. For example, it gives authorities the power to investigate and prosecute companies and senior staff for bribery of foreign officials. Reports in the US have suggested that because News Corporation is based in the New York, it may fall under US jurisdiction.

Britain’s anti-corruption record in the spotlight

The long-term implications for the UK’s global reputation on corruption are yet to be assessed fully. However, this year various aspects of the UK’s anti-corruption record will be submitted to peer reviews (meaning that other countries will carry out the review) under three separate international anti-corruption laws:

• The UN Convention Against Corruption, which obliges countries to prevent and criminalise corrupt acts such as bribery and conflicts of interest.
• The OECD anti-bribery convention, under which countries commit to investigate and prosecute companies for the bribery of government officials in foreign countries.
• The Financial Action Task Force and its 40 anti-money laundering recommendations.

What is clear is that public and private institutions in the UK are not immune to the problem, and there needs to be strong, coordinated leadership from the government. Political courage is needed – political parties, media and other institutions should join together to fight corruption.

Resources

TI-UK Statement - Phone Hacking Scandal

TI blog posts on the UK and bribery

TI UK briefing: Bribery act: Myth and Reality

TI Progress Report on enforcement of the OECD Anti-Bribery Convention

TI blog post on TI's Europe-wide corruption studies

TI UK Report, Corruption in the UK

TI UK press release: Corruption crisis requires coordinated response

Media coverage

UK tabloid shut down
Al Jazeera English

Britain is more corrupt than you think
Politics.co.uk

Phone Hacking Scandal: UK Corruption cannot be ignored
The Independent

Corruption currents blog
Wall Street Journal

British hacking scandal could gain U.S. legal scrutiny
CNN

UK phone tapping scandal shows police corruption risk
Space for Transparency - (TI blog)

Corruption and UK businesses: Why we need the bribery act
Space for Transparency – (TI blog)