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OECD report deplores UK anti-bribery record

The OECD Working Group on Bribery has completed a special review of the UK’s record in fighting foreign bribery. Transparency International (UK) today calls on the UK Government to stop procrastinating and address the fundamental weaknesses identified in the OECD’s recommendations. None of these are new. For many years the UK has failed to act on them.

The Government promised in June 2000 to introduce a law to criminalise foreign bribery. Eight years later, it is still promising to do so "next year". The Government must now commit to present an anti-bribery law that is fit for purpose in the 4th session of this parliament. For several years the OECD has been urging the UK to reform its laws.

The Working Group’s Report concludes a special review of the UK's performance undertaken in April 2008. The review was provoked by years of inaction by the UK authorities; but partner States were particularly incensed by the decision to terminate the Serious Fraud Office's investigation of allegations of bribery involving BAE Systems and the UK-Saudi Al Yamamah arms deal. The Report makes it clear that the UK continues to be seriously delinquent in enforcing the 1997 OECD Anti-Bribery Convention which the UK signed in December 1997. The UK will continue to be on ‘probation’ and subject to further reviews if the OECD Working Group considers this necessary.

The SFO’s termination of the Al Yamamah investigation, citing barely credible ‘threats to national security’, continues to undermine the Convention, opening the door for other investigations to be abandoned without result. With its abysmal record of prosecuting bribery, the UK now has a reputation as a place where corrupt business is done.

Chairman of Transparency International (UK), Laurence Cockcroft, said:

“The Government’s claim that the UK is leading the way in tackling corruption is fiction. The recent injection of extra resources cannot disguise years of inaction and the need for reform. There have been only two cases in the UK since the 1997 OECD Anti-Bribery Convention came into force. In contrast, there have been 103 cases in the USA, 43 in Germany, and 19 in France. The facts are plain to see, more prosecutions of companies and individuals are needed to send the right message to business.

“Today’s OECD Report comes as no surprise and highlights the UK’s complacency over its failure to take international corruption seriously. Transparency International’s Corruption Perceptions Index published last month showed the UK's rating dropping from 8.4 to only 7.7 in 2008”.

Executive Director of Transparency International (UK), Chandrashekhar Krishnan, added:

“It is time the UK Government accepts its failings and commits to urgent and robust action. The role of Anti-Corruption Champion seems to be one of the least favourite appointments in the Government. We must hope that Jack Straw, as the new Champion, will now deliver. Eight years ago, he promised as Home Secretary that the Government would have a new anti-bribery law in place as a matter of urgency. We still don't have one.

The Law Commission will be recommending a new Bill next month. The Government must get its act together and fast-track the Bill’s adoption by Parliament in the 4th session. If it fails to do this, we will continue to see the lack of enforcement that the OECD Working Group deplores and see further damage to the UK’s reputation”.

Notes to the editor

Transparency International (UK)

Transparency International (UK) is the National Chapter of the global anti-corruption non-governmental organisation, Transparency International (TI). TI, which is co-ordinated by an international secretariat in Berlin, is a coalition of more than 90 autonomous national chapters who are committed to fighting corruption using transparency as a major tool. TI is dedicated to combating corruption at the national and international levels through constructive partnerships with governments, the private sector, civil society and international organisations.

TI(UK)'s vision is for a world in which government, politics, business, civil society, domestic and international institutions and the daily lives of people are freed from corruption, and in which the UK neither tolerates corruption within its own society and economy, nor contributes to overseas corruption through its international financial, trade and other business relations.

OECD Working Group on Bribery

Foreign bribery cases (and investigations) include all cases involving bribery of foreign public officials, criminal and civil, whether brought under laws dealing with corruption, money laundering, tax evasion, fraud, or false accounting.

The OECD Working Group on Bribery was established in May 1994. The mandate of the Working Group was changed in 1997 to include carrying out systematic country monitoring of the implementation and enforcement of the OECD Anti-Bribery Convention.

The Working Group is composed of government experts from the 37 participating countries. It meets four to five times a year at the Paris Headquarters of the OECD to monitor compliance with the Convention. The monitoring process, based on a rigorous system of peer review, is divided into two phases. Phase 1 assessed the conformity of each country's anti-bribery laws with the OECD Convention. Phase 2 involves intensive meetings in the examined country with key actors from government, law enforcement authorities, business, trade unions and civil society. On this basis, the Working Group assesses how effective that country’s anti-foreign bribery laws are in practice.

For more information on the OECD Working Group on Bribery visit www.oecd.org


For any press enquiries please contact

Emma Smith, Communications Manager
T: 0207 785 6356 or 07968 469 436
E: Emma.smith@transparency.org.uk

Robert Barrington, Director of External Relations
T: 0207 785 6360 or 07734 744 877
E: Robert.barrington@transparency.org.uk