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What Could I Possibly Learn From Another Bribery Act Article?

on Monday, 18 April 2016.

When I joined VWV last year, my induction included compulsory anti-bribery training, even though I regularly run anti-bribery training for clients.

It made me wonder how many of our clients treat compliance with bribery legislation as seriously as we do. Anti-bribery is of course a key issue for all higher education institutions for a number of reasons.

International Partnerships

The HE sector has seen a marked increase in the number of international partnerships and collaborations in the last few years. In almost all cases, this will result in a greater risk of bribery and HE institutions should ensure they are equipped to manage this risk. Like all management tools, anti-bribery policies and procedures must evolve to reflect current and future activities.

It is always tempting to assume that bribery is not a significant issue for the sector, or that because you are not aware of it happening in your institution, it is not a risk and does not happen. However, these assumptions can create an environment that makes bribery more likely to happen and more tempting for those involved.

As your institution has evolved over the last four years, have your policies been adapted to reflect those changes and new risks? Have you continued all those well-meaning practices you may have started in 2011 after the Bribery Act 2010 came into force?

Effects of Non-Compliance

Individuals and incorporated institutions committing an offence under the Bribery Act can be criminally liable for non-compliance. This can result in an unlimited fine for the institution, plus a prison sentence of up to ten years and a fine for the individual actually doing the bribing (or accepting bribes) and the individual(s) who are the 'controlling mind' of the institution.

It is also an offence for an incorporated institution to fail to take adequate precautions to prevent bribery - irrespective of whether any bribery has actually taken place or not. Given the fuss made over the introduction of this aspect, prosecutions of this kind seem likely.

So what should you be doing?
 

  • Top level commitment
    Anti-bribery procedures need to have top level commitment in order to be effective. Incorporated institutions should aim to have an anti-bribery culture: merely paying lip service to policies and procedures is not sufficient. They must be implemented, reviewed, amended and referred to.
     
  • Training
    Incorporated institutions need to train all relevant staff, agents and others engaged in the institution's business on anti-bribery and corruption issues.

    Everyone must receive training in this area and this must be updated regularly. The more senior the role, the more in depth the training should be. So, for example, temporary staff in the alumni or marketing teams may only need to read your bribery policy by way of an update after they have received their induction anti-bribery training. However, senior managers may require more detailed follow up training.
     
  • Policies and procedures
    Anti-bribery and corruption policies need to be used and reviewed regularly. They should be updated to reflect developments in law and best practice well as the institution's activities.

    Many clients have a gift reporting procedure, whereby gifts over a certain value (say £50) are logged and reported to a senior manager so they can be reviewed and patterns identified. These kinds of procedures can demonstrate that an organisation complies with the Act, provided they are actually used and audited.

Compliance of Third Parties

Higher education institutions should ensure (to the extent that they can) that companies and agents they engage with comply with the requirements of the Bribery Act themselves.

Institutions should consider getting written confirmation from them that:

  • they have compliant anti-bribery and corruption policies
  • all relevant staff have received appropriate training at least once since joining their organisation and understand their bribery policy and procedures

If this is done, it will improve your ability to demonstrate that you have adequate procedures in place to prevent bribery. It should also reduce the likelihood of your becoming embroiled in bribery as a result of a third party's actions.

The ramifications of bribery and the importance of compliance, particularly where you have overseas operations, means it is something that all higher education institutions should take seriously.

For further information, please contact Ben Holt on 0117 314 5478.