Tag: Law Commission

The Costs of Corruption

The damage and inefficiency caused by corruption, in either financial or social terms, should not be underestimated. The World Bank has estimated that more that US$ 1 Trillion is paid in bribes annually. See World Bank, “The Costs of Corruption” (8 April 2004). An Ernst & Young survey of executives indicated that almost half of those involved in the mining industry said that bribery was prevalent, with 30% saying that it was prevalent in the banking and energy industries, especially in countries outside Europe. [One in Four Asked to Pay Bribes]

In the Law Commissions 2007 work [Reforming Bribery (2007) Law Commission Consultation Paper No 185 (.pdf)], they referred to the World Bank’s discussion of the inefficiencies involved for management in having to negotiate and pay bribes, however small. On the broader social side, a culture of corruption may create an environment in which officials get in a system of being perpetual bribe takers according to Alexandra Wrage of Trace International, quoted in Ethical Corporation.

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UK’s Law Commission on Reforming Bribery

The United Kingdom’s Law Commission has published its recommendations in a new report on reforming the bribery laws in the United Kingdom. The LC Report 313 on reforming bribery (.pdf) states:

  1. Bribery has been contrary to the law at least since Magna Carta declared, “We will sell to no man…either justice or right”. Most people have an intuitive sense of what “bribery” is. However, it has proved hard to define in law. The current law is both out-dated and in some instances unfit for purpose.
  2. We propose repeal of the common law offence of bribery, the whole of the 1889,1906 and 1916 Acts, and all or part of a number of other statutory provisions.
  3. These offences will be replaced by two general offences of bribery, and with one specific offence of bribing a foreign public official. In addition, there will be a new corporate offence of negligently failing to prevent bribery by an employee or agent.
  4. In the text below, the precise statutory terms and definitions have not alwaysbeen used. The draft Bill must be consulted for these. Not all of our recommendations and draft clauses are discussed below.