– expert says bribery costs global economy six per cent of GDP
By Ariana Gordon
There is need for a global approach in tackling bribery, which costs the world economy six per cent of its Gross Domestic Product (GDP), distorts competition and damages free enterprise, UK Barrister Paul Garlick, QC, said.
UK Barrister Paul Garlick, QC
He was at the time addressing stakeholders at a workshop on the 2010 UK Bribery Act held at the Pegasus Hotel, Georgetown, warning that the legislation’s tentacles are not limited to Britain alone. Garlick said bribery, a form of corruption, poses a serious challenge to the development of all economies, noting that it “distorts competition” and “damages free enterprise”.
In a presentation on the legislation passed in the UK last April, the barrister said all countries have the power to deal with bribery, pointing out that it is not just a national but a world interest. He said that corruption directly damages development. The UK expert said bribery and by extension corruption could be significantly minimised once laws are put in place to ensure that countries have healthy domestic economies.
Examining the Guyana situation, Garlick said, “If you have a healthy economy domestically”, it is more than likely that the number of persons migrating would be significantly reduced as opportunities exist for betterment. “… it is more likely that young people would not leave,” he said, while adding that it is the poorest of persons who are hardest hit by bribery. “It is the people in society who desperately need the services offered,” the barrister stressed.
Garlick stated that bribery has a negative impact globally, and as such, “If every state passes anticorruption acts, then bribery could be combated”.
He noted too that at a time when Guyana is experiencing a business boom and potential for oil, gas and minerals, there is a great need for foreign investors to do risk assessments.
“This is a time when Guyana wants to attract foreign investments… oil, mining etc, if you are to invite foreign investment, risk assessments must be carried out.”
The workshop aimed at highlighting avenues to which laws and anticorruption mechanisms could be put in place for businesses here, and the Caribbean region to avoid liability under the UK Bribery Act 2010. While the act does not cover fraud, theft, books and or record offences, money laundering, companies act offences and competition law, it provides the legal framework to prosecute bribery committed abroad by any person, individual or corporation, who/which has a close connection with the United Kingdom.
Senior officers of a corporate body may also be prosecuted if such an act is committed with their consent or connivance. There are four offences under the act, namely: the general offences of paying and receiving bribes, the bribery of foreign officials, and the failure of commercial organisations to prevent bribery.
Garlick said the UK Bribery Act 2010, deals with worldwide bribery and moves towards a trend of prosecuting bribery offenders. The situation has become so overbearing that the law making bodies are “fed up of fat cats getting away”.
He noted that the offences are punishable with imprisonment of up to 10 years, coupled with a fine. Those companies found guilty of committing acts of bribery or condoning same will be disbarred from getting any contracts within the European Union (EU). However, the act does not apply to conduct that would have occurred before July 1, 2010.
“Since July 1, there have been real changes, the first prosecution took place last month.” The UK expert noted that those involved, received seven years imprisonment. “Things are changing around the world… those who are guilty will face prosecution, disbarment and imprisonment.”
Garlick added that countries like Guyana need to re-assess their positions as it relates to crimes of corruption that taint their image, and kill the economic atmosphere. The UK is the first to introduce such legislation, and is hopeful that other jurisdictions would follow in its footsteps.
Under section seven of the legislation, foreigners can be prosecuted if the organisation is incorporated or formed in the UK, or the organisation carries out some of its business in the UK. The Bribery Act 2010 applies to both public and private entities and states that a person is guilty of an offence if he “offers, promises or gives a financial or other advantage to another person, and intends the advantage to induce a person to perform improperly a relevant function or activity; or to reward a person for the improper performance of such a function or activity”.
It is an offence to request, agree to accept or to accept a financial or other advantage in return for the improper performance of a relevant function or activity. The half day workshop was part of a series being conducted across the Caribbean. It was attended by senior members of the legal fraternity, the Guyana Revenue Authority (GRA), the media and the business community.