Thursday, December 21, 2006

Corruption | Bribe Britannia


To connoisseurs of irony, who often find rich pickings in politics, last week's offering was a vintage one. British delegates to the inaugural conference of the United Nations Convention against Corruption, in Jordan, were piously denouncing sleaze and promising to tackle corruption “wherever we find it—whether here or abroad”. At home, meanwhile, their colleagues were busily quashing a two-year investigation into allegations of bribery in connection with the country's biggest-ever defence contract, the Al-Yamamah deal with Saudi Arabia.

Britain has long turned a blind eye to the bribery of foreign officials (until recently such business costs were even tax-deductible), but of late it has been trying to polish its public image. Much of the pressure for change has come from non-government organisations and Britain's fellow rich-country members of the OECD. America, which has banned bribing foreigners since 1977, was especially peeved that its companies were at a disadvantage while everyone else merrily bribed away.

In 1998 Britain ratified the OECD's convention against bribing foreign officials, but its commitment to the treaty has been half-hearted. Instead of passing comprehensive legislation to meet its new obligations, the government argued that Britain's existing laws against domestic corruption were sufficient. It was finally persuaded to ban explicitly the bribing of foreign officials by British citizens and companies, no matter where the offence took place, in the anti-terrorism act of 2001.

See full Article.