Bribery Act 2010: Post-legislative Scrutiny (Select Committee Report)

Baroness Ritchie of Downpatrick Excerpts

Wednesday 3rd February 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is always a pleasure to follow the noble and learned Lord, Lord Hope of Craighead. I congratulate the chair of the committee, the noble and learned Lord, Lord Saville of Newdigate, on securing this debate, and congratulate him and his committee on a comprehensive report on the post-legislative scrutiny of the Bribery Act, for which the committee has had to wait nearly two years for the Government’s response. It is important that the Government use the powers within the Bribery Act effectively to tackle economic crime and the corrosive effect that corruption has on companies, individuals and society in general. This Act encourages companies to adopt honesty in all their dealings.

The committee wisely focused on several areas around bribery, including whether the Act had led to

“a stricter prosecution of corrupt conduct, a higher conviction rate and a reduction in such offending.”

It is remarkable and excellent that not one witness had major criticisms of the legislation. However, the report expressed concern at the slow pace of bribery investigations, with a number of witnesses criticising the time it had taken for bribery charges to be brought and for cases to reach trial.

What is also interesting is that companies were concerned about the potential for the legislation to be prejudicial to businesses in the operation of their work, but the committee found that this was not the case. The noble Lord, Lord Gold, referred to that today and in the article he published on his blog some time ago.

Recommendations dealt mainly with the implementation and enforcement of the Act, urging the director of the Serious Fraud Office and the DPP to speed up investigations into bribery and improve communications with those placed under investigation for bribery offences. The Government response centred on the committee’s concern surrounding the “slow pace” of bribery investigations, and they noted that several measures had been introduced within the specialist fraud division of the Crown Prosecution Service to

“ensure that cases progress effectively”.

That included bribery cases now having two allocated prosecutors, and legal managers being provided with weekly data on pre-charge cases, such as bribery, to ensure cases are regularly reviewed and progressed. How many cases have progressed to prosecution and conviction or release since these appointments, and how many are still awaiting trial and conviction? Has all this led to zero tolerance within companies and within the judicial system of bribery offences and economic crime? I also ask the Minister where the new Financial Services Act and the National Security and Investment Bill fit into the existing Bribery Act.

In response to the recommendation from the Committee regarding training and awareness of the act, the Government said there was not enough evidence to commit to providing additional resources to the City of London Police’s Economic Crime Academy to expand its training programme. The noble Lord, Lord Hain, asked about resources. What has happened since the publication of the Government’s response? Has there been a change of heart, and do they now intend to give resources to the Economic Crime Academy for training purposes?

On supporting companies on corruption issues in the countries to which they export, the Government said that DfID’s business integrative initiative was undertaking pilot work in Kenya, Mexico and Pakistan. According to the Government, the Bill aims to

“identify appropriate ways to support UK companies operating in these markets”

and will provide new guidance and tools to staff in these companies. Has this role been taken on by the FCDO with the dissolution of DfID? Has that new guidance been provided?

Many questions have been posed to the Minister, but we are undoubtedly better served by the operation of the Bribery Act and by the committee’s report and the Government’s response to it, all of which have enormous potential. The bottom line is that companies have no real choice but to enforce a stringent anti-corruption regime to minimise their risk of conviction and uphold proper standards of integrity and ethics in their business operations.