With just 77 days to go until the UK’s Bribery Act 2010 comes into force, it has been widely reported that Downing Street has ordered a review of the forthcoming act. The story broke in the London Evening Standard (here). The Standard has been on something of a crusade against the act for several weeks, on the back of fears of “burdensome anti-corruption systems” damaging the UK’s economic interests.
The Wall Street Journal though has a quote from an SFO offical who states that any review will be “limited” (here) and is certainly not going to result in the scrapping or changing of the entire act.
There is little detail about what this review might entail, but would echo the sentiment that the Act is definitely coming, in substantively the form it is now. The OECD Convention which the UK signed up to in 1999 requires the Act, and any changes coming out of this review are likely to affect only the adequate procedures guidance (which has not yet been published) and guidance to prosecutors.
Following BAE’s recently agreed fine (more here), the Accountancy and Actuarial Discipline Board – the independent, investigative and disciplinary body for accountants in the UK – has begun an investigation into the conduct of Big-4 accounting firm KPMG in its role as as auditors to BAE Systems plc and their not-spotting and/or not reporting properly on the irregular ‘commissions’ paid by BAE to and via a marketing agent Shailesh Vithlani, the company’s former marketing adviser in Tanzania. The scope of the investigation is as follows:
The audits of British Aerospace / BAE Systems Group plc and any of its subsidiaries by KPMG from 1997-2007 in relation to the commissions paid by BAE through any route to subsidiaries, agents and any connected companies. Also any other professional advice, consultancy or tax work provided to BAE by KPMG between those dates in respect of (i) commission payments paid by BAE and (ii) the status, operation or disclosability of Red Diamond Trading Ltd., Poseidon Trading Investments Ltd. and Novelmight Ltd.
The Financial Reporting Council press release is here.