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Corruption Bill


Corruption Bill
Part 1 — Offences

1

 

A

Bill

To

Make provision about corruption.                                                                        

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

Offences

Main corruption offences

1       

 General corruption offences

(1)   

A person commits an offence if he—

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(a)   

gives an advantage to or procures an advantage for any person, or

(b)   

offers or agrees to give an advantage to or to procure an advantage for

any person,

   

with the intention of influencing that person or another person to exercise a

function improperly or as a reward for so exercising a function.

10

(2)   

A person commits an offence if he—

(a)   

obtains an advantage for himself or another person, or

(b)   

solicits or agrees to obtain an advantage for himself or another person,

   

upon the basis that it will or may influence him or another person to exercise a

function improperly or as a reward for so exercising a function.

15

2       

 Corrupt transactions involving agents

(1)   

A person commits an offence if he—

(a)   

gives an advantage to or procures an advantage for any person, or

(b)   

offers or agrees to give an advantage to or to procure an advantage for

any person,

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Bill 18554/1
 
 

Corruption Bill
Part 1 — Offences

2

 

   

with the intention of influencing that person or another person to exercise a

function improperly, or as a reward for so exercising a function, in each case in

that or the other person's capacity as an agent in relation to his principal's

affairs.

(2)   

A person commits an offence if, in his capacity as an agent in relation to his

5

principal's affairs, he—

(a)   

obtains an advantage for himself or for another person, or

(b)   

solicits or agrees to obtain an advantage for himself or for another

person,

   

upon the basis that it will or may influence him or another person to exercise a

10

function improperly or as a reward for so exercising a function.

3       

 Bribery of foreign public officials

A person commits an offence if he—

(a)   

gives an advantage to or procures an advantage for any person, or

(b)   

offers or agrees to give an advantage to or procure an advantage for any

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person,

with the intention of influencing that person or another person to exercise a

function improperly, in each case in that or the other person's capacity as a

foreign public official.

4       

Foreign bid-rigging

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(1)   

A person commits an offence if, in return, or as a reward for, an advantage

being given to or procured for himself or one or more other persons, he agrees

with one or more other persons to make or implement, or to cause to be made

or implemented, bid-rigging arrangements.

(2)   

In this section, "bid-rigging arrangements" are arrangements under which it is

25

agreed that, in response to a request for competitive bids for the supply of

goods or services, the execution of works, the production of goods or the

provision of investment or finance in, to or for a country or territory outside the

United Kingdom—

(a)   

one or more of the parties to the arrangements do not make a bid,

30

(b)   

one or more of the parties to the arrangements withdraw a bid, or

(c)   

more than one of the parties to the arrangements may make a bid, but

that at least one of those bids is arrived at in accordance with the

arrangements.

(3)   

Arrangements are not bid-rigging arrangements if, under them, the person

35

requesting bids would be informed of them at or before the time when the bid

is made.

5       

Corruption in sport

(1)   

A person commits an offence if he—

(a)   

gives an advantage to or procures an advantage for any person, or

40

(b)   

offers or agrees to give an advantage to or procure an advantage for

another person,

   

with the intention of influencing that person or another person to contravene

subsection (3).

 
 

Corruption Bill
Part 1 — Offences

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(2)   

A person commits an offence if he—

(a)   

obtains an advantage for himself or for another person, or

(b)   

solicits or agrees to obtain an advantage for himself or for another

person,

   

with the intention of influencing that person or another person to contravene

5

subsection (3).

(3)   

It is a contravention of this subsection—

(a)   

to do or not to do something which constitutes a threat to the integrity

of a sporting event (or any part of such an event) including, in any way,

influencing the run of play or the outcome of a sporting event, or

10

(b)   

not to report any such act or omission to the person appointed to

receive such reports by the sporting body (including a governing body,

international body or umbrella body), or regulatory authority,

concerned, or to a constable.

(4)   

In this section—

15

“sporting event” means an event or contest in any sport between

individuals or teams or in which an animal, or bird, competes and

which—

(a)   

is usually attended by the public, and

(b)   

is governed by rules which include the constitution, rules or

20

code of conduct of—

(i)   

any sporting body which stages any sporting event, or

(ii)   

any regulatory body under whose constitution, rules or

code of conduct the sporting event is conducted;

“umbrella body” means any body (including the International Olympic

25

Organisation) which has authority over all other bodies in relation to a

particular sport, group of sports, or sporting event.

6       

Presumption of corruption

Where in proceedings against a person for an offence under section 1 or 2 of

this Act involving the exercise of a public function, it is proved that he has

30

given or obtained an advantage for himself or another person, the advantage

shall be deemed to have been given or obtained upon the basis that it would or

might influence him or another person to exercise a function improperly, or as

a reward for so exercising a function, unless evidence is adduced on the

balance of probabilities which casts doubt on the presumed fact.

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7       

Interpretation

(1)   

In this Part—

“advantage” includes—

(a)   

any benefit whether direct or indirect;

(b)   

any other act done or omission made at the request of another

40

person and whether or not the nature or timing of the

advantage is then known or the making of the request is express

or implied, direct or indirect;

“agent” includes any person employed by or acting for another;

“exercise a function” includes exercising or failing to exercise any duty or

45

power irrespective of whether the function—

(a)   

is or is not within the competence of the person exercising it;

 
 

Corruption Bill
Part 1 — Offences

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(b)   

is exercised in the United Kingdom or any part of it or

elsewhere;

“foreign public official” means any person—

(a)   

holding a legislative, executive, administrative or judicial office

of a country or territory outside the United Kingdom, whether

5

appointed or elected;

(b)   

exercising a public function for a country or territory outside

the United Kingdom, including for a public agency or public

enterprise; or

(c)   

who is an official of a public international organisation or who

10

is authorised by such an organisation as its agent;

“improperly” means in breach of any duty, whether express or implied,

and whether of a public or private nature, including any duty to act in

good faith or impartially;

“official of a public international organisation” means an international

15

civil servant; and

“principal” includes an employer.

Reporting public sector corruption

8       

Duty to report

(1)   

A person exercising any public function who is offered or receives an

20

advantage in circumstances which may constitute an offence under sections 1

or 2 of this Act, or the common law offence of bribery, shall disclose as soon as

reasonably practicable and in the prescribed manner—

(a)   

the existence and nature of the advantage, or the offer of it; and

(b)   

the name, if known, of the person by whom it was given or procured or

25

offered or who agreed to give or procure it.

(2)   

A person exercising any public function who knows or reasonably suspects, or

ought reasonably to have known or reasonably to have suspected, that any

person has committed, is committing or is about to commit an offence under

sections 1 or 2 of this Act, or the common law offence of bribery, must disclose,

30

as soon as reasonably practicable and in the prescribed manner, that

knowledge or suspicion, and the information on which it is based, or cause

such knowledge or suspicion to be so disclosed.

(3)   

For the purposes of subsections (1) and (2)—

(a)   

“a person exercising any public function” includes a person in the

35

United Kingdom's Diplomatic Service, but excludes a foreign public

official;

(b)   

“the prescribed manner” means—

(i)   

to a constable; or

(ii)   

where the employer of the person exercising the public function

40

has established a procedure for that person to make disclosures

of the kind mentioned in subsections (1) or (2), in accordance

with that procedure, and to a constable.

(4)   

In section 43A of the Employment Rights Act 1996 (c. 18), after “sections 43C to

43H” insert “, or in accordance with section 8(1) or section 8(2) of the

45

Corruption Act 2006”.

 
 

Corruption Bill
Part 1 — Offences

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(5)   

Any provision of an agreement between a worker and his employer (whether

or not a worker's contract), including an agreement to refrain from instituting

or continuing any proceedings under the Employment Rights Act 1996 (c. 18)

or any proceedings for breach of contract is void in so far as it purports to

preclude any worker from a protected disclosure.

5

(6)   

For the purposes of subsection (5)—

(a)   

the expression “protected disclosure” has the same meaning as in

section 43A of the Employment Rights Act 1996; and

(b)   

the expressions “worker”, “employer” and “worker's contract” have the

same meaning as in section 43K of that Act.

10

9       

Failure to report

(1)   

A person who fails to comply with section 8 commits an offence.

(2)   

It is a defence for a person charged with an offence under subsection (1) to

prove that he reasonably believed that if he made the disclosure required to be

made by him under that section, physical harm would be done to him or to

15

another person or to his or their property.

10      

Interfering with duty to report

A person who intentionally takes any action harmful to any person, including

interference with a person's lawful employment or occupation, on the ground

that a person has made or may make a disclosure in accordance with section 8

20

commits an offence.

Supervision of subsidiaries etc.

11      

 Duty to supervise foreign compliance

(1)   

A holding company incorporated in the United Kingdom shall take all such

steps as are reasonably open to it to secure that any of its subsidiary companies

25

incorporated outside the United Kingdom neither does nor omits to do

something outside the United Kingdom which, if done or omitted to be done

in the United Kingdom, would constitute an offence under any of sections 1 to

3 of this Act.

(2)   

A company incorporated in the United Kingdom which is a party directly or

30

indirectly to a relevant contractual arrangement shall take all such steps as are

reasonably open to it to secure that any other party to that arrangement neither

does nor omits to do something outside the United Kingdom which, if done or

omitted to be done in the United Kingdom, would constitute an offence under

any of sections 1 to 3 of this Act.

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(3)   

In this section—

“company” includes any body corporate;

“holding company” and “subsidiary company” have the same meanings

as in section 736 of the Income and Corporation Taxes Act 1988 (c. 1);

and

40

“relevant contractual arrangement” means any contractual arrangement

pursuant to which all or some of the affairs of a party to that

arrangement, which is incorporated or otherwise organised outside the

United Kingdom, are conducted in accordance wholly or partly with

 
 

Corruption Bill
Part 1 — Offences

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the wishes of a company, incorporated in the United Kingdom, which

is also party directly or indirectly to the arrangement.

12      

 Failure to supervise foreign compliance

(1)   

A company which fails to comply with section 11 commits an offence.

(2)   

Where an offence committed by a company under this section is proved to

5

have been committed with the consent or connivance of any director, manager,

secretary or other similar officer of the company, or of any person who was

purporting to act in such a capacity, he as well as the company is guilty of that

offence and is liable to be proceeded against and punished accordingly.

(3)   

Where the affairs of a company are managed by its members, subsection (2)

10

applies in relation to the acts and defaults of a member in connection with his

functions of management as if he were a director of the company.

Miscellaneous

13      

Corruption committed outside the United Kingdom

(1)   

This section applies if—

15

(a)   

a national of the United Kingdom or a body incorporated under the law

of any part of the United Kingdom does or omits to do anything in a

country or territory outside the United Kingdom;

(b)   

the act or omission would, if done or made in England and Wales or

Northern Ireland, constitute a corruption offence.

20

(2)   

In such a case—

(a)   

the act or omission constitutes the offence concerned;

(b)   

proceedings for the offence may be taken in England and Wales or

Northern Ireland;

(c)   

the offence may be treated for incidental purposes as having been

25

committed at a place in England and Wales or Northern Ireland.

(3)   

These offences are corruption offences—

(a)   

an offence under this Part of this Act;

(b)   

an attempt, conspiracy or incitement to commit an offence under this

Part;

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(c)   

aiding, abetting, counselling or procuring the commission of an offence

under this Part.

(4)   

A national of the United Kingdom is an individual who is any of these—

(a)   

a British citizen, a British overseas territories citizen, a British National

(Overseas) or a British Overseas citizen;

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(b)   

a person who under the British Nationality Act 1981 (c. 61) is a British

subject;

(c)   

a British protected person within the meaning of that Act.

14      

Jurisdiction

(1)   

In section 1(2) of the Criminal Justice Act 1993 (c. 36) (group A offences for

40

purposes of provisions about jurisdiction) the following paragraph is inserted

 
 

Corruption Bill
Part 1 — Offences

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after paragraph (c)—

“(cc)   

an offence under Part 1 of the Corruption Act 2006;”.

(2)   

In Article 38(2) of the Criminal Justice (Northern Ireland) Order 1996 (S.I.

1996/3160 (N.I 24)) (group A offences for purposes of provisions about

jurisdiction) the following sub-paragraph is inserted after sub-paragraph (c)—

5

“(cc)   

an offence under Part 1 of the Corruption Act 2006;”.

15      

Powers of Serious Fraud Office

In the Criminal Justice Act 1987 (c. 38)—

(a)   

after “fraud” wherever it appears except in the expression “Serious

Fraud Office” insert “or corruption”;

10

(b)   

after section 1(2) insert—

“(2A)   

In this Act, any reference to “corruption” includes any offence

under Part 1 of the Corruption Act 2006 and the common law

offence of bribery”.

16      

Penalties

15

(1)   

A person guilty of an offence under this Part is liable—

(a)   

on conviction on indictment, to imprisonment for a term not exceeding

the term specified in subsection (2) or a fine or both;

(b)   

on summary conviction, to imprisonment for a term not exceeding 6

months or a fine not exceeding the statutory maximum or both.

20

(2)   

The maximum term of imprisonment on conviction on indictment is—

(a)   

5 years for an offence under section 4;

(b)   

2 years for an offence under section 9 or 10; and

(c)   

7 years in any other case.

17      

Abolition of existing statutory offences etc.

25

(1)   

The Public Bodies Corrupt Practices Act 1889 (c. 69) shall cease to have effect.

(2)   

In section 1 of the Prevention of Corruption Act 1906 (c. 34) (offences relating

to corrupt transactions with agents)—

(a)   

in subsection (1) the words from “If any agent” to “business; or” (in the

second place where the latter words occur) are omitted;

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(b)   

subsection (4) is omitted.

(3)   

In the Prevention of Corruption Act 1916 (c. 64)—

(a)   

section 2 (presumption of corruption for certain offences) is omitted;

(b)   

in section 4(2) (meaning of “public body”) the words (“including

authorities existing in a country or territory outside the United

35

Kingdom)” are omitted.

(4)   

In section 178 of the Licensing Act 1964 (c. 26) paragraph (c) and the word “or”

immediately preceding it (bribery) are omitted.

(5)   

Paragraph 3 of Schedule 11 to the Local Government and Housing Act 1989

(c. 42) (amendment of 1916 Act) is omitted.

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