The new Criminal Justice (Corruption) Bill has recently been published by the Government. It has the potential to have a big impact on businesses. It also proposes changes that will have a direct impact on public servants. It implements a number of recommendations made by the Mahon Tribunal.
The most important impact of the new bill will be that felt by companies – who will be liable for the actions of its Directors and employees. If a manager is found to have been involved in bribery or corruption, then the company, and more importantly, the company officers and senior personnel are criminally liable for the offence. There is a defence of having adequate procedures in place, but these go much further that just paying lip service to reasonable steps or precautions to deter corruption.
A wide range of offences are proposed by the Bill. For example, there are offences for active or passive corruption – giving or receiving gifts, consideration or advantage to induce someone to so something or omit to do something in relation to their office or position. Another offence is “corruption in office” which is self explanatory. “Bribery of a foreign public official” is an offence which extends Irish Law to actions that take place outside of Ireland. There is also a proposed offence of making a reckless payment which could be giving a gift whilst being reckless as to whether it would assist corruption and bribery.
The current range of penalties starts from summary offences (minor offences) where the fine is up to €5,000 or imprisonment for up to 12 months. For offences at the serious end of the scale (indictable offences) the penalties are up to 10 years imprisonment and an unlimited fine.
The seriousness of the penalties makes this a very important piece of legislation for all Partnerships and company owners. Proper procedures, training and monitoring needs to be put in place to ensure that ordinary business men and women do not fall foul of the law.