BRIBEline:
Business Registry for International Bribery and Extortion
The private
sector is working to reduce the payment of bribes in
international commerce, but we have lost sight of the government officials who
abuse the public's trust -- government officials who turn their public
office into a private cash cow. There is no question that participation
by corporations in corrupt schemes is illegal and unethical, or that
it undermines free trade and represents a hidden tax on
the local community. Allegations of bribes paid by companies should
be investigated and, where the evidence supports it, the bribe-payers
prosecuted. What are the risks to the government official? He may
have to share a portion of his take with colleagues, superiors or,
if things go badly, a corrupt judiciary. Countries with the greatest
levels of corruption offer the briber-taker the most options for
avoiding prosecution.
Watchdog NGOs keep an eye on companies. Whistleblowers expose corporate
bribes. Prosecutors investigate and, where appropriate, prosecute.
Who is watching the government officials? Often, it is governmental
committees susceptible to bribes themselves or, more likely, so
desperately under-funded that they can do little more than shake
their heads. This leaves aside the problem of those countries where
exposing bribery schemes lands the civic minded in jail or worse.
For governments serious about helping to root out
bribery, it is time to provide corporations with a whistleblower
option of their own. Companies know where many of the problems lie.
Within an industry, there are often government officials who are
notorious for demanding their share and wreaking havoc if it isn't
forthcoming. Currently, companies do nothing with this information.
The best among them simply decline to pay. No company willingly
risks the adverse publicity or scrutiny that a public denunciation
would entail and no company will risk alienating the foreign government
by fingering one official without knowing where the scheme begins
or ends. Bribe-takers rarely act alone.
Currently, corrupt government officials can seek
bribes from multinationals doing business in their country with
complete impunity. The company may say no, but it won't cry foul.
Emboldened by this, the government official need only cast its net
wider, making demands on more companies. He need only keep his hand
out as he walks down the line of possible bribe payers. There is
no cost to the transaction for the official, beyond the time it
takes for him to broach the subject.
Imagine how that might change if an international
body were tracking these demands? Companies could report such demands,
voluntarily and anonymously, just as individual whistleblowers do
now. A reasonable level of detail would be required to minimize
abuse of the reporting channel, but the report need not meet a rigid
evidentiary standard as prosecution would not be the goal. This
should not be a roving squad of investigators. Instead, it should
be an office that receives and records allegations, tracks trends
where information is currently lost and shines light where there
is none now.
Key Features of the proposed BRIBEline:
Information provided must be detailed and should
include the official's name, ministry or department, the nature
of his/her demand, if specified (cash, goods, or other benefits),
scope of the project tainted by the request, nature of the threatened
consequences, if specified (delay, lack of access, loss of contract,
etc.).
Confidentiality of the reporting company - both nominal and
effective confidentiality - is critical. There can be
no mention of the reporting company's name, or indirect identification
clues such "a major Dutch oil company operating in Nigeria".
We will also have to deal with confidentiality in situations where
there is a large contract and only two bidders. The winner will
not report so by elimination the losing company increases its risk
of identification.
Verification of the information submitted will
be important for credibility of the process. Not all reports will
need to be verified. A dollar threshold should be established above
which individual notifications will be verified by an independent
party. For small bribes required to induce government officials
to undertake a routine governmental task (so-called "facilitating
payments"), verification will be less important as there is
no clear motive to misrepresent the facts.
Information gathered will be reported collectively
to paint a broad picture by country-and if the number of reports
permits and confidentiality can be preserved, by ministry - of attempts
to solicit bribes. This information will not be used to intervene
in individual transactions, but instead will be provided to governments
to encourage remedial action.