UK Bribery Law Expected To Boost Anti-Corruption Efforts In Thailand

[webfact]

UK BRIBERY

UK bribery law expected to boost Thai

By Wichit Chaitrong

The Nation

The United Kingdom's new bribery law will inject fresh life into anti-corruption efforts in Thailand and affect Thai companies doing business with British firms or conducting operations in the UK, experts said yesterday.

The Bribery Act 2010, which comes into force on July 1, prohibits UK firms from offering bribes to foreign public officials.

"Such laws imposed by developed countries will help developing countries like Thailand to get rid of corruption problems," Banyong Pongpanich, chairman of Phatra Capital, said at the "How new foreign bribery law affects companies in Thailand" seminar, hosted by the Thai Institute of Directors (IOD).

Banyong said he believed that widespread corruption in Thailand was a fundamental cause of political violence and the widening income gap between the rich and the poor.

However, while the United States, the UK and Germany have anti-corruption laws prohibiting their firms from offering bribes to foreign politicians and officials, other major countries have not yet made similar moves, he said.

"France, Spain and emerging economic superpowers like China should have such laws and we, Thailand, should also do the same," he added.

Of the 500 Thai listed companies, only 47 have joined the anti-corruption campaign initiated by the IOD and the Thai Chamber of Commerce. Most Thai firms believe that if they were do business without offering bribes to politicians and officials, they would not survive for long, said Banyong.

He said Phatra Capital had complied with the US Foreign Corruption Practice Act (FCPA) since 1998, when the investment bank starting doing business with US financial institutions.

Pissawan Achanapornkul, country chairperson, the Shell Company of Thailand, shared Banyong's views, saying that "the new UK bribery law will create anti-corruption awareness in Thailand".

She said multinationals like Shell had long observed both the FCPA and UK law.

Bradley Jones, trade and investment director at the British Embassy in Bangkok, said that under his country's new Bribery Act, "UK firms would be prosecuted … even if their acts were lawful under the local laws [of other countries].

"UK firms are not allowed to offer foreign officials bribes to win contracts, nor small bribes paid to facilitate routine government action. They, however, could offer foreign officials hospitality such as dining or golf, but such expenditure must be proportionate and reasonable; an overseas trip is not," he said.

UK firms have to put in place adequate procedures to prevent bribery taking place, he said, adding that British authorities would not set specific procedures but just offer guidelines.

Firms also have to take liability for bribery by associated persons intended to win business advantage for their companies, Jones said.

Peter Shelford, country managing partner, DLA Piper (Thailand), said the UK's Bribery Act created a platform for what could be the toughest enforcement regime in any jurisdiction.

He said "prohibitive scope" is much wider than under the FCPA, while the penalties imposed on companies and individuals can be severe, including unlimited fines and imprisonment for up to 10 years, disbarment from public procurement contracts, director disqualification and confiscation of assets.

"The risks posed to Thai companies with a presence in the UK, and vice versa, are very real," he added.

Areepong Bhoo-chaoom, permanent secretary for finance, told the seminar that the Finance Ministry is reviewing public procurement procedures in a bid to lessen corruption.

-- The Nation 2011-05-26

[slapout]

The Thai prosecution of it's citizens who are caught out accepting brides from foreign companies is not happening, even though the foreigners are prosecuted in their home countries.

Make the law such that all parties involved in bribes can and will be prosecuted by the country whose laws are broken. This would certainly limit where individuals could hide money and travel outside their home country.

[virtualtraveller]

Thai businesses with British involved competitors must be dancing with glee!

[baboon]

It has always gone on.It always will go on,anti bribery law or not.

[webfact]

Finance Ministry to End Corruption in State Purchases

The Finance Ministry will set price standards for nine product categories in order to prevent corruption in state purchases.

Finance Ministry Permanent-Secretary Areepong Bucha-om said after presiding over the seminar on “How New Foreign Bribery Laws Affect Companies in Thailand” that the ministry will come up with methods to solve the issue of corruption.

Areepong said the ministry will set the prices for nine basic categories of goods such as computer products, office appliances, and road and bridge construction materials.

He said the measure is intended to keep the total cost of each project withing certain parameters, hoping to eliminate bribery and corruption in all state purchases.

He said all price standards will be posted on the Finance Ministry's website in an effort to increase transparency and to allow the public to monitor all cost expenditures.

He went on to say that the Finance Ministry had signed contracts with foreign countries, vowing to end bribery given by the private sector to state officials.

-- Tan Network 2011-05-26

[slapout]

The first signers should be the entire Thai political membership. Make those caught on both sides of the deal pay a punitive damage of 10 times the amount involved as well as some time in the monkey house, or equal time community service and banned from politics for life. Any repeat offenders could receive the same penalties except it is doubled.

If the items/services for which bribe monies are paid are not on the almighty list, guess it is back to "this is the Thai way".

[krangeek]

This 'anti bribe' law in other countries has been in effect for many years now. Many countries have bee told not to engage in corruption here. .

However, I believe this stupid retrograde law a complete embarrassment to a country perpetually purporting itself tourist friendly. Whatever capital city of any country would a tourist arrive in and find all the bars and restaurants closed at 12 midnight?

Why do you think 7/11's/Big C/Tesco/Tops cannot sell alcohol between certain hours (brought in by the <deleted> Purachai under Taksin's regime to curb sales from these venues for, no, wait, ha ha, the ordinary working Thai), when every 'mom an' pop' shop will sell their god awfully Thai produced hooch at whatever time of the day/night:

This country, for all it's short lived charms, is most certainly HIcksville. It will never change, even back to the 'long remembered dreams of the long-stayer', and a couple of weeks is enough for those with a high boredom threshold.

[manarak]

Laws which restrain the country's own citizens against using bribes abroad are ridiculous.

This only gives an edge to foreign competition.

Every country has to enforce its own laws domestically.

If some regimes are corrupt, then corruption is the only way to get the market there - why bar the country's company from sales?

If people want to bribe foreign decisionmakers, that's fine with me.

It is up to the foreign country to prosecute them.

And up to my country if anyone is found guilty of accepting a foreign bribe.

[slapout]

The money spent on corruption is probably just a small part of the total problem.... The supply of a quality product/service for a competitive/fair price.

Substandard goods are one end result, as those companies who could supply proven product are reluctant to pay brides.

Those companies who supply acceptable product charge honest customers more so as to pay bribes to shady purchasers/countries.

Innovation of new more efficient products are postponed due to the corruption in the potential place.

Countries/Individuals who are known for their request/acceptance of bribes, tea monies, or whatever you want to call it are out to benefit a very select few and the general public is left with paying the bill.

The list can go on and on, but it equates to a massive drain on society for the monetary benefit of the leaches/blood suckers of the world.