Jeffrey Cook was found guilty of taking over £70K in kickbacks 

Jeffrey Cook, a former Ministry of Defence (MoD) employee received 30 months in jail time after being convicted of misconduct in public office. Cook took over £70K in payments and gifts as kickbacks on a public contract that he arranged while he was an employee at the MoD.

Between 2004 and 2008, Cook was on secondment when he commissioned a series of reports from an offshore company, ME Consultants, for the MoD on its “SANGCOM” project to provide military communications equipment and services to the Saudi Arabian National Guard. The company was paid about £700K. Serious Fraud Office (SFO)  investigators discovered that Cook concealed payments and gifts he received totalling about 10% of its fee as a kickback. He received more than £44K in cash and two cars worth £30K according to SFO prosecutors.

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This charge is the first in an investigation initiated by the newly-launched National Anti-Corruption Commission

A former employee of the Western Sydney Airport (WSA) has been charged with allegedly soliciting a bribe of $200k during the procurement process for a contract to provide services at the airport. The contract was worth an estimated $5 million. 

The charge was made by the National Anti-Corruption Commission (NACC), following a joint investigation with the Australian Federal Police. The long awaited NACC was founded this past July with the goal of preventing, detecting and investigating corrupt conduct in the Commonwealth. It is the first time an independent anti corruption body has overseen the entire Commonwealth public sector.

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Compliance Week Europe

This conference is designed to help compliance, audit, legal and risk executives understand how they can build and manage their ethics and compliance programmes more effectively.

Topics to be discussed include:

  • GDPR
  • Cyber Fraud
  • AML programmes
  • Whistleblowing
  • Anti-Bribery
  • Collusion
  • Ethics & Compliance
  • Sanctions
  • Supply Chain risk
  • Fraud indicators and red flags

Once again, Rolls-Royce is making news for all the wrong reasons. Allegations of bribery have swirled around the UK’s leading manufacturing multinational since 2012, and a recent BBC/Guardian investigation suggests that corrupt practices were an established business practice, used regularly to win lucrative contracts around the world.

The first wave of allegations surfaced in 2012, when former employee Dick Taylor, who had worked at Rolls-Royce for more than 30 years, raised the alarm after discovering suspicious activity in Indonesia. Taylor took early retirement and began publishing his allegations online. The Serious Fraud Office began investigating his claims. Specifically, Taylor alleges that Rolls-Royce paid Tommy Suharto, son of the former Indonesian president, £12m, and gave him a Rolls-Royce car, to secure an order for their aircraft engines.

Network of bribery

The latest round of allegations are made in a BBC/Guardian documentary. In Panorama: How Rolls-Royce Bribed Its Way Around the World, they claim that Rolls-Royce used a network of agents to win business in at least 12 different countries – in some cases using bribes to land lucrative contracts

Rolls-Royce have said little about the allegations: “Concerns about bribery and corruption involving intermediaries remain subject to investigation by the Serious Fraud Office (SFO) and other authorities. We are fully cooperating with the authorities and we cannot comment on ongoing investigations.”

Corrupt connections

One claim is that Rolls-Royce paid millions of pounds to Sudhir Choudhrie, a businessman listed on India’s blacklist of people suspected of ‘corrupt or irregular’ practices. The report also alleges that Rolls-Royce engaged a network of agents to operate in Angola, South Africa, Iran, Iraq, Kazakhstan, Nigeria, Azerbaijan, India, China, Brazil, Indonesia and Saudi Arabia.

As if the SFO investigation was not enough bad news for Rolls-Royce, the German authorities announced in July that they planned to investigate alleged bribes in seven Asian countries.

A colonial legacy?

Jonathan Guthrie, writing in the Financial Times in May 2016, has a theory regarding the extraordinary allegations against Rolls-Royce: “British multinationals have traditionally behaved overseas in ways they would never have got away with in Croydon. Order-hungry local agents and corrupt officials were interlocking components in a mechanism oiled with backhanders. High-ticket procurement fraud is a colonial legacy…”

Anti-Bribery and Corruption training from VinciWorks

Doing business overseas can increase the risks posed by unfamiliar business cultures and working practices. VinciWorks offers online training to highlight the risks associated with contravening the Bribery Act 2010.

If you need to train your employees to recognise and safely report bribery and corruption, be sure to check out our global anti-bribery and corruption course. We also offer an Introduction to anti-bribery and corruption.

FIFA has announced a set of reforms designed to repair the reputation of the beleaguered organisation following the scandal which erupted last May, and safeguard it against future corruption.

The reforms, which were passed unanimously by the Executive Committee, are concerned primarily with limiting the authority of FIFA’s ‘top brass.’ They include presidential term limits, the separation of political and management functions, salary transparency, and “concrete steps to increase the role of women in the governance of football with a minimum of one female representative elected as a Council member per confederation.”

“These reforms are moving FIFA towards improved governance, greater transparency and more accountability,” said FIFA’s Acting President Issa Hayatou. “They mark a milestone on our path towards restoring FIFA’s credibility as a modern, trusted and professional sports organisation. This signals the beginning of a culture shift at FIFA.”

The scandal claimed the careers of two of the most powerful figures in world football. FIFA President Sepp Blatter and Uefa President Michel Platini were found guilty of breaches concerning a £1.3m “disloyal payment” made to Platini in 2011, and banned for eight years from all football-related activities by FIFA’s ethics committee.

However, of more concern to the future of the sport is the loss of trust experienced by the organisation since the scandal broke last summer. A global survey of fans conducted by football app Forza Football found that a whopping 69% had lost confidence in football’s governing body. 43% even said that that they enjoyed the sport less after the learning about the scandals. These statistics are a reminder of the potential reputational damage to businesses that are connected to scandals.

Cobus de Swardt, head of Transparency International, summed up the long-lasting damage to brand football: “As fans we have a love affair with football. When our teams win we are ecstatic, when they lose we are devastated. But when results – whether of games, or rights for hosting events, elections, etc. – are driven not by fair competition, but by corruption, we feel betrayed.”

“The poll results show us beyond any doubt that FIFA has lost the trust of football supporters,” added Gareth Sweeney, the editor of Transparency International’s global corruption report. “But they also show it is still possible for FIFA to regain that trust. At least half those polled will give FIFA a second chance. That’s why FIFA must not only put serious reforms in place but be seen to do that.”

There are important lessons to be learned here for any business. A Concerto Marketing Group and Research Now survey, found that when customers trust a brand, 82% will continue to use it frequently, and 83% will recommend it to others. Building and maintaining trust and transparency is an essential component to your continued success. If corruption can turn notoriously passionate football fans away from the beautiful game, then the potential risks to businesses are immense.

How can VinciWorks help?

VinciWorks’ anti-bribery training suite helps businesses prevent corruption. We utilise the latest instructional design techniques including video, scenarios, gamification and micro-learning to ensure courses are engaging and create desired behavioural changes in your organisation.

Image by alegermino, used under CC2.0

In the past few weeks the world of tennis has been blighted by allegations of match-fixing. While the claims made against the sport have not been proven, it’s an interesting case which may provide lessons for businesses that want to reduce their risk of corruption.

Reports suggest that players have worked with gambling syndicates to throw matches. The claims have been made following an investigation by the BBC and BuzzFeed News, in which they used an algorithm to review the betting activity on professional tennis matches over a period of 7 years. Their studies highlighted a number of matches that attracted suspicious betting activity. Namely, huge value bets for the underdog.

They identified 15 players who ‘regularly lost matches in which heavily lopsided betting appeared to substantially shift the odds – a red flag for possible match-fixing.’ As BuzzFeed reports, ‘gambling syndicates in Russia and Italy have made hundreds of thousands of pounds placing highly suspicious bets on scores of matches’.

This is not the first time that tennis has been embroiled in allegations of corruption. There have long been rumours of professionals colluding to agree the outcome of matches, or even sharing the winnings after planning a mutually-beneficial outcome (some players are suspected of throwing – or ‘tanking’ – matches that they don’t care to win so they can save their energy, yet still pocket a share of the winnings).

Richard Ings, former executive vice president for rules and competition of the Association of Tennis Professionals spoke to BuzzFeed about how the nature of tennis makes it uniquely suitable for match fixing, “if you were to invent a sport that was tailor-made for match-fixing, the sport that you would invent would be called tennis. “It doesn’t take much effort on a player to throw a match without the opponent or the officials or the fans or even the media being aware.”

Given the level of suspicion around tennis, the nature of the allegations, and the apparent simplicity with which matches can be fixed, one might assume that investigators and tennis officials would be aware of the risks and quick to clamp down on the alleged fixers. But so far, the tennis authorities have been slow to react and have failed to punish most of the alleged fixers.

Commentators are speculating that one reason for the lack of decisive action is the fact that the organisation tasked with stopping corruption in tennis is too close to the sport. The Tennis Integrity Unit (TIU) was founded in 2008 by the International Tennis Federation (ITF), the ATP, the WTA and the Grand Slam Board. If corruption is occurring inside tennis, can an insider organisation hope to solve the problems? Or does the TIU have too many incentives to ignore warnings in an effort to preserve the good name of the sport of gentlemen?

Whether or not the allegations surrounding tennis are true, the affair is a reminder that, for any organisation fighting corruption, internal investigators may not be the most effective route to the truth. When an organisation has too much to lose – and plenty to hide – outside investigators may be the only effective way to reveal the truth. Impartial third-parties may be necessary to break through a wall of silence, or to expose failings that insiders may see as ‘just the way things are’. Perhaps the TIU needs to involve independent investigators in their procedures, and accept that the investigation may reveal uncomfortable truths.

Perhaps the problems blighting tennis are similar to the difficulties that face some businesses: corrupt practices become so commonplace that they become normalised. In such cases it can be challenging to uncover the full extent of the fraud taking place, particularly if employees don’t view their actions as problematic – or if the fraud is so widespread that a majority of employees have a vested interest in maintaining the cover-up. When corruption is part of an ingrained culture, training programs and other awareness-raising initiatives may be required to change perceptions and encourage people to develop a zero-tolerance attitude to fraudulent practices.

Fraud often occurs in situations when people have both a motive and an opportunity. So while it’s important to limit opportunities and minimise motives, it’s also important to shape an organisational culture that does not accept corruption in any form.

VinciWorks offer eLearning on a range of business and management topics, which can be chosen as an off-the-shelf package, or customised to meet the needs of your business. Our corruption eLearning packages include:

  • Anti-Bribery and Corruption (Introduction)
  • Anti-Bribery and Corruption (Working Globally)

We have seen yet another large scale corporate corruption scandal come to light following a BBC Panorama investigation into British American Tobacco.

In a documentary broadcast recently, it was alleged that BAT, the UK’s fifth largest company, paid bribes to government officials in Africa with the intention of undermining anti-smoking legislation and made facilitation payments to damage rival companies.

Former employee turned whistleblower Paul Hopkins said he was told bribery was the cost of doing business in Africa, but bribery in any country contravenes the UK Bribery Act 2010.

So, ahead of International Corruption Day, what can your business do to combat corruption?

Raising awareness

Getting training right is vital in tackling corruption. Companies judged to have failed to prevent bribery from taking place can be subject to potentially unlimited fines as well as reputational damage.

Both committing bribery and being bribed are criminal offences and, as highlighted in the documentary when a government minister was allegedly bought a flight in exchange for undermining an anti-smoking bill, giving and receiving gifts can also constitute bribery.

Raising awareness levels throughout your organisation is therefore a must. To help businesses do this, VinciWorks provide a range of eLearning including three Anti-Bribery and Corruption courses designed to meet the requirements of various job roles.

So, whether a member of staff deals exclusively in the UK, engages in global financial transactions, or simply requires an overview to reduce the risk of being bribed, we have the training solution.

Contact us today to find out more.