Contractors urged not to delay Bribery Act policies

Contractors would be “ill-advised” to delay introducing policies to ensure they comply with the Bribery Act, in spite of the government’s decision to postpone its implementation, a legal expert says.

Ron Peid, partner at law firm Shoosmiths, said the latest postponement by the Ministry of Justice related only to the act’s guidance to businesses on ‘adequate procedures’, not its “main thrust.”

As a result, firms likely to be affected by the act, originally due to take effect from this April, “would be ill advised to delay bringing in policies and procedures to comply” with its regulations, he said.

His advice takes into account a three-month cooling-off period which, mindful of firms needing time to get up to speed with their new duties, has been set by the MoJ, to run between the guidance's eventual publication date and the act’s introduction.

“It is important to remember that the guidance [which has prompted the delay] only relates to the defence for the corporate offence and nothing else,” Mr Peid explained.

“Allowing the delay in the publication of detailed guidance on relatively narrow issues to stop [a company’s] plans to implement such policies may not be in their best interests.”

In their own guidance to members facing the act, the CBI, the employers’ organisation said: “This could have serious implications for the way you do business – particularly if you operate in high-risk countries.

“You…should assess your business model and the strategic importance of all your operations now and ensure you have adequate procedures in place to prevent bribery.”