The most significant development of the past year in the SFO's fight against corruption and bribery was the establishment of what has been described by many commentators as 'the toughest anti-corruption laws in the world'. The new Bribery Act came into force in July 2011 - bringing with it a renewed focus on the UK's anti-corruption campaigning.
It was a particularly historic moment for the SFO as the UK's lead agency for fighting corruption and bribery. No serious or complex criminal case has yet stemmed from these new laws. But in almost every month of this past year the SFO has brought new prosecutions to court, albeit under the old laws. And with the new laws still to be fully understood by the corporate world, much time has been spent by senior figures in the SFO in explaining and helping companies understand their responsibilities. Just as it is fair for the SFO to bring to justice those who use corruption to undermine proper business practices, it is also fair for the SFO to try to educate those who want to comply and move towards better corporate governance.
Against that background, corporate bodies can - to some extent - be compared with human bodies - it is better to prevent an illness than to have to try to cure it. And so the SFO wants to help corporate Britain stay as healthy as possible.
But there is no doubt that those organisations that deliberately use bribery and corruption to undercut legitimate business, will be brought to justice, as the following review of just some of the cases that the SFO has brought to court this year shows.
- Early in 2011 a number of former directors of the bridge building company, Maybey and Johnson, were convicted of bribing foreign public officials to secure contracts in Iraq in contravention of the UN Oil for Food Programme.
- In February the SFO recovered more than £7 million from M.W.Kellog (MWKL) in recognition of funds it was due to receive which had, in fact, been generated through the criminal activities of third parties. The funds were in the shape of share dividends payable from profits and revenues generated by contracts obtained through bribery and corruption committed by MWKL's parent company and others. MWKL reported these activities to the SFO under the 'self referral' scheme and co-operated fully with the SFO's subsequent investigation.
- In April 12011, Mark Jessop, received a 24-week jail sentence after he admitted that he had broken UN sanctions during the Oil For Food Programme by making illegal payments to Saddam Hussein's government. He was also ordered to pay compensation and costs.
- Court action this October resulted in two former chief executives of Innospec Limited, Dennis Kerrison and Paul Jennings, being charged with corruption and appearing before Westminster Magistrates Court on charges of alleged corrupt payments to gain public contracts in Indonesia. Mr Jennings was also charged in relation to Iraq. Their trial is expected to begin in January. And the trial began of five defendants in an alleged conspiracy to corrupt over £70 million worth of contracts in the engineering and gas energy sectors.
Looking ahead, 2012 already looks busy, with a number of corruption cases at trial in January and beyond. One trial concerns corrupt practices in Britain with four defendants charged over £25 million worth of contracts in Northern Ireland.
The SFO fully endorses anti-corruption day and the fight for honesty in business. Every day we see the victims of corrupt practices both in Britain and abroad. We will continue to play our part to enable ethical people to thrive; ethical companies to grow and prosper; and to bring to justice those who attempt to undercut them.
Phillippa Williamson
Chief Executive
