Scenario 5: Bribery

Scenario 5

You have recently joined the head office of a UK-listed publishing group of both print and web-media that has a number of European subsidiaries. You report to the CFO. One of the subsidiary companies, which is 90% owned by the group, is outside the Eurozone in country X. It is a profitable part of the business, with its own printing site and lower production and staff costs. Head office have clear anti-bribery policies that apply across the group which have been in place for 10 years and pre-date the UK Bribery Act 2010. It is commonly known that in country X the political environment has become unstable due to public distaste for blatant corruption in both government and business circles despite local anti-corruption laws. On reviewing the monthly management accounts you note an expense heading ‘fees and professional charges’ which equate to 3% of the monthly revenue. You find that this is in payment to the government official who helped with issuing permits when operations were first established. The local management are aware and do not consider this a bribe as it is common practice in the market, despite local anti-corruption law also being in place. The group’s directors are concerned, yet are being advised by the local CEO that this profitable operation may be closed if the payment is discontinued and that it’s nothing to worry about. Now that you are aware of this situation, what would you do?


Read more
Incorrect
Please choose your answers and then press "Submit Answers".