Tender Writing and the Bribery Act

The Bribery Act 2010 came into force on the 1st of July 2011, with an aim of eradicating the act of bribery within the business environment. Do you have your policy in place?

The creation of the Bribery Act 2010 superseded the statutory and common law provisions, and focuses on four main areas of bribery legislation. The introduction of the act aims to enhance the transparency and remove any suspicion within the bid and tender process. In the past this process could have been manipulated and corrupted to suit a preferred contractor or supplier. Potentially the preferred supplier/contractor could benefit if they were leaked information regarding competing tenders, have late tenders accepted, or be given the opportunity to change their tenders already submitted. The new Act aims to eradicate such actions focusing on and incorporating;

• Bribery
• Being bribed
• The bribery of foreign public officials
• The failure of a commercial organisation to prevent bribery on its behalf.

Within public sector tenders it is becoming increasingly common for appointing bodies to express a desire to view a firm’s anti-bribery and anti-corruption policies and processes. The inclusion of these polices and processes within the tender document highlights the organisations desire to promote equality between the rival firms and to prove their transparency and honesty. The development of a Bribery Policy based on the principles set out in the Bribery Act 2011 will provide the opportunity for business to;

• Provide a legal yard-stick that aims to combat bribery and corruption within the Tender process
• Reduce the advantages of businesses who have existing contacts within the allocation body
• Provide a detailed policy that underpins their responsibility and showcases their commitment to eradicating bribery during the tender process
• Tackle the threat that bribery poses to global economic development around the World.

One way of reducing the possibility of bribery during the tender writing process has been the introduction of information technology (procurement) and electronic auctions that have been designed to reduce the scope for bid manipulation. The bids are submitted electronically thus reducing the available corruption options, as they can be viewed and evaluated by independent governing bodies. This online submission system provides a clear path from the tender allocation to the final submission, reducing the instances of biased decisions. The introduction of the Bribery Act 2011 has had a significant impact on the way businesses are dealt with if they are deemed to have conducted illegal activities. The new law states penalties of:

• Ten year prison sentence as appose to seven with the superseded legislation
• Unlimited fines.

It is imperative that the tender bid process is transparent and openness is promoted to reduce any possibilities of corruption and dishonesty.