Qatar. 2022 World Cup. We have all seen the headlines, and from the information so far that has come to public light, will be thinking that there is something to be looked into as to how this bid was won.
But aside from whether 32 national teams get to run around in 40+°C heat, the implications on businesses, either associated with the bid, sponsors, or affiliated to national team brands, the impact is significant. Very recently, major sponsors of the sports governing body FIFA including Sony, Adidas, Coca-Cola, Visa and Hyundai/Kia have publically criticized the bidding process. BP and Budweiser have also registered their concerns.
One reason for this concern is simple: the UK Bribery Act.
It sets out four key offences:
- active bribery;
- passive bribery;
- bribing foreign (to the UK) public officials; and
- failure of relevant commercial organisations to prevent bribery of anyone (not just public officials) by an associated person (widely defined to include directors, employees and any persons providing services to the Relevant Organisation, which is defined below). This is “the corporate offence”.
Each offence has the potential to carry financial and criminal sanctions. The first three offences apply to both individuals and corporations. As a general rule, the first three offences apply if the offence is committed in the UK by any individual or committed outside the UK by an individual with a “close connection” to the Companies may also be convicted on the basis of current UK law principles of corporate criminal liability, or if any “senior officer”, such as a director, manager or company secretary, has consented to or connived in the commission of an underlying offence.
The corporate offence, however, is committed irrespective of whether the act of bribery committed by an associated person takes place in the UK or abroad. It is not necessary for a foreign prosecution or conviction, and the associated person committing the act of bribery is not required to have any connection to the UK.
It is for this reason that the alleged bribery and the decision of Mr Garcia in his investigation for FIFA is crucial.
The old adage of “what goes on tour stays on tour” has now gone. Companies need to be internationally aware, and protected. We can help to protect what matters most – reputation and profit. As for England’s chances in the World Cup, we are not miracle workers!