A presentation for AntiCorruption training

1
A presentation for Anti-Corruption training - An
example based on our implementation of the PACI
principles October 12, 2007 Bucharest,
Romania   Dear Fellow PACI Signatory   This
presentation is available for use in your firm.
While every organization has different
requirements, we believe it will provide a good
starting platform for implementing an
anti-corruption program based on the PACI
principles and Transparency Internationals
guidelines. This presentation, along with a
corresponding manual(also available for your use)
forms the main basis of our firms
EthicsCompetiveness training program.   We
have released the documentation of our program in
the hopes of facilitating the creation of
additional, similar programs. The specific terms
of usage is spelled out below via a Creative
Commons license. Beyond that, it is our hope
that this work will be improved upon and
propagate in a spirit similar to open source
technology where it is free to use provided
improvements are made available to the greater
community.   We are inspired by the leadership of
the World Economic Forum adopting this issue, the
impressive list of companies participating, and
the real opportunity to fight corruption with
strong partners. It should also be noted that
the Partnering Against Corruption Initiative was
brought to our attention by the American Chamber
of Commerce Romania with due credit owed to
their efforts.   Wishing you success in
implementing your program and fighting the good
fight!   Kindest regards,   Steven
Borncamp Managing Director SOPOLEC LLC SRL
2
This work is licensed under the Creative Commons
Attribution 3.0 United States License. To view a
copy of this license, visit http//creativecommons
.org/licenses/by/3.0/us/               SOPO
LEC Business Advisory Services Strada
Ialomicioarei, 21Sector 1 Bucharest,
Romania office_at_SOPOLEC.com(40) 21 222-5135 -
Office(40) 21 569-7956 - Office (alternate)(40)
21 223-1201 - Fax[phone] - Office (USA)
3
EthicsCompetitiveness ProgramSOPOLEC
ANTI-CORRUPTION TRAINING

• The World Economic Forum
• PARTNERING AGAINST CORRUPTION INITIATIVE

July 6, 2007
4
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

4
5
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

5
6
SOPOLEC PACI training Objectives

• Policies identifying what conduct is
  permissible and what is not
• Procedures steps that must be followed for
  certain higher-risk transactions
• Guidance develop criteria to asses corruption
  risk and pressures that may arise in our business

7
The PACI Commitment

• Two Core Components
• A zero-tolerance policy towards bribery
• Development of a practical and effective
  Anti-Corruption program
• SOPOLEC Objectives
• Identify corruption pressures and risks to our
  business
• Identify best practices worldwide..and what are
  OUR PRACTICES

8
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

8
9
SOPOLEC Anti-Corruption Program

• Employee responsibility
• The Anti-Corruption Manager
• The Review Committee
• HR Policies and the handbook
• The Anti-Corruption Caveat for all proposals and
  contracts
• The training program
• The external review
• Outline of practices, techniques, and legislation

10
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

10
11
Forms of Corruption and Strategy
12
TWO sides to Anti-Corruption

• What this means for you!
• No bribes, facilitation payments, or unauthorized
  contributions
• Always get a receipt
• Consult the handbook for documentation
  requirements

13
Bribery and Facilitation Payments

• What this means for you!
• Zero tolerance - no bribes
• Any expense requires a receipt for accounting

14
Travel, gifts entertainment

• What this means for you!
• No travel, gifts, or entertainment that arent
  related to a specific job, for specific
  job-related goals, authorized by Company
  Management
• Expenses to be documented with receipts and
  expense reports for accounting

15
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

15
16
Possible corruption situations

• Bribe request no threat
• Bribe request physical threat
• Payment is demanded hidden bribe may be
  included
• Non-verbal indication of bribe expectation -
  procedures delayed
• A supervisor or senior-level manager requires you
  to participate in bribery or fraud
• You discover a bribe or fraud in your company or
  its business partners
• As a manager or senior officer, you discover
  someone you are responsible for has paid a bribe
  or committed fraud

17
Anti-Corruption Strategy
18
Anti-Corruption Strategy (cont.)

• Be Honest
• Avoid
• Prevent
• Confront
• Withdraw
• Record

19
Situation 1 Request for bribe no threat

• Politely refuse the request
• Inform about company procedures and
  anti-corruption principles
• Ask to see the senior manager and explain the
  situation
• If it is not resolved, withdraw and record the
  event
• If possible, get a witness statement
• Keep a record for yourself

19
20
Situation 2 Request for bribe physical threat

• You may pay the bribe
• Safely withdraw
• Call the police and/or the Management
• Record the event with the Anti-Corruption Manager

20
21
Situation 3 Payment demanded hidden bribe

• Ask for documentation supporting the charge
• If documentation or receipt is not provided,
  refuse to pay.
• Ask to see the senior manager and explain the
  situation
• If it is not resolved, withdraw and record the
  event
• If possible, get a witness statement
• Keep a record for yourself

21
22
Situation 4 Non-verbal indication of bribe
expectation (delay of procedures)

• Politely ask for reasons for delay
• If bribe is requested, proceed as previously
  described
• If reasons are not indicated, then ask for senior
  official
• If issue is not resolved, proceed with a formal
  complaint to the proper institution

22
23
Situation 5 Request to participate in bribery
or fraud by a supervisor or senior-level manager

• Refuse to participate in the action

23
24
Agenda

• TRAINING OBJECTIVES and PACI COMMITMENT
• SOPOLECS ETHICSCOMPETITVENESS PROGRAM
• FORMS of CORRUPTION
• ANTI-CORRUPTION STRATEGY AND TECHNIQUES
• LEGISLATION

24
25
Anti-Corruption Legislation

• ROMANIAN
• Romanian Legal code number 78/2000 the Law on
  Preventing, Discovering, and Sanctioning
  Corruption. 
• Romanian Legal code number 161/2003 the Law on
  Measures for Assuring Transparency in Exercising
  the Public Domain, Methods of Work in Public
  Functions, Preventing and Sanctioning
  Corruption. 
• US
• Foreign Corrupt Practices Act

25
26
Law Nr 78/ 2000

• Scope Law preventing and sanctioning acts of
  corruption
• Who Applies to the following persons/organization
  s
• Public authorities and institutions
  
• Managers, Directors, Administrators and Auditors
• Political Parties, Trade Unions, Non-Profit
  Society, Foundations and Employers Organizations
• Chapter 4 , Section 2, Art 23 The persons with
  control duties are obliged to notify the
  authorities in the case of discovering an
  operation or an illicit act has been carried out.
• Chapter 4 , Section 2, Art 28 establishes an
  entity and a system for prosecuting corruption
  cases

27
Law Nr 78/ 2000Forms of corruption and
punishments
28
Law Nr 78/ 2000Forms of corruption and
punishments
29
Law Nr. 161/2003

• Scope
• Pertains to measures for assuring transparency in
  exercising public domain, public functions,
  business environment, preventing and sanctioning
  corruption.
• Pertains to the requirement to assure
  transparency and integrity in electronic
  documents.

30
Foreign Corrupt Practices Act

• Scope The FCPA prohibits corrupt payments to
  foreign officials for the purpose of obtaining or
  keeping business
• Who Applies to the following persons/organization
  s
• US Companies or nationals operating outside US
  directly or through agents and intermediaries
• Foreign company or persons operating in the US
  directly or through agents
• US parent corporations may be held liable for the
  acts of foreign subsidiaries

30
31
Foreign Corrupt Practices Act (contd)

• Acts of Corruption
• Corrupt intent The offer or promise of a corrupt
  payment whether successful or not will be
  consider a violation of FCPA
• Payment The FCPA prohibits paying, offering,
  promising to pay (or authorizing to pay or offer)
  money or anything of value
• Recipient Under the FCPA The prohibition extends
  only to corrupt payments to a foreign official, a
  foreign political party or party official, or any
  candidate for foreign political office
• Business Purpose Test The FCPA prohibits
  payments made in order to assist the firm in
  obtaining or retaining business for or with, or
  directing business to, any person
• Third party payments The FCPA prohibits corrupt
  payments through intermediaries

31
32
Foreign Corrupt Practices Act (contd)

• Sanctions Against Bribery
• Criminal penalties
• Corporations and business entities fines of up
  to 2.000.000
• Individuals fines of up to 100.000 and up to 5
  years imprisonment
• Civil penalties fines of up to 10.000
• Other government action Suspension of right to
  do business with the government

32
33
Summary

• Corruption is a criminal offense!
• Anti-corruption is a SOPOLEC policy!
• Know the rules! Be prepared!
• The first concern your safety!

• Be Honest
• Avoid
• Prevent
• Confront
• Withdraw
• Record
•