OECD Foreign Bribery Report - Key Findings

OECD Foreign Bribery Report - Key Findings

• 2.
  Context + Methodology  Goal to illustrate the crime of foreign bribery based on the facts.  Analysis of concluded foreign bribery enforcement actions between entry into force of Convention and 1 June 2014.  Analysis limited to sanctions for foreign bribery and related preparatory or participatory offences against 427 individual and corporate defendants.  Original judgments/settlements available in 58% of cases; WGB evaluations a source of information in 40% of cases; media or third party reporting relied upon for 2% of cases.  Data equally useful to governments and business.
• 3.
  How are casesdetected?
• 4.
  Who pays thebribes? Only 4% of sanctioned companies were SMEs. In 60% of cases, the company associated with the corrupt transaction had more than 250 employees.
• 5.
  Which sectors aremost at risk? Two-thirds of the foreign bribery cases occurred in four sectors:  Extractive  Construction  Transportation and storage  Information and communication
• 6.
  Which sectors aremost at risk? Bribes as a percentage of the transaction value per sector
• 7.
  Who is onthe receiving end? SOE officials were bribed in 27% of cases but received 80.11% of total bribes. Heads of state and ministers were bribed in a total of 5% of cases but received 11% of total bribes.
• 8.
  Where were thebribes paid? Two-thirds of bribes were paid to officials in countries higher on the UN Human Development Index This map shows the countries whose public officials received bribes
• 9.
  How and whyare bribes paid?
• 10.
  What is thecost of foreign bribery? On average, bribes equaled 10.9% of the transaction value and 34.5% of the profits. In 41% of cases, sanctions ranged from 100-200% of the proceeds of the corrupt transaction. “Every dollar spent on a bribe is a dollar not spent on innovation” Brackett Denniston, GE (Launch of OECD Foreign Bribery Report, 2 December 2014)
• 11.
  How are casessanctioned?
• 12.
  Enforcement of foreignbribery laws 80 individuals were imprisoned after a foreign bribery conviction
• 13.
  Enforcement of foreignbribery laws 390 investigations are underway in 24 of the 41 parties to the OECD Anti-Bribery Convention
• 14.
  Conclusions + NextSteps  Proposals for both governments and business to enhance the fight against foreign bribery, building on findings of the report.  Scope for further, in-depth analysis and additional horizontal studies to build on this first attempt to measure foreign bribery.  Potential for using this model to analyse other forms of corporate crime.
• 15.
  Thank you Findout more about the work of the OECD to combat foreign bribery www.oecd.org/corruption