1. St. George’s, University of London (“the University” or “SGUL”) does not condone briberyor tax evasion of any kind. It is University policy to conduct its business in an open andhonest manner, without engaging in corrupt practices to obtain an unfair advantage. Inorder to support staff, and in order to comply with The Bribery Act 2010 (the “BA”) andthe Criminal Finances Act 2017 (the “CA”), the University has produced this policy.
Definition
2. Bribery can be defined very generally as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly, or rewardingthat person for having already done so. Under the BA, there are 4 main offences:
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Active Bribery (offering to bribe another)
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Passive Bribery (accepting/requesting a bribe)
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Bribery of a foreign public official
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Failure to prevent Bribery (committed by an organisation that fails to prevent bribery by any ‘person’ associated with it).
3. Tax evasion is the illegal non-payment or under-payment of taxes. It is usually perpetratedby falsely declaring or not declaring taxes due to the relevant tax authority. Tax evasion isa criminal offence. It can be committed by an individual, eg in relation to income tax orVAT, or a legal entity, eg in relation to corporation tax. The CA came into force on 30September 2017. It introduces a corporate offence of failure to prevent the criminalfacilitation of tax evasion.
Consequences for the University
4. If the University or any of its staff are found to have committed an offence under the BAor CA the potential consequences include:a) Up to 10 years imprisonment for the individuals involvedb) Unlimited fines, typically 400% of the value of the contractc) Repayment of any moneys earned or obtained under contractd) A ban from bidding for future research and other public contractse) Damage to reputation and loss of public trust and confidencef) Potential loss of UKVI ‘highly trusted’ statusg) Regulatory issues (HEFCE)
Risk Assessment
5. We aim to ensure our anti-corruption procedures are proportionate to the risks we face.
6. We have performed an assessment of the risk of our organisation being exposed to taxevasion facilitation or bribery. This policy has been developed in response to the resultsof that risk assessment. Where necessary, we will review our risk assessment and makeappropriate changes to this policy.
7. We have identified certain aspects of our activities that present a higher risk than othersof involvement in tax evasion facilitation or bribery. These include:
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Hospitality – which could be construed as bribery if not transparent, auditable & proportionate
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Donations – which all need scrutiny
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Activities in countries which are perceived as having high levels of corruption(particularly where acting by an intermediary or in-country representative)
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Activities in sectors which are perceived as having increased levels of corruption (forexample construction)
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Subsidiary companies
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Domestic/international collaborations eg Institutional Agreements, franchising,student exchanges, work placement schemes.
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Engaging contractors to provide services in such a way as to deliver an unlawful taxadvantage to that supplier
Hospitality
8. Genuine and proportionate hospitality or expenditure, which seeks to improve SGUL’s image, or better present its services, or establish good relations, continues to beacceptable. For more detailed information see the Financial Regulations.
High Risk Jurisdictions & Sectors
9. It is not a defence to an accusation of bribery or tax evasion to say that bribes or taxevasion are the accepted practice in another jurisdiction or sector within which you aredoing business. Facilitation payments are illegal. For assistance in identifying those jurisdictions/sectors which may pose a high risk see:
Adequate Procedures
10. In some circumstances it will be a defence for the University to show that it has adequateprocedures in place. The University’s adequate procedures will include:
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Setting out a clear anti-corruption policy
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Training relevant employees so that they can recognise and avoid the use of bribery by themselves and others and prevent the commission of criminal tax evasion
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Encouraging employees to be vigilant and to report any suspicions of corruption,providing them with suitable channels of communication and ensuring sensitiveinformation is treated appropriately
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Carrying out due diligence of existing and prospective associated persons (those whoperform services on behalf of SGUL University)
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Avoiding conflict of interests and ensuring transparency of transactions and decisionmaking(and keeping appropriate records)
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Implementing appropriate sanctions for those who do not follow this anti-corruption policyg) Monitoring and reviewing these procedures.
Reporting Incidences
11. If you become aware of any activity or conduct which you suspect may involve a bribe, taxevasion or corruption of some kind, you should report it to your line-manager, or to theDirector of Legal Services or Finance Director, or follow the whistleblowing and public interest disclosure policy and procedure.
Further Information
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The BA can be found here and the full guidance to the Act.
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The CA can be found here and the full guidance to the Act.