13. Bribery

Question 1

What are the Main Principles of the Bribery Act?

Answer 1

• The offences are:-
  o Making a bribe.
  o Receiving a bribe.
  o Bribery of a foreign public official.
  o Failure of a corporate entity to prevent bribery on its behalf.
• The legislation applies to all UK Entities and includes associated Persons for example sub-consultants
  and external advisors.
• There are six principles of prevention companies should put in place:-
  o 1. Proportionate Procedures.
  o 2. Top Level Commitment.
  o 3. Risk Assessments.
  o 4. Due Diligence.
  o 5. Communication.
  o 6. Monitoring & Review.

Question 2

Under the Bribery Act, under what circumstance is a facilitation payment permitted?

Answer 2

• The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
• For example if there is a real and present risk or danger to “life, limb or liberty”.
• If you or your companions are under immediate physical threat.
• You should put safety first, make the payment and report the matter immediately.
• Or as soon as is practicable to your manager or your ethics compliance contact.

Question 3

You are attending a Main Contractor organised business conference where it is announced the you have been randomly selected as the winner of this months prize draw. Its an i-pad air. How would you act in this scenario?

Answer 3

• I would be extremely uncomfortable accepting the prize in this scenario.
• The prize is of a significant value and could be interpreted as a bribe.
• Furthermore due to working on a project with the Main Contractor at the time of this scenario,
  accepting the prize would have been highly inappropriate and could be interpreted as having an affect
  on my business conduct during the project.
• I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice.
• I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this
  incident I would report this to my line manager.

Question 4

You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?

Answer 4

• In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.
• Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out.
• Since they won’t be present, this will not be a genuine business event.
• Consequently, I would decline this hospitality at the Project Team’s expense

Question 5

A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

Answer 5

• Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is
  against Company policy and could be an offence under the UK Bribery Act.
• If this were the first time, it would be OK just to decline and explain that such an invitation is
  inappropriate.
• However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement

Question 6

What is the legislation that governs bribery?

Answer 6

Bribery Act 2010

Question 7

What constitutes of an offence under the Bribery act?

Answer 7

An offence of bribing another person
An offence of being bribed
An offence of bribery of foreign public officials
A corporate offence of failing to prevent bribery

Question 8

What are the obligations of members regarding money gifts?

Answer 8

Declare certain items to my employer such as gifts, hospitality, entertainment, expenses

Question 9

What is a bribe?

Answer 9

• The exchange of something of value in return for someone doing or agreeing to do something improper in a business context

Question 10

What legislation exists in relation to bribery in the UK?

Answer 10

Bribery Act 2010

Question 11

What is the purpose of the current UK legislation on bribery?

Answer 11

Criminalises bribery in the UK, making it a criminal offence to directly or indirectly:

• Offer, promise or give a bribe
• Request, agree to receive or accept a bribe

Question 12

What are the penalties under the current bribery legislation?

Answer 12

A maximum 10 years’ imprisonment and/or an unlimited fine

Question 13

Who does the current bribery legislation affect?

Answer 13

Near-universal jurisdiction, allowing for prosecution of UK individuals or companies doing business overseas, as well as overseas individuals or companies doing business in the UK

Question 14

What standard are judgements under the current bribery legislation based upon?

Answer 14

Judgments are decided based on the ‘reasonable person’ test

Question 15

How can bribes affect surveyors?

Answer 15

Can be vulnerable to bribes because of the role they play in facilitating transactions, checking owners/contractors are complying with legislation and awarding construction contracts

Question 16

Would the offer or acceptance of gifts or hospitality amount to a bribe?

Answer 16

• Could amount to a bribe if they are intended to induce someone to behave in a manner that breaches an expectation that they will act in good faith and impartially
• However, bona fide hospitality and promotion intended to improve the image of an organisation, better present products and services or establish cordial relations is seen as an established and important part of doing business and is not criminalised under the Act

Question 17

What considerations should RICS members have in relation to offering or accepting gifts and hospitality?

Answer 17

RICS members should follow these rules:

1. Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency
2. Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift)
3. Only offer or accept gifts and hospitality that you would be happy for others to know about
4. Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure - e.g. record in company’s gifts and hospitality register
5. Report any concerns about bribery to your employer or to RICS Regulation

Question 18

What procedures should RICS corporate members follow in relation to preventing bribery?

Answer 18

RICS corporate members should follow the 6 principles in preventing bribery practices:

1. Proportionate procedures - procedures should be proportionate to the bribery risks the company faces
2. Top level commitment - zero tolerance to bribery
3. Risk assessment - the company should periodically assess the internal and external risks of bribery
4. Due diligence - systematically investigate employees and business partners (the level of which should be informed by the risk assessment)
5. Communication (including training) - communicate policies, operate confidential whistle-blowing service, provide training
6. Monitor and review - periodically review procedures and make improvements where necessary

Question 19

What would you do if a contractor offers you a gift such as a scale rule with the contractor’s name on it?

Answer 19

Accept it, as it is a bona fide promotion intended to improve the image of an organisation

Question 20

If a contractor wants to buy you lunch on the day of an interim valuation, how would you respond?

Answer 20

Reject the offer, as it may improperly influence your decisions/judgement or give the appearance of doing so

Question 21

A contractor gives you a bottle of champagne at Christmas. Would you accept it?

Answer 21

1. Maybe, however only offer or accept gifts and hospitality that you would be happy for others to know about
2. Question whether the gift is proportionate and reasonable in terms of value and frequency
3. Reject if it may improperly influence your decisions/judgement or give the appearance of doing so

Question 22

A contractor invites you to their Christmas dinner dance - would you go?

Answer 22

1. Maybe, however only offer or accept gifts and hospitality that you would be happy for others to know about
2. Question whether the gift is proportionate and reasonable in terms of value and frequency
3. Reject if it may improperly influence your decisions/judgement or give the appearance of doing so

Question 23

A client invites you to their Christmas dinner dance - would you go?

Answer 23

1. Maybe, however only offer or accept gifts and hospitality that you would be happy for others to know about
2. Question whether the gift is proportionate and reasonable in terms of value and frequency
3. Reject if it may improperly influence your decisions/judgement or give the appearance of doing so

Question 24

If you saw a colleague at the races with a contractor in the VIP area, what would you do?

Answer 24

1. Remind them of the RICS’ rules and procedures on accepting gifts/hospitality
2. Report any concerns about bribery to your employer or to RICS Regulation

Question 25

If you saw one of your team send out an interim valuation that over values the works, what do you do?

Answer 25

1. Talk to them initially and point out the error 2. Suggest the error is corrected before issuing 3. Escalate to a director if the error was purposeful 4. Consider reporting through firm's whistleblowing procedure if necessary

Question 26

You have put in a fee bid to a client. They contact you and say that another practice has quoted a lower fee, but they would like you to do the work. They ask you to reduce your fee to match the other practice. What should you do?

Answer 26

1. Avoid price fixing, aggressive fee cutting or collusion with competitors 2. Original fee quote should have been a reasonable reflection of the works required 3. Reducing costs may mean corners are cut and quality is reduced in order to make a profit 4. Client may be expecting the same next time as well and this will not be sustainable

Question 27

If you were self-employed, would you consider adjusting your PII to carry out a piece of work or decline to do the work?

Answer 27

1. Commercial decision based on the opportunity and risk 2. Never proceed without the sufficient level of PII

Question 28

What are the Main Principles of the Bribery Act?

Answer 28

* The offences are:- o Making a bribe. o Receiving a bribe. o Bribery of a foreign public official. o Failure of a corporate entity to prevent bribery on its behalf. * The legislation applies to all UK Entities and includes associated Persons for example sub-consultants and external advisors. * There are six principles of prevention companies should put in place:- o 1. Proportionate Procedures. o 2. Top Level Commitment. o 3. Risk Assessments. o 4. Due Diligence. o 5. Communication. o 6. Monitoring & Review.

Question 29

Under the Bribery Act, under what circumstance is a facilitation payment permitted?

Answer 29

* The only circumstance in which it is OK to make a facilitation payment is when you are under duress. * For example if there is a real and present risk or danger to "life, limb or liberty". * If you or your companions are under immediate physical threat. * You should put safety first, make the payment and report the matter immediately. * Or as soon as is practicable to your manager or your ethics compliance contact.

Question 30

You are attending a Main Contractor organised business conference where it is announced the you have been randomly selected as the winner of this months prize draw. Its an i-pad air. How would you act in this scenario?

Answer 30

* I would be extremely uncomfortable accepting the prize in this scenario. * The prize is of a significant value and could be interpreted as a bribe. * Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project. * I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice. * I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager.

Question 31

You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?

Answer 31

* In the first instance I would declare this hospitality on my companies’ gifts and hospitality register. * Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out. * Since they won't be present, this will not be a genuine business event. * Consequently, I would decline this hospitality at the Project Team's expense

Question 32

A contractor invites you to lunch to a restaurant and advises they've got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

Answer 32

* Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. * If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. * However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement