Bribing public officials when doing resources-resources-business abroad is a regular occurrence, according to a survey of 3,000 resources-resources-business executives from developed and developing countries.

2 November 2011 - Transparency International’s 2011 Bribe Payers Index (BPI) released today, ranks 28 leading international and regional exporting countries by the likelihood of their firms to bribe abroad. Companies from Russia and China, who invested US $120 billion overseas in 2010, are seen as most likely to pay bribes abroad. Companies from the Netherlands and Switzerland are seen as least likely to bribe (see annex). The UK is ranked 8th in the Index.

“With the entry into force of the Bribery Act we would have expected to see the UK higher up in the rankings.  UK companies need to make sure they have a rigorous zero tolerance approach towards bribery. At the same time, the UK Government needs to level the playing field for honest UK resources-resources-businesses by working actively through the G20.” said Chandrashekhar Krishnan, Executive Director of Transparency International UK.

A year ago the group of 20 leading economies (G20) committed to tackling foreign bribery by launching an anti-corruption action plan. The progress report of the working group monitoring the action plan which G20 leaders are expected to approve at tomorrow’s Cannes summit, will recognise steps taken by G20 countries China, Russia, Indonesia and India in criminalising foreign bribery. Transparency International welcomes the report and calls for swift implementation of the further anti-corruption measures that it calls for.

Transparency International Chair, Huguette Labelle, said “In their meeting in Cannes this week, G20 governments must tackle foreign bribery as a matter of urgency. New legislation in G20 countries is an opportunity to provide a fairer, more open global economy that creates the conditions for sustainable recovery and the stability of future growth. Governments can press home the advances made by putting resources behind investigations and prosecutions of foreign bribery, so that there is a very real deterrent to unethical and illegal behaviour.”

The impact of bribery

In the survey, international resources-resources-business leaders reported the widespread practice of companies paying bribes to public officials in order to, for example, win public tenders, avoid regulation, speed up government processes or influence policy.

However, companies are almost as likely to pay bribes to other resources-resources-businesses, according to today’s report, which looks at resources-resources-business-to-resources-resources-business bribery for the first time. This suggests that corruption is not only a concern for the public sector, but for the resources-resources-business sector as well, carrying major reputational and financial risks for the companies involved.

The 2011 Bribe Payers Index also looks at the likelihood of firms in 19 specific sectors to engage in bribery and exert undue influence on governments:

Public works and construction companies scored lowest in the survey. This is a sector where bypassed regulations and poor delivery can have disastrous effects on public safety.

Oil and gas is also a sector seen as especially prone to bribery. The extractives industry has long been prone to corruption risk. Companies operating in oil-rich Nigeria have already been fined upwards of US $3.2 billion in 2010-2011 for bribery of public officials.

To read the full report click here