ANTI-BRIBERY AND CORRUPTION Masterclass

Introducing the global scope and consequences of bribery and corruption, laying the foundation for understanding the importance of ethical leadership and international cooperation.

• The global impact of bribery and corruption on economies, societies, and public service delivery.
• The actual cost of corruption – The Zondo Commission and State Capture
• International trends
• Legal definitions of bribery and corruption
• Money laundering – a consequence of concealing illicit funds, kickbacks, bribery, and corruption.

• Overview of South African and international legislation:
  • Foreign Corrupt Practices Act, 1977
  • Prevention and Combating of Corrupt Activities Act, 2004 (PRECCA)
  • Financial Intelligence Centre Act, 2001
  • United Kingdom Bribery Act, 2010
  • Financial Action Task Force (FATF) guidelines
• Reporting duties under PRECCA and the FIC Act
• Penalties for non-compliance

Identifying sectors, activities, and regions most vulnerable to bribery and corruption, helping participants recognise where enhanced controls are required.

• High-risk industries and activities
  • Public Procurement: Bribery, bid rigging, collusion, and embezzlement.
  • Healthcare: Bribery, overpricing, and fraud.
  • Finance and Banking: Money laundering, tax evasion, and fraud.
  • Mining and Extractives: Bribery for licences, environmental violations, and illicit payments.
  • Defence and Security: Procurement fraud and bribery in arms deals.
  • Energy and Utilities: Monopolistic structures, regulatory capture, and opaque contracts.
  • Construction and Infrastructure: Kickbacks, inflated billing, and favouritism.
  • Sports and Entertainment: Match-fixing, sponsorship deals, and event hosting.
  • Interactions with Government Officials: Bribery in exchange for favourable decisions or access.
  • Obtaining Licences and Permits: Bribes to expedite or secure regulatory approvals.

Principles and practices of a risk-based approach, emphasising proportionality, prioritisation, and evidence-based decision-making.

• Purpose of a risk-based approach:
  • Alignment with international standards (FATF, OECD, International organisation for Standardisation (ISO))
  • Compliance with legal requirements (UK Bribery Act, FCPA, PRECCA)
  • Enhancement of corporate governance and ethical culture
  • Demonstration of a proactive and defensible compliance posture
• Best practices:
  • Proportionality
  • Prioritisation
  • Dynamic Risk Assessment
  • Tailored Controls
  • Evidence-Based Decision Making
  • Risk assessments and risk registers

Key roles and responsibilities across the organisation in implementing and sustaining an effective ABC programme.

• Board of Directors – Provides strategic oversight and ensures that anti-bribery and corruption risks are addressed at the highest level.
• Senior Management – Sets the ethical tone, allocates resources, and leads the implementation of ABC policies and procedures.
• Internal Audit / Combined Assurance – Evaluates the effectiveness of internal controls and ensures that ABC risks are adequately monitored and reported.
• Governance, Risk and Compliance (GRC) – Develops and enforces compliance frameworks, conducts risk assessments, and monitors adherence to ABC standards.
• Company Secretariat – Supports governance processes, ensures regulatory filings, and facilitates communication between the board and management.
• Legal – Provides legal advice, ensures compliance with applicable laws, and manages investigations and reporting of suspected violations.

The core components of a comprehensive anti-bribery and corruption programme, from governance to monitoring.

• Governance and Leadership - Clear roles and responsibilities, strong tone from the top (executive and board-level support), integration with corporate strategy and culture.
• Risk Identification - Systematic identification of internal and external risks, use of tools like SWOT analysis, risk registers, and scenario planning.
• Risk Assessment and Prioritisation. Prioritisation - Evaluation of risks based on likelihood and impact, use of qualitative and quantitative methods (e.g., heat maps, risk matrices).
• Risk Mitigation and Controls - Develop action plans to reduce or eliminate risks and implement internal controls, policies, and procedures.
• Monitoring and Reporting - Continuous tracking of risk indicators, control effectiveness, and regular reporting to stakeholders and leadership.
• Communication and Training - Ongoing education for staff on risk awareness and responsibilities, and clear communication channels for reporting and escalation.
• Compliance and Legal Considerations - Alignment with laws, regulations, and industry standards, as well as regular audits and compliance checks.
• Technology and Tools - Use of risk management software and data analytics, as well as automation of risk tracking and reporting where possible.
• Incident Response and Recovery - Crisis management, post-incident reviews and lessons learned.
• Continuous Improvement - Regular reviews and updates to the risk management framework, feedback loops and benchmarking against best practices.