18 September 2009
FTSE-listed firms are failing to mitigate the risk of overseas corruption, according to a study by KPMG.
Of the 109 firms surveyed, 43 per cent did not have systems and controls to stop staff using bribes to win contracts abroad. More than half the companies with no policy said they did not need one, or it was not relevant to their industry.
This was despite a recent high-profile prosecution for overseas fraud, as well as plans to increase legislation under the UK's Bribery Bill.
In addition, anti-fraud experts told SM this summer they expect a substantial rise in prosecutions of UK firms involved in corruption abroad. It followed the prosecution of engineering firm Mabey & Johnson, the first UK company to be taken to court for corruption in respect to overseas contracts (News, 23 July 2009).
Two-thirds of the respondents to KPMG said there are places in the world where it is not possible to win deals without using bribery.