UAS Conference Series 2013/14
There’s no such thing as a
free lunch: guarding against
bribery and fraud
Jonathan Silk
Council Secretariat
1 October 2013
14 September 2010
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“You can keep the money...”
“I am a businessman.”
“...and I won’t bother you again.”
1 October 2013
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Bribery & Fraud Risk:
General and specific risk
Opportunities exist generally:
- Influencing of staff involved in the award of contracts
- Agents acting improperly on behalf of the organization
- Requests for facilitation payments when travelling overseas
And more specifically:
- Persons with access to sensitive data being tempted to pass it on
- Payments to arrange for overseas shipping, licences or visas
- Connections between donors and applicants or suppliers
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Bribery & Fraud Risk:
Definition of bribery
Bribery: inducement or reward of improper performance
2010 Bribery Act:
s1. Offering, promising or giving a bribe
s2. Requesting, agreeing or accepting a bribe
s6. Bribery of a foreign public official
s7. Failure to prevent bribery (corporate offence)
s14. Senior officers consenting to or conniving at bribery
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Bribery & Fraud Risk:
Definition of fraud
Double-claiming expenses...
DECEPTION
Misdirecting payments...
Misappropriating stock...
Falsifying results...
MAKING A GAIN
CAUSING A LOSS
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University policies and procedures:
Gifts & Hospitality Policy
Gifts/hospitality connected with or arising from your work
Approval and the Gifts Register:
Gifts or hospitality:
Authorization:
Up to £100 in value
Self
Up to £500 in value
Departmental Administrator
Up to £1,000 in value
Head of Department
Over £1,000 in value
Head of Division
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University policies and procedures:
Why we need to manage the risk
Possible consequences if we do not:
Legal – for the individual(s) involved; for the bodies
involved
Reputational – hard won; quickly undermined
Financial – funding bodies / research income
Freedom – the imposition of controls by outside bodies
Moral and ethical dimensions...
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University policies and procedures
www.admin.ox.ac.uk/councilsec/compliance
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Examples and scenarios:
1. Travel and gifts
The Head of Department is travelling overseas to visit another
institution in the Far East. The purpose is to discuss a joint
venture. He wants to take a gift for his host of a leather-bound
facsimile of a Bodleian text. Its value is likely to be in the region of
£250. Is this acceptable? What do we need to do?
Apply the Gifts & Hospitality standards.
proper purpose – no obligation or intent to influence unduly –
appropriate and proportionate – within all rules and laws
Record the gift in the Gifts Register.
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Examples and scenarios:
1. Travel and gifts
On the same trip, the Dean of the other institution offers in return
a Mont Blanc Meisterstuck Platinum Line fountain pen (value
£350 - £400), plus an all-expenses evening at the horse-racing
on the final night (with any bets paid for). The Head of
Department wants to know what he can accept.
Apply the Gifts & Hospitality standards.
proper purpose – no obligation or intent to influence unduly –
appropriate and proportionate – within all rules and laws
Could part of the offer be accepted, rather than the
whole?
Record the gift in the Gifts Register.
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Examples and scenarios:
2. Facilitation payments
At the immigration desk of Babel International Airport you are
told by the security officer examining your passport that there is
an additional entry fee to pay - $50 in cash, otherwise you
cannot be allowed in. How should you respond?
Is this an official charge or a facilitation payment?
Explain that you cannot pay – contact help if possible.
Being forced to wait is not an excuse...
… duress – an immediate threat to life or limb – is the only
reason a payment may be made.
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Examples and scenarios:
3. Speakers and conferences
Academic staff may frequently receive invites to speak at
conferences or similar events where no fee is paid, but they get
their accommodation and flights paid for by the provider. Bearing in
mind that the majority of these arrangements will exceed £100, how
should they be treated?
Payment in kind, recompense or reimbursement is not a ‘gift’
and should not be treated as such.
Treat as ‘normal’ University business – not under Gifts &
Hospitality Policy.
Beware, however, of disproportionate or inappropriate
arrangements.
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Examples and scenarios:
4. No such thing as a free lunch?
a. ‘Business lunch’ paid for by a recruitment agency.
b. Christmas lunch for personnel staff paid for by a
recruitment agency.
c. Case of wine provided by the successful catering
contract bidder.
d. Tickets for the Wimbledon final offered by
consultants.
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Examples and scenarios:
5. People acting on our behalf
The department engages a group of student volunteers to help with
an open day. It is discovered after the event that an enterprising
group of these volunteers was taking small payments from visitors
to provide an ‘extended, behind-the-scenes’ tour of the department.
Should we be unduly concerned?
Are students covered by the Bribery & Fraud rules?
- yes, when acting in a representative capacity.
Was a bribe paid?
Not just students: anyone who acts in a representative capacity
is covered by the rules.
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Examples and scenarios:
6. Donations and connections
A wealthy alumnus, who has previously given money, has invited
the Head of Department to discuss a further potential donation.
Separately the department has also received an application from a
potential graduate student who shares the same name as the
donor. Is this anything to be concerned about?
Due diligence – check whether there is any connection.
Gifts & Hospitality rules forbid acceptance of gifts from
individuals connected with active applications to the University.
Would it stand up to scrutiny in the media?
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Dealing with bribery or fraud:
Questions, concerns or reports
Queries and concerns:
Tel: (2)70187
[email protected]
Suspicions:
www.admin.ox.ac.uk/councilsec/compliance/briberyfraud/procedures
Report to the Registrar or Director of Finance
[email protected]
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Protect yourself
Protect the University
QUESTIONS
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