All parties in the supply chain are compelled to adhere to Anti-Corruption Legislation
No one in the supply chain is allowed to offer, pay or receive bribes
Most vendor’s require that anyone in the supply chain, including distributors, resellers and third parties, adhere to the following legislation (at a minimum):
United States Foreign Corruption Practices Act(FCPA);
United Kingdom Anti-Bribery Act;
South African Prevention And Combating Of Corrupt Activities Act,2003.
Why?
- Anti-corruption laws govern requirements for companies around bribery and corruption.
- Vendors are compelled by law to comply with this legislation.
- Vendors are obliged to ensure that everybody in the supply chain, including distributors and resellers of their products, adheres to these laws, irrespective of the territory in which their products are sold
What is it?
- Anti-corruption laws prohibit bribery by anyone in the supply chain to solicit a sale.
- Bribery and payments include cash, travel expenses, entertainment, additional side agreements, commissions or even sponsorships or contributions to organisations, etc..
- You cannot ignore what is done by third parties in the supply chain, as you are liable.
- “I did not know” is not an excuse;
- Reasonable gifts or entertainment may be offered; and
- Laws prohibit distributors, resellers and third parties or their agents from selling goods to countries on the banned countries list.
What can happen?
- Loss of distributor agreement;
- Imprisonment; and
- Hefty penalties or fines are imposed on all parties in the supply chain
Next Steps
- Please familiarise yourself with the requirements of anti-corruption legislation; Vendors’ websites carry information or even training programmes.
- Understand the parties with which you are involved.
- Do proper due diligence on third parties before dealing with them.
- Be aware of possible red Flags and trust your instincts; and
- You are required to ensure that your customers/resellers and agents are familiar with the requirements covering anti-corruption and are properly trained on the topic.