OECD Issues Report On Poland's Progress To Eliminate Corporate Bribes To Foreign Officials

The Organization for Economic Cooperation and Development on Thursday released a recommendation calling for Poland to take action to curb bribery by Polish companies of foreign public officials. The OECD Working Group on Bribery issued the report.

This was a phase two report on what Poland was doing to implement recommendations to combat bribery of foreign public officials in international business transactions.

Bribery of foreign public officials in international business deals is of huge concern globally.

Businesses with headquarters in countries with tough anti-bribery laws complain they are at a disadvantage when competing for markets against companies that do bribe foreign public officials. The resulting loss of business in another country can cost jobs for the company that is not bribing foreign officials to gain market entry into that country.

The OECD Working Group on Bribery was formed to attempt to level the international business playing field for all companies by eliminating bribery to do business.

The report noted that although "the issue of domestic corruption is at the center of public attention in Poland, awareness of the offense of bribery of foreign public officials is generally low among both the public and private sector."

Among the Working Group's recommendations to Poland was to "strengthen its corporate liability laws and close a significant loophole that makes it difficult to prosecute companies that bribe foreign public officials."

Specifically mentioned was re-wording Poland's corporate tax deduction to make it impossible to deduct the cost of bribes of foreign officials.

"With respect to the non-tax deductibility of bribes, the Working Group recommends that Poland amend its legislation to clearly confirm that bribes are not tax deductible," the report stated.

Current Polish law allows company officials to avoid prosecution for bribery if they tell authorities that they have bribed a foreign public official. The OECD Working Group asked Poland to change that law. It also is asking Poland to be more aggressive about investigating and prosecuting bribery cases.

The report noted that so far the Polish government has neither prosecuted nor investigated any foreign bribery cases.

However, it did give credit to Poland for taking several key actions. Specifically it credited Poland with declaring that it intended to address deficiencies in its laws on corporate liability. Among other important actions Poland has already taken was putting "responsive systems" in place to "provide information, evidence and other forms of mutual legal assistance to law enforcement agencies in other countries," the report said.

The Working Group's other key suggestion was to "raise awareness of foreign bribery in both the public and private sector," the report stated.

Poland will submit a written report on its progress in combating bribery to the Working Group in two years.

Source:By Linda Young, allheadlinenews.com,