Corruption and the law

Barefaced

Dec 19th 2006

From The Economist print edition

Bribes are bad for both givers and takers. No definition of “national interest” can change that

THE practice of slipping baksheesh into a well-placed palm is not a novel one. “He...that shaketh his hands from holding of bribes...he shall dwell on high,” said the prophet Isaiah, and he was doubtless not the first to comment on the matter. Yet the announcement on December 14th that Britain's Serious Fraud Office (SFO) would be dropping its two-year inquiry into bribes that may or may not have been paid by BAE Systems, a defence firm, to secure contracts in Saudi Arabia has created an almighty stink (see article).

The OECD anti-bribery convention ratified in 1998, and a domestic law passed in 2001, require Britain to investigate allegations of backhanders paid abroad. The decision to halt this investigation was reached only after balancing the need to uphold the rule of law with the “wider public interest”, the official version goes. The attorney-general, Britain's top law-enforcement official and a political appointee, was careful to stress that national security—principally, Saudi Arabia's help in the fight against al-Qaeda—was at stake . But Tony Blair, en route to the Middle East to try to broker a deal in Palestine, let other cats out of the bag . The prime minister spoke of the “thousands of jobs” that hung on the contracts as well as of “ill feeling between us and a key partner and ally”.

Although BAE denies any wrongdoing , such arguments will resonate with countries that are trying to head for the moral high ground while hanging on to the jobs and diplomatic influence that they think such exports give. In much of the globe it is impossible to do business without paying backhanders, from Mexico's “refrescos” to North Africa's “petits cadeaux” (see article). And the arms industry is especially prone to wielding the brown envelope.

Those who argue that it is sometimes necessary to connive in a culture of corruption for the greater good tend to rely on three arguments. First, everyone else does it. Second, defence deals, in particular, help to secure influence and alliances. Third, valuable jobs at home depend on selling abroad.

Yet none of the three is compelling . Bribery has begun to dwindle since the OECD convention, says Transparency International, a pressure group. Even France, Britain's nemesis in the arms trade, brought 11 prosecutions for bribery in the 18 months to last June (11 more than Britain, incidentally). Nor is it clear that flogging hardware is a requirement for securing Saudi co-operation in security matters. If the kingdom has stepped up the good fight against fundamentalist terrorism in the past few years, as intelligence sources say it has, that is mostly because it is in its own interests to do so.

Counting the cost

The last claim—that big export contracts create jobs— contains an element of truth . But jobs are not worth having at any price, and here the cost is considerable. People in countries where backhanders are a way of life see resources squandered and become disillusioned with public institutions. In developed countries, people may come to think that there is one rule for big firms doing big deals with big oil-rich countries and another for everyone else. As for those protected jobs, bribes distort the market by adding to the cost of a product without adding to its value. Over time an industry that has to pay people to buy its wares usually becomes less competitive.

In principle, rare occasions could arise when the interests of national security really do justify a government's decision to overrule an inquiry into corruption. But that does not seem to apply in this case . And even if it did, it is not enough for the government of the day just to say, “Trust us.” At the very least, such decisions should be subject to review by an independent judge, not made by a member of that government.

The ditching of the SFO inquiry will feed the cynicism already widespread in Britain. Mr Blair is having trouble with a separate corruption inquiry, into his party's finances (see article). It would be a shame if that investigation suffered the same fate as the one into corporate bribery.

 

barefaced[only before noun]

used to describe a remark or action that is clearly untrue or unpleasant, and that shows that you do not care about offending someone

ￚ synonym blatant

Why are you telling such barefaced lies ?

 

Baksheesh / ˌbækˈ ʆ i ː ʆ / [uncountable]

money that people in the Middle East give to poor people, to someone who has helped them, or as a bribe

 

 

stink

2

cause/kick up/make etc a stink

to complain very strongly

Activists have raised a stink about the shipments of nuclear waste.

 

 

Almighty

3

almighty din/crash/row

British English old-fashioned informal a very loud noise, argument etc

There was an almighty bang and the car came to a halt.

 

Backhander

2

British English informal money that you pay illegally and secretly to get something done

ￚ synonym bribe

Investigators estimate that £35m had been spent on bribes and backhanders.

 

 

En route / ˌ ɒ n ˈru ː t $ ˌ ɑ ː n- /v

on the way

en route from/to

a flight en route from Tokyo to Sydney

en route for

British English

We stayed there en route for London.

Why don't we stop for lunch en route?

 

broker a deal/settlement/treaty etc

to arrange the details of a deal etc so that everyone can agree to it

a ceasefire agreement brokered by the UN

 

 

2

let the cat out of the bag

to tell someone a secret, especially without intending to

 

wield

[transitive]

1

wield power/influence/authority etc

to have a lot of power or influence, and to use it

The Church wields immense power in Ireland.

 

 

Connive / k ə ˈ na ɪ v / [intransitive]

1

to not try to stop something wrong from happening

connive at

He would not be the first politician to connive at a shady business deal.

2

connive (with somebody) to do something

to work secretly with someone to achieve something, especially something wrong

ￚ synonym conspire

They connived with their mother to deceive me.

 

ￚ connivance noun [uncountable]

We could not have escaped without the connivance of the guards.

 

 

Compelling

1

compelling reason/argument/case etc

an argument etc that makes you feel certain that something is true or that you must do something about it

Lucy had no compelling reason to go into town.

The court was presented with compelling evidence that she'd murdered her husband.

3

compelling need/desire/urge (to do something)

a strong need, desire etc to do something, making you feel that you must do it

He felt a compelling need to tell someone about his idea.

 

nemesis[singular]

1

an opponent or enemy that is likely to be impossible for you to defeat, or a situation that is likely to be impossible for you to deal with

meet/face your nemesis

In the final he will meet his old nemesis, Pete Sampras.

 

flogging[countable]

a punishment in which someone is severely beaten with a whip or stick

 

squander [transitive]

to carelessly waste money, time, opportunities etc

The home team squandered a number of chances in the first half.

squander something on something

They squandered the profits on expensive cars.

 

 

Disillusioned

disappointed because you have lost your belief that someone is good, or that an idea is right

ￚ synonym disenchanted

disillusioned by/with

As she grew older, Laura became increasingly disillusioned with politics.

 

 

Ditch

1

[transitive] informal to stop having something because you no longer want it

The government has ditched plans to privatise the prison.

 

 

Feed

8

▶ INCREASE EMOTION ◀

[transitive] to increase the strength of an emotion, desire etc

Her depression grew, fed by her bitter experiences.

9

feed an addiction/need etc

to satisfy a strong need, such as a need for a drug

He committed both crimes to feed his addiction to heroin.