Corruption in Mauritius: A Growing Concern
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The Financial Crimes Commission Act 2023 has introduced a new offence that highlights the severity of corruption in the private sector. The act criminalizes bribery and corruption among employees or members of private entities, including companies, foundations, partnerships, and trusts.
New Offence: Bribery and Corruption
Section 32 of the Act criminalizes bribery and corruption among employees or members of private entities. According to the law, any employee or member who solicits, accepts, or obtains a gratification for doing or abstaining from doing an act in their functions or duties can be prosecuted.
Definition of Corruption
A gratification is defined as a gift, reward, discount, premium, or other advantage that is not lawful remuneration. The Act has also expanded the definition of corruption to include criminal liability for office bearers such as directors, shareholders, and company secretaries.
Scenarios Covered by the Law
The law covers a wide range of scenarios, including:
- Employees accepting bribes or kickbacks to favour third parties
- Excessive gifts and hospitality being given to influence decision-making
- Agents and intermediaries receiving excessive fees and commissions
- Collusion between trade union representatives and company management to the detriment of employees’ interests
- Employees soliciting and receiving bribes in exchange for confidential corporate information
Grey Areas
Gifts and hospitality, for example, may be legal but can be used to influence decision-making. This highlights the many grey areas where business practices can be misused.
Corruption in the Private Sector
Corruption in the private sector has long been a taboo subject, with many assuming that it only occurs among public officials. However, the Financial Crimes Commission Act 2023 makes it clear that corruption is a serious offence regardless of whether it occurs in the public or private sector.
Prevention and Compliance
Private entities must take steps to adopt efficient anti-corruption and anti-bribery policies to minimize the risk of prosecution. This includes:
- Educating employees about the importance of ethical behaviour
- Implementing robust internal controls to prevent corrupt practices
Consequences of Corruption
As the law stands, those found guilty of corruption can face fines up to 20 million rupees and penal servitude for up to 10 years. It is essential that private entities take these laws seriously and take proactive steps to prevent corruption from occurring in the first place.
By taking a proactive approach to preventing corruption, private entities can minimize the risk of prosecution and maintain their reputation as ethical and responsible businesses.