Business and Governance: New Regulations Empower Entities to Fight Bribery
Strengthening Corporate Governance and Combating Bribery
In a move to strengthen corporate governance and combat bribery, the government has introduced new regulations that require entities to establish procedures for preventing corruption. The Draft Bribery Regulations, 2020 aim to ensure transparency and accountability in business transactions, while also protecting whistle blowers and witnesses.
Key Requirements of the Regulations
- Entities must establish procedures for preventing bribery within six months of publication of guidelines by the relevant authorities.
- Procedures must include:
- A bribery and corruption risk assessment and management plan
- Mechanisms for reporting bribery and protecting whistle blowers and witnesses
Scope of the Regulations
The regulations apply to all entities, including:
- Subsidiaries and branches of foreign companies operating in the country
- Joint ventures
- Franchises
- Entities that operate on virtual platforms
Reporting Bribery Instances
Entities are required to report any knowledge or suspicion of bribery instances to the Commission. The Commission has also established an anonymous reporting system for individuals who wish to report bribery incidents without fear of retaliation.
Confidentiality and Protection
The regulations emphasize the importance of confidentiality in handling reports of bribery, and entities are expected to establish mechanisms for internal and external reporting of bribery by employees or persons associated with them. Additionally, entities must ensure that individuals who report knowledge of or suspicion of bribery in good faith are protected against any form of retaliation, reprisal, or victimization.
Importance of Compliance
The Attorney General, Justice (Rtd.) Paul Kihara Kariuki, CBS, has emphasized the importance of these regulations in preventing corruption and promoting transparency in business transactions. “These regulations are designed to empower entities to take proactive measures to prevent bribery and corruption,” he said. “We expect all entities to comply with these regulations and work together to create a transparent and accountable business environment.”
Effective Date
The Draft Bribery Regulations, 2020 will come into effect once they are published in the gazette, marking an important milestone in the country’s efforts to combat bribery and promote good governance.