Gifts, Hospitality and Conflicts of Interest
Gifts and hospitality
Gifts and hospitality are permitted only when bona fide, proportionate, transparent and not intended to influence a decision. Cash and cash equivalents are almost never acceptable. Public officials require extra care: check local law, the official’s rules and whether a tender or licence decision is pending. Use thresholds, pre-approval and a register.
FCPA and UK Act
The FCPA has an affirmative defence for reasonable, bona fide promotional expenses. The UK Act asks whether the hospitality would amount to improper performance of a relevant function; lavish hospitality can be a bribe. The “adequate procedures” defence depends on controls, not on a policy label.
Conflicts of interest
Identify actual, potential and perceived conflicts. Require declarations, maintain a register, and recuse decision-makers with a personal interest. A conflict is not automatically bribery, but undisclosed interests often facilitate it.
Worked example
A supplier bidding for a contract offers a procurement manager two World Cup tickets. The manager declares the offer. Even so, accepting during a live tender creates a conflict and could be improper performance. The manager should decline and be recused; if the recipient were a public official, the risk would be higher.
Traps
Treating a threshold as a safe harbour. Assuming hospitality cannot be a bribe. Failing to record gifts. Confusing a conflict of interest with proof of bribery; they are related but separate.