Government failure over Foreign Bribery Law

7 March 2005

Government failure over Foreign Bribery Law

Despite Parliament passing a law in 2001, which outlawed the bribing of foreign public officials by New Zealand citizens and businesses, the government has done almost nothing in New Zealand to publicize the legislation, weakening the global fight against corruption, says Transparency International New Zealand (TI-NZ) [See below for background on TI-NZ].

New Zealand businesses have also shown very little progress in making their staff aware of their new legal liabilities regarding offshore bribery. A recent Securities Commission survey of forty companies listed on the New Zealand Stock Exchange found that only sixteen companies had a corporate code of ethics or fostered ethics in the company. TI-NZ also found no effort by the accounting profession to raise awareness about the risks arising from the payment of bribes offshore.

TI-NZ’s report on New Zealand’s fight against offshore bribery has been included in a multi-country report presented last week to the OECD in Paris by the TI Secretariat from Berlin.

Corruption in all its forms is the most serious threat to poverty and good governance, and the outlawing of bribes paid in foreign countries is a crucial weapon in that fight. Bribes paid by New Zealand’s competitors are a serious threat to good governance in the countries in which the bribe is paid, destabilising security and the rule of law and undermining fair competition.

Unless the New Zealand government and the country’s exporters take an active stance in raising awareness of the new law and an obligation to fair dealing in offshore markets, New Zealand will be unable to seriously advocate for an end to the corruption which threatens its trade.

As has become clear in the aftermath of the recent Indian Ocean Tsunami, corruption also poses a major threat to poverty alleviation which is the top priority of New Zealand’s foreign aid agency, NZAID, and threatens stability in NZ's neighbouring countries in the south Pacific.

Notes: Transparency International (TI) is the world’s leading anti-corruption organisation. TI-NZ is the New Zealand chapter of the organisation, and is a fully independent Incorporated Society. TI-NZ’s Mission statement follows. Over 90 countries around the world now have national chapters of TI. The International Secretariat is in Berlin, Germany. (www.transparency.org)

For further information please contact: Shane Cave TI-NZ Executive Officer (04) 905 7928 021 118 2014 Transparency International - New Zealand New Zealand’s Chapter in the Coalition against Corruption

Transparency International is a not-for-profit, non-governmental organisation, to counter corruption in international and national business transactions and government decision making. There are over 80 National Chapters of TI worldwide. The International Secretariat of the organisation is in Berlin.

Mission Statement

TI - NZ will work to :

Promote transparency, good governance and ethical practices in the private and public sectors in New Zealand;

Promote ethical business practices by New Zealand business offshore, and transparency and good governance in our region;

Contribute to the international effort to reduce corruption and promote good governance and ethical business practices.

ENDS

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