Corporate Crime Week 4: Corruption

How do you define corruption?

o Misuse of power for personal gain (Can CBT also be a misuse of power? Basically breach of the
trust of assets or money that have been entrusted to you)
o Illegal use of power for personal gain
o Favour for reward; inducement
o Using certain influence or authroity, rather than having direct power
o Typically involves two parties a giver and a taker
o E.g. Bribery, nepotism
o Positive act VS omission (turn a blind eye)
But wouldnt the objective be important?
If he was merely sympathising with the victim, and so did not give a ticket, would this still be
corrupt, and be an abuse of power?
o Intention/objective would be important
o Differentiate between the private sector and the public sector
Public office-centred definitions public officer accepting a favour for private gain
Public interest definition action results in the violation of a public interest whose opinion is that there is a
breach of public interest?
Market-centred definition defined in terms of market definitions, e.g. US businesses are not permitted to go
overseas to bribe officials, but they are permitted to pay facilitation payments (in order for the official to
speed up the process, be more efficient, facilitate the process)
Singapore position our businesses can go overseas, faced with the same problems in a number of
countries, e.g. Vietnam, Thailand, Indonesia
o If you dont make facilitation payments, particularly in large projects, then it will result in great
inefficiency (such may be regarded as an exchange of goodwill in China, to reflect a close
relationship)
Judicial attempts at definition
o Khoo Yong Hak v PP [1995]: Doing an act knowing it is wrong or doing it with evil intentions or
feelings.
o Chan Wing Seng v PP [1997]: the word corrupt connotes the inducement of a party to act
dishonestly or unfaithfully
Corruption: 2-stage test
o There should be a nexus between what you have done and the reward which you received
o Corrupt element: an objective assessment based on the intent of the giver or recipient as shown by
all the circumstances of the case (Ng Boon Gay intimate relationship negated corrupt element;
Prof Tey?)
There was no nexus in Ng Boon Gay as the relationship had been going on for very long
there was no nexus between the intimacy and the giving of good grades (reward)
The transaction is objectively corrupt according to the standard of the reasonable man
o Guilty knowledge: subjective knowledge whether he knew what he did was corrupt by the ordinary
and subjective standard
Corrupt intent: The accused subjectively had corrupt purpose in mind and had guilty
knowledge
Factors to be considered:
o Whether any rules were breached and the purpose of such rules
o Whether justice was perverted
o Whether the transaction was carried out in secrecy
o Whether there was a pre-existing relationship between the parties
None of these factors is conclusive, so each case must be evaluated on its facts
Sentencing Aggravating Factors
o Large amount involved
o Public servant
o Position of trust
o Multiple offences
o Offences committed over lengthy period
o Serious consequences (e.g. perversion/obstruction of justice, compromise of safety etc)
Where giver is less culpable than receiver
Concepts & definitions
o Normative definitions of political and social scientists
o Legal definitions of lawyers and judges

Do cultural differences matter?

Business and commercial corruption
Gift (guanxi) or bribe?
What makes the gift a bribe?
Sense of proportionality
What are you up to that raises questions of motivation?
After the Act was passed, there was no longer such a thing as a defence of custom
Private sector corruption
o Zero tolerance to corruption extends to private sector corruption
o Public interest is also involved in keeping the private sector clean increasingly, the public sector is
farming out work to the private sector; a lot of work traditionally done by the public sector are now
done by the public sector
E.g. Garbage collectors used to be public servants, the companies have now been
privatised
If you allow this to continue, it would be a reward for work done which is supposed to be
done
If this is allowed to continue, it would result in a difference in the quality of work done by the
garbage collectors
o PP v Ang Seng Thor [2011]
Cost of corruption?
o US $1 trillion paid in bribes each year
o Embezzlement by corrupt leaders
o Affects national income
o Tax on the poor
o Breeds inequality
The poorer you are, the more difficult it is going to be for you
o Failure of justice
Singapore legislation
o Penal Code, Cap 244, deals with bribery by public servants
o The Prevention of Corruption Act, Cap 241 is the principal legislation governing corrupt acts in both
public and private sectors
o The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation and Benefits) Act, Cap
65A
The Penal Code Provisions
o s 161 Public servant taking a gratification in respect of an official act
o s 162 Takng a gratification in order by corrupt means
o s 163
o s 165
s 161 (explanatory): definition of gratification
PCA s 5 (general corruption), s 6 (corrupt transactions with agents), s 8
CDSA s 5 permits the court to make a confiscation order in respect of the benefits derived from his
criminal conduct
PCA s 13 a court is obliged to impose a penalty, in addition to the punishment, of a sum equivalent to the
gratification received
Global perception of bribery
o Transparency Internationals Corruption Index in 2014 listed Singapore as the 7 th least corrupt
country in the world among 177 countries and territories
Used to be number 5 in the past few years
o Singapore was in 2011 also listed (8th place) in the Bribe Payers Index amongst 28 of the worlds
largest economies with companies likely to pay a bribe abroad
How was this possible?
o A migrant multi-racial population with roots in corrupt countries and practices
o Ineffective opposition
o Absence of enlightened press given to investigative journalism
o Absence of civil societies championing need for government checks and balances
o Corruption prior to the 60s
Rampant corruption within Police and public service
Calls were made in the Legislative Assembly for an independent anti-corruption agency
Corrupt Practices Investigations Bureau set up in 1992
PAP elected into office in 1959
o
o
o

Why are some countries among the least corrupt? E.g. Denmark (1), New Zealand (2), Finland (3), Sweden
(4), Norway (5), Switzerland (5)
o Lessons from Singapore?
Quality of political leadership
Tone has to be set by the political leaders
Lee Kuan Yew: The moment key leaders are less than corruptible, less than stern
in demanding high standardsm from that moment
Lee Hsien Loong: Anyone who breaks the rules will be caught and punished. No
cover ups will be allowed, no matter how senior the officer or how embarrassing it
may be.
All are equal before the law
o 2 cabinet ministers dismissed
o 2 cabinet ministers prosecuted (1956, 1986)
o Senior officers prosecuted
CAD chief, SCDF head, CNBchief
Public Utilities Board Deputy Chief ($14m)
o NUS Law professor
Favourable political and socio-economic environment
Literacy of the population
Public knowledge and willingness to engage in exposure of such acts, e.g.
whistleblowing
Bureaucratic efficiency
Administrative checks and measures to reduce opportunities for corruption
Adequate anti-corruption laws
Independent and efficient CPIB
Supportive criminal justice system
Continuous awareness programme
Is it legal/ethical for banks/law firm directors/people wielding high positions in these companies to give their
children a job in the bank/firm? Is this corruption?
Research questions:
o Why are some countries more corrupt than others?
o What anti-corruption measures work?
o Is the political system important in curbing corrupt conduct?
o Are global efforts sufficient?
o How can we ensure integrity?
PCA
o Both the giver and taker of a bribe is punishmed
o Extraterritorial application of the Act to Singapore citizens
o Wide definition of
o Presumption clause ensures civil service is absolutely clean
o If there is a trial, property disproportionate to income is a factor to be taken into account
o Enhanced penalties for corruption in relation to a government contract or public contract
o Penalty can be ordered on top of punishment
Preventive guidelines woven into the system rules or guidelines woven into the manual
Public offiers declare assets anually
Public officers ought not to borrow money from anyone who has official dealings with them, engage in any
employment or trade without approval
PS21 movement seeks continual improvement in public service delivery
CIPB
o Investigation allegations of corruption relate to ones principle affairs, corrupt acts affecting society
at large and any other offences uncovered in the course of investigations
Makes recommendations to AGC and refers cases of government employees to the relevant
auhtorities
o Conducts prevention and outreach programmes and systemic reviews
May recommend the debarment of companies and persons