*EPF507 06/29/01
Text: Assistant Secretary Wayne on New Anti-Bribery Reports
(Says OECD Convention Chief Weapon for Combating Bribery)(1600)
Assistant Secretary of State for Economic and Business Affairs E. Anthony Wayne says the Organization for Economic Cooperation and Development (OECD) anti-bribery convention remains the main weapon for combating the bribery of foreign officials by businesses in order to gain commercial advantage.
"This is sometimes referred to as the 'supply side' of bribery," Wayne said June 29. He spoke at a Washington press conference marking the release of two annual reports on the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. They are the Commerce Department's report to Congress on the implementation of the OECD anti-bribery convention and related issues, entitled "Addressing the Challenges of International Bribery and Fair Competition, 2001," and the State Department report "Battling International Bribery, 2001."
The OECD convention entered into force in February 1999 and now 33 of the 34 signatories have ratified the agreement. "This record represents significant progress in our fight against corruption," Wayne said. Nonetheless, the test of the convention will be its enforcement. The next phase of the Convention's monitoring will include an examination by the OECD Working Group on Bribery of the enforcement structures and practices of the parties, he said.
"We are disturbed by continuing reports of alleged bribery of foreign public officials by firms based in countries in which legislation implementing the Convention is in force," he said.
Following is the text of Wayne's remarks as prepared for delivery:
(begin text)
ASSISTANT SECRETARY FOR ECONOMIC AND BUSINESS AFFAIRS E. ANTHONY WAYNE
STATEMENT ON THE RELEASE TO CONGRESS OF THE STATE DEPARTMENT'S THIRD ANNUAL REPORT ON IMPLEMENTATION OF THE OECD ANTI-BRIBERY CONVENTION
JUNE 29, 2001
Deputy Assistant Secretary Stephen Jacobs of the Commerce Department and I are here today to brief you on our Departments' respective third annual reports to the Congress on the implementation of the OECD Anti-Bribery Convention. I will address the importance of the OECD Convention in the context of the Administration's global anti-corruption strategy and the status of ratification of the Convention by the 34 signatories. Steve will go into more detail on the relationship of the corruption issue to our international trade interests and on other issues covered in the Commerce Department report.
The State Department's report, Battling International Bribery 2001, has been presented to the Senate Foreign Relations Committee and the Speaker of the House in response to the Senate's 1998 resolution of advice and consent to ratification of the Convention.
International bribery is a pernicious practice that affects us all. President Bush clearly enunciated the problem in a message sent in May 2001 to the Second Global Forum on Fighting Corruption, which was held in The Hague. The President stated:
"The corruption of governmental institutions threatens the common aspirations of all honest members of the international community. It threatens our common interests in promoting political and economic stability, upholding core democratic values, ending the reign of dictators, and creating a level playing field for lawful business activities."
International bribery results in tens of billions of dollars in lost exports for American companies and others that play by the rules and seek to win contracts through fair competition. But we are concerned about more than just the commercial losses. Bribery of government officials and other forms of corruption undermine good governance.
The concept of good governance refers to the responsibility of public officials to perform their duties responsibly, efficiently, honestly, and transparently for the public good. Corruption not only impedes governments in their efforts to deliver basic services to their citizens. It also weakens the confidence of people in democracy and is often linked with trans-border criminal activity, including drug trafficking, organized crime, and money laundering. This is an issue on which there is growing international consensus among developed and developing countries alike.
The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions is our principal weapon for combating a particularly damaging form of corruption, the payment of bribes to foreign officials by businesses in order to gain commercial advantage. This is sometimes referred to as the "supply side" of bribery. The Convention represents a milestone in the battle against corruption in international business transactions, a campaign in which the United States has played a leading role for more than two decades.
The Convention entered into force in February 1999, when it had been ratified by 12 signatories, including the United States. It has been signed by the 30 member states of the Organization for Economic Cooperation and Development (OECD) plus Argentina, Brazil, Bulgaria, and Chile. Now less than two and a half years later, I am happy to report that 33 of the 34 signatories of the Convention have deposited instruments of ratification with the OECD. New Zealand, the 33rd only did so this week, too late to be reflected in our report. Thirty of the 34 countries have legislation in place to implement the Convention. We are hopeful that all of the signatories will complete the process of ratification and implementation of the Convention by the end of this year.
This record represents significant progress in our fight against corruption. As in the case of any international agreement, however, the real test of the OECD Anti-Bribery Convention will be its enforcement. This year's report to the Congress again provides the U.S. government's analysis of the implementing legislation of the Parties to the Convention. As of April this year, the OECD Working Group on Bribery had reviewed the laws of 27 countries in addition to the United States. The OECD review process is rigorous. Both in the OECD and bilaterally we have expressed concerns that several countries' legislation may be inadequate to meet all commitments under the Convention. As a result, several countries, including Japan, have taken legislative action to address at least some of the weaknesses that have been identified. Others, we hope, will do so without delay.
The next phase of monitoring of the Convention will be an examination by the OECD Working Group on Bribery of the enforcement structures and practices of the parties. The OECD enforcement review, scheduled to begin later this year, should provide a further opportunity to evaluate the seriousness with which the participating countries take their obligations.
We are disturbed by continuing reports of alleged bribery of foreign public officials by firms based in countries in which legislation implementing the Convention is in force. In view of this situation, we will increase our efforts to point out to other governments the importance of moving ahead promptly with vigorous enforcement of the Convention.
The OECD Convention represents a key element in our broad strategy to combat international corruption. In a variety of fora, we have sought to encourage and assist other countries to establish or improve their institutional capabilities to implement comprehensive anti-corruption regimes.
For example, the United States hosted the first of a series of Global Forums on Fighting Corruption in Washington, D.C. in February 1999. The Second Global Forum, held in the Netherlands in May of this year, was also co-sponsored by the United States and was attended by more than 1600 senior-level government officials and private sector representatives from 143 countries.
These meetings have placed a strong emphasis on defining and implementing comprehensive principles and practices to combat corruption in the public service. By promoting transparency, accountability, and integrity in public institutions, the Global Forums address the "demand" side of corruption, in other words, those who are demanding bribes for international contracts, as distinct from those who offer them.
In our own hemisphere, the United States and over 20 other nations have ratified the Inter-American Convention Against Corruption, which was negotiated under the auspices of the Organization of American States in 1996. With strong U.S. support, the parties have recently agreed upon a mechanism to promote implementation of the Inter-American Convention.
Another important element of our strategy is to reach out to American companies and business associations to make them better aware of the international anti-corruption environment. In May 2001, the Department of State, in cooperation with the Commerce and Justice Departments, published a new edition of our brochure titled Fighting Global Corruption: Business Risk Management. This booklet contains information about the benefits of strong corporate anti-bribery policies and gives guidance to businesses on the requirements of U.S. law and the OECD Convention.
I hope that this gives you a good idea of the scope and breadth of our anti-corruption programs. I think that Secretary Powell said it best:
"Since the enactment of the Foreign Corrupt Practices Act of 1977, the United States has provided indispensable leadership so that business enterprise can compete fairly in the global economy. Today, rule of law and anticorruption initiatives are key foreign policy elements that promote integrity and confidence in both government institutions and in the global marketplace."
While the OECD Convention and other initiatives are having a positive effect, corruption in international commerce is far from being eliminated. All of us, government officials, business executives and citizens alike, must continue to strengthen our efforts to stamp out this international evil.
Finally, I want to express my appreciation to our colleagues at the Departments of Commerce, Justice and Treasury, the Office of the United States Trade Representative, and the staff of the United States Securities and Exchange Commission for their close collaboration in the preparation of these annual reports to the Congress.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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