Businesses should face strict liability for bribes paid by their employees, the Joint Committee on the Draft Bribery Bill recommended today.

Publishing its report on the draft bill, the committee said that liability for bribes should rest with companies and partnerships unless they can prove they had adequate anti-bribery procedures in place. Such a move would bring the UK into line with other leading jurisdictions, the committee said.

While waving through most of the provisions in the draft bill, the committee expressed concern about its focus on an individual’s negligence, rather than on the collective failure of the company to ensure that adequate anti-bribery procedures were in place.

The committee was satisfied with the main criminal offences proposed in the draft bill, including the offence of bribing a foreign public official, and with the substantial penalties on offer.

Viscount Colville of Culross, chairman of the committee, said: ‘It is essential that businesses compete on a level playing field both at home and abroad. There is no room for bribery, which distorts free competition, undermines society and the rule of law, and worsens the living conditions of the poorest in society.

‘The World Bank estimates that around a trillion dollars’ worth of bribes are paid each year. This adds 10% to the cost of doing business globally and as much as 25% to the cost of procurement contracts in developing countries, where arguably it is most damaging.’