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ACI’s 2nd Singapore Summit on Anti-Corruption Compliance and Risk Management

FOCUS on Risks in the PHILIPPINES – How to Operate and Ensure

Compliance in a Country with a Strict No Gift Policy

December 3 – 4, 2013

Chrysilla Carissa P. Bautista

Partner

Angara Abello Concepcion Regala & Cruz Law Offices

Josephine Hadikusumo

Legal Counsel

Texas Instruments (USA)

Tweeting about this conference?

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Anti-Corruption Reforms

•Reorganization of the Bureau of Customs

• Lobby for the passage of the Customs Modernization Bill

•Prosecution of government officials allegedly involved in “pork barrel” scam

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Relevant laws

• Pres. Decree No. 46 – prohibition against giving and receiving any gift, present or other valuable thing on any occasion, including Christmas

• 1 – 5 years imprisonment

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Relevant laws • Rep. Act No. 3019 – prohibition against

directly or indirectly requesting or receiving any gift (a) in connection with any contract or transaction between the Government and any other party, wherein the public officer in his official capacity has to intervene under the law; (b) in consideration for the help given or to be given by the public officer in obtaining the Government permit or license • 6 years 1 day – 15 years imprisonment

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Relevant laws • Rep. Act No. 6713 – prohibition against

solicitation or acceptance of any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of the public official’s office

• 6 years 1 day – 15 years imprisonment

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Relevant laws

• Revised Penal Code – penalizes direct bribery, indirect bribery, qualified bribery and corruption of public officials • Direct bribery – 2 years 4 months 1 day –

12 years • Indirect bribery – 2 years 4 months 1 day –

6 years • Qualified bribery – 20 years 1 day - death • Corruption of public officials – same

penalty imposed on public official

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Criminal liability

•Corporations – generally, do not incur criminal liability

•Private individuals – incur criminal liability

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Internal screening process

• Implement a clear and straightforward policy

•Define terms

•Determine threshold amounts

•Prohibited v. Allowable Gifts

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Internal screening process

• Factors to consider

• Is it within the scope of socially accepted norms with due regard to place, details, amount and frequency and timing?

• Is it of de minimis or moderate value? How many will benefit if the value is split or shared pro rata?

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Internal screening process

•Distinguish between gifts to public officials and business partners

•Approval (pre-expense or post-expense)

•Reportorial requirements

• Information/Education campaign

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Practical advice

•Build and strengthen corporate image/ reputation

•Cultural factors

•Amount, timing, purpose

• Form of de minimis gift

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Dealing with government agencies

• Inform them of your policy

• FCPA compliance is taken seriously