Companies linked to bribery offenders barred from public sector contract bidding in Scotland from May

The Scottish Government said that the Public Contracts (Scotland) Regulations 2006 and Utilities Contracts (Scotland) Regulations 2006 were being amended so that those convicted of new offences created by the Bribery Act and the Criminal Justice and Licensing (Scotland) Act 2010 would be unable to bid for the contracts.

The current legislation already barred those who are found guilty of corruption from bidding for public sector contracts. The Scottish Government had previously consulted on updating the legislation in December.

"The new regulations determine that public bodies and utilities exclude potential tenderers from the procurement process if they know that the business or its directors or any other person who has powers of representation, decision or control over it, has been convicted of any of these offences," a statement from the Scottish Government said. 

"The introduction of these new regulations is a further sign that we don't want crooks and gangsters getting their hands on public sector contracts and cash," Scottish Justice Secretary Kenny MacAskill said.

The Bribery Act came into force in the UK in July last year and created new obligations for companies to have anti-corruption policies in place as well as the new offence of bribing a foreign public official – even if that person has demanded a bribe.

Under the Act companies can also be made responsible for bribery carried out by its employees without its knowledge or consent. It creates a new offence of failure to prevent bribery by people working for or on behalf of a business, but companies can escape liability if they show that they have 'adequate procedures' designed to prevent bribery in place.

A company could also be liable for the actions of associated people, which the Bribery Act lists as including recruitment firms, commercial agents, partners, consultants and subcontractors.

Under section two of the Act it is an offence if a person requests, agrees to receive, or accepts an advantage, financial or otherwise, with the intention that they or someone else perform a "relevant function or activity" improperly. Under the Act, the maximum penalty for individuals found guilty of bribery is 10 years' imprisonment and an unlimited fine. The Act came into force on 1 July. 

So far there has been only one person convicted of an offence under the Bribery Act. Munir Patel, a former magistrates' court administrative officer, was sentenced to six years in jail for bribery offences and misconduct in public office. Patel admitted accepting a £500 bribe to "get rid of a speeding charge" and pled guilty to an offence under section two of the Bribery Act in October last year.

The prosecution against Patel was brought by the Crown Prosecution Service. The lead agency for investigating serious fraud and corruption under the Bribery Act – the Serious Fraud Office (SFO) – has said it is working towards bringing court action for offences under the Act but that it is not interested in bringing cases where the subject is considered "low hanging fruit".

The Criminal Justice and Licensing (Scotland) Act 2010 introduced new offences relating to involvement in serious organised crime and directing serious organised crime.