New Head of Bribery appointment comes at "crucial time" for SFO, says expert

Barry Vitou of Pinsent Masons, the law firm behind Out-Law.com, said that the appointment of former commercial litigator Ben Morgan to head the SFO's bribery and corruption investigations was another sign that companies "should not be complacent" despite the lack of prosecutions under the Bribery Act to date.

"It should not be forgotten that the Bribery Act came on the statute books with massive hype about the impact to UK corporates and their risk of prosecution," said Vitou, writing on his website thebriberyact.com.

"Two years on and the threats of investigation and prosecution (or otherwise disposing of) a corporate investigated for bribery (and relevant individuals) under the Bribery Act are seen by some as hollow. We do not subscribe to this view – and we advocate strongly that corporates should not be complacent," he said.

Last week the SFO, which is the independent government agency that investigates and prosecutes serious and complex fraud or corruption, made its first charges in relation to offences under the Bribery Act. Three men connected with Sustainable AgroEnergy plc were charged with offences of "making and accepting a financial advantage" under the regime, which came into force on 1 July 2011.

In a statement on its website, the SFO confirmed that Morgan's role was a permanent position. He will direct and bring operational expertise to a number of complex fraud and corruption cases, and will oversee the work of case managers and their teams.

Morgan was seconded to the SFO's Fraud Division in July 2012 from his role in the Business Ethics and Anti-Corruption team at law firm Norton Rose Fulbright. He has worked with businesses across a range of industries including the financial sector, oil and gas, mining, logistics and transport; and has experience in major multi-jurisdictional investigations and compliance issues.

"During my recent secondment here I saw first hand the excellent work that the Director, his management team and the SFO staff are doing," Morgan said. "I am delighted than an opportunity has arisen to be a permanent part of the organisation and look forward to contributing to the important work the office does."

Vitou said that there was still "significant global interest" in the investigation and prosecution of international Bribery Act offences, despite the high profile nature of the SFO's ongoing criminal investigations in relation to alleged manipulation of the London Interbank Offered Rate (LIBOR) benchmark interest rate. Under the Bribery Act, companies with a presence in the UK can generally face prosecution for bribery or failing to prevent bribery regardless of where the alleged activity has taken place.

He added that it was "no exaggeration to say that the world is watching" the outcome of Morgan's appointment.