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Building an Effective Anti-Bribery and Corruption Framework Page 07_Layout 1 7/27/2019 4:42 PM Page 7 Editor-in- Founding Chief Director PBA Srinivasan Shyam Grover contents Group Business Head 20 INSIGHT Akshay Alagh | 98993 32111 expert International Consultants Data Governance Best Practices: How to USA Oversee Your Content speak Lokanath Mohapatra What is good data governance? It is ensuring the quality, availability, Dr. Rajeev Mehta security, and usability of data within an organization. The MDM Institute UK defines data governance as “the formal orchestration of people, K. S. Sreekumar processes, and technology, to enable an organization to leverage data Assistant Editors as an enterprise asset.” Have an interesting read through. Rajesh Srivastava Rahul Vaid* 40 SPECIAL 17 Editor (Features) Provakil – The New Headliners for LegalTech! Vineeta Jerath As technology unleashes its whip and hits hard the innovation SUMIT MAKHIJA Senior Manager – Brand Innovation benchmarks for the legal industry, Lex Witness brings into the limelight Partner, Deloitte India Bhupinder Kaur | 96541 55065 one of the major path-breaking entrepreneurial showcases that have Neelima Maheshwari | 88008 41600 whispered several vows in the industry recently. Watch out for Provakil if you have not as yet. Here’s a brief write up on them and their Circulation & Subscription counsel Sunil S Chauhan | 98712 76447 clapping achievements so far. corner Art & Creative 64 VINTAGE LANE Vipin Rai Admin. and Finance Dr. Saifuddin Kitchlew - Lawyer, Freedom Sunil Kumar Fighter & the Real Hero of Jallianwala Bagh Saifuddin Kitchlew was an Indian freedom fighter, barrister, politician Head Office and a Nationalist Muslim leader. A member of Indian National Building No 426, Congress, he first became Punjab Pradesh Congress Committee 27 2nd Floor, Ghitorni (Punjab PCC) head and later the General Secretary of the AICC in MG Road, New Delhi - 110030 1924. Here's an interesting read through. PERSIS HODIWALLA Senior Manager Legal, Reliance CUTTING EDGE Big Entertainment Registered Address B1/6 Lower Ground Floor Hauz khas, New Delhi - 110016 tête-à-tête ADVISORY BOARD Dr. Justice AR Lakshmanan 33 Former Chairman Law Commission of India Amarjit Singh Chandhiok S. MAHADEVAN Former Additional Solicitor General of India Executive Vice President – Legal, Secretarial and Compliance, Justice R. S. Sodhi Hinduja Global Solutions Retired Delhi High Court Judge Dr. Lalit Bhasin President - Society of Indian Law Firms Budget 2019 – A New India REGULARS Badrinath Durvasula 50 CAPSULES Vice President & General Counsel, in the Making? 60 SNIPPETS HCC Ltd. The cover story this month revolves around the budget presented by finance minister Nirmala Sitharaman earlier this month. The positives, 64 VINTAGE LANE negatives and promises made by the govt have been explored for their 68 TAROT TALKS feasibility towards realization of the country's economic growth in the 70 BUZZ SQUARE EXPERT PANEL next 5 years. Prof. Madabhushi Sridhar 72 JOBS ARENA Central Information Commissioner, PAGE 08 75 COFFEE BREAK New Delhi 77 EVENT CALENDAR H. V. Ramadas Corrigendum - The June 2019 issue inadvertently published the designation for Ms. Smita Paliwal as Associate. She holds Advocate, Karnataka High Court the position as a Partner at King Stubb & Kasiva. Lex Witness regrets the error and inconvenience caused. 78 TRIVIA Kumar V. Jahgirdar * Responsible for selection of news under PRB Act. Owned, Printed and Published by Shyam Grover and printed by JK Offset Graphics, B 278. 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Page 17-19_Layout 1 7/27/2019 11:43 AM Page 17 expert speak Building an Effective Anti- bribery and Corruption Framework n Sumit Makhija BUILDING A ROBUST COMPLIANCE PROGRAMME ribery and corruption have traditionally been seen as An effective anti-bribery management the cost of doing business in system/programme (ABMS) requires many developing nations, organisations to assess external and internal B including India. Delays in factors that are relevant for creating a enforcement action with respect to the corruption-free organisation and assess the Prevention of Corruption Act (PoCA), 1988 ability (in terms of their current and absence of a specific provision in the organisational level skills, policies, and previous anti-corruption legislation of India mechanisms) to achieve the objectives of (to bring corporates under its purview) have their system. The programme includes policies prevented Indian companies from reporting and procedures needed as well as key bribery instances and creating robust anti- stakeholders who would be responsible for bribery programmes. The increased implementation. A necessary aspect of the globalisation of businesses, strong ABMS is regular scrutiny of control measures enforcement of cross-border legislation and periodic audits to identify ever evolving pertaining to bribery (such as the US Foreign areas of risk and ensuring compliance with Corrupt Practices Act and the UK Bribery Act), ever-changing legislation and regulatory and the Indian government’s commitment to environment. fight corruption have led to several measures in this area. These measures include enabling Organisations and compliance officers can digitisation, relooking at tax structures, consider the recently introduced ISO centralising procurement for certain critical 37001:2016 standard as a guideline to help government departments, and amending the build a robust ABMS. The standard specifies PoCA (with a view to combat bribery and requirements and provides guidance for corruption). establishing, implementing, maintaining, Deloitte India reviewing, and improving an ABMS. Focusing Indiabulls Finance Centre, 27th While these measures help reinforce an on the risk of bribery by the organisation and floor, Tower 3, Senapati Bapat ethical business environment in the country, business associates (acting on the Marg, Elphinstone Mill Compound, Elphinstone (W), Mumbai - 400 013 they need to be supplemented by the Indian organisation’s behalf or for their benefit), the E: [email protected] business’ efforts to create anti-bribery and standard ensures that both direct and indirect T: 022 6185 4000 corruption programmes to weed out instances of bribery (e.g., a bribe offered or corruption at the organisational level. accepted through or by a third party) are A Lex Witness Privileged Partners Initiative July 2019 | Lex WITNESS | 17 Page 17-19_Layout 1 7/27/2019 11:43 AM Page 18 expert speak treated equally. This is also a requirement assigns roles to the board of directors, organisation’s processes, and deployment under the Prevention of Corruption top management, and the Compliance of adequate resources (Amendment) Act, 2018. function. • Anti-bribery compliance function – The standard proposes some key • Board of directors – Responsible for Responsible for oversight of design and components that should form part of an oversight, including approving anti- implementation of the ABMS and offering effective ABMS. These include elements bribery policy and reviewing information advice and feedback to the board and top such as an anti-bribery policy and the about its operation management about its functioning appointment of an anti-bribery Compliance function with appropriate • Management – Responsible for Other best practices for building an competence, authority, and independence implementation, communication of the ABMS are mentioned below: to set objectives. The standard explicitly policy, integration of the system in the 18 | Lex WITNESS | July 2019 A Lex Witness Privileged Partners Initiative Page 17-19_Layout 1 7/27/2019 11:43 AM Page 19 expert speak 1. Establish an anti-bribery policy, address bribery and corruption risks. including a gifts policy. The gifts policy Developing an anonymous whistleblower needs to be labelled separately. It should mechanism helps encourage the reporting also prescribe documentation of aspects of suspicious activities as the mechanism and the value of permissible gifts, as well protects whistle blowers from the threat as a register to record gifts received and of retaliation. sent. 6. The standard calls for a segregation 2. Appoint an independent anti-bribery of duties to serve as a control measure to compliance function with appropriate ensure that a single person cannot both competence, authority, and initiate and approve a payment. Similarly, independence. Organisations typically developing a transparent and competitive share resources between the ABMS and tender process to award contracts, where other functions that can be challenging possible and reasonable, is a good as members may not be independent and measure to ensure fairness and reduce the may find it difficult to prioritise their risk of bribery. The standard also commitment
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