{"id":9639,"date":"2024-09-25T10:30:04","date_gmt":"2024-09-25T08:30:04","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/law\/?p=9639"},"modified":"2024-09-25T11:22:47","modified_gmt":"2024-09-25T09:22:47","slug":"how-does-the-new-corruption-reporting-law-affect-your-business","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/law\/2024\/how-does-the-new-corruption-reporting-law-affect-your-business\/","title":{"rendered":"How Does the New Corruption Reporting Law Affect Your Business?"},"content":{"rendered":"<blockquote><p>\u201cIn defence of Madiba&#8217;s legacy, we will continue to wage a relentless war on corruption&#8230;\u201d (President Cyril Ramaphosa)<\/p><\/blockquote>\n<p>You may have seen mention of the new amendment to the Prevention and Combatting of Corrupt Activities (POCCA) Act that imposes severe penalties for any failure to report corruption. If you did see it, you quite possibly thought \u201cDoesn\u2019t apply to me, I\u2019m just a small business\u201d.<\/p>\n<p>Wrong! Let\u2019s have a look at who the new law applies to, what it requires of you, the risk you run if you don\u2019t pay it due attention, and how you should manage this new risk.<\/p>\n<h6>Who does the new reporting requirement apply to?<\/h6>\n<p><strong>Not <\/strong>just big companies and multinational businesses. It applies not only to all members of \u201cincorporated state-owned entities\u201d but also to\u00a0<strong>all<\/strong>\u00a0persons and entities in the private sector. The definition here is very broad indeed, and it includes all types and sizes of businesses from sole trader up, all types of entity large and small, all companies, every \u201cbody of persons\u201d and every \u201cother legal person\u201d.<\/p>\n<p><strong>In short, it applies to you!<\/strong><\/p>\n<h6>What does it require of you?<\/h6>\n<p>Simply put, you must report any corruption or attempt at corruption. Of course, we all know what the common-sense definition of \u201ccorruption\u201d is. If you need an exhaustive legal definition, we can certainly help you with that.<\/p>\n<p>But in practice just be aware that it applies to any agreement or offer by an \u201cassociated\u201d person (including employees, independent contractors and the like) to give anyone else any unlawful \u201cgratification\u201d. What\u2019s more, \u201cgratification\u201d is so widely defined as to include every possible form of monetary or non-monetary advantage (or avoidance of disadvantage) you can think of. Naturally the agreement or offer in question must relate to an attempt to either obtain or retain a business advantage of some sort.<\/p>\n<p>On another warning note, POCCA penalises not just active knowledge of corruption and wrongdoing, but also brings in concepts of \u201cshould have known\u201d and \u201cturned a blind eye\u201d.<\/p>\n<p>Put simply, you must report\u00a0<strong>any<\/strong> form of \u201ccorruption\u201d. Full stop.<\/p>\n<h6>What penalties apply?<\/h6>\n<p>In theory, the sky\u2019s the limit here \u2013 unlimited fines and life imprisonment! In practice, courts will of course tailor the punishment to fit the crime. The bottom line: there are very clear indications that the authorities mean business, so beware.<\/p>\n<h6>How should you protect yourself?<\/h6>\n<p>The new law pulls no punches. But fortunately there\u2019s a solid defence included in the new provision: to escape liability you only need to show that you \u201chad in place adequate procedures designed to prevent\u201d the corruption. There\u2019s no definition of what this might entail, so it\u2019s up to you to use common sense based on your particular business and circumstances. Local experts suggest that to be safe we follow the UK\u2019s \u201cSix Principles\u201d \u2013 proportionality (procedures tailored to the level of your risk), top-level commitment, risk assessment, due diligence, communication, and monitoring and review.<\/p>\n<p><strong>Need help with drafting a corruption prevention protocol? Shout if we can help.<\/strong><\/p>\n<p style=\"border-top: 1px solid #dedfe0!important;padding-top: 20px!important;margin-top: 20px!important\">Disclaimer:\u00a0The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.<\/p>\n<p style=\"text-align: right\">\u00a9 LawDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIn defence of Madiba&#8217;s legacy, we will continue to wage a relentless war on corruption&#8230;\u201d (President Cyril Ramaphosa) You may have seen mention of the new amendment to the Prevention and Combatting of Corrupt Activities (POCCA) Act that imposes severe penalties for any failure to report corruption. If you did see it, you quite possibly [&hellip;]<\/p>\n","protected":false},"author":101014,"featured_media":9636,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[7,18],"tags":[],"class_list":["post-9639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-criminal-law-crime"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Does the New Corruption Reporting Law Affect Your Business? &#8226; LawDotNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dotnewsconnect.co.za\/law\/2024\/how-does-the-new-corruption-reporting-law-affect-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Does the New Corruption Reporting Law Affect Your Business? &#8226; LawDotNews\" \/>\n<meta property=\"og:description\" content=\"\u201cIn defence of Madiba&#8217;s legacy, we will continue to wage a relentless war on corruption&#8230;\u201d (President Cyril Ramaphosa) You may have seen mention of the new amendment to the Prevention and Combatting of Corrupt Activities (POCCA) Act that imposes severe penalties for any failure to report corruption. If you did see it, you quite possibly [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dotnewsconnect.co.za\/law\/2024\/how-does-the-new-corruption-reporting-law-affect-your-business\/\" \/>\n<meta property=\"og:site_name\" content=\"LawDotNews\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dotnewscoza\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-25T08:30:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-25T09:22:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dotnewsconnect.co.za\/law\/wp-content\/uploads\/sites\/2\/2024\/09\/CorruptionReporting_650.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"LawDotNews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dotnewstweets\" \/>\n<meta name=\"twitter:site\" content=\"@dotnewstweets\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"LawDotNews\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/\"},\"author\":{\"name\":\"LawDotNews\",\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/#\\\/schema\\\/person\\\/1ca6b5523156abce6e7e446cf033d72c\"},\"headline\":\"How Does the New Corruption Reporting Law Affect Your Business?\",\"datePublished\":\"2024-09-25T08:30:04+00:00\",\"dateModified\":\"2024-09-25T09:22:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/\"},\"wordCount\":570,\"publisher\":{\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/09\\\/CorruptionReporting_650.jpg\",\"articleSection\":[\"Business\",\"Criminal Law \\\/ Crime\"],\"inLanguage\":\"en-ZA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/\",\"url\":\"https:\\\/\\\/dotnewsconnect.co.za\\\/law\\\/2024\\\/how-does-the-new-corruption-reporting-law-affect-your-business\\\/\",\"name\":\"How Does the New Corruption Reporting Law Affect Your Business? 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