1. © Johan Løje, 2009 1 Experiences, challenges and future developments regarding the fight against commercial bribery in Europe and Denmark Advokat Johan Løje Sandel, Løje & Wallberg jl@slw.dk

2. © Johan Løje, 2009 2 Facts European Union –Union based on a treaty Council of Ministers European Parliament Memberstates –27 countries –494 mill people –GDP 15 trillion US $ –Great diversity among memberstates

3. © Johan Løje, 2009 3 Facts Denmark –Kingdom Parliament –5,5 mill people –43.000 km 2 –GDP 196 billion US $ –Homogeneous country

4. © Johan Løje, 2009 4 Facts ChinaEUDenmark GDP (bill. US $) 7.91615.247204 Inhabitants (mill.) 1.3004945 GDP pr. capita 3.25929.90062.097

5. © Johan Løje, 2009 5 Corruption in OECD Source: Transparency International (2008)

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8. © Johan Løje, 2009 8 GRECO report “Denmark has a well developed system of legislation, law enforcement and judicial authorities to deal with economic crime, including corruption and the confiscation of proceeds of corruption” Source : GRECO report 3, 2005

9. © Johan Løje, 2009 9 General comments Homogenius society Respect for public authorities Transparancy in public affairs Well developed system for auditing private accounts in connection with tax reports

10. © Johan Løje, 2009 10 Is Corruption a problem in Denmark Very few cases – less than 5 within the last 5 years –Case involving Chinese students getting visa permits against payment of money to governmental official Nepotism may be a problem Tax evasion is a widespread problem

11. © Johan Løje, 2009 11 Administrative system Public prosecutor for serious economical crime –26 prosecutors –60 investigators –Accountants, lawyers, policemen –In difficult cases private, independent auditors are hired to audit accounts

12. © Johan Løje, 2009 12 Education Danish authorities arrange regular seminars for law-enforecement bodies to intensify their staff’s knowledge on issues related to economic crime, investigative means and confiscation methods

13. © Johan Løje, 2009 13 Money laundring Moneylaundring may be a sign of briebery having been paid Extended litigation on moneylaundring Obligation for banks to report possible incidents of moneylaundring –Regular reports from banks to the central authorities

14. © Johan Løje, 2009 14 Transparancy in public administration Effective rules on transparancy in public administration Everyone may request access to public documents, correspondance etc. Some exceptions – –interadministrative correspondance –Notes and comments –Information related to tradesecrets, competition matters and public

15. © Johan Løje, 2009 15 Treatment of bribery It is illegal No tax deduction is available for expenses originating from criminal offences. All tax deductions must be explained and have a plausible cause Lawyers, auditors and tax consultants are also under an obligation to report suspected incidents of money laundring

16. © Johan Løje, 2009 16 Cases 2009 – a developer pays US $ 20.000 to a public servant for services –6 months of imprisonment 2009 – an owner of a garage forces his state apointed surveyor to accept some cars without examination –The owner was imprissoned for 9 months –The surveyor was not allowed to act as a surveyor for 1 year

17. © Johan Løje, 2009 17 Cases – Oil-for-Food 2006 – i Jordanian company sued a Danish company for lack of payment of a bribe in connection with the Oil-for- Food scandal –The action was rejected since it would result in enforcement of an illegal claim Novo was forced to pay a fine of

18. © Johan Løje, 2009 18 The problem with globalization The fact that Danish companies operate in foreign countries may lead to participation in corruption Some cases have been reported When public aid is involved there is a no-tolerance on corruption

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22. © Johan Løje, 2009 22 Oil for Food - scandale International programme in Iraq Several companies involed Novo Nordisk paid US $ 1.4 mio to Sadam Husseins government in 2000-2003 Expenses written off in accounts No criminal charges in Denmark because of doctrine of limitation –Criminal actions in USA –Fine and confiscation – total US $ 100 mio

23. © Johan Løje, 2009 23 Challenges Globalization Lack of protection and rules for whistleblowers Better rules for corporate liability New survey – “more than 14 % of employees have performed or wittnessed nepotism in their work-place”