FIATA publishes first guide on prevention of bribery

By Will Waters Oct 4 2019 / Llyod’s Loading List

Best practices paper aims at addressing the challenge of corruption in the international logistics and freight forwarding industry, which ‘has a relatively high risk of exposure’ in ‘a world economy still heavily burdened by corruption’

Global freight forwarding body FIATA, the International Federation of Freight Forwarders Associations, has released a best practices paper on prevention of bribery that aims at addressing the challenge of corruption and bribery in the international logistics and freight forwarding industry.

Unveiled during the federation’s 2019 World Congress in Cape Town, South Africa, the publication of the paper comes in response to requests from members and provides practitioners with advice on internal control measures against bribery and on cooperating with other stakeholders to prevent it. It emphasizes the importance of establishing and implementing a systematic anti-bribery policy and a strong leadership commitment against bribery behaviour. It recommends adopting clear rules on issues such as gift-giving, ‘facilitation payments’, and employment of third-party service providers and recommends processes to deal with bribery solicitations from public officials.

FIATA said the Corruption Perceptions Index 2018 of Transparency International reported that more than two-thirds of 180 countries and territories covered by the Index scored below 50 on a scale of between 0, highly corrupt, and 100, very clean, “revealing that the world economy is still heavily burdened by corruption”, adding: “As a sector deeply involved in cross-border trade and frequently interacting with public officials, the international logistics and freight forwarding industry has a relatively high risk of exposure to corruption or bribery.”

Richard Gluck, chair of FIATA’s Advisory Body Legal Matters, commented: “Our member companies requested a guide to combat bribery and corruption. This best-practices paper, developed with support from FIATA’s Customs Affairs Institute, emphasizes the significance of establishing and implementing a systematic anti-bribery policy in the enterprise, with a strong leadership commitment against bribery behaviour.

It recommends adoption of clear rules on sensitive issues like gift-giving, facilitation payments and employment of third-party service providers. Recommended processes to deal with bribery solicitations from public officials are also included to help members in such situations.”

FIATA president Babar Badat commented: “Fighting against corruption and bribery is critical to create a level-playing field for the logistics and freight forwarding industry and to lower the costs of trade for the entire supply chain.

“No one can win this fight on their own. FIATA will continue to work with all stakeholders and strive for a better business environment for the industry.”

For access to the newly published guide, go to: https://fiata.com/media/documents-for-download.html

Founded in 1926, FIATA is a non-governmental organisation that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 10 million people in some 160 countries.

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