Facilitation payments

Principles

Facilitation payments are “small unofficial payments made to secure or speed up the performance of a routine or necessary action to which the payer already has legal or other entitlement.”  These are common in some parts of the world and are not always illegal under local legislation but they are bribes and should not be paid.

They are typically demanded in cash by the recipient (usually a public official) using their official position.  Examples are:

• Payments to clear goods through customs.
• Payments to allow entry/exit to/from a country when all documentation is in order.
• Payments to prevent delay to an order.

The definition does not catch official fees and charges, such as document filing fees, or the cost of an enhanced service, for example express visa processing, provided the transaction is open, transparent and supported by an official receipt.

Policy

Facilitation payments are bribes and under the Group’s bribery and corruption policy they are not acceptable. Halma is committed to working, alone and with others, toward their elimination.

They should not be paid by Halma employees and we should not authorise business partners to pay them on behalf of Halma. Halma will support any employee or business partner who refuses to make a facilitation payment.

Guidance

In some countries and sectors these types of payment are widespread.  Simply saying that an issue is unacceptable will not make it go away; it requires firm action taken by everyone affected.

You should strongly resist any demand for a facilitation payment and Halma will fully support your actions.

Use techniques such as:

• Carrying a local language card on business trips stating the company’s policy and pointing out that making such payments is against UK law.
• Taking detailed notes of conversations where payments are demanded.
• Asking for written evidence that the payment is officially required.
• Requesting an official receipt for any payment, including details of the recipient’s name and identity number.
• Demanding confirmation from the supervisor/manager of the person making the demand.
• Asking to contact your company to discuss the issue and the line to be taken.
• Asking to contact the local embassy/consulate to discuss and report the issue.

If, despite using these techniques, you are still met by the demand and you feel there is a threat of physical violence, loss of liberty, or of some other adverse effect on your personal well-being, you should make the payment.  You should then immediately report it to your manager and MD, who will then report it to your DCE and to Group.

Any facilitation payments made, even under duress, should be properly recorded and analysed in your company’s financial records and reports.

You should also report any demands that were successfully resisted so that the incidence of these demands can be monitored and successful defence strategies identified.