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Fair competition - Prevention of bribery

Bribery is the offering, giving or taking of something of value for the purpose of influencing a public officer's act or a business decision.

In view of the risks involved it is indispensable for exporters and banks, as well as for the Federal Government as their guarantor, that export deals are negotiated without any bribery being involved. Besides, combating bribery is also an important component of sustainable development, since bribery is one of the main causes of poverty in developing countries. Creating transparent and fair trading conditions and a level playing field worldwide benefits German exporters who excel in the quality of their products. Therefore the Federal Government actively supports all efforts aimed at combating bribery in order to create transparent and fair trading conditions and a level playing field.

In connection with the granting of export credit guarantees the Federal Government states:

  • No export credit guarantees will be granted for export transactions or loan agreements the conclusion of which involved any criminal acts such as bribery.
  • If it is proven later that corruption was involved, the Federal Government can invoke relief from liability pursuant to the General Conditions.

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Recommendations of the OECD

As a member of the OECD the Federal Government was actively involved in the preparation of common principles for the combating of bribery. After it was passed by the Council of the OECD, the Federal Government committed it self to applying the provisions of the "Recommendation on Bribery and Officially Supported Export Credits" external Link of December 2006 when granting export credit guarantees. For this reason the applicants have been required to make a "Declaration regarding Combating Bribery in Respect of Business Transactions covered by Federal Export Credit Guarantees" (38,4 KB) in the course of the application proceedings as of the beginning of 2007.

More information on recent developments on the subject of combating bribery in officially supported export credits can be found on the Internet page of the OECD under the heading "Bribery and Export Credits" . There you can find, for example, a report on a survey external Link among the member states on measures taken to implement the OECD recommendations.

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Prevention of bribery

The damage caused by bribery not only poses a threat to the economic viability of the individual company but has also repercussions on the reputation of trade and industry as whole. The mutual trust between buyers and suppliers is destroyed. Intransparent and unlawful acts make fair competition impossible.

Within this meaning the prevention of bribery is also risk control. In unison with the big German industrial associations such as BDI and BDA, the Federal Government therefore encourages export companies to actively take up the subject and to set up internal mechanisms designed to prevent corruption. Measures to prevent bribery comprise exemplary behaviour of the companies' managers and regular training of the employees in addition to drawing up a code of conduct.

When looking for suitable preventive measures, above all the publications of BDI and Transparency International ("Self Audit") may be helpful. Additional, supplementary information on the subject of combating bribery can found under the following Web links.

Federal Ministry of Economics and Technology

Bundesverband der Deutschen Industrie (BDI)

OECD

Transparency International

Bribery and development cooperation

United Nations

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