meta_pixel
Tapesearch Logo
Log in
MLex Market Insight

The global divide over whether 'facilitation' payments amount to corruption

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 2 March 2018

⏱️ 10 minutes

🧾️ Download transcript

Summary

Foreign companies working in developing countries have long seen 'facilitation' payments as the price of doing business. But does offering officials small sums of money simply to do their job amount to corruption? That is the growing consensus among lawmakers around the world, must to the consternation of some.

Transcript

Click on a timestamp to play from that location

0:00.0

Hello and welcome to another M-Lex podcast. My name's James Panicki. I'm M-Ex's

0:15.9

Australasian managing editor coming to you from our offices in Sunny Melbourne in Australia. Thank you very much for

0:22.3

your company. Today we're talking about greasing the wheels, the cash that's required to get business

0:27.5

done in developing countries. We're not talking about bribes here, although for many that distinction

0:33.6

is indeed academic. This is a story about facilitation payments, those small amounts

0:39.8

of money that companies spend to get officials to hack through red tape on their behalf. Under US and

0:46.4

Australian foreign bribery laws, these payments are 100% legit. In some cases, they're even tax

0:52.7

deductible. But around the world, there's a growing

0:55.8

regulatory push to ban them outright. M-Mex has just published an article on this global

1:01.5

trend, and we've availed ourselves of our team of bribery and corruption reporters from around

1:06.2

the world, including Mark Bacchetti in Washington and Ben Lucas and Martin Coyle in London.

1:12.1

Chairman of this reporting board, however, was Phoebe Sears, our regional correspondence.

1:17.3

The region in question is the Asia Pacific and Phoebe joins me now from our offices in Hong Kong.

1:23.4

Hello, Phoebe.

1:24.3

Hi, James.

1:25.2

Phoebe, firstly, let's clarify what is indeed meant by facilitation payments.

1:31.6

Right, yes. So when we're talking about facilitation payments, what we're actually talking about is a defence to the law against foreign bribery.

1:41.2

So as you said, in the US and in in Australia where these payments are allowed, what we're

1:46.5

actually saying is that it's a full defence to the foreign bribery offence if you can show that

1:51.7

your benefit or your payment was indeed a facilitation payment. Now for that defence to apply,

1:58.8

the payment has to be typically minor in value and made to expedite

2:03.9

a routine government service. It can't be to influence an official to make a decision in your

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from MLex Market Insight, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of MLex Market Insight and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.