Investigation opened an investigation in 2012 after an Indian general reported that he was offered bribes in exchange for his support of the purchase.110
Access to Information Statistics on foreign bribery enforcement are available on request.
Inadequacies in Legal Framework Legal protections for whistleblowers and witnesses are weak in both the public and private sectors. There is no comprehensive stand-alone law for whistleblowers and no additional grounds to defend against unfair dismissal aside from those already provided in Czech labour law.111
Inadequacies in Enforcement System There is a lack of cooperation and coordination with foreign bodies when it comes to investigating foreign bribery cases. The Phase 3 report commented that awareness of foreign bribery risks in the Czech Republic is “regrettably low,” particularly among auditors, accountants and the private sector.112 There is a “lack of adequate compliance programs to address the risks of foreign bribery among Czech companies.”113 The report expressed serious concerns about prosecutorial independence in the Czech Republic, specifically that “possible political pressures over prosecutorial decisions, may indirectly influence investigations and prosecutions for foreign bribery.”114
Recent Developments A comprehensive corporate liability regime was enacted into Czech law in 2011 and entered into force in January 2012. The process of “agreements on guilt and punishment” (establishing rules on plea bargaining), introduced by Act No. 193/2012 Coll., became effective on 1 September 2012 and is applicable to both natural and legal persons.115 The Phase 3 report noted the importance that “significant elements of the agreements [made under these new plea bargaining laws] should be publicised, where appropriate and consistent with Czech law […] in order to increase accountability, raise awareness and enhance public confidence.”116 Significant elements include “the reasons why the agreement was appropriate, the legal or natural persons convicted, the sanctions agreed, and the terms of the agreement.”117 Earlier this year, the Czech government prepared, but later abandoned, a draft amendment to the Anti-Discrimination Act to extend whistleblower protection in Czech law. Subsequently, a former whistleblower member of the Senate introduced a draft bill of a standalone whistleblower protection law, but it was not adopted either.
Recommendations for Priority Actions Improve practical cooperation and coordination with foreign bodies. Improve prosecutorial independence. Raise awareness of foreign bribery risks across the board. Pass a stand-alone and 110
Indian Express, 23 October 2012, “CBI makes Antony statement in the house as part of evidence in Tatra bribe offer case”, www.indianexpress.com/news/cbi-makes-antony-statement-in-house-part-of-evidence-in-tatra-bribe-offercase/1020611/; DNA India, 25 March 2013, “Tatra case: court rejects Vectra Group chief Ravi Rishi’s plea to go abroad”, www.dnaindia.com/india/1815537/report-tatra-case-court-rejects-vectra-group-chief-ravi-rishi-s-plea-to-goabroad. 111 Phase 3 Report on Czech Republic 2013, pages 46-47; Transparency International, “An Alternative to Silence: Whistleblower Protection in 10 European Countries”, 2009, www.transparency.org/whatwedo/pub/alternative_to_silence_whistleblower_protection_in_10_european_countries. 112 Phase 3 Report on Czech Republic 2013, page 43. 113 Phase 3 Report on Czech Republic 2013, page 5. 114 Phase 3 Report on Czech Republic 2013, page 5; Reuters, 23 August 2012, “Czech Secret Service Raps State Firms for Lawbreaking”, www.in.reuters.com/article/2012/08/23/czech-corruption-idINL6E8JNKCX20120823. 115 Phase 3 Report on Czech Republic 2013, page 28. 116 Phase 3 Report on Czech Republic 2013, page 29. 117 Ibid.
EXPORTING CORRUPTION – OECD PROGRESS REPORT 2013
31