Change Edition

Luxembourg turns a blind eye to bribery
Luxembourg

Luxembourg turns a blind eye to bribery

10.10.2013 From our online archive
The Grand Duchy does 'little to nothing' about the practice of bribing foreign governments in order to dodge taxes and local laws for example, a new study finds.

(MSS) The Grand Duchy does 'little to nothing' regarding the practice of bribing foreign governments in order to dodge taxes and local laws for example, a new study finds.

Many exporting nations, including Luxembourg, still ignore bribery in the private sector and must do more to prevent their multinational companies from bribing their way into international markets, a recent report by the anti-corruption group Transparency International found.

A staggering 30 of the 40 countries that have signed the OECD Anti-Bribery Convention, the agreement to stop the practice of bribing, do not follow the rules and barely investigate and prosecute foreign bribery.

Although Luxembourg has made considerable improvements such as establishing a new legislation protecting whistle blowers in 2011, the country still needs to step up its game, as the report found that the Grand Duchy still does little to nothing about bribery in the private sector.

Enforcement of the rules appears to have been reduced in many countries due to the worldwide recession, and countries seem to fail to enforce them due to budget cuts in enforcement agencies, a lack of specialised bodies to investigate foreign bribery and a failure to take advantage of existing deterrents.