Masaryk University
October 2011
Class V
 Topic Today:
– U.S. Laws include several types of anti-corruption
measures; how do they work and would they be
acceptable in the Czech Republic?
– Legal systems differ; cultures differ; what is
acceptable and useful in one country may not be in
another.
– This is not about “better” or “worse” but about
differences.
Class V 2
 Bribery and “gratuities” are illegal – in all
countries; but what is meant by “bribery” and
by “gratuities”
– Of course, a payment to a public official to bring
about a decision.
– What is a gratuity? A “gift” a “thank you” gesture.
 Given “for or because” of an official act.
Class V 3
 A recognition that the “gift” was in recognition of an
official act:
 What about small recognitions? As a courtesy?
– Can “small” be defined?
 What about a dinner? Sports tickets? A trip to
Paris?
Class V 4
 How can bribery be detected?
– The person offering the bribe wants it to be accepted.
– The person receiving the bribe wants it.
– The bribe is handled in private.
– Sometimes, the secretary knows about it.
– Sometimes, there is evidence of it, but not easy to
find.
Class V 5
 What about an informant?
– When a person has information about bribery of a
government official, is it “proper” for that person to
disclose the information.
– Is it proper for that person to receive a benefit for
doing so?
– For example: an individual is accused of a crime;
facing time in prison; the individual is aware of
bribery that occurred involving a judge.
– Should the person with that knowledge receive a
reduced sentence for his own crime in exchange for
exposing the judge who was taking bribes?
Class V 6
 Another example: a legislator who votes on
possible laws is taking bribes.
– The person giving the bribes is accused of a separate
crime.
– Knowing that bribery of a government official is a serious
violation, he offers to expose the bribery.
– A search of the legislator’s home reveals:
 U.S. $90,000 in “cold cash”
Class V 7
 Should the individual who made this arrest
possible receive a benefit himself?
 The Whistleblower Act:
 A referee at a football match blows the whistle
when rules are violated.
 A whistleblower in a company is a person who
becomes aware of violation of the law at the
company.
Class V 8
 The employee “blows the whistle” by
disclosing the wrong-doing to the government.
– Example: government contracts with private
company to supply parts – aircraft engines.
– Parts are defective and company knows it, but does
not believe the defects are serious.
– An employee disclosing the defect to the
government would cause contract to be terminated.
 A loyal employee?
Class V 9
– Should the employee be rewarded if the
government is able to make the contractor pay
for its poor aircraft parts?
– Would the employee make this disclosure if he
would be terminated by the company?
– Would the employee make the disclosure if he
did not receive part of the amount the
government recovers?
Class V 10
 How far should this go?
 Should it apply to tax cheating?
 Result: a society of people reporting on other
people?
Class V 11
 Another Anti-Corruption Law:
– Foreign Corrupt Practices Act.
– An Extra-Territorial Reach – what does that mean?
– If it happens outside the U.S. but affects the U.S. it
can violate U.S. Law.
 Applies where U.S. company is involved
Class V 12
 CLASS DISCUSSION:
 What are the reasons for rewarding someone who
exposes corruption?
 What are the reasons to not reward an employee
who has knowledge of wrong-doing?
 Which kind of conduct is most likely to prevent
corruption or cheating on contracts with the
government?
 Taking account of history, should there be a law in
the Czech Republic similar to that in the U.S. that
rewards those who reveal cheating on contracts?
Class V 13