CEOs face 1m shillings fine for failing to set up transplant reporting lines

0

Economy

CEOs face 1m shillings fine for failing to set up transplant reporting lines


Attorney General Paul Kihara. PICTURES | DENNIS ONSONGO | NMG

john-mutua-img

Summary

  • Companies will have to hire anti-corruption executives, have a written code to map corruption risks and report cases to the anti-corruption agency within 24 hours.
  • Businesses had six months from October 14 to comply with strict requirements as the state focuses on the private sector in the war on corruption.
  • Senior private sector officials have now joined state and public officials in the list of people required to fight and report corruption, a crime that has cost taxpayers billions of shillings every year.

CEOs and senior managers of companies that have not established an internal code of conduct for reporting and combating corruption risk a fine of 1 million shillings or a 10-year prison sentence.

The sanctions follow the expiry of the six-month grace period given to companies to set up internal platforms that will assess risks and exposure to corruption, train staff on anti-corruption and establish networks allowing workers to anonymously report suspected cases of bribery and bribery.

Companies will also have to hire anti-corruption executives, have a written code to map corruption risks and report cases to the anti-corruption agency within 24 hours.

Businesses had six months from October 14 to comply with strict requirements as the state focuses on the private sector in the war on corruption.

The regulations are anchored in the Bribery Act, 2016, which places the offense on directors and senior officials whenever their companies fail to establish internal controls and systems to combat and report corruption.

Senior private sector officials have now joined state and public officials in the list of people required to fight and report corruption, a crime that has cost taxpayers billions of shillings every year.

“Any entity to which this Regulation applies shall establish the procedures required under section nine within six months from the date of publication of the guidance under section 12(2) of the Act” , Attorney General Paul Kihara says in the settlement.

The requirements also oblige companies to protect whistleblowers within their companies or to set up channels allowing the disclosure of acts of corruption.

The guidelines follow a 2016 anti-corruption law that was drafted by the private sector.

[email protected]

Share.

Comments are closed.