Fighting Foreign Corruption Act

An Act to amend the Corruption of Foreign Public Officials Act

This bill is from the 41st Parliament, 1st session, which ended in September 2013.

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Corruption of Foreign Public Officials Act to
(a) increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official;
(b) eliminate the facilitation payments exception to that offence;
(c) create a new offence relating to books and records and the bribing of a foreign public official or the hiding of that bribery; and
(d) establish nationality jurisdiction that would apply to all of the offences under the Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other S-14s:

S-14 (2023) Protecting Canada’s Natural Wonders Act
S-14 (2004) Heritage Lighthouse Protection Act
S-14 (2004) An Act to Amend the Agreement on Internal Trade Implementation Act
S-14 (2003) An Act to amend the National Anthem Act to reflect the linguistic duality of Canada

Sitting ResumedFighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:45 a.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, it seems that we are increasingly seeing bills come before us in the House that properly should have begun in the House and then gone to the Senate. I am finding it strange. It has been raised before, but I am wondering if the hon. colleague from Charlottetown, having served much longer than I have in this place, could shed light on how it is that we are seeing this increased number of bills coming from the Senate as opposed to originating where they should, in the House.

Sitting ResumedFighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:45 a.m.

Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, I have very high regard for the member for Saanich—Gulf Islands, but I need to commence with a correction. I have been in this House exactly the same amount of time as she, having been elected for the first time in May 2011. Because of that relative newness, I cannot speak from a position of experience with regard to whether it is normal or whether it is not normal for bills to be emanating from the Senate.

In my view, this bill is something that has gone partway through the House, but was killed by prorogation. The fact that it is back before us is important. The House has had an opportunity to scrutinize it. It is fair comment that perhaps it is a troubling pattern that there are so many bills emanating from the Senate, but because this one is necessary, I do not think that we should be preoccupied by the manner in which it came before us. It is important to have it here, to get it done and to get Canada on an equal playing field with its allies internationally.

Sitting ResumedFighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:45 a.m.

NDP

Djaouida Sellah NDP Saint-Bruno—Saint-Hubert, QC

Mr. Speaker, first, it is important to point out that this bill originated in the Senate. In a report released in 2011, Transparency International ranked Canada as the worst of all the G7 countries with respect to international bribery. The organization pointed out that Canada rarely, if ever, enforces its negligible anti-corruption legislation.

There have been only three convictions under the Corruption of Foreign Public Officials Act. Does my colleague agree that this is an embarrassment to our country?

Sitting ResumedFighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:45 a.m.

Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, if I understood correctly, the question pertains to Canada's standing in the world with respect to anti-corruption regulations. Of course, we should be concerned and perhaps even a little bit worried about this.

That is why it is important to adopt the measures set out in the bill. The hon. member has reason to be a bit concerned about Canada's standing, but that is also why she should support the bill. Of course, the bill is not perfect. The bill could and probably needs to be improved, but it is a good start.

Sitting ResumedFighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:50 a.m.

The Deputy Speaker

Before resuming debate, I understand there is an intervention by the hon. government House leader on a question of privilege.

The House resumed consideration of the motion that Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, be read the third time and passed.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:50 a.m.

NDP

Libby Davies NDP Vancouver East, BC

Mr. Speaker, I am pleased to rise in the House today to speak to Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, and as we are debating this at second reading, it still has to go to committee.

I have listened with interest to the debate in the House today. It appears that all parties will be supporting this bill. We are debating it in principle but, nevertheless, it is important for us to go through the bill to examine it, as we should all legislation, and then it will go to committee.

I want to begin by saying that these last few weeks in the House have been particularly difficult because the government has used time allocation, a form of closure, I think 47 times, if I am keeping the tab correctly. It is really quite incredible that so much legislation has been rushed through.

We serve our constituents in this place. We do our work in the constituency, but our role in this House is due diligence in examining legislation and going through it. Even if we are going to support it, we have to go through it. That is part of holding the government to account in our parliamentary democracy, so it is very disturbing that we see the pattern over and over again. It has become routine. Other colleagues in the House have commented earlier that bills are now pro forma. We are expected to have a couple of hours of debate and take a cursory look, and then there is a time allocation for going through committee, report stage, and third reading. It is all established by timelines.

As members well know, that is not the way to do parliamentary business.

I wanted to begin my remarks with that because, as someone who has been around here a few years, I have watched the erosion of parliamentary and democratic practice in this House.

I can almost hear the voice of Bill Blaikie in my head, the former member for Winnipeg—Transcona. He was one of those folks in this place who had the long-term memory to know what had changed over the years. When change happens incrementally, just a little snippet at a time, it is difficult to get that overview. I think it would be useful one day to have that overview and to actually look at how much certain practices have changed in the House, say, from 10 years ago or 20 years ago. I think we would all be quite shocked, actually, no matter what matter party we belong to.

In any event, we are debating this particular bill today.

I want to begin by saying, as others have remarked today, that the bill is long overdue. Canada has, really, an embarrassing record on corruption overseas, in terms of lack of legislation.

As many have pointed out today, Transparency International, a very credible organization that monitors corruption and bribery in terms of what happens in different places in the world, in its 2011 report, ranked Canada as the worst of all the G7 countries with regard to international bribery. It pointed out that we had little or no enforcement, based upon the very minimal legislation we had.

There is no question that this is absolutely long overdue. It begs this question. Why does it take so long?

We look at the legislative agenda and look at all of the little boutique bills that come through on the Criminal Code, when they do not need to happen. Why has it taken so many years for something as major as this, which would deal with crime and corruption? Why has it taken so many years for anything to come forward? Where is the balance here? Where are the priorities? We are sort of pulling apart the Criminal Code clause by clause and adding in more mandatory minimum sentences. We have had so many Conservative backbencher bills, yet with something as major as this, in terms of Canada's role in the international community, we are hauled on the carpet by an organization that monitors international bribery and corruption, which has said, “You guys have got a pretty bad record; in fact you're basically the worst of all of the highly industrialized countries”. This is an embarrassment.

Further, there have only been three convictions in the last number of years, in fact, since 1999, and two of those were in the last two years. This is a pretty appalling record.

Suffice it to say I am glad, at least, that we are debating this bill today. At least the bill would take some steps.

Just to focus for a moment on what this bill would do, for those who are watching the debate, there would be four main changes to the Corruption of Foreign Public Officials Act. One of them would be to increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official from five to fourteen years. That is a fairly significant change.

The second change in the bill would eliminate an exception that had been in operation for what is called facilitation payments, where foreign officials are paid to expedite the execution of their responsibilities. I will come back to this, because there are some concerns about it. While we agree that this exception should be eliminated, we have to examine the impact of that, for example, on NGOs that are operating in extremely difficult circumstances in political environments that are very risky and where they have to provide payments to get essential emergency humanitarian goods through—for example, going through police checkpoints. One does have to find that balance.

Third, the bill would create a new offence for falsifying or concealing books or records in order to bribe or conceal bribery of a foreign official. This is a very important change in terms of ensuring that transparency goes right the way down the line.

Finally, the bill would establish a nationality jurisdiction that would apply to all of the offences under the act. What this means is that Canadian nationals could be prosecuted for offences that are committed overseas. Again, that is a very important measure.

I want to say very clearly that New Democrats have long supported clear rules that require transparency and accountability by both Canadian individuals and corporations overseas. In fact, the NDP has had a number of bills in this regard. One of my colleagues, the member for Burnaby—New Westminster, had Bill C-323, which would allow lawsuits in Canadian courts by non-Canadians for violations of international obligations. The member for Ottawa Centre had Bill C-486, which would require public due diligence by companies using minerals in the Great Lakes region of Africa.

These are very important issues for Canadians, because we know that the extraction industry in Canada and the way it operates overseas is a major business concern. The way those companies do business is something of great concern to Canadians in terms of ethical practices. We have seen many movements here in Canada, including NGOs, the labour movement and individual citizens who have made sure they became active on this issue.

I want to point out something about a bill we voted on not that long ago, Bill C-300, which was a Liberal member's bill. When I raised transparency in the debate, the Liberal member for Charlottetown who replied to me pointed to Bill C-300 as another attempt to bring about better transparency and corporate accountability in foreign practices.

What is really interesting, and I am sure many members here will remember, is that it was defeated in part because 13 Liberal members voted against it. I remember the bill when it came up. There was intense advocacy for the bill from major NGOs across the country. They did an incredible job. The bill itself was very reasonable. It laid out basic standards for practice. However, there was, of course, a lobby against the bill. It was really quite shocking that 13 Liberal members voting against the bill resulted in the bill being defeated by a mere 6 votes.

We actually did come close to having that bill go through the House of Commons. I know that many of the organizations and individuals that had supported the bill were quite shocked that it had been defeated and were hugely disappointed about the amount of energy, time and effort that had gone into it.

It was a wonderful example of how Canadians look beyond their own border, look globally to see what Canada is doing. They had paid great attention to the need for Canadian corporations, companies and businesses to be accountable, to engage in ethical practices and to ensure there is not bribery and exploitative practices taking place in terms of labour rights or the environment.

These are things Canadians are actually very concerned about. I always feel very inspired when I see these organizations and people, whether they are putting out petitions or sending us emails. People really care about what we do in other parts of the world. We care about whether or not people are being exploited.

Just a little while ago, my colleague from Ottawa Centre talked about the situation in Bangladesh. I saw the story too, last night on CBC, and it is gut-wrenching and it makes us want to jump up and ask what we have to do to make sure these kinds of terrible, appalling conditions no longer exist.

We are talking about thousands of people who lose their lives because they work in terrible conditions where safety is disregarded, where people are not paid decent wages. If we layer on top of that all of the bribery and corruption that goes on, this is a multi-billion dollar business in terms of corruption and unethical practices.

I do not think the bill before us would address all of that, so the other bills we have before the House, particularly from the NDP members that I mentioned, are critical to ensuring there is a comprehensive approach to the way we are dealing with this situation.

We do have some concerns about the bill, which I would like to put on the record. assuming that the bill does get referred to committee. Because the bill would amend the definition of a business to now include not-for-profit organizations, we believe that this should be studied very closely at committee, and obviously witnesses need to be brought in to look at the impact of this particular change on charitable and aid organizations. As I mentioned earlier, the reality is that those organizations do sometimes, out of sheer necessity, have to make payments to expedite or achieve delivery of very essential items and humanitarian goods. This is something that is out there in the real world.

The bill is really tackling corruption and bribery, from the point of view that money is being made, money is being put in people's pockets and officials at embassies and so on are being bribed. That is what we are trying to get at, so I think we have to be very careful that we do not, by consequence, lay down a rule that could actually have a negative impact on organizations that are legitimately and in good faith trying to do very important work in some of these global areas where there is political, military and civil conflict going on. To make sure that kind of aid is delivered in a proper way is very important. We are hoping this issue would be examined more closely at committee.

The second item we think needs further examination is that the committee should also study the consequences of establishing an indictable offence punishable by up to 14 years in prison, because once 14 years is reached, it is actually the threshold at which conditional or absolute discharges of conditional sentences become impossible. It is obviously a much more serious penalty, and the committee, when it receives the bill, should examine that very carefully to make sure there is a balance in terms of our judicial system and conditional sentencing or the question of absolute discharges.

It is easy to make a blanket case, and again we have seen that so often with the Conservative government. It tends to make harsh, blanket rules that do not allow for discretion within our court system. Our court system has a history and a tradition of allowing judicial discretion, so judges can actually examine individual cases and the circumstances that warrant a harsher or a more lenient approach. That is what balance in the judicial system is about.

Therefore, one has to be very careful that in bringing forward new legislation we do not tip that balance and create a system that becomes so rigid that it becomes counterproductive. As the penalty is so harsh, people could end up pleading not guilty more frequently, or prosecutors may even be more reluctant to bring forward charges. There could be unintended consequences of having penalties that are so harsh. This is an issue that we think should be looked at in the bill. We support, in principle, the penalty being increased and the sentencing threshold being increased. However, we have to look more carefully at whether 14 years is the right cut-off.

Finally, in terms of changes that we think need to be looked at, there is the question of the rule on the facilitation payments that I spoke about earlier. We need to figure out how it impacts NGOs and non-profits. That issue would not be part of royal assent but rather would be under the consideration of cabinet, which is in the current text. That one aspect of the bill, if this bill were passed as is, would not go ahead with the rest of the bill. Therefore, that has to be examined. We need to know the reason that is being put aside. The discussion on the facilitation payments as they would impact NGOs might help inform that debate, but it is something we need to look at.

I also want to talk briefly about more current situations. We heard today from the member for Ottawa Centre, who updated the House on a communiqué he had received from the G8 that is currently taking place. It was quite interesting. He pointed out that in this communiqué the issues of corruption and transparency were quite prominent. His point was that we need to know that our own government is committed, not only to the words in these communiqués, but that it is actually going to follow up. I thought the member used a very good example when he spoke about international treaties that we sign for which there is no follow-up.

The example he used was Bill S-10 that was rushed through this House a few days ago, on cluster munitions. I was one of the people who spoke to that bill. The member pointed out very clearly in the debate on that bill that the NDP believes Bill S-10 would actually undermine the very international treaty that it is meant to be following up. The point is that when these communiqués come out and these commitments are made in places like the G8, we need to know they are actually going to be followed up. We need to know that those commitments mean something.

Again, we get back to this particular bill, Bill S-14, that has taken so long to come forward. Why has it taken so long? Why is there not a greater priority and emphasis on these kinds of bills? In the G8 communiqué, among the issues that were flagged, was the need to have greater transparency and a public registry.

The member for Ottawa Centre told us that one of the proposals is the need for a regime whereby companies would not be able to set up a shell company. Even if there is good legislation, if enforcement is to be taken on issues of bribery and corruption, it is very difficult. There could be a lack of political will, as I have just spoken about, or it could be that they are trying to figure out who the operatives are in a particular company. There is the idea of a public registry and the need for better transparency, as well as the notion that we should not allow elaborate legal complexities for the setting up of shell companies that in effect allow individuals and operatives to hide behind other entities. That makes it much more difficult to figure out who is doing what and where enforcement should be applied.

That is a very significant issue, and it is not covered in the bill, so it does show us that the bill does not go far enough. I think that was the member's point this morning.

Nevertheless, we are supporting the bill at second reading. We will pay great attention to it in committee. We will seek to improve the bill so that it lives up to its spirit and intent, which is ensuring that we tackle bribery and corruption by public officials in other countries.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:15 p.m.

Calgary East Alberta

Conservative

Deepak Obhrai ConservativeParliamentary Secretary to the Minister of Foreign Affairs

Mr. Speaker, I was quite interested to understand that the NDP is going to be supporting the bill. To get the NDP to support any bill that deals with the growth of trade or business is quite welcome by our government, considering its opposition to all trade deals. However, we note also that, as usual, it has its caveats.

What is important is that this is a bill that would make Canadian companies accountable. We are talking about a public registry. Whenever a Canadian company is not accountable and it becomes a public issue, it is a message to other Canadian companies that the government and Canadians are very serious about transparency. That, by itself, would ensure that businesses comply with the legislation.

We are thankful that the NDP will be supporting it. Three convictions have already happened, and the publicity would ensure that Canadian companies will comply with transparency, as expected by all Canadians.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:15 p.m.

NDP

Libby Davies NDP Vancouver East, BC

Mr. Speaker, I listened to my colleague with interest. I am a little surprised that he thinks three convictions over five years is a good track record. Surely, Canada can do better than that. That is a actually a bit shameful, to have such a minimal response from the Canadian government.

I would like to respond to my colleague by referring to what we heard today about the G8 communiqué, which he has likely seen because of the role that he has. We need a commitment from our federal government that it is going to live up to international treaties and that there is going to be follow-through, whether it is on this bill, or cluster munitions, or trade practices, or matters affecting human rights. The follow-through is so important, and I do not get that sense from the member.

He talks about accountability. He says the bill will send a message. However, if we do not follow it up with the proper enforcement and the transparency, then it is not worth the paper it is written on. Three convictions is not quite good enough.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:15 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, the speech from the member for Vancouver East, we would say is almost across the board. She has covered so many topics. However, when she started her speech she spoke of the fact that there have been so many time allocations in the House that our debate has been limited; I believe she said it has been 47 times.

The idea of this place and of committee is to take any bill that is put forward by anyone, be it a private member, government or the Senate, and to work together to try to make it better, yet what I find very troubling is that when we get into debate here, we oftentimes find that the government is not even engaging us. It asks the odd question, but government members are not getting up and giving speeches, putting forth a point of view and working back and forth on the bill.

In her remarks toward the end, she talked about NGOs that bring supplies to places, and refugees from Syria might be an example. They come into a country and NGOs have to pay a gratuity, a tip, or a bribe, whatever they want to call it, to get those goods off of the ship and onshore. That is a reality in the world. That is not something that is high level. Do you think that people would be sideswiped by that unintentionally?

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:15 p.m.

The Acting Speaker Barry Devolin

I presume the member was not asking me the question, but rather his colleague.

The hon. member for Vancouver East.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:15 p.m.

NDP

Libby Davies NDP Vancouver East, BC

Mr. Speaker, I hope he was not asking you the question, as I would be happy to reply to him.

This is a very important point that the member has made. It is something that I focused on in my remarks. We have to make sure there are no unintended consequences for organizations that are trying to do the right thing by getting critical aid and humanitarian assistance to people who are literally dying or who are in severe conflict. This bill came down with a heavy hand. If it zeroes in on facilitation payments, on the basis that somehow that is bribery or corruption, I think we would be going down the wrong path.

The member makes a very good point. It is something we share in terms of understanding what enforcement will mean under this bill and getting it right.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:20 p.m.

Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, the member opposite spoke very well. I am pleased that her party supports this legislation.

However, I am concerned about the contradiction in the bill. Companies are forbidden to pay bribes to officials, but should NGOs be allowed to pay bribes to police at checkpoints where they do the shakedowns?

Police are supposed to uphold the rules of law. Some of the NGOs are actually tasked with the job of introducing, implementing, and helping out with democratic principles in these countries. Having the law on the side of the travellers, wherein they are not allowed to pay bribes, can help to act as a shield.

Letting the employer or a government get away without paying proper wages is not our role. How can the NDP support letting the employers of the police get away without paying the proper wages?

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:20 p.m.

NDP

Libby Davies NDP Vancouver East, BC

Mr. Speaker, I am not sure if I completely understand the member's point, or maybe she misunderstood my point.

My point was that we want to make sure that NGOs and non-profits that are delivering very important aid do not get prosecuted when they are just doing their jobs. I certainly agree that we need to focus on officials who are doing the bribery, and we do need to make sure that people are getting paid properly. The NDP has a long track record of saying that when we engage in trade deals and various international treaties, at the top of the list is ensuring that we have proper labour conditions, safety and human rights.

We are now seeing more and more situations around the world, the most recent in Bangladesh, of human misery and tragedy and what happens when there are not proper standards for corporations. They can literally get away with murder.

We are the ones who have been blowing the whistle on that for years. We have said that it is completely unacceptable and cannot continue.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:20 p.m.

NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Mr. Speaker, last night I had a very interesting conversation with our colleague from Windsor, who sits in your chair occasionally. We were talking about the evolution of the Speaker's position and how it has changed over time.

I cannot help but notice that all the bills we have been debating over the last week or so are from the Senate. I would like to ask my colleague, who has been here for a long time and has great experience in these matters, if she has noticed that change over her tenure in the House. Whereas the government should be bringing forward bills to the House, they seem to be bringing forward partisan bills through the Senate or through private members' business.

I wonder whether the member would care to comment on that and the dangers of going that route.