Supplementary Order Paper No 128

No 128

House of Representatives

Supplementary Order Paper

Wednesday, 21 October 2015

Organised Crime and Anti-corruption Legislation Bill

Proposed amendment`

David Clendon, in Committee, to move the following amendment:

Clause 6

After clause 6(4) (page 8, after line 10), insert:


After section 105C(3), insert


Subsection (3) does not apply if—


the person committing the act that is alleged to constitute the offence is—


a Minister of the Crown; or


a member of Parliament; or


a chief executive or an employee of any department, departmental agency, Crown entity, or Office of Parliament (as defined by section 2 of the Public Finance Act 1989); and


the act that is alleged to constitute the offence was undertaken in their official capacity.

Explanatory note

This Supplementary Order Paper inserts clause 6(4A) into the Bill, to insert new section 105C(3A) into the Crimes Act 1961, removing the Government and its officials from the coverage of section 105C(3).

Section 105C(3) currently provides an exception to the criminal sanction that otherwise applies to the bribery of a foreign public official if the act that is alleged to constitute the offence was committed for the sole or primary purpose of ensuring or expediting the performance by a foreign public official of a routine government action, and the value of the benefit is small.

The effect of this provision is to legalise facilitation or “grease” payments made to foreign public officials to facilitate such activities as the granting of permits or licences, the provision of utility services, and the loading or unloading of cargo. These “grease” payments are bribes, no matter their size, and help maintain a culture in some overseas jurisdictions where low-level corruption is permitted and accepted as normal practice.

However, the Government of New Zealand should be held to a higher standard, especially in light of other jurisdictions moving towards proscribing facilitation payments. This Supplementary Order Paper, while not outlawing facilitation payments wholly, will move New Zealand towards a more transparent and ethical path in business dealings overseas.