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Offering an advantage to obtain business is in breach of the law
Ken was a branch manager of a local bank who was always keen for promotion. Unfortunately, he had been stuck in the same position in the bank for nearly ten years while his peers had all been promoted to senior positions. Recently, a nearby private housing development was opened for sale and had prompted the branch to initiate a marketing plan to attract new buyers. Ken's brother-in-law, Philip, was a property agent who was also trying to find business opportunities here.
During a family gathering, Ken told Philip that his boss was considering his promotion and added that it would be a great boost to his prospects if he was able to secure a substantial market share of the mortgage loans on the estate. Ken also emphasised how difficult such a task was in the face of intense competition with other banks. On hearing this, Philip agreed to help Ken by encouraging his potential clients to apply for mortgage loans in Ken's branch. As a token of thanks, Ken proposed to offer Philip commissions out of his own pocket.
Case Analysis
Philip must obtain the consent from his principal to accept the commission, otherwise both Philip and Ken would breach Section 9 of the Prevention of Bribery Ordinance. Without the approval of Philip’s principal, Ken would commit an offence of offering a bribe while Philip would commit an offence of accepting.
Although at the end of the day Philip might not be able to complete the task and Ken might not reward him, they were still liable to prosecution if a verbal agreement of corruption had been reached.