New section 34A of PRECCA has significantly increased the risk to companies of being entangled in corrupt activities

The new section 34A in the Prevention and Combatting of Corrupt Activities Act 12 of 2004 (“PRECCA”) has significantly increased the risk to companies of being entangled in corrupt activities.  If for example a person associated with a company bribes another party to the benefit of the company, then the company is guilty of an offence. Strict liability applies – it doesn’t matter if the company knew about the corrupt activities or not.  Fortunately, putting in place adequate procedures to prevent these activities is a defence.

Our associate DML Forensics has put together this article to explain the new section. Please click here to access it and contact Theo Godrich or Megan Melck if you would like more information on this.