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Portugal has faced sharp criticism from the OECD Working Group on Bribery for its prolonged inaction on key proposals to strengthen laws against foreign bribery. In a recent report, the group expressed “serious concern” that Portugal has failed to address critical legal loopholes that were flagged nearly two decades ago.
One of the most pressing issues is Portugal’s retention of the “defense of acting against express orders.” Under this provision, companies can attempt to evade liability for corporate bribery by issuing “express and specific orders not to bribe,” while informally orchestrating corrupt arrangements. In such cases, a lower-level employee may be designated to take the blame if the offense comes to light.
“This defense could create a loophole for companies to escape liability for foreign bribery under Portuguese law,” the OECD Working Group stated. It urged Portugal to adopt measures that would ensure companies remain criminally liable even when foreign bribery occurs in violation of express orders.
Another significant concern raised in the report is Portugal’s failure to amend its laws to allow the imposition of fines alongside prison sentences for individuals convicted of foreign bribery. The OECD Working Group noted that this issue was first highlighted during an evaluation in 2013 and reiterated again in 2022.
“This is despite the working group raising this concern over 10 years ago,” the report said.
The report also highlighted weak enforcement mechanisms against legal persons in foreign bribery cases. These deficiencies “raise critical concerns about Portugal’s ability to effectively hold natural and legal persons liable for foreign bribery,” the OECD said.
The Working Group has called on Portugal to “promptly address these long-standing legal framework issues” and to enhance enforcement actions against companies implicated in foreign bribery. Portugal has been invited to provide an update on its progress in December 2024.
By fLEXI tEAM
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