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ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

Aldan Ltd's sales manager gives a procurement officer at a state-owned hospital a cash payment so that the hospital will award Aldan a supply contract. Which description best fits this conduct?

This is bribery of a public official. A payment made to influence the award of a contract is corrupt and criminal. It is not a commission, since it improperly induces a decision, and it is unrelated to insider dealing, which involves inside information.

  1. ABribery of a public official, which is a criminal offenceCorrect
  2. BA lawful sales commission paid to a customer's employee
  3. CInsider dealing, because the hospital is state-owned

Explanation

Giving a financial advantage to a public official to influence the award of a contract is bribery. It is not a commission, because the payment is made secretly to the customer's employee to influence a decision. Insider dealing concerns trading on inside information, which is not involved here.

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