Danish Public and Private Anti-Corruption Initiatives

The following section describes the key public and private business-relevant anti-corruption initiatives initiated by organisations in Denmark.

Danida

Several national donor agencies have adopted 'zero-tolerance' policies. Danida, the Danish International Development Agency, has adopted a zero-tolerance policy, which means that Danida does not accept bribery within its own ranks or in cooperation with external partners.

In practical terms, the zero-tolerance policy means, that anti-corruption clauses are now found in all Government Agreements constituting the basis of the bilateral development aid, in all contracts with companies involved in preparing and implementing Danish development aid and mixed credit projects, and in the agreements concluded with Danish NGOs.

Other safeguards include requirements regarding efficient financial management, the use of procurement agents, etc., and support to capacity development in partner institutions and organisations aiming at better management of resources and funds. See the Danida Action Plan to Fight Corruption. Furthermore, Danida has established an Anti-Corruption Hotline to enable people to report any evidence or suspicion of misuse of Danida funds.

All Danida contracts include an anti-corruption clause, whereby companies will have to sign a declaration on non-bribery. Non-compliance with this clause might lead to a cease of contract and exclusion from future contracting with Danida.

Danish Export Credit Agency

The Danish Export Credit Agency (Eksportkreditfonden - EKF): Applicants to EKF will have to sign a declaration on bribery, whereby the applicant declare not to be involved in bribery, and if so guarantees to compensate EKF for eventual losses as well as the applicant will forfeit the right to compensation related to the guarantee granted by EKF.

Trade Council of Denmark

Trade Council of Denmark (TDC) has an extensive anti-corruption strategy with focus on assisting Danish companies in the process of internationalisation in dealing with the challenge of corruption. TCD provides Danish companies operating in foreign markets with a broad spectrum of consultancy services and anti-corruption tools. Practical and experience based assistance is offered to help companies counter corruption on all levels; from the daily business operations to larger issues where contact to local authorities may be needed. TCD anti-corruption services facilitate business operations for Danish companies in foreign markets and helps uphold the good reputation that Danish companies have abroad.

A precondition for our assistance is 'order in our own house'. Internally, TCD has a zero-tolerance policy establishing clear guidelines on how TCD staff is to respond to corruption issues.

Industrialisation Fund for Developing Countries (IFU Denmark)

IFU's legal mandate is to promote economic activity in developing countries by promoting investments in these countries in collaboration with Danish Trade and Industry.

IFU provides advisory services, share capital participation, loans and guarantees on commercial terms for investments in production or service companies in developing countries with a per capita income below USD 2,604 (2006).

IFU is operating with standard anti-corruption clauses in its standard Loan- and Shareholders' Agreements.

Excerpts from the Shareholders' Agreement:

"The Partners shall do their utmost to ensure that the Company shall not pay or authorise any payment related to the Project nor commit an act – such as the offering, giving, receiving or soliciting of any improper advantage to influence the action of a person holding a public office or the action of an employee of a private company – that violates any applicable laws and international conventions in respect of bribery or enter into any agreement pursuant to which any such prohibited payment will be made at any time."

"In case one or more of the events specified below (only one of these events is relevant in this context and is the one specified below) shall have happened, then the Fund by notice in writing to DP [Danish Partner] or to LP [Local Partner] (as the case may be) shall be entitled to demand that DP or LP (as the case may be) acquires the Fund's entire shareholding on the terms" (specified in the article, but not here):

"DP or LP is in breach of the Article above as evidenced by a sentence passed upon DP or LP for bribery/graft in respect of the Company. In case an appeal has been lodged by DP or LP the Fund shall be entitled to decide-based upon the facts of the case-whether the Fund wants to sell its shares according to the terms of this Article."

"In case the Company and/or employees of the Company have been involved in bribery/graft for which the Company and/or employees have received a sentence for bribery/graft the Fund shall be entitled to require that a thorough investigation and report be made of the Company by the relevant National Chapter of Transparency International or by a well-reputed firm of auditors or firm of lawyers at the Fund's choice. The said report shall contain recommendations as to measures and steps in order to secure a continuous operation of the Company within the law. The costs of the said report shall be borne by the Company."

As to a loan granted by IFU, IFU is entitled to demand repayment as bribery constitutes default and to require that an investigation and report be made of the Borrower as described above.

Business Associations

The Confederation of Danish Industries (DI) has published an anti-corruption manual for its members. The manual called 'Avoid Corruption' can be ordered in Danish and English.