Which of the following are illegal in all countries? a. Speed payments b. Facilitation payments c. Grease payments d. These are not illegal in most countries.
The correct answer and explanation is:
Correct Answer: d. These are not illegal in most countries.
Explanation:
The terms speed payments, facilitation payments, and grease payments are often used interchangeably to describe small payments made to expedite routine government or administrative processes, such as obtaining permits, processing visas, or releasing goods from customs. While these payments are considered unethical or corrupt by many standards, they are not universally illegal in all countries.
1. Facilitation/Grease/Speed Payments – Definitions:
- These are minor payments to government officials for non-discretionary, routine tasks that they are already obligated to perform.
- Examples include speeding up visa processing or connecting a telephone line.
2. Legal Status Varies by Country:
- In the United States, facilitation payments are technically allowed under the Foreign Corrupt Practices Act (FCPA), but they are heavily regulated and must meet strict criteria.
- In the United Kingdom, these payments are completely illegal under the UK Bribery Act of 2010, which criminalizes all forms of bribery, including facilitation payments.
- Other countries vary widely in their laws. Some tolerate such payments informally, while others outlaw them strictly.
3. Why Not Illegal Everywhere?
- In some developing countries, weak enforcement or institutional inefficiencies may make facilitation payments common and unofficially tolerated.
- However, there is a growing global consensus that such payments foster corruption, reduce trust in public institutions, and undermine fair competition.
4. International Guidelines:
- Organizations like the OECD (Organisation for Economic Co-operation and Development) discourage facilitation payments and urge countries to make them illegal.
Conclusion:
Since facilitation, speed, and grease payments are not illegal in all countries and remain legal or semi-legal in some jurisdictions, the correct answer is (d) These are not illegal in most countries. However, best business practices recommend avoiding them entirely to uphold ethical standards and ensure compliance with international anti-corruption laws.