Japan 'needs to tackle bribery'

It's tempting for businesses to pay for problems to go away

Japan needs to do more to combat the problem of bribery by businesses, the Organisation for Economic Cooperation and Development (OECD) has said.

In a report, the OECD said it had "serious doubts" about Japan's commitment to tackling the issue.

Using unusually blunt language, the OECD pointed to a lack of prosecutions since Japan signed up to an anti-corruption convention in 1999.

It also criticised other nations, including Denmark and the Netherlands.

Straight and narrow

In a separate report, anti-corruption group Transparency International estimated that two-thirds of the 36 nations that signed up to the convention had done little to ensure it was being enforced.

Since January 2005, (Japan's) efforts may have increased, but certainly not to a sufficient degree OECD

The agreement is aimed at stopping companies paying bribes to officials, often in less-developed nations, in order to speed through documentation, broker deals, change laws, and generally grease the wheels of commerce.

In its report, the OECD said that it was surprised that Japan had not prosecuted many people, given that it was the world's second-largest economy and an important foreign aid donor.

Japan had been passive until their lack of progress was mentioned last year, the OECD said.

"Since January 2005, efforts may have increased, but certainly not to a sufficient degree," the OECD said.

Action needed

According to the OECD, Denmark and the Netherlands also must do more to stop their companies breaking foreign laws.

"For both countries we are suggesting that they be more proactive," the OECD said.

"While there have been encouraging signs that the Dutch authorities have stepped up their responses to foreign bribery allegations in recent months, there have been no trials or convictions to date," it added.