When the Corrupt Practices Investigation Bureau (CPIB) contacts your company, asks for documents or calls in a director or employee for an interview, the company is part of a corruption investigation, whether as a witness, as the victim of an employee’s kickback, or as a suspect. CPIB investigates corruption in both the public and private sectors under the Prevention of Corruption Act 1960, and a corruption offence carries a fine of up to S$100,000, up to 5 years’ jail, or both, rising to 7 years where a government contract is involved. Companies themselves can be charged. The first days decide a great deal: preserve records, cooperate, keep the company’s and individuals’ positions separate, and get legal advice.
Do nothing that looks like interference. Do not delete emails or chat messages, shred documents, “tidy up” invoices, or agree with colleagues what to say. Those acts can create new offences and destroy credibility that the company and its directors will need. And if the company finds bribery by its own people before CPIB does, the decision to report it should be made quickly, with legal advice, not left until investigators arrive.
What CPIB investigates, and how a company becomes involved
CPIB’s practical guide for businesses, PACT, explains that the Prevention of Corruption Act gives CPIB powers to investigate corruption and other arrestable offences disclosed in the course of a corruption investigation. The Act has extra-territorial reach over Singapore citizens for corrupt acts outside Singapore, and non-citizens may be prosecuted if they abet a corruption offence related to Singapore. Typical ways a company becomes involved:
| Role | Typical situation | The company’s main concern |
|---|---|---|
| Witness | A customer’s or supplier’s employee is under investigation and CPIB wants your records | Provide what is lawfully required, accurately and on time |
| Victim | Your purchasing manager took kickbacks from a supplier | Preserve evidence, report, recover the loss |
| Suspect | Staff paid “commissions” or gifts to win contracts for the company | Exposure of the company and its directors to charges |
The roles can overlap, and they can change as the investigation develops. In August 2024 CPIB charged three individuals and a company over a warehouse automation contract. The individuals faced corruption and cheating charges, and the company was charged with a money laundering offence, which for a non-individual carries a fine of up to S$1 million or twice the value of the property involved, whichever is higher.
The first steps for the company
- Confirm the contact is genuine. Check the officer’s identity and the contact details against CPIB’s official website before handing anything over.
- Preserve everything. Suspend automatic deletion of mailboxes and chat logs, keep devices of the people involved, and secure the purchase, tender, approval and payment records.
- Identify who deals with CPIB. Nominate one senior person, not involved in the facts, to receive requests and coordinate document production.
- Get legal advice early. The company needs its own lawyer. Directors or employees whose own conduct is in question may need separate lawyers, because their interests can differ from the company’s.
- Do not coach witnesses. Employees called for interviews should be told to tell the truth and given practical support, not told what to say. Leave any debrief about the interview to the lawyers.
- Brief the board properly. Record decisions in board minutes: who is handling the matter, what has been preserved, and what interim steps are taken.
- Handle employment steps carefully. Suspending an employee pending investigation may be appropriate, but take advice first, so that disciplinary action does not interfere with the investigation.
If the company is the victim
If an employee took bribes from a supplier, the company has its own remedies, including recovering the bribe. Report to CPIB with the facts and documents, and leave the investigating to CPIB rather than setting traps or interrogating. See an employee who took a supplier kickback for the recovery and employment side.
Reducing the risk going forward
CPIB repeatedly advises businesses to put robust procedures in place, especially in procurement and internal audit, and encourages certification under SS ISO 37001 (anti-bribery management systems). For smaller companies, the basics in PACT are a clear policy, approval limits, segregation of duties between ordering and paying, a gifts and entertainment register, and a reporting channel that employees trust. See also self-reporting to a regulator.
Example
Example only, not a client case. A building services company receives a CPIB request for tender documents and payment records relating to one of its subcontractors. The finance director preserves the files, checks the request against CPIB’s official contact details, and briefs the board. The company instructs a lawyer, who reviews the documents before they are produced and notices payments to an intermediary approved by a sales manager without supporting invoices. The board takes legal advice on its position, preserves the sales manager’s emails, and puts in a second approval for all agent payments. CPIB later interviews the sales manager, who has separate legal advice.
Frequently asked questions
Can a company be charged for an employee’s bribe?
Companies can be charged with offences, as the 2024 case shows. Whether the company is liable for a particular employee’s conduct depends on the facts and the offence, and needs legal advice.
Is a small gift to a client’s buyer corruption?
Corruption turns on corrupt intent: a gratification given as an inducement or reward for a favour. A gifts register and clear limits help show the company’s intent.
Will the company’s bank find out?
Banks monitor for adverse news and unusual payments, and may ask questions or review the account. See a bank KYC review of the company account. More on the company law hub.
Has CPIB contacted your company?
If CPIB has asked your company for documents, or a director or employee has been called in, contact the Raffles Corporate Services team at [email protected] or on WhatsApp at +65 8501 7133 or +65 9018 0072. We will help you gather and organise the accounting and corporate records, prepare board minutes, and tighten approval and payment controls. Matters like this need a lawyer, so we will refer you to a firm on our panel of Singapore law firms that handles corruption investigations. Raffles Corporate Services is a corporate services provider, not a law firm, and this article is general information, not legal advice.
Willie Tan, Raffles Corporate Services