Recently, a verdict was reached in a bribery case of an unusual nature. The former head of administration, Claus Pedersen, in Aarhus Municipality was accused of receiving bribes. The bribes included festival tickets, sponsorship of DKK 200,000 and a golf trip to Sweden.

The bribery cases occurred in the period 2010 to 2016, when the now convicted was head of the municipality's Nature and Road Service and Center for Urban Use.

The former head of administration had himself denied receiving bribes prior to the verdict.

The 58-year-old former head of administration was also convicted of mandate fraud. He had bought clothes worth approximately DKK 3,000 for private use at the municipality's expense.

Bribery and corruption cases are not uncommon

Unfortunately, the bribery case in Aarhus does not surprise us at yourCompany, as we have also previously encountered corruption cases in the public administration in Aarhus and with a construction company. A case that unfortunately did not lead to a police report at the time. This bribery case involves both a former public official and a machine shop - both were convicted. A Swedish company was acquitted.

In the first half of 2020 alone, yourCompany has assisted with 2 multi-million dollar investigations and assisted with discrete investigations in a non-compete case. One of these cases also involved the construction industry. The verdict in the non-compete case has now been handed down against the management of the company that was convicted.

Unfortunately, we have also been asked for assistance in a case where there was suspicion against consulting engineers in a smaller specialty area. There may therefore be good reason to be critical in your approach to consultants, customers and partners. Corruption is unfortunately common in cases involving demolition, construction and renovation.

The construction industry and the public sector were involved

In one of the corruption cases in Aarhus that yourCompay has previously encountered, both the construction industry and a public institution were involved. Unfortunately, the matter was not reported to the police at the time - the verdict in this bribery case against the former head of administration, Claus Pedersen, emphasizes that it probably should have been.

Another example from the construction industry that yourCompany knows of also did not lead to a police report despite rock-solid evidence of corruption.

Unfortunately, it often happens that cases are not reported to the police. And it can be difficult to understand the motive behind this. In the narrow sense, it can be understood as creating ”noise” around your business or institution. You may be busy with deadlines and other projects and can't be bothered to conduct a thorough investigation of the relationship - you ”clean up and move on” so to speak. However, you should always consider whether the greater good of society should prevail over narrow interests? You should also consider whether ”non-handling” is the right thing to do in the long run. yourCompany has seen examples where ”non-handling” became a problem for years against the odds. This was exhausting for our customer and the topic kept coming up. Something that would have looked different if a police report had been filed at the time.

You should also consider whether it could eventually lead to Bad PR for the company Not handling such matters correctly. In a few years' time, it may look like you haven't had your moral compass in place and your business may suffer at that point.

What is certain is that dismissed staff very rarely become bonus-pater employees in the next job. The problems or needs that caused them to commit crime in their last job usually follow them into the new job. Thus, as an employer, you push the monkey, which in this case is a bad employee, further through ”non-handling”. It's almost like the sign on the toilet we all know: ”leave the toilet as you find it”.

Fraud, bribery and corruption are more common than many people think in Denmark. Everyone should take responsibility for this.

A pen and a few sweets

Back to the case from Aarhus. The special prosecutor, Jesper Rodkjær, demanded at least six months in prison for the former head of administration. Concert tickets and festival tickets are far above the triviality limit for what a public employee can afford to receive. The limit is about the size of an advertising pen and a couple of sweets.

According to the defense lawyer, Søren Beckermann, it is difficult to know which gifts are okay to receive, as no specific de minimis limit has been written down.

yourCompany's advice here is that if you receive gifts, full disclosure is the best and easiest way forward. If you have received a gold watch or an iPad from a customer or supplier, bringing it to the attention of management or the board disarms the debate about whether you can be trusted. It's rarely such gifts that are the problem. It's when the gifts are given as a condition for a quid pro quo. When gifts are necessary to make something else happen, such as a signature on a multi-million dollar contract.

The course of the bribery case

• The former head of administration was charged in the case back in 2017. The management of Aarhus Municipality had been made aware of illegalities in the administration for a number of years.
• The warnings were ignored and several of the whistleblowers lost their jobs because of the complaints against the head of administration.
• One of the whistleblowers informed Århus Stiftstidende about his suspicions in the fall of 2015, after which the head of administration was fired and reported to the police by Aarhus Municipality.

This shows an immature organization that probably didn't know how to handle such cases. It may be a common occurrence in society, but for the individual manager it may be the first and only time they experience it, and the fear of stepping out of line is great. What can we do? What should we do? These are questions that quickly arise. The answer is - get some help.

Even when contacting professional organizations, the help can sometimes be a bit theoretical and they often have very little experience with the practical handling that is basically what is needed. Experience. A steady hand on the helm, with no emotions trapped.

yourCompany investigates and offers advice

Are you experiencing problems in your business or do you have suspicion of fraud, bribery or corruption, Please contact us for a discreet, no-obligation chat about the case and the possibilities. We investigate many different types of cases and are happy to help with dialog with the police, insurance companies and other agencies.

Now click on contact us - to get the conversation started.

Source: https://www.dr.dk/nyheder/regionale/oestjylland/tidligere-topchef-i-aarhus-kommune-doemt-i-bestikkelsessag