Dilemma 8:  Extortion – Answer

In most countries, you would not be liable for bribery if you made a payment in this situation.  You are not paying a bribe to influence someone to perform a function improperly – you are having a payment extorted from you in circumstances where you fear for your safety. 

If you feel that your safety is threatened (which is perfectly reasonable in the situation described in this dilemma), then make the payment.  Do not inflame the situation.  Be polite to the policeman.

Hopefully, the policeman will then let your through the roadblock unharmed.  As soon as possible after the event, make a record of what happened.  Then report it to the relevant person in Buildwell.  If Buildwell has a compliance function, then this would normally be to the Compliance Manager.  If not, report it to your immediate superior.

Buildwell will then need to determine what, if any, follow up action should be taken in regard to this incident.  In particular, should it be reported to the police, or to the Embassy of your country if the incident occurred in another country.  Legal advice may be necessary.

Do not hide the amount you paid as a false expense (e.g. a meal), otherwise you could be committing accounting fraud.  Ask Buildwell to reimburse you.

Buildwell should not conceal the reimbursement in their accounts as a legitimate expense.  It should be shown in a separate line item as “extortion payment” or equivalent.  It should not be deducted from tax.  Otherwise, Buildwell could be committing both accounting fraud and tax fraud.  Far better to be honest about the payment.  It was not a bribe if it was extorted from you in these circumstances. 

The situation would be different if the policeman legitimately stopped you after you had committed a traffic offence, and was not at all threatening, and stated that he would let you off if you made him a cash payment.  This would then be a bribe by you if you paid, as you would be trying to influence him to act improperly by letting you off, and you are not in fear of your personal safety.