‘Plea bargains’ lead to quandary for Scottish Government

By GARETH MACKIE
Published on 29/10/2012 00:00

THE SCOTTISH Government is under mounting pressure to introduce American-style “plea bargains” amid fears that the introduction of new rules in England and Wales will put Scottish firms at a disadvantage.

Deferred prosecution agreements (DPAs), announced by the Ministry of Justice last week, will allow firms south of the Border to avoid criminal charges by admitting to economic crimes such as bribery or fraud, but experts said the rules will be undermined unless Holyrood follows suit.

Tom Stocker, a partner at Pinsent Masons, said the introduction of DPAs means firms in England and Wales would pay substantial penalties and be forced to compensate victims and take remedial action, but would avoid criminal investigation or prosecution if they admit to wrongdoing.

However, he argued that similar measures need to be introduced in Scotland if DPAs are to be an effective tool, and said it was unclear whether Scottish authorities would respect plea bargains agreed with the Senior Fraud Office (SFO) in London.

Stocker added: “In situations where the SFO and the Crown Office and procurator fiscal service have concurrent jurisdiction, operating two separate enforcement models is impractical. It creates uncertainty which undermines the incentive for self-reporting in Scotland.”