Deferred prosecution agreement Singapore: Understanding the Basics
A deferred prosecution agreement (DPA) is an alternative to prosecution. In Singapore, DPAs are used to resolve criminal charges against corporations. DPAs are not a new concept as it has been used in developed countries like the United States and the United Kingdom for several years. However, the use of DPAs is still new in Singapore.
What is a DPA?
DPAs are a binding agreement between a company and a prosecutor where the prosecutor agrees to defer the prosecution of the company for a certain period. During this period, the company must meet certain conditions to avoid prosecution. The conditions may include payment of a fine, restitution to victims, implementation of compliance measures, and cooperation with the prosecutor’s investigations.
Why the need for DPAs in Singapore?
DPAs are used to encourage companies to self-report misconduct. This is because companies are more likely to self-report if they know that they will not be prosecuted if they cooperate with the prosecutors. DPAs are also used to hold companies accountable for their actions without bankrupting them.
Before the introduction of DPAs, Singapore prosecutors had limited options when dealing with corporate misconduct. The options were either to prosecute the company or not to take any legal action. Both options had their drawbacks. Prosecuting a company can lead to the company’s bankruptcy which can cause job losses. Not taking any legal action can send the wrong message to other companies that they can get away with misconduct.
Benefits of DPAs
DPAs have several benefits over traditional prosecutions. Firstly, DPAs can help to reduce the burden on the court system as it eliminates the need for lengthy prosecutions. Secondly, DPAs can lead to faster resolution of cases which is beneficial to both the company and the prosecutor. Thirdly, DPAs can help to preserve the reputation of the company. A traditional prosecution can damage a company’s reputation which can negatively impact its business performance.
Conclusion
The introduction of DPAs is a positive step towards combatting corporate misconduct in Singapore. DPAs can help to hold companies accountable for their actions without causing unnecessary harm to the company. Additionally, DPAs can help to encourage companies to self-report misconduct which can lead to early detection and prevention of misconduct. If you are a company facing potential charges of corporate misconduct, a DPA may be a viable option to avoid prosecution.
