Tuesday, February 5, 2008

Corruption

Transparency International’s Corruption Perception Index places Zambia in an uncomfortably prominent position on the list where the indicator suggests that corruption is alive and well, and growing.

At the business level, it is interesting to highlight where corruption is making a big impact, and which areas can be drivers of change.

It is also important to note that at the lower levels, corruption starts off as a bread and butter issue of survival, but these seemingly harmless incidents become the foundation for doing business, and will grow to larger forms of corruption with time.

At the corporate level corruption has an immediate devastating impact. The selection of Board Members that will service the private agendas of the appointing agents can ruin an organization even before it gets its feet on the ground. The hand picking of top management individuals at the expense of professional assessment panels puts insincere personnel with low integrity into positions of power. The business is set on a course of patronage and boot licking from the word GO! Corruption is then institutionalized and the only direction for that business to go; is down.

At this level corruption will affect the lives of the employees, will result in the loss of huge investments, and will lead to the lack of credibility of the citizens of that community.

Accountability is an essential requirement if a business is to survive in this competitive world. A business must be accountable to its management for it to perform well. The management must be accountable to the Board of Directors if the management is expected to carry out its mandate. In this respect the Board of Directors must be accountable to the Share Holders, and the Share Holders must be accountable to the Government and Community at large. Accountability is also one of the biggest weapons against corruption. Since corruption is generally a closed door, behind the scenes activity, open accountability tries to flush it out and eradicate it from the system.

Corruption is always aimed at some form of gain to the individual. If that individual is an employee in a private company or in a public institution, then the corrupt acts are not aimed a protecting the organization whilst making a fast buck. The organization becomes a victim of the corrupt acts and the institution is eventually destroyed as it is continuously used and abused to serve the personal interests of the employees.

Where are some of the drivers of change in our economy? Which institutions can pilot the way forward towards a corrupt free economy?

At the macro level, public equity, accountability, clarity, and checks and balances are essential in the national constitution.

At the executive level, consultation, inclusion, accountability and recourse are important for systems to be respected and implemented.

At the operational level, some key public institutions and civil society collectives must take up the challenge of introducing a mind set that sees corruption as a detrimental practice for both social and economic development.

The Anti Corruption Commission (ACC) must perform the basic task of responding to all complaints even if there is no merit in the complaint. A response from the ACC is a sign of acknowledgement and that the matter is, or has been considered. That in itself is a basic win for the ACC in the fight against corruption. The ACC should have the laxity to investigate and prosecute any person in the private sector or in the Government if a case of corruption can be established. This develops a sense of confidence in the citizenry that the ACC is impartial and that there are no Sacred Cows. The ACC must have links to all public institutions with special emphasis on those that offer services directly to the public. This will also inspire confidence in the operations of the ACC and provide a natural watchdog service on behalf of the public in public institutions.

The Zambia National Tender Board (ZNTB) must put in place a responsive reporting system on the processing of tenders. This reporting system must be in the public domain for all to see. ZNTB must respond to all bidders with clear reasons why their tenders were not successful and provide an avenue for complaints that can be dealt with in an open and transparent manner. A complaints desk is in place at ZNTB, but until full information is made available to the public and bidders pro-actively, ZNTB will always be perceived to be biased in their operations and processing of tenders.

The Zambia Police Service (ZP) is the most active public institution in issues on corruption. If ZP cannot be trusted to arrest a suspect or investigate a case, then corrupt practices will be fueled, and will grow, as the perpetrators will be perceived to be above the law. The public usually interface with the Police on a daily basis on any issue that either breaks the law or impinges on ones civil liberties. The Police represent the face of the Government and its authority in every community. A perceived corrupt Police Service, or an inactive Police Service, only serves to promote corruption in any society. The public begin to sideline the Police and use corrupt means to resolve their cases.

Institutions of Education, starting from the home, can be essential drivers in the fight against corruption. At home, values, principles, and culture are taught to children at an early age. These virtues will usually guide children throughout their lives into adulthood and build the character of the person, and further, the character of the society. Parental teaching of right from wrong, and good from bad, are the basic ingredients of our character in later life.

This effort can be further complimented by additional teachings at primary, secondary, and tertiary education institutions whereby the linkages between corruption and its negative effects on society and the economy can be further elaborated.

Businesses in Zambia are dependent on sound rules and regulations, equitable and predictable systems and public services, and sincere and dedicated staff with a high sense of integrity. If all these characteristics are not in place, we will struggle to lift our economy and people out of poverty, and continue to be our own worst enemies.


Published 5 February 2008

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