Fighting Corruption

The private sector has often been perceived as the champions of promoting corruption in most countries around the world.

There is a premise that the public sector is not corrupt, and civil society is blameless, but suffers the brunt of the negative effects of corruption. These effects include poor health systems, inadequate schooling infrastructure, sub standard roads, hazardous food products, and dangerous buildings and transport systems.

The private sector tends to consider the issue of corruption as a phenomenon that is supported and promoted by imbalances in relationships, whether they are trade or service related. The basic dynamic is that one party requires some action or product from the other party and therein lies the opportunity for corruption to breed and grow.

The private sector point of view in preventing and fighting corruption in Zambia is to minimise the opportunity for corruption to take root or operate unchallenged.

In this regard, in respect to public services, there is need to remove all forms of discretion and replace these instances with processes that are predictable and accountable to the public. Institutions such the Zambia National Tender Board (ZNTB), Lusaka City Council, Registrar of Companies, the Passport Office, the Zambia Revenue Authority, NAPSA, and UTH are constantly challenged by the private sector to develop a Service Charter that can be used by the public to hold the staff in these institutions accountable. ZRA has now instituted an Internal Affairs Unit to monitor, assess and respond to issues relating to staff conduct and performance within the institution. ZNTB is now amending, and possibly revoking, it’s Act, to be replaced by a document that provides the institution with a new mandate with sufficient rules to ensure that transparency and accountability are in the forefront of their processes. In many of these public institutions, the private sector has been invited to dialogue on the mechanisms that can be changed in order to prevent corruption.

The private sector has challenged the ZRA to consider options for using the private sector as anti corruption watch dogs and whistle blowers. The ideas shared with ZRA focus on taking advantage of the tenacity and shrewdness of the private sector and using this aggressive character to fight corruption. A case in point, is to deliberately set a customs duty tariff difference between a wholly packaged product and that of the product coming into the country in either knock down kits, or unpackaged. This tariff discrimination motivates the private sector companies that are packaging or assembling to work tirelessly with the ZRA to ensure that those companies that are importing the wholly packaged or assembled products pay the correct higher customs tariff. This arrangement and its success is motivated by the fact that if the assemblers or packagers allow their counterparts to import their products at lower customs duty rates, then the value adding group will soon be out of business as their competitive advantage will have been eroded.

Private sector business associations have discussed the need for tax payments to be decentralised such that long queues can be avoided on due dates. ZRA has responded by slowly introducing bank managed payment systems for the various taxes.

The private sector has shared amongst its membership the need for all companies to understand the implications of a corrupt environment and the long term costs that it imposes on doing business. This ongoing initiative is promoted through the Institute of Directors, the Zambia Business Forum, the Zambia Association of Chambers of Commerce and Industry, and many other business associations across the country.

The private sector is cognisant of the shoddy quality of projects undertaken in Zambia with public funds. In recognition of this, the private sector was in the forefront of establishing the National Construction Council which is an oversight statutory body for civil engineering works in Zambia.

There is a national recognition that the Zambia Police Service and the Anti Corruption Commission are public watch dog institutions that should be open to all residents to receive and act on issues of corruption. The private sector constantly challenges these two flagship institutions to be professional, accountable and responsive to the public, if they indeed expect the public to have confidence in their services. The ZPS and the ACC are considered to be the first point of contact for any corrupt practices brought to the attention of the public. If these two institutions are perceived to be biased or ineffective, corruption will erupt more aggressively as it will grow unchecked.

Private businesses have invested in community police stations in residential areas, commercial areas and industrial areas to ensure that there is Police presence throughout our society to curb corrupt practices.

The private sector is part of society and society is part of the private sector. This integrated relationship suggests that the fight against corruption cannot be confined to one sector only. Zambians and residents must be challenged to take equity in the social and economic development of the country. A huge paradigm shift must be made such that every individual in the country recognises that public property belongs to us all and we must take responsibility for its well being. Every individual must be made to understand that they contribute to Zambia’s present and future character. Every individual must be an active player in developing the nation.

Mahatma Ghandi once said ‘You must be the change that you want to see in the world’. This is so true for Zambia and Zambians, whether they be public workers, civil society and indeed, the private sector.

Published 27 May 2008