In trying to understand the central issue of corruption, one needs to understand the complex and intricate nature of corruption. If we ask, what is “corruption”? The American Heritage English Language Dictionary (Pickett, 2000) defines corruption as “the art or process of corruption, the state of being corrupt, decay, and rot. ” As indicated above, corruption comes in many forms. In the least developed countries (LDC’s) such as Africa, all types of corruption are prevalent.
The following brief case histories of these three companies will present the magnitude of the scandals, corruption, and deceit these companies perpetrated on the unsuspecting public and their business partners. Other countries of the world have similar problems of corruption, fraud, and mismanagement. From time to time, stories appear about the corruption trial of a government official, a banker, or corporate head in other parts of the world. My personal experience also left me with no doubt that police corruption in South Africa was daunting task for the new democratic government of South Africa.
Corruption in Kenya and more particularly among the police has reached unprecedented levels. Thieves have been set free from police cells because of corruption. The ministry of public works: This is the second most corrupt institution in Kenya. Finding found that this is the Ministry that has the highest rent corruption in Kenya. A large population of the Kenyan people expressed disgust at the corruption in this ministry. The corruption at the ministry of public works is more sophisticated than meets the eye. It is actually a key ministry in any government.
Income tax department: African Revenue Authority is the main government agency for collecting all government revenue. No government can run on its own without taxes. Money collected from taxes is what the government uses to provide public services like Education, Health, Infrastructure, security and policing, a forestation, public service employment, defence and many others. (Transparency International Report, 2006) Over Kenya Shillings 250 billion taxes, (Transparency International Report, 2006), are collected annually by the Kenya Revenue Authority.
Corruption at the African Revenue Authority is a matter of great concern. There is corruption in the organization both corporate and individual taxpayers. Tax evasion is very high in this sector and the government loses millions of shillings through fraud and tax evasion. The company employed more than 30,000 people in 30 countries The anti-corruption war in Africa. In Africa, the government system allows for unfettered discretion in matters of public finance. This of course promotes extensive corruption and rent seeking behavior amongst market participants and government officials.
Africa is crying out for economic development and many billions of dollars are generated in oil revenues and taxes for African governments. The chief officers are appointed by the Public Service Commission, through the Ministry of Local Government. Corruption in local authorities has reached unprecedented levels. Many observers think that corruption in local authorities is even worse than in central government. As we are all aware, local government, like the central government undertakes a variety of services and responsibilities that may be highly susceptible to corruption.
Central government normally handles these transactions on behalf of the local authorities concerned. Corruption is no uncertain terms undermine these services. Corruption in the city of Nairobi has since introduction of the anti-corruption agencies hit our local newspapers almost every other day. The Africa Anti-corruption and Economic Crimes act is now firmly in place. Under that act, The Africa Anti-Corruption Commission has been set up. The commission replaces the former African Anti-corruption Authority that was outlawed.
Africa needs restoration, so that it can occupy its rightful place in a civilized world, free of corruption. The collapse of many commercial banks in quick succession, corruption in high places, and general economic mismanagement of state resources. On finding that Africa was not serious about matters of governance and the fight against corruption they disengaged themselves from doing any meaningful business with Africa. International organizations have therefore; become the most effective instruments in fighting global corruption.
They play a significant role in the right against corruption. Top in the fight against corruption, is the United Nations Organizations, the world body of nations. No meaningful financial stability can be sustained in a corruption environment. The World Bank and the regional development banks, especially in Asia and Africa, have established explicit anti-corruption policies aimed at helping countries to confront and prevent corruption through appropriate economic and civil service reforms. Corruption is like to occur within the institutions themselves.
Here corruption may occur whenever officials exert discretionary power in and where money is involved. Corruption, does also occur when establishing development priorities. Here, the choice could be distorted by corruption. Corruption can also occur when authorities are awarding supply and works contracts. A government that will create an environment that has zero tolerance on corruption practices in the public service. The ethical behavior and moral values of public servants must be critically re-evaluated if corruption in the public service is going to be eradicated.
Africa like many other developing countries is faced with serious ethical challenges in its public sector management. (Transparency International Report, 2006). Improve quality and transparency in financial reporting and independent audits and accounting services for public companies, At the U. S. government level, the enactment of the FCPA is addressing the issue of bribery and corruption at the trade and investment transactions, while the Sarbanes-Oxley Act is dealing with public accountability, transparency, and proper financial reporting requirements in public companies.
Political appointments were made to government parastatals to strategically siphon out resources for the benefit of a few; political banks were created to serve as vehicles of corruption, money laundering and fleecing of public corporations. Although the past government in Africa tried to put in place some anti-corruption structures like Kaca (Kenya Anti-Corruption Authority) and later the police unit, none of them ever got off the ground. I have tried to highlight corruption in most sectors of the African economy. No sector has been spared from corruption.
For sanity to return back to Africa, every African must resolve to fight corruption. The current government has tried its best to put in place the anti-corruption instruments including the Anti-corruption and Economic Crimes Act, the Public servants Ethics Act, the establishment of Africa Anti-corruption Commission and other relevant bodies under the acts. This will go along way in fighting corruption once there is good will from both the government and let people. The South African government has handled their fight against corruption more transparently that any other African country.
Africa is endowed with sufficient natural resources and wealth for everybody if only corruption could be eliminated. The western economic mafia has always colluded with corruption. Corruption undermines democratic institutions and good governance in the political landscape. First, political corruption is an illegitimate extension of normal political activity. In trying to understand the central issue of corruption, one needs to understand the complex and intricate nature of corruption. If we ask, what is “corruption”?
The American Heritage English Language Dictionary (Pickett, 2000) defines corruption as “the art or process of corruption, the state of being corrupt, decay, and rot. ” As indicated above, corruption comes in many forms. In the least developed countries (LDC’s) such as Africa, all types of corruption are prevalent. The following brief case histories of these three companies will present the magnitude of the scandals, corruption, and deceit these companies perpetrated on the unsuspecting public and their business partners.
Other countries of the world have similar problems of corruption, fraud, and mismanagement. From time to time, stories appear about the corruption trial of a government official, a banker, or corporate head in other parts of the world. Doing Business in Africa and Other Non-Industrialized Nations My personal experience also left me with no doubt that police corruption in South Africa was daunting task for the new democratic government of South Africa. Corruption in Kenya and more particularly among the police has reached unprecedented levels. Thieves have been set free from police cells because of corruption.