VIVAnews - Global Corruption Report (GCR) reveals that business world has spent US$ 40 million to bribe public officials every year. The bribery was carried out in an organized way.
“Later it turned public policies into business facilities,” The Head of Transparency International Indonesia (TII) Executive Board, Todung Mulya Lubis, said at the launch of 2009 Global Corruption Report in Jakarta on Wednesday, October 7.
According to him, the crime was committed in a very organized system. “It tends to happen to IPO and right issue,” Lubis said.
Meanwhile, TII General Secretary Teten Masduki said that it was not only about receiving the hush money. “[It is also about] defending corrupted bureaucracy, parties, politics and administration,” he said.
GCR reports that out of 2700 business executives surveyed in 26 countries, 2 out of 5 executives admit they have been asked to bribe when it comes to dealing with public institutions.
“Fifty percent business managers estimate that corruptions provide at least 10 percent additional project funds and in some cases, more than 25 percent,” Masduki said.
In addition to bribery, another emerging issue is nepotism. TII report showed that almost 50 percent of executive officials in 19 developed countries confessed that personal relationships are often used to seal a deal in public contracts in non-developed countries.
GCR also learns that corruptions distort company performances. According to the report, the authority misuse committed by company managers, major shareholders and other business executors for personal interests has scathed company owners, investors, employees and the people.
Moreover, the report also analyzes fair market competition impairment done by the cartels through pricing and other collusion schemes. “This has inflicted major losses to the consumers, market and world economy,” Masduki said.
According to the data, more than 283 private international cartels between 1990 and 2005 have caused direct economic losses to the consumers from excess costs with US$ 300 million of total amount.
However, GCR also indicates that the roles of business in battling corruptions tend to get more substantial. “Companies which have anti-corruption programs and code of ethics could eliminate up to 50 percent corruption cases,” Masduki said. But, he said the programs have not been implemented by the business world to the utmost.
90 percent of world’s top 200 businesses have adopted business regulations. “But, less than half of them reported that they monitored compliances to the regulations,” he said. Teten also explained that the tendency was due to the lack of protection for the complainants, transparency and adequate reporting system.
Based on the findings, GCR recommends standardization in business practices. “Binding commitment should be diversified and opened to be monitored in terms of the compliance,” Masduki said.
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Translated by: Nataya Ermanti
