Corruption & Facilitative Payments II

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Corruption & Facilitation payments

1As of 2012, $462.7 billion abroad.Two-thirds emerging marketsThe culture of corruptionCorruption Perception Index 2013 - the BRICS nations scored below 50Globalised economy

China 80th, Indonesia 114th History & cultureLow wagesRed TapeDecentralisation without accountabilityWeak EnforcementReasons for culture of corruption

Zero Tolerance ?

NEED FOR A BALANCED APPROACH

Payments made to secure or expedite routine governmental action that are entitled to as of right.

Governmental action refers to acts of administrative nature, and do not necessarily involve government officials.

Facilitation payments

Against global trend

2009, the OECD retracted.2013, Canada also passed amendments to eliminate China does not have an exception.

RebuttalsA balance needs to be struckCanada as the worst G7 nation China 2nd bottom from Bribe Payers index.Facilitation payments

Destroys trust in public administration

An unpredictable business environment Erode trust in public administration.10-25%

RebuttalsResult & not cause Secure actions entitled as of rightAdditional operating cost compelled to.Facilitation payments

s 37 & s 23

The need for reporting Not a defence

Prevent abuse Prevention of Corruption act

The end