SA a 'capital of bribery'

22 July 2015 - 02:03 By Shaun Smillie

South Africa is a bribery hot spot - and it shares this distinction with the likes of Nigeria, the Democratic Republic of the Congo and Uganda. The reason for this, according to experts, is a lack of committed law enforcement.A survey conducted by law firm ENS Africa has found that, of the 88 organisations that took part in the research, one in four had experienced an "incident of bribery" or corruption in Africa in the past two years, a 4% increase compared with 2013 figures.This i s the second time the firm has conducted the survey on the continent ... "What we are finding, though, is that companies are becoming more aware of bribery," explained ENS Africa's director of forensics, Roy Gillespie.The survey found that 90% of organisations had a policy against the payment of bribes. The reason, Gillespie said, was that many had recognised they could be exposed to reputational harm, fines and even criminal prosecution.This comes as countries like the US and Britainare enforcing stringent anti-bribery legislation.Corruption Watch CEO David Lewis said South Africa' s anti-bribery laws rivalled those of the US and Britain. The problem, he said, was they were not being adequately enforced."Companies are being careful and compliant because they are vulnerable to British and US legislation. The problem in South Africa is that there is little threat of this," he said.Lewis said he was not surprised that South Africa had been labelled a "bribery hot spot".Two-thirds of respondents believed third-party business partners were the biggest threat to their companies."The problem is that these parties can be involved in bribery and the company doesn't know and is implicated," said Gillespie. It is often these parties that pay government officials for mining licences and so on.As a result, 62% of organisations now screen their third-party business partners. It was found that 82% of those who took part had a dedicated whistle-blower line...

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