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Corruption Scares Away Investors

Home Archived Corruption Scares Away Investors

By Surihe Gaomas WINDHOEK Because Namibia is a sparsely populated country with a small pool of skilled personnel, the onus falls upon business to vigorously join in the anti-corruption crusade if more investment is to be attracted into the country. This sentiment was expressed by the Chief Executive Officer of the Namibia Chamber of Commerce and Industry (NCCI), Tarah Shaanika, in his contribution in a book addressing this scourge that affects different sectors of the economy. In his contribution in the recently-published book “Tackling Corruption – Opinions on the Way Forward in Namibia” Shaanika writes under the topic “The Role of Business in Combating Corruption” that as the fight against corruption intensifies, all stakeholders including the business sector must get involved. “The business community is a major stakeholder in the fight against corruption, and any efforts made in this respect without involving the business sector may fail to achieve the desired results. The business community – which many would agree is part of the problem when it comes to corruption – has to be part of the solution,” states Shaanika. Just as much as business people corrupt public officials with paid bribes, the same problem applies the other way round. It turns out that many of the comments originating at the NCCI branches are that a number of “business people spoke about the difficulties they faced in gaining access to government services unless they paid bribes to corrupt government officials”. Some business people also informed NCCI that officials solicited bribes from them in return for destroying evidence of their indebtedness to the Receiver of Revenue. “This clearly shows that there are individual officials who abuse their positions to rob business people of their money by making false promises, and it is a pity that some business people fall for such cheap lies,” added Shaanika. Other reports indicate that business people offered bribes to win public tenders, avoid normal established procedures, evade taxes or get other unfair and illegal benefits at the expense of other business people and the general public. Shaanika is of the opinion that these incidents of corruption within the business sector cannot be ignored, as they would greatly tarnish the country’s mission to attract investment and good business. “A corruption-free environment encourages investment because investors know that the cost of doing business will not be inflated by bribes and cheating. They know that they engage in fair business and compete against competitors with integrity,” he added. Since there are so many sector-based associations representing the interests of various businesses, such associations, including the NCCI, need to mobilize resources together to fight corruption head-on. Citing the various tools that businesses can use in uprooting corruption, are mainly the use of greater awareness campaigns as well as educating business people on how to expose corrupt officials when they are approached for bribes. All this should be done in close partnership with the Anti-Corruption Commission (ACC). Shaanika further advised that, on their part, individual businesses can “commit a total onslaught on corruption” by exposing corrupt officials, adhering to best practices in corporate governance, enforcing higher ethical standards in businesses, availing resources against corruption and participating in anti-corruption activities. Since business can be part of the corruption problem, Shaanika believes it can also be a useful tool for dismantling corruption from within. “Businesses are also major victims of corruption, and for them uprooting corruption is a business imperative because it is in their best interests to do so. But most importantly, businesses have a social responsibility to support and be part of efforts to create a safer and honest society.” In conclusion, an anti-corruption drive should go hand in hand with the creation of corporate governance in both public and private business sectors.