By Georg Neumann

At an outreach day event held at the new Australian Parliament House, TI Asia Pacific and AusAID jointly announced a new five-year partnership framework agreement aimed at scaling-up and increasing the effectiveness of the fight against corruption both at national and regional level in Asia Pacific

Cobus de Swardt, TI managing director, praised the progress the movement has made, while emphasising the need to: “Take our issue to scale and escalate the fight against corruption so as to leave no level of the government, private sector or NGO community untouched.”

The event, which was attended by more than 80 participants – including representatives from the Australian government, academia and delegates from 21 chapters in Asia Pacific, discussed anti-corruption priorities in Asia Pacific. Debates highlighted the need to strengthen public sector integrity and improve private sector governance in the context of the financial crisis, as well as mobilising citizens to play a role in supporting such anti-corruption reforms.

The event took full advantage of TI’s extensive Asia Pacific network of 21 chapters, enabling participants to learn from others’ experiences. Presentations were given by TI chapter representatives from Bangladesh, Papua New Guinea, South Korea and Thailand, which showcased approaches and projects they have found successful to engaging the general public.

By Samuel Bakowski

In a letter addressed to UN Secretary General Ban Ki-moon, the CEOs threw their support behind the world’s only universal anti-corruption instrument, stating that it “holds the promise of curbing corruption and creates a level playing field for all participants in the global economy”.

The UNCAC, adopted in December 2003, has been signed by 140 countries and ratified by 136 to date. The UNCAC is unique as compared with other conventions not only in its global coverage but also in the extensiveness and detail of its provisions.

The CEOs praised the Convention as “an essential instrument in the fight against corruption,” while noting that the comprehensive framework can be applied to both emerging and developed countries to curb corruption in both the public and private sector.

However, the CEOs cautioned that in order for this popular anti-corruption tool to be implemented effectively, a review mechanism must be put in place. “We consider it essential that the Doha Conference in November 2009 takes action to establish an effective review mechanism. Further delay would damage the credibility of the Convention and its ability to build momentum in overcoming corruption.”

Transparency International has been leading advocacy efforts for the proper monitoring of the UNCAC and developed a set of detailed recommendations to establish an effective review mechanism.

“Transparency and accountability are cornerstones to economic success. These CEOs have shown great leadership in supporting a review mechanism that truly works, and we look forward to making the promise of this convention an anti-corruption reality”, said Huguette Labelle, Chair, Transparency International.

“I deeply appreciate the leadership demonstrated by the corporate community in this critical matter,” said UN Secretary General Ban Ki-moon, in response to the letter by the CEOs. “The business advocacy for an effective review mechanism and the growing number of States adopting and implementing the Convention are evidence of a shared commitment to tackle corruption.”
Photo:StockXchange/RainerSchmidt

By Michael Sidwell

The Ernst & Young European Fraud Survey interviewed 2,246 employees of major companies in 22 countries across Europe. Half of those surveyed believe that, “one or more types of unethical business behaviour was acceptable”. For example, 25 per cent of European respondents thought it fine to give a cash bribe to win work.

Worryingly, 55 per cent of European respondents expect corporate fraud to increase over the next few years. An increase is expected because of, “changes that will be made to businesses in response to the economic downturn, reduced focus on anti-fraud, pressures to protect the future of the company and the pressure to keep bonuses and compensation greater.”

Dr. Michael Faske, Ernst & Young’s Fraud Investigation & Dispute Services Leader in Switzerland, said, “Geographic location or relative economic wealth makes little difference to expectations of increased fraud across Europe. This is a global recession and fraud is a global problem.”

Some 69% of European respondents reportedly had, “cause to doubt the integrity of their company’s management”. According to Dr. Faske, “the senior management of the population that we surveyed are more likely to condone bribery and financial statement fraud than those of junior rank. Indeed our interaction with regulators suggests that they are very conscious of the shortcomings in corporate governance and are positioning themselves for much more aggressive enforcement action.”

In addition to making recommendations to address increased fraud risks, the report concludes that: “by demonstrating their commitment to ethical business conduct, management will not only be protecting assets of the organization but positioning the company to seize opportunities in adversity.”

To read the report click here.