ID :
81285
Wed, 09/23/2009 - 20:42
Auther :
Shortlink :
https://oananews.org//node/81285
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CONSUMERS GLOBALLY OVERCHARGED US$300 BLN DUE TO CORRUPTION
PETALING JAYA (Malaysia), Sept 23 (Bernama) -- Consumers around the world were overcharged approximately US$300 billion as corruption raised project costs by at least 10 per cent, according to a report released today by Transparency International (TI).
The report, Global Corruption Report 2009: Corruption and the Private Sector
(GCR), stated that 300 private international cartels were found to have
overcharged consumers US$300 billion from 1990 to 2005.
In addition, bribes for corrupt officials and politicians in transitioning
and developing countries amounted up to US$40 billion annually, while companies
have to pay billions in fines in the last two years over such practices.
The report also highlighted other areas of concern, such as a lack of checks
and balances in the political influence of some powerful companies and business
sectors as well as large staff turnover between governments and businesses.
"Basing a company or fund's future on personal relationships and
unpredictable systems or simply operating in a dark space without oversight and
accountability is a path to guaranteed failure," TI chairman Huguette Labelle
said in a statement here Wednesday.
TI said that companies with anti-corruption programmes and ethical
guidelines are found to suffer up 50 per cent fewer cases of corruption and to
be less likely to lose business opportunities than companies without such
practices.
It added that aside from sustaining business, the implications of corrupt
practices extend to wastage of resources as well as shoddy workmanship that can
endanger lives.
"Fostering a culture of corporate integrity is essential to protect
investment, increase commercial success and ensure the stability sought by poor
and rich countries alike, particularly as we climb out of an historical crisis,"
Labelle said.
"Winning on anti-corruption means adding to the bottom line. It is time that
corporations face up to the risk of paying millions in fines and the long-term
loss of trust from their customers and shareholders," she said.
-- BERNAMA
The report, Global Corruption Report 2009: Corruption and the Private Sector
(GCR), stated that 300 private international cartels were found to have
overcharged consumers US$300 billion from 1990 to 2005.
In addition, bribes for corrupt officials and politicians in transitioning
and developing countries amounted up to US$40 billion annually, while companies
have to pay billions in fines in the last two years over such practices.
The report also highlighted other areas of concern, such as a lack of checks
and balances in the political influence of some powerful companies and business
sectors as well as large staff turnover between governments and businesses.
"Basing a company or fund's future on personal relationships and
unpredictable systems or simply operating in a dark space without oversight and
accountability is a path to guaranteed failure," TI chairman Huguette Labelle
said in a statement here Wednesday.
TI said that companies with anti-corruption programmes and ethical
guidelines are found to suffer up 50 per cent fewer cases of corruption and to
be less likely to lose business opportunities than companies without such
practices.
It added that aside from sustaining business, the implications of corrupt
practices extend to wastage of resources as well as shoddy workmanship that can
endanger lives.
"Fostering a culture of corporate integrity is essential to protect
investment, increase commercial success and ensure the stability sought by poor
and rich countries alike, particularly as we climb out of an historical crisis,"
Labelle said.
"Winning on anti-corruption means adding to the bottom line. It is time that
corporations face up to the risk of paying millions in fines and the long-term
loss of trust from their customers and shareholders," she said.
-- BERNAMA
