Fighting Corruption: Key to Business Success

With global governments committed to tackle the world's most pressing problems - from the instability of financial markets to climate change and poverty - corruption remains a major obstacle in making much needed progress.
During the 33^rd Annual Conference and Exhibition of The Association for Operations Management of Southern Africa (SAPICS), Professor Patrick Lumumba from the Kenyan Anti-Corruption Commission highlighted the far reaching effects corruption has, specifically on development in Africa and proposed practical solutions to this challenge. The topic of dealing with corruption was well-integrated with the theme of the SAPICS Conference, "Futuregrowth Today".

Says Professor Patrick Lumumba: "Indeed, the case of Africa is one of a paradox in that although it is the richest in the world in terms of natural resources, it remains at the bottom of the global governance and developmental prism."

It is estimated that corruption causes the continent to lose in excess of US$300 billion annually and that illicit money in the form of bribes and kickbacks is still flowing from developing countries into the West at a rate of approximately US$11, 26 trillion per annum. The fact that Africa receives the lowest share of the global Foreign Direct Investments (FDI) inflows is directly linked to the high costs of doing business in the corruption-drenched environment.

There is a myriad of factors that either contribute to, or cause corruption. In the case of Africa, governance problems are indicated as the root cause for the continent to be considered as very corrupt by the rest of the business world. According to Professor Lumumba, the fight against corruption should therefore focus on counteracting poor governance rather than "catching the crooks". He concluded that the business sector in particular can contribute towards fighting corruption by setting "integrity standards" in pursuing business contracts, especially those which involve government.

The message to South African business was clear: governance should be strengthened to counter the corrosive effects of corruption.

Professor Lumumba won the Terry Smee Award for the Best Speaker at the SAPICS conference with the highest score ever recorded by a presenter.

Notes to the Editor.

About SAPICS
The Association for Operations Management of Southern Africa, SAPICS, is a professional knowledge-based Association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a country-wide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries.

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