Foreign firms guilty of graft in Africa

CAPE TOWN – Some foreign companies doing business in Africa are as guilty of corruption as the nations in which they invest, a senior Kenyan government official told an economic summit yesterday.

Planning and National Development Minister Anyang’ Nyong’o also said that, while African corporate dealings were becoming cleaner, the bribes which were paid out were now higher because of the increased risk of getting caught following the enactment of anti-graft laws under donor pressure. Global business leaders at the World Economic Forum (WEF) summit said Africa was winning the war on graft, often cited as a major barrier to trade and investment in the world’s poorest continent.This year’s summit organised by the Davos-based WEF is centred around an ambitious British-backed plan to revitalise African economies by opening trade doors to Africa and giving an extra US$25 billion (N$170 billion) a year in aid.The blueprint, devised by the Africa Commission, also urges rich nations to crack down on bribery by their own firms abroad.Since publishing the dossier, Britain has been criticised for its failure to prosecute companies suspected of bribery and profiteering from war.The Organisation for Economic Co-operation and Development (OECD) cites the lack of prosecutions in Britain since its own anti-bribery convention came into force in 2001.Debt relief for Africa is also expected to be one of the main topics of discussion at next week’s Group of Seven meeting of finance ministers in London.Nyong’o also said some multi-nationals appointed their local heads from among relatives of top officials of African states to run their operations, in order to get favours.”This is peddling of influence, and a component of corruption,” he told a meeting meant to look at ways of cutting the cost of corruption to enhance business in Africa.A discussion at the meeting listed poor infrastructure, which adds to the cost of doing business in Africa, red tape, lack of predictability and political stability as all ranking higher than corruption as barriers to investment.Nyongo’o said in Kenya – often cited by diplomats and anti-graft campaigners as a haven of corruption – patterns of vice were changing under pressure from anti-corruption laws demanded by donors.”If you’re going to get away with it you have to play a very risky game.People are now asking a very high price – the cost of corruption has gone up because the stakes are high,” he said.Business leaders attending the summit said their perception was that corruption was slowing down.”It is possible to do business on this continent without corruption.If you want to do it the straight way, it is possible,” said Lazarus Zim, chief executive officer of South Africa’s unit of the world’s second-largest diversified mining giant, Anglo American Plc.Graham Mackay, CEO of international brewer SABMiller has also told reporters there was a noticeable reduction in corruption on the continent: “My understanding is that corruption is dropping in Africa …more of it is caught and stopped rather than more stuff starting.”- Nampa-ReutersGlobal business leaders at the World Economic Forum (WEF) summit said Africa was winning the war on graft, often cited as a major barrier to trade and investment in the world’s poorest continent.This year’s summit organised by the Davos-based WEF is centred around an ambitious British-backed plan to revitalise African economies by opening trade doors to Africa and giving an extra US$25 billion (N$170 billion) a year in aid.The blueprint, devised by the Africa Commission, also urges rich nations to crack down on bribery by their own firms abroad.Since publishing the dossier, Britain has been criticised for its failure to prosecute companies suspected of bribery and profiteering from war.The Organisation for Economic Co-operation and Development (OECD) cites the lack of prosecutions in Britain since its own anti-bribery convention came into force in 2001.Debt relief for Africa is also expected to be one of the main topics of discussion at next week’s Group of Seven meeting of finance ministers in London.Nyong’o also said some multi-nationals appointed their local heads from among relatives of top officials of African states to run their operations, in order to get favours.”This is peddling of influence, and a component of corruption,” he told a meeting meant to look at ways of cutting the cost of corruption to enhance business in Africa.A discussion at the meeting listed poor infrastructure, which adds to the cost of doing business in Africa, red tape, lack of predictability and political stability as all ranking higher than corruption as barriers to investment.Nyongo’o said in Kenya – often cited by diplomats and anti-graft campaigners as a haven of corruption – patterns of vice were changing under pressure from anti-corruption laws demanded by donors.”If you’re going to get away with it you have to play a very risky game.People are now asking a very high price – the cost of corruption has gone up because the stakes are high,” he said.Business leaders attending the summit said their perception was that corruption was slowing down.”It is possible to do business on this continent without corruption.If you want to do it the straight way, it is possible,” said Lazarus Zim, chief executive officer of South Africa’s unit of the world’s second-largest diversified mining giant, Anglo American Plc.Graham Mackay, CEO of international brewer SABMiller has also told reporters there was a noticeable reduction in corruption on the continent: “My understanding is that corruption is dropping in Africa …more of it is caught and stopped rather than more stuff starting.”- Nampa-Reuters