PwC: Corruption continues to pose a challenge

By Rob Starr, Content Manager, Big4.com

The most corrupt countries are considered to be in Africa and the least corrupt in Europe, according to the Corruptions Perceptions Index 2012. PwC’s Global Economic Crime Survey 2011 found that 60 percent of South African companies were victim of frauds in the last 12 months. Corruption emerged as the third highest contributor to economic crime after bribery.

December 9  2012 marked International Anti-Corruption Day. The theme for this year’s campaign was ‘Against Corruption Today’. This day has become a tradition since 2003 when 129 countries signed the United Nations Convention Against Corruption (UNCAC) in Mérida, Mexico, after working for several years towards the creation of an international legal document against corruption.  Although South Africa has well-documented legal and regulatory standards in anti-corruption, it has faced a significant increase recently in levels of corruption. This is largely due to an array of business scams and collusive tendering.

“The costs associated with economic crime pose a serious threat to a company’s reputation and bottom line,” says professional services firm PwC. “Companies need to consider the potential damage to reputation and brand, as well as the real possibility that corrupt activity perpetrated by their employees or by third parties, and joint venture partners, could lead to prosecution,” warns Peter Goss, PwC Head of Forensic Investigations in Government and Public Services, South Africa.