The Sunday Mail
AS 2015 folds, one of the most notable stains to the year is undoubtedly the numerous corruption cases exposed at most private and public companies.
While this is definitely worrying, what is comforting is the realisation that exposing corruption is but one step to cure the scourge. But are business leaders inherently corrupt and indifferent to ruining companies, or they also yearn to distinguish themselves in their various pursuits?
When analysing some of the companies that have collapsed as a result of corruption or corporate governance, the same names are involved in most cases.
The tide has to change.
As Government puts in more effort to rebuild the economy, business leaders must introspect and be fully responsible for their actions. However, it must be noted that many investors, fund managers, pension funds and successful businessmen are wary of risky destinations where their money is unlikely to yield a meaningful return on equity, or worse where their hard-earned money is likely to vanish.
Corporate governance therefore is most likely to inspire investor confidence.
There is urgent need to exorcise unethical behaviour and corrupt practices in the private and public sector.
Such a crusade should not only be primed to attract potential investors but to inculcate an ethical culture that has been proven to be a catalyst to business growth and development.
The sooner individuals learn that they cannot run their businesses by political machismo, where they commandeer company resources for purposes that are remotely associated to the enterprise, the better it will be for local businesses.
The rot that was exposed at PSMAS is quite instructive. There is a shocking case where an executive allegedly extended loans to his daughter and son-in-law while the institution suffered. It is astonishing.
But in as much as it is shocking, it is a microcosm of what is generally happening in most companies.
What is clear is that it is not the small man who is responsible for most of the mess that is affecting industry, but big-bellied executives. The inequalities in the distribution of wealth are simply vulgar.
A drive around Harare, particularly around the upmarket suburbs, will show obscene levels of wealth, yet the country is believed to be poor and illiquid.
It is disturbing to note that the bulk of the money avoids formal channels where it can be audited. Zimbabwe is indeed very rich. All that is needed is proper accountability and for people to become more responsible. Corruption can take many shapes and sizes, from the minor use of influence to institutionalised bribery. The latter can have significant adverse consequences to an economy.
Transparency International often defines corruption as “the abuse of entrusted power for private gain”.
This can mean not only financial gain but also non-financial advantages.
For years, Zimbabwe has been on an anti-corruption drive, but its efforts have not been far-reaching. The challenge is that most people who assume influential positions in society think of themselves first. It is a real struggle.
If individuals continue to think of personal gain, then this cancer will certainly be hard to get rid of.
It might even affect posterity.
Corruption builds opulent homes but on the overall, roads, sewer and water systems will remain in abhorrent state, which ultimately affects the whole country.
What is however encouraging is that the situation seems to be under control in Zimbabwe, relative to other African countries. As a nation, there is need to take full responsibility for our actions.
On June 24, 2004 during the United Nations Global Compact Leaders Summit, it was announced that the UN Global Compact henceforth includes a tenth principle against corruption.
Part of the principle read: “businesses should work against corruption in all its forms, including extortion and bribery.”
This was adopted after extensive consultations and all participants yielded overwhelming expressions of support, sending a strong worldwide signal that the private sector shares responsibility for the challenges of eliminating corruption.
It also demonstrated a new willingness in the business community to play its part in the fight against corruption.
It is high time the country banishes the inertia that usually accompanies corruption and set on a new path to development.
Taurai Changwa is an Articled Accountant and ACCA finalist. He is the managing director of SAFIC Consultancy. He writes in his personal capacity and can be contacted at [email protected] or whatsapp on 0772374784.
