By Political and Economic Risk Consultancy, Ltd.- PERC
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There is another side to the cost of corruption in the US that does not jump out from our survey results, but it is extremely significant. It is hinted at in the last two grades assessing the difficulty companies have in dealing with corruption and how easy it is to build an internal culture in organizations to ensure they meet compliance standards. At first glance this might be taken to imply the existence of a “culture of corruption” in the workforce, a character flaw of employees that employers have to guard against (although employers would presumably have this same character flaw).
With potential penalties for corruption so high, senior officials try not to be too blatant in their graft, but sometimes scandals surface that reveal the scale of the problem. A recent Australian investigation into alleged foreign payoffs by an Australian/UK joint venture uncovered allegations that the venture paid more than A$15 million in commissions to one or more Vietnamese government officials in return for help in winning a banknote printing contract. Australian newspapers said the firm, Securency, allegedly paid a bribe to Le Duc Thuy, who served as governor of the State Bank of Vietnam until 2007 and still chairs the National Committee for Financial Supervision.
37 How effective is the system at prosecuting and punishing individuals for corruption when abuses are uncovered? 70 How serious is the government about fighting corruption? 16 How tolerant are average citizens of corruption? 10 Page 30 ASIAN INTELLIGENCE March 23, 2011 Issue #823 Political & Economic Risk Consultancy, Ltd. How widespread is the problem of bribery by private sector parties? 70 To what extent does corruption detract from the attractiveness of the overall business environment? 55 How difficult is it for your organization to deal with corruption?