Eradicating corruption practices from the airfreight supply chain in Africa is never going to happen if the industry doesn’t speak publicly about the concerns and challenges. According to World Bank research, around US$1.5 trillion is paid in bribes by companies and individuals each year. Yet there is still no transparency from the airfreight and logistics industries on exposing the costs and challenges they face, says Alexandra Wrage, president of global anti-corruption business association, TRACE. FTW also called on regional and local airfreight and logistics companies to weigh in on the scourge but not one company responded to the query. Wrage says asking local companies to discuss their experience with crime would be a “sensitive topic”. She highlights that the key to stamping out corruption is to reduce the opportunity and increase the risk of punishment for non-compliance. “But the latter only works if the air cargo community speaks out more publicly,” Wrage comments. She points out that if, because of automation, a Customs official has fewer opportunities to put out his hand and, at the same time, the penalties are substantial and enforced then there would be “real change”. According to her, in many countries officials ask for a bribe because there is “no downside”. She adds that it is currently also a business risk for one airfreight supply chain company to decline to pay a bribe knowing that the Customs official will punish them and detain their cargo. “But if the majority refuse, the demands will slow dramatically,” says Wrage. The TRACE annual Global Business Bribery Risk Index shows that African countries dominate in the ‘high’ to ‘very high’ bribery categories, although southern Africa fares a little better. Out of a total of 199 countries, six countries – Mauritius (21), Botswana (45), South Africa (59), Senegal (67), Rwanda (70), Zambia (84) and the Seychelles (98) – rank amongst the top 50% of the lowest corruption risk. Nigeria (199), Angola (198) and Chad (191) are the three highest corruption risk countries in Africa.
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In many countries officials ask for a bribe because there is no downside. “ – Alexandra Wrage
‘Silence not the solution to rooting out Customs corruption’
15 Sep 2017 - by Adele Mackenzie
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FTW 15 September 2017
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