Bribe-busters in Bali
The two-day international conference on combating graft in international business transactions, which concluded in Bali on Wednesday, has heightened the momentum in the fight against all forms of graft.
For Indonesia’s Corruption Eradication Commission (KPK), as the co-organizer of the event, the gathering was the right forum to learn best practices in combating business graft because the other co-organizer, the Organization of Economic Cooperation and Development (OECD), has made many notable achievements through the enforcement of its own Anti-Bribery Convention.
It was also a useful forum for the 400-plus delegates from 55 countries who took part in the event — to review international and national legal frameworks for fighting foreign graft; to share experiences and best practices in the fight against foreign bribery and corruption; and to foster cooperation in foreign bribery cases.
More governments and businesses around the world have begun to realize that bribery — whether committed by foreign or domestic businesses — has serious consequences because it distorts markets and undermines sustainable development and good governance.
The 1997-1998 economic crisis in Indonesia jolted many businesspeople into realizing that corruption and bribery create an environment of uncertainty in business operations. There are several reasons for this, including the fact that after one bribe is paid, a demand for another will usually follow. Also, if a customer doesn’t get what they bribe for they are in no position to complain since they have also broken the law. This vicious circle rolls on as bribing businesspeople are vulnerable to blackmail and threats from groups who profit from them.
The 1997 OECD Anti-Bribery Convention, which has so far been enforced by 38 countries, has been quite an effective weapon in making the fight against foreign bribery gain global momentum.
A few years ago, writing off bribes against tax was still allowed in several developed countries, but not any more.
OECD members and six other partner countries have made it a criminal offense for their companies to bribe foreign officials in commercial transactions anywhere in the world. But bribery in international business deals remains rampant outside OECD countries.
However, attacking the supply side of bribery is still a major boon.
In November the Group of 20 (G20) major economies, of which Indonesia is also a member, joined the global fight against bribery by adopting an anticorruption action plan that calls on all of its member states to adopt and enforce laws and other measures against international corruption, such as the criminalization of the bribery of foreign public officials.
G20 countries also are required to begin in 2012 a more active engagement within the OECD Working Group on Bribery and to eventually ratify the Convention.
The Bali conference provided an impetus for making foreign bribery truly at the forefront of the global agenda on combating corruption, in efforts to help to ensure the full participation of relevant stakeholders.
The results of Indonesia’s domestic anticorruption campaign are still far below expectations because the problems here have become so complex that corruption has long been perceived as endemic, systemic and deeply institutionalized, involving the entire system of government, and notably the judiciary and police.
Indonesia nevertheless deserved to host such an international gathering because fighting graft was one of the top priorities of President Susilo Bambang Yudhoyono’s administration and the achievements it has made so far, though seen by many as poor, should be commended.
For Indonesia’s Corruption Eradication Commission (KPK), as the co-organizer of the event, the gathering was the right forum to learn best practices in combating business graft because the other co-organizer, the Organization of Economic Cooperation and Development (OECD), has made many notable achievements through the enforcement of its own Anti-Bribery Convention.
It was also a useful forum for the 400-plus delegates from 55 countries who took part in the event — to review international and national legal frameworks for fighting foreign graft; to share experiences and best practices in the fight against foreign bribery and corruption; and to foster cooperation in foreign bribery cases.
More governments and businesses around the world have begun to realize that bribery — whether committed by foreign or domestic businesses — has serious consequences because it distorts markets and undermines sustainable development and good governance.
The 1997-1998 economic crisis in Indonesia jolted many businesspeople into realizing that corruption and bribery create an environment of uncertainty in business operations. There are several reasons for this, including the fact that after one bribe is paid, a demand for another will usually follow. Also, if a customer doesn’t get what they bribe for they are in no position to complain since they have also broken the law. This vicious circle rolls on as bribing businesspeople are vulnerable to blackmail and threats from groups who profit from them.
The 1997 OECD Anti-Bribery Convention, which has so far been enforced by 38 countries, has been quite an effective weapon in making the fight against foreign bribery gain global momentum.
A few years ago, writing off bribes against tax was still allowed in several developed countries, but not any more.
OECD members and six other partner countries have made it a criminal offense for their companies to bribe foreign officials in commercial transactions anywhere in the world. But bribery in international business deals remains rampant outside OECD countries.
However, attacking the supply side of bribery is still a major boon.
In November the Group of 20 (G20) major economies, of which Indonesia is also a member, joined the global fight against bribery by adopting an anticorruption action plan that calls on all of its member states to adopt and enforce laws and other measures against international corruption, such as the criminalization of the bribery of foreign public officials.
G20 countries also are required to begin in 2012 a more active engagement within the OECD Working Group on Bribery and to eventually ratify the Convention.
The Bali conference provided an impetus for making foreign bribery truly at the forefront of the global agenda on combating corruption, in efforts to help to ensure the full participation of relevant stakeholders.
The results of Indonesia’s domestic anticorruption campaign are still far below expectations because the problems here have become so complex that corruption has long been perceived as endemic, systemic and deeply institutionalized, involving the entire system of government, and notably the judiciary and police.
Indonesia nevertheless deserved to host such an international gathering because fighting graft was one of the top priorities of President Susilo Bambang Yudhoyono’s administration and the achievements it has made so far, though seen by many as poor, should be commended.
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