34% of African Businesses Report Losing out to Corrupt Competitors – Report

The ongoing UPDF recruitment campaign opened yesterday in the greater Mbarara Region with an overwhelming number of hopefuls.

At Kakyeka stadium in Mbarara town, healing hundreds of youths showed up from the districts, abortion of Mbarara Ibanda, Kiruhura and Isingiro.

Col. Fred Karara who was in charge of the recruitment said that the exercise was challenging since his team didn’t not have sufficient equipment to cope with the numbers especially during the medical checkups.

He attributed the strong urge to join the army, largely to youth unemployment in the country. Some he said were willing to take the risk of breaking the rules to brighten their chances. “To a few others it is just passion and pride,” he said.

During the verification exercise, the UPDF recruitment team arrested 9 people from the districts of Ibanda, Mbarara and Isingiro who are said to have forged their academic documents. These were handed to the police at Mbarara central police station.

According to Major Ronald Kakurungu, the 2nd Division UPDF spokesman, the exercise was targeting 84 recruits in greater Mbarara i.e. 26 from Mbarara, 25 from Kiruhura, 18 from Isingiro and 15 from Ibanda district.

The recruitment exercise that started on 01st October will end on Wednesday in Mbarara district targeting 3000 people in the whole country.
34 percent of African businesses have reported losing out on deals to corrupt competitors.

This was revealed in a business survey report released on Monday by Control Risks, online the global business risk consultancy firm.


According to the survey which was done with 824 companies in Africa and other countries worldwide, cheap corruption risks continue to deter investors.

The Survey reveals that 30 percent of respondents say they have decided not to conduct business in specific countries because of the perceived risk of corruption.

“41 percent of global respondents reported that the risk of corruption was the primary reason they pulled out of a deal on which they had already spent time and money, “ the report disclosed.

The Control Risks’ survey shows that there are still wide variations in the maturity of company programs.

In the worst case, conventional compliance approaches can increase risk because they lead to a misguided sense of complacency.

The survey reveals companies are now more willing to challenge when faced with suspected corruption. 39 Percent of companies said they would complain to the person who awarded the contract if they felt they had lost out due to corruption (70 percent in South Africa), compared to just 8 percent of respondents in 2006.

According to the survey, most respondents felt these laws made it easier for good companies to operate in high-risk markets (55 percent) and serve as a deterrent for corrupt competitors (63 percent).

This was particularly true of companies in developing markets. 79 percent of Mexicans agree or strongly agree, as well as 68 percent of Indonesians, 64 percent of Brazilians and 53 percent of Nigerians. In the US 54 percent say tough laws make it easier to operate in high risk markets, while 42 percent disagree.

However, despite these positive developments, Control Risks’ survey suggests companies still need to do more.

Third party risk is still relatively unrecognized. Just 58 percent of global respondents have procedures in place for due diligence assessments of third parties and only 43 percent have third-party audit rights.

The survey also suggests companies are not setting the right incentives to deter corruption. Respondents cited the fear of negative consequences as the penalty used most commonly to deter corrupt behavior.

On the list of eight deterrents to corruption, in sixth place are company performance criteria that emphasize integrity (along with financial targets). Establishing parity between financial targets and anti-corruption targets is vital to ensuring compliance is embedded into companies’ culture.

Commenting on the survey’s findings, Daniel Heal, Senior Managing Director East Africa at Control Risks, said, “Too many businesses are still losing out on good opportunities to corrupt competitors, or choosing not to take a risk on an investment or entering a new market in the first place for fear of encountering corrupt practices.”

“Companies need to find a balance and do more due diligence early on in any negotiation or market entry planning, to spot the points of light in countries that may otherwise appear as no-go areas,” he added.

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