Construction

1 in 6 companies willing to make cash bribes

A new survey by Ernst and Young has revealed that one in six companies in the UAE and Jordan are willing to make cash payments to win or retain business.   In its 12th Global Fraud Survey of over 1,700 companies, the analyst said that the majority of respondents in the emerging markets said that bribery or corrupt practices […]

Martin Gill warned that corruption is widespread in the Middle East

Martin Gill warned that corruption is widespread in the Middle East

A new survey by Ernst and Young has revealed that one in six companies in the UAE and Jordan are willing to make cash payments to win or retain business.  

In its 12th Global Fraud Survey of over 1,700 companies, the analyst said that the majority of respondents in the emerging markets said that bribery or corrupt practices are common place.

A further survey of 66 companies was conducted in the Middle East on behalf of Ernst and Young by Perpetuity Research and Consultancy International (PRCI).

Criminologist and PRCI director Martin Gill addressed a Ernst and Young seminar in Jeddah last week who warned that companies can no longer afford to wait for corruption to take place.

“The economic downturn and straitened liquidity flows have revealed many ongoing frauds in the Middle East (mainly caused by greed, ease of opportunity and personal debts) that were previously difficult to be detected,” said Gill. “This situation emphasises the challenges facing decision makers that can no longer wait for corruption to occur before taking action.”

According to Gill, the problem of corruption is widespread in the Middle East with companies doubtful that legislation can prevent it. He also said that more than 20% of respondents consider it impossible to be competitive without committing fraud.

“Corruption is viewed as easy and unlikely to be detected. In addition, admitting to be victim of fraud can cause a reputational damage and companies often prefer to deal with it secretively and avoid taking formal external action,” Gill told delegates. “Despite a number of large companies asking their suppliers to operate robust ethics procedures and boards of many organisations are committed to combating fraud, the problem is still underestimated.”

 

0 0 vote
Article Rating

Comments

Most Popular

To Top