Politics and policy
By LYNET IGADWAH, ligadwah@ke.nationmedia.com
In Summary
A new report by the Kenya Private Sector Alliance
(KEPSA) highlights the import and export sub-sector as the most likely
point of interaction where corruption can occur.
The sub-sector topped the list of the 7 areas of trade and
service delivery where the public and private sector often interact,
which were highlighted in the report at 36 per cent risk chance.
This is followed by Procurement and tax collection
with 13 per cent risk chance, the Licensing process at 11 per cent while
inspection and quality assurance processes are at 8 per cent.
Environment and safety certification comes at the
bottom of the list at 3 per cent risk chance in the report detailing the
loopholes within the public sector that create avenues for corruption
when interacting with the private sector.
The high corruption indices are pegged on the long
and tenuous processes involved in delivering public sector services to
the private sector.
“This is especially the case where the private
sector would prefer faster delivery of services,” said Dr Charles
Otieno, a governance and public sector reform specialist.
Major factors shaping corruption risk in their
interaction with the private sector include numerous documentation, slow
pace of service delivery, poor understanding of procedures, high tax
levies and high transaction cost on business.
During unveiling of the report yesterday, KEPSA
Director Patrick Obath said it's estimated that the country is losing
over Sh69 billion annually to corruption mainly in the public sector.
“Most businesses are bullied into corruption to
avoid hefty fines, levies and long procedures,” he said, noting that the
amount lost through corruption when put into proper perspective could
employ over 25,000 graduates in a given year.
The objective of the KEPSA report is to map out
high risk areas for corruption in public sector operations and identify
existing integrity management initiatives in the public sector. It also
sought to know how they inter-phase with the private sector with the aim
of instituting measures to mitigate against corruption.
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