Preventing Cross-Border Bribery
in the AEC
International Business Integrity Conference (IBIC) 2016:
Trends, Challenges and Collective Action in Corruption Prevention
Jakarta, 16-17 November 2016
Transparency International Indonesia
Global Corruption
of countries worldwide have a serious corruption problem. Half of the G20 are among them.
%
0-9
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80-89
90-100
Highly Corrupt
Very Clean
OECD Convention Against Bribery
Non-signatories of convention, no data
Share of exports too small to yield result
Little or no enforcement
Limited enforcement
Moderate enforcement
Active enforcement
South East Asian Corruption
The poor results of 2015 demand that leaders revisit the sincerity of their efforts and propel the region beyond stagnation.
ASEAN In The CPI
0-9
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80-89
90-100
Highly Corrupt
Very Clean
REGIONAL RANKING
GLOBAL RANKING
COUNTRY SCORE
2 8 SINGAPORE
Rank & Score Down 85
9 54 MALAYSIA
Rank & Score Down 50
11 76 THAILAND
Rank Down ─ Score Constant 38
15 88 INDONESIA
Rank & Score Up 36
16 95 PHILIPPINES
Rank & Score Down 35
17 112 VIETNAM
Rank Up ─ Score Constant 31
24 147 MYANMAR
Rank Down ─ Score Up 22
ASEAN In Comparison
ASEAN Average Up 1 Point
40 ASIAPAC Average No Change
43 G20 Average No Change
54
As ASEAN becomes One Economic
Community Opportunity for economic growth, creating jobs, reducing poverty, corruption risks are going to increase
6 Factors Raising Corruption Risks In AEC
1
2
3
4
5
6
Weak transparent & anti-corruption infrastructure
Insufficient legal frameworks
Ineffective anti-corruption institutions
Unresolved corruption challenges
Emerging corruption risks of AEC
Ad-hoc regional collaboration
Emerging Risks From Increased Cross Border Economic Activity
1
2
3
4
5
6
New patterns of foreign bribery & growth in cross-border bribery
Lack of expertise and skills to tackle foreign bribery
Illicit international trade network
Money laundering and asset recovery
Easier to hide ill-gotten assets
Challenges in investigating and prosecuting cross-national border cases
Building An ASEAN Integrity Community
1
Commitment from Top
Government
2
Regional Bodies &
Institutions Responsible
3
Ownership & Participation of Business
& CSO 4
Priority & Realistic
Plans
5
Resource & Support
6
Communica-tions &
Knowledge Exchanges
Why An AIC?
Capability of the
systems to deal with corruption
risks
Emerging & existing corruption
risks
Why Companies Bribe
COUNTRY AS A GIFT, OR TO
EXPRESS GRATITUDE TO GET A CHEAPER
SERVICE TO SPEED THINGS UP
IT WAS THE ONLY WAY TO OBTAIN A
SERVICE
SEA 20% 10% 55% 15%
Cambodia 51% 6% 28% 15%
Indonesia 13% 6% 71% 11%
Malaysia 3% 19% 55% 23%
Philippines 19% 6% 67% 8%
Thailand 10% 16% 67% 8%
Vietnam 24% 9% 41% 26%
Source: Global Corruption Barometer (Transparency International, 2013)
Business Integrity
UK
Germ
any
USA
Austr
alia
Fra
nce
Japan
Chin
a
13
90%
81%
74% 74%
70%
41%
20%
8 8 5 8 5
44
44 #of companies
20% Chinese Company
Average
90% UK Company
Average
Transparency in Corporate Reporting
Business Integrity
Indonesia
Mala
ysia
Philip
ines
Sin
gapore
Thailand
39% 40% 43% 47%
57%
10%
20%
0%
60%
40%
30%
50%
39% Indonesia Company Average
57% Thailand Company Average
Source: Research conducted by ASEAN CSR Network & NUS
Overall Level of Disclosure
45%
Average level of disclosure rate per country Average level of disclosure across 5 countries
Recommendations: Business
Prohibit Facilitation Payments
Develop, Apply & Make publicly available A/C programs within co, agents, intermediaries
Publicly Disclose Subsidiaries, Affiliate, Joint Venture, and Other Entities inc those in other countries
1
2
3
Publicly Disclose Political Donations 4
Recommendations: Government & Regulators
Government &
Regulatory Bodies
Require Companies to Disclose corporate structure, subsidiaries, affiliates, and Joint Ventures and other entities
Require Companies to Disclose
Financial Accounts on Country by
Country
Implement Antibribery
Law and Enforce
Them
Rules for mandatory reporting of company AC measures.
Recommendations: Civil Society Organizations
Civil Society Organization
Monitor, analyse and disseminate public corporate
information
Promote the adoption of country-by-country reporting
Demand that companies be
more transparent