Private sector now joins fight against graft

Paradise:

TPSF-Corruption

 The private sector in Tanzania has joined forces with President John Magufuli's government in its ongoing war against corruption and tax evasion, admitting that some local businessmen were routinely bribing public officials to be awarded underhand deals.

 

"In the past, government initiatives to combat corruption targeted only politicians and senior civil servants, leaving out businesspersons and other citizens while they are the givers of corruption," the Tanzania Private Sector Foundation (TPSF) said in a statement.

 

It added: "The private sector recognizes that there are some big and even small businesspersons who would like to see weaknesses in the government's efforts to curb corruption, policies, laws, rules, regulations and decisions that continue to favour the minority while disregarding the broad interest of the citizens and ordinary consumers who are denied their basic rights."

 

Tanzania is ranked 117th out of 168 on Transparency International’s latest corruption index, suggesting that it is one of the worst-hit nations in the world in terms of the vice.

 

Businesses, both internal and external, have long complained that corruption is one of the main reasons for the high cost of doing business in Tanzania.

 

In its statement, TPSF applauded President Magufuli's efforts so far to weed out elements of high-level graft and plug tax evasion loopholes, urging his administration to continue in the same vein with serious intent.

 

"The private sector and the public have begun to see the sincere intention and genuine willingness of (this) government ... to combat and eradicate corruption that was rampant in our country," the foundation said.

 

It noted the negative impact that high-level graft had already had on government performance and revenue collection, foreign investment and domestic entrepreneurship, competition, and provision of social services, hence affecting economic progress with the majority of Tanzanians being excluded from the mainstream economy.

 

Magufuli launched his campaign to root out corruption and inefficiency in the country right after his inauguration in November last year, and has already sacked several senior public officials in the course of his crusade.

 

Those who have felt the weight of the president's anti-corruption hammer include the government's anti-graft agency and tax authority chiefs, along with top executives in the state-owned ports and railway companies.

 

Although Tanzania remains one of Africa's biggest per capita external aid recipients, payments have been repeatedly delayed over donor concerns about corruption, poor governance and the slow pace of reforms.

 

In 2014, a group of donors withheld nearly $500 million in budget support to Tanzania over corruption allegations in the energy industry after a scandal led to the resignations of three cabinet ministers.

 

TPSF in its statement also urged members of the local private sector to sign a new integrity pact introduced under the government-sponsored Big Results Now (BRN) initiative.

 

It backed the latest crackdown on illegal immigrants, saying it was aware that some local business companies had "colluded with unfaithful public employees on the whole issue of work and residence permits."

 

The foundation issued three key tenets for its members to respect and live by, namely the private sector should not be involved in corrupt practices; should do business responsibly by complying with the rules, laws, regulations and procedures of the country; and should not be involved in tax evasion.

 

It furthermore praised President Magufuli for the "bold step" of banning arbitrary sugar imports to protect sugar factories based in the country.

 

"This action will help to not only protect existing industries, but also encourage new industrial investment in the sugar sub-sector in Tanzania," it said, calling for similar action on rice, cooking oil and other products that can also be efficiently produced locally.

 

According to Transparency International, corruption in the private sector takes many forms, among them bribery, undue influence, fraud, money laundering and collusion. 

 

Corruption distorts markets and has a negative impact on society as a whole, in both the developing and the developed world. 

 

"Private sector corruption contributes to environmental damage, health and safety problems, economic instability and human rights violations by diverting scarce resources, both financial and human. Private sector corruption erodes confidence in public institutions and deprives citizens of capital needed for economic growth, said Transparency International on its website.