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Ada Pertanyaan? Hubungi Kami Robert Sidauruk
Thomson Reuters ASEAN Regulatory Summit. Photo by: RFS
If there’s one initiative that ASEAN members seldom talk about, then it’s the ongoing cross-border effort to eradicate bribery and corruption. However, such crimes pose a potential risk that may end up hampering ASEAN Economic Community (AEC) targets, as they will slow integration and also threaten investments.
A survey conducted by International Transparency (IT) in the Asia Pasic Region has revealed that bribery and corruption are deeply ingrained across the area. Rukshana Nanayakkara, Regional Outreach Manager at IT, explained that the survey involved interviewing people aged between 19 and 35 years old regarding their perspectives on corruption.
The survey ended up showing that most of the participants interviewed claimed to be against acts of bribery and corruption, and declared themselves ready to take action against such crimes. However, when asked if they would engage in acts of bribery and corruption given the opportunity, 60% of the participants said that they would.
“This survey indicates that the ASEAN region is still vulnerable to bribery and corruption,” explained Mr. Nanayakkara, during Thomson Reuters ASEAN Regulatory Summit, last Tuesday.
Mr. Nanayakkara also explained that a public-sector Corruption Perception Index had recently been published by IT. The index ranks from zero (meaning highly corrupt) to 100 (meaning very clean), and the average for ASEAN countries was a low 33, well below the median score of 50.
Moreover, the index also revealed a large gap between Singapore, as the least corrupt country in the ASEAN region, and the other ASEAN states. Indeed Laos, Cambodia, and Myanmar sit at the bottom end of the global corruption-perception index, alongside Indonesia.
The AEC is aiming to increase and improve levels of infrastructure, mobility, and financial flow across the region. However, according to Mr. Nanayakkara, these areas pose a potential corruption risk, particularly infrastructure, industry, investment, and the movement of people, which have traditionally had a close relationship with acts of bribery. Thus Mr. Nanayakkara believes that the ASEAN Economic Community should introduce an integrity framework.
ASEAN Corruption Busting
Many analysts believe that ASEAN member states should sign multilateral or bilateral treaties regarding the extradition of fugitives in bribery and corruption offences. According to BC Tan though, Head of Risk Research for APAC, Thomson Reuters, the absence of such treaties does not necessarily constitute a dead end as regards the eradication of corruption across the ASEAN region.
Interpol, for example, may play an important role as regards facilitating extradition processes, the sharing of intelligence information, asset recovery, asset seizures, and so on. Moreover, many financial institutions have implemented their own anticorruption programs, and as a result, if a fugitive in one ASEAN country is looking to invest in another country, then the financial institutions in question will think long and hard before allowing any financial relationship to go ahead.
“The fight against corruption goes beyond mere extradition treaties,” added Mr. Tan.
While optimistic that the ASEAN region is moving towards a better business environment as regards the combating of bribery and corruption, Mr. Tan believes that this will ultimately prove to be a lengthy battle. There are at least two reasons underlying this conclusion.
Firstly, the ASEAN bureaucracy is rather long-winded and discussions tend to be lengthy, as they require that a common consensus be reached between member states.
Secondly, bribery and corruption represent multi-dimensional challenges, and as a result there needs to be harmonization as regards the necessary regulatory framework and how anti-bribery and corruption policies are to be implemented. However, such a harmonization process would be pointless if certain member countries lacked the capacity to comply with any regulatory framework.
Sue Lynn Koo, Managing Director and Head of Group Legal and Secretariat at DBS Bank suggests that changes in the way that ASEAN member states attempt to eliminate corruption need to be made. This includes an upgrading of the global-funds system by promoting the idea of common reporting standards between ASEAN members. Through such an effort, corruption will become increasingly difficult, as corrupted assets will be easily tracked.
Regarding corruption eradication efforts in general, Mrs. Koo highlighted the importance of applying a more effective and efficient mechanism to the problem. Mrs. Koo also offered up the example of Brazil’s Operation Car Wash, which is currently tackling allegations of corruption at the state-controlled oil company, Petrobras. Investigations in this case are currently ongoing and involve multiple jurisdictions, as well as a number of global companies. The investigations have also moved from targeting individuals to corporations.
“There must be evolution in our corruption laws. People are currently going after individuals, however corporations are going to be increasingly targeted,” added Mrs. Koo.
(sp)
Robert Sidauruk
Thomson Reuters ASEAN Regulatory Summit. Photo by: RFS
If there’s one initiative that ASEAN members seldom talk about, then it’s the ongoing cross-border effort to eradicate bribery and corruption. However, such crimes pose a potential risk that may end up hampering ASEAN Economic Community (AEC) targets, as they will slow integration and also threaten investments.
A survey conducted by International Transparency (IT) in the Asia Pasic Region has revealed that bribery and corruption are deeply ingrained across the area. Rukshana Nanayakkara, Regional Outreach Manager at IT, explained that the survey involved interviewing people aged between 19 and 35 years old regarding their perspectives on corruption.
The survey ended up showing that most of the participants interviewed claimed to be against acts of bribery and corruption, and declared themselves ready to take action against such crimes. However, when asked if they would engage in acts of bribery and corruption given the opportunity, 60% of the participants said that they would.
“This survey indicates that the ASEAN region is still vulnerable to bribery and corruption,” explained Mr. Nanayakkara, during Thomson Reuters ASEAN Regulatory Summit, last Tuesday.
Mr. Nanayakkara also explained that a public-sector Corruption Perception Index had recently been published by IT. The index ranks from zero (meaning highly corrupt) to 100 (meaning very clean), and the average for ASEAN countries was a low 33, well below the median score of 50.
Moreover, the index also revealed a large gap between Singapore, as the least corrupt country in the ASEAN region, and the other ASEAN states. Indeed Laos, Cambodia, and Myanmar sit at the bottom end of the global corruption-perception index, alongside Indonesia.
The AEC is aiming to increase and improve levels of infrastructure, mobility, and financial flow across the region. However, according to Mr. Nanayakkara, these areas pose a potential corruption risk, particularly infrastructure, industry, investment, and the movement of people, which have traditionally had a close relationship with acts of bribery. Thus Mr. Nanayakkara believes that the ASEAN Economic Community should introduce an integrity framework.
ASEAN Corruption Busting
Many analysts believe that ASEAN member states should sign multilateral or bilateral treaties regarding the extradition of fugitives in bribery and corruption offences. According to BC Tan though, Head of Risk Research for APAC, Thomson Reuters, the absence of such treaties does not necessarily constitute a dead end as regards the eradication of corruption across the ASEAN region.
Interpol, for example, may play an important role as regards facilitating extradition processes, the sharing of intelligence information, asset recovery, asset seizures, and so on. Moreover, many financial institutions have implemented their own anticorruption programs, and as a result, if a fugitive in one ASEAN country is looking to invest in another country, then the financial institutions in question will think long and hard before allowing any financial relationship to go ahead.
“The fight against corruption goes beyond mere extradition treaties,” added Mr. Tan.
While optimistic that the ASEAN region is moving towards a better business environment as regards the combating of bribery and corruption, Mr. Tan believes that this will ultimately prove to be a lengthy battle. There are at least two reasons underlying this conclusion.
Firstly, the ASEAN bureaucracy is rather long-winded and discussions tend to be lengthy, as they require that a common consensus be reached between member states.
Secondly, bribery and corruption represent multi-dimensional challenges, and as a result there needs to be harmonization as regards the necessary regulatory framework and how anti-bribery and corruption policies are to be implemented. However, such a harmonization process would be pointless if certain member countries lacked the capacity to comply with any regulatory framework.
Sue Lynn Koo, Managing Director and Head of Group Legal and Secretariat at DBS Bank suggests that changes in the way that ASEAN member states attempt to eliminate corruption need to be made. This includes an upgrading of the global-funds system by promoting the idea of common reporting standards between ASEAN members. Through such an effort, corruption will become increasingly difficult, as corrupted assets will be easily tracked.
Regarding corruption eradication efforts in general, Mrs. Koo highlighted the importance of applying a more effective and efficient mechanism to the problem. Mrs. Koo also offered up the example of Brazil’s Operation Car Wash, which is currently tackling allegations of corruption at the state-controlled oil company, Petrobras. Investigations in this case are currently ongoing and involve multiple jurisdictions, as well as a number of global companies. The investigations have also moved from targeting individuals to corporations.
“There must be evolution in our corruption laws. People are currently going after individuals, however corporations are going to be increasingly targeted,” added Mrs. Koo.
(sp)