Devastating social, economic impact of corruption

IT appears there is little understanding out there of the social, economic and political impact of this menace that has caused untold misery across the globe. What I am unpacking in this article is fully captured in the National Anti-Corruption Strategy officially launched by President Mnangagwa on July 11, 2020. The strategy is the country’s blueprint to fight corruption over the next five years.

So, what is corruption? Corruption is commonly defined as abuse of entrusted power for private gain. The United Nations, World Bank and Transparency International all define corruption along the same lines.

Forms of corruption include bribery, nepotism, cronyism, embezzlement, fraud, extortion, abuse of office and money-laundering.

Entrusted power in a public office is abused for private gain, for instance, when an official accepts, solicits or extorts a bribe. It is also abused when private agents actively offer bribes to circumvent public policies and processes for competitive advantage and profit.

Public office can be abused for personal benefit even if no bribery occurs, through patronage and nepotism, theft of State assets or the diversion of State revenues.

Major types of corruption experienced include; grand corruption, political corruption, corporate corruption, administrative corruption, petty corruption and systemic corruption. President Mnangagwa has repeatedly pronounced zero tolerance to corruption. This means both petty and grand corruption must be tackled. While this is the way to go, grand corruption must be fiercely fought.

This is because it involves abuse of highlevel power that benefits the few at the expense of the many, and causes serious and widespread harm to individuals and society.

The billions of US dollars that Zimbabwe has lost to corruption is largely attributable to grand corruption.

The Anti-Corruption Commission Act elaborates on the definition of corruption.

Bribery — accepting, soliciting, obtaining any gifts or consideration as an inducement or reward for doing or omitting to do, or having done or omitted to do any act in relation to the principal’s affairs or business.

Corruptly using a false document — knowing that the document contains a false statement or realisation of the risk or possibility that it may do so and intending by the use of the document to deceive the principal.

Section 170: Section 171: Section 172:

Corruptly concealing a transaction from a principal — having carried out any transaction in connection with a principal’s affairs or business without disclosing to the principal the full nature of the transaction.

Corruptly concealing from a principal a personal interest in a transaction — carrying out any transaction in connection with a principal’s affairs or business without disclosing to the principal that one holds a personal interest in the subject of the transaction.

Criminal abuse of duty as a public officer — omits to do one’s duty as a public officer for the purpose of showing favour or disfavour to any person.

Section 173: Section 174: Economic impact

Corruption increases the cost of doing business in any society.

The scourge of corruption directly and indirectly reduces Government revenue through bribing individuals, tax evasion, granting of tenders to undeserving firms etcetera.

The Memorandum of Understanding that ZACC has entered into with the Zimbabwe Revenue Authority (Zimra) is mainly intended to curb massive losses to the fiscus due to corruption related to taxation.

A joint public education initiative with Zimra is in the offing to ensure tax compliance by citizens and the business community in order to curb corruption in this area.

Government is on record lamenting the massive externalisation of foreign currency in recent years, mainly due to loopholes emanating from corruption.

At a time when the country is trying to lure foreign investment to revive its economy, corruption increases the risk rating of the country, thus chasing away current and potential foreign investors. When risk rating of a country increases, there is a corresponding increase in the cost of doing business, thus demotivating any investment prospects by foreign and local investors.

Depressed investment fuels unemployment which is exacerbated by the diversion of funds for private benefit. Black market or an underground economy in goods such as foreign currency that we have been witnessing for a very long time is caused and/or exacerbated by corruption. The social impact of corruption is manifested in various ways. Any Government is mandated with the provision of quality and adequate public goods such as health, education and sanitation to the general citizenry. When resources are diverted through corruption, such services are scarcely provided.

The unequal distribution of resources across individuals and regions as a result of corruption worsens poverty and the plight of marginalised groups. Worsening social inequality is also the result of this unequal distribution of resources and opportunities. Corruption destroys the much-needed social culture and norms underpinned by mutually accepted ethical and moral values.

In a corrupt environment, women and children are likely to become victims of sextortion, and forced into prostitution, human trafficking and unwanted pregnancies.

In terms of political impact, corruption significantly distorts the rule of law. Lawlessness whereby the laws of the land are barely applied, becomes the order of the day.

Justice will not be guaranteed in a corrupt environment as those with resources acquired through illicit means pay their way through. Laid down procedures are mostly disregarded to the detriment of society.

These social, economic and political impacts of corruption clearly demonstrate why it is the duty of every citizen to come to the fore and contribute in curbing the vice.

The National Anti-Corruption Strategy alluded to earlier is the vehicle for citizen involvement. It has created adequate space for meaningful involvement by all.

The current Government must be applauded for coming up with the strategy after previous administrations dismally failed to do so. The strategy has a robust implementation and monitoring framework to ensure it does not gather dust.

The Zimbabwe Anti-Corruption Commission is there to coordinate the efforts of all those interested in playing a constructive role in the implementation of the strategy.

The commission was never established to be a lone ranger in this fight.

ZACC will continue to be guided by the following Constitutional functions:

To investigate and expose cases of corruption in the public and private sectors; combat corruption, theft, misappropriation, abuse of power and other improper conduct in the public and private sectors; promote honesty, financial discipline and transparency in the public and private sectors;

Receive and consider complaints from the public and to take such action in regard to the complaints as it considers appropriate.

ZACC will direct the Commissioner-General of Police to investigate cases of suspected corruption and to report to the commission on the results of any such investigations; refer matters to the National Prosecuting Authority for prosecution; require assistance from members of the Zimbabwe Republic Police and other investigative agencies of the State; and make recommendations to Government and other persons on measures to enhance integrity and accountability, and prevent improper conduct in the public and private sectors.

It is clear from the above that the biggest loser from the evil vice of corruption is society at large as the menace causes massive resource outflows and leakages, discourages honest entrepreneurship, encourages tender-preneurship and retards economic growth and development.

Corruption must, therefore, be tackled head-on without fear or favour.

The ZACC is more than committed to this cause.