TISL Reveals Major Findings on Private Sector Corruption Risks
Transparency International Sri Lanka (TISL) recently launched its research report titled ‘Corruption Risk Mapping Research: A Study on Sri Lanka’s Private Sector’ on December 12 at the BMICH in Colombo. This study dives deep into the corruption risks present in Sri Lanka’s private sector and offers insights into potential solutions. Conducted by an Independent Researcher, this report sheds light on alleged instances of corruption within the private sector, which might be the first of its kind in Sri Lanka.
While corruption has traditionally been associated with the public sector in Sri Lanka, this research suggests that the private sector also plays a significant role in fueling corruption. The findings reveal a heightened risk of corruption when private sector entities interact with government departments for approvals and licenses in various industries. Additionally, the report points out corruption allegations in the process of bidding for government contracts, particularly in sectors like pharmaceuticals and large-scale infrastructure.
The research uncovers various forms of corruption within private sector entities, including kickbacks, gratifications, fraud, conflicts of interest, nepotism, favoritism, and more. It also highlights accusations of political lobbying and market manipulation through monopolies within the private sector. Gender dynamics come into play as well, with women being perceived to face a higher risk of being solicited for sexual bribes in exchange for job opportunities or promotions.
The report emphasizes that while public listed companies are subject to stringent regulations, their unlisted subsidiaries operate with fewer restrictions, allowing parent companies to shift corrupt practices to subsidiaries or sub-subsidiaries. The lack of rigorous oversight, internal controls, and audits, as well as the challenges faced by new market entrants, contribute to the prevalence of corruption in the private sector.
To address these challenges, the report recommends that private sector businesses implement robust anti-bribery and corruption policies, protect whistle-blowers, and engage in collective efforts to combat corruption. It also calls upon the government to enhance regulatory bodies, modernize processes, and improve procurement practices to tackle corruption effectively.
The report launch was accompanied by a panel discussion titled “Beyond Compliance: True Business Integrity in a Box-Ticking World” featuring industry experts like Averil Ludowyke and Rukshani Wanigasekara. The session, moderated by Gowthaman Balachandran, aimed to delve deeper into the significance of business integrity in today’s regulatory landscape.