Good leadership key to containing corruption, says DPM Teo - Channel NewsAsia

Good leadership key to containing corruption, says DPM Teo - Channel NewsAsia

"SINGAPORE: Public sector employees account for an average of 7.5 per cent of the total number of people prosecuted by the Corrupt Practices Investigation Bureau (CPIB) over the past three years.

Deputy Prime Minister Teo Chee Hean, who revealed this in Parliament on Thursday, said this figure has remained stable.

He outlined various outreach efforts by CPIB in curbing corruption, including talks to government agencies, business community and even schools.

Mr Teo, who is also Minister-in-Charge of the Civil Service, said while the Civil Service is governed by a Code of Conduct, what's important is good leadership at the top.

Mr Teo said: "Our zero tolerance approach to corruption in the public and private sectors can only work if Singaporeans continue to be imbued with the right values, and recognise that whilst corruption may be a fact of life, it is not our way of life in Singapore.

"There are a number of factors which contribute to this. Good, competitive salaries in the public sector are a key pillar. And I think we need to maintain that. But that is not enough.

"As Professor (Eugene Tan) Tan has said, strong enforcement is necessary as well. We also require good leadership by example at the top, as well as a population which rejects corruption and does not accept any form of corruption at all.""

My Comments:

Tone will always be at the top. This is the basic and most important parameter that forms the foundation for an effective fighting fraud and corruption in both public and private sectors. I would like to reassert what has been stated above regarding the effective fighting fraud and corruption so that one can benchmark other countries with those of Singapore:

1. While the Civil Service is governed by a Code of Conduct, what's important is good leadership at the top.
2. Our zero tolerance approach to corruption in the public and private sectors can only work if Singaporeans continue to be imbued with the right values, and recognise that whilst corruption may be a fact of life, it is not our way of life in Singapore.
3. Good, competitive salaries in the public sector are a key pillar. And I think we need to maintain that. But that is not enough. 
4. Strong enforcement is necessary as well
5. Good leadership by example at the top
6. Population which rejects corruption and does not accept any form of corruption at all

Fraud Examination: What it Takes

ACFE President Offers Career Advice

" Top Skills Needed

FIELD: What do you see as the most critical skills for the people getting into the field now?

RATLEY: I gave some thought to that because I've been asked that many times in the past. The fraud-examination field is comprised of a wealth of talent, but a wealth of specialized skills. We have attorneys that are involved in it. We have accountants that are involved in it. We have investigators, IT professionals. But the backbone of the fraud-examination profession is the investigative skills. And the more of these segments that you can put in your arsenal - the forensic IT specialists - there's a big demand for those now, someone that can come in and conduct an examination on a computer and retrieve deleted information. That's a very hot area right now. But if you take the forensic IT specialist and you provide them with investigative skills, they're even more sought after. The same thing with an auditor or a CPA - if you take an auditor or CPA and train them as an investigator, they're much, much more effective as a fraud examiner, and as a result they're in much greater demand."

This is part of a recent interview with Mr. Ratley, the ACFE president, ( see source below). 

I think that as fraud and corruption became a global phenomenon, fraud examiners need to have  collective skills that will make their activities more effective and efficient. In addition to what Ratley stated in the interview, I think a fraud examiner needs to have, among other personal skills, the following know how and skills:

1. Internal control
2. International business ( culture, values, and ethics)
3. Due diligence
4. Statistics

I would like to reiterate what Rately asserted and emphasized that  the Investigative skills are at the core of the fraud examiner arsenal.

Source: http://www.bankinfosecurity.com/articles.php?art_id=4432&pg=1

The Architecture of Fraud and Corruption

Addressing the fraud and corruption phenomenon needs more than just reactive acts. It needs a comprehensive, thoughtful, and thorough study and analysis of the entity's or country's socioeconomic circumstances. However, there must be a real and sincere political will to fight fraud and corruption.

This is what is called the "Architecture of Fraud and Corruption". One needs to start from these basic understanding.

. Corruption of principles. According to Zekos (2004, p. 644), only the harmonization of ethical principles in business could contribute to stop the use of corruption methods. In other words, the corruption of principles could only be annihilated through the introduction of universal ethical principles.
. Corruption of moral behavior. Zekos (2004, p. 641) mentioned the ethical dilemma business corporations have to deal with: either, business leaders as well as their employees are choosing the most profitable course of action, although it implies unethical behavior, or they conform themselves to their personal and organizational ethical norms. In both cases, there is a high risk that their choice could “drive their company out of business”. In the first case, because of the legal pursuits against the company; in the second case, because of the loss of its competitiveness on the globalized markets.
. Corruption of people. Zekos (2004, p. 644) said that small-scale corruption will be very difficult to stop.
. Corruption of organizations. Zekos (2004, p. 639) said that in business corporations, corruption creates more uncertainties about the expected level of profits, so that business leaders tend to undertake “loss-avoiding behaviours” which are either expensive, or inefficient, or both. Indeed, as rightly said Zekos (2004), corruption reduces competitiveness. Only those competitors who can pay large bribes can actually compete. The other potential competitors are automatically excluded from the market. Corruption is an anti-trust behaviour. Zekos (2004, p. 641) added that corruption erodes public confidence in the market. The final effect is that people no longer trust business leaders and,progressively, any other representative of social authority.
. Corruption of states. According to Z ekos (2004, pp. 639-41), in corrupt societies, government bureaucrats are only focusing on their growing economic power, so that their competence is no longer developed as it should be. He defined “transnational corruption” as the bribery of government officials by foreign businesses. He said that such corruption makes national economies less efficient. People are thus no longer trusting their political leaders and public servants.

Zekos, G.I. (2004), “Ethics versus corruption in globalization”, Journal of Management Development, Vol. 23 No. 7, pp. 631-47.
Dion, M. 2010, "What is corruption corrupting? A philosophical viewpoint", Journal of Money Laundering Control, vol. 13, no. 1, pp. 45-54.

Don't Mention It: How 'Undiscussables' Can Undermine an Organization

These are parts of an article that was published December 20, 2011 in Knowledge@Wharton. My comments follow in red.

"After everything falls apart, the failures to act become obvious: Why didn't somebody at Penn State do more to pursue allegations that former assistant football coach Jerry Sandusky was sexually abusing young boys? Didn't anybody at MF Global Holdings notice that something was wrong before $1.2 billion in customer cash disappeared? Why, decade after decade, didn't anyone at Olympus protest $1.7 billion in accounting irregularities?

"Why was there almost a conspiracy of silence?".......

Most experts agree that leaders must set the tone for the entire organization, work to elicit discussion about taboo topics and maintain transparency about how they respond to any concerns........Companies should also establish metrics, routines, audits and incentives to help identify problems and suggest areas of change, says Wharton management professor Lawrence G. Hrebiniak, who has acted as a consultant to dozens of companies such as General Electric, AT&T, Microsoft and DuPont. When top management diligently works to measure performance, elicit feedback and respond openly to problems when raised, it can usually make progress, Hrebiniak has found. "Control systems are important to implementing strategy and identifying problems," he says.

The caveat, of course, is that leaders need to pay attention to the facts. "In two cases, I've reported data to top management and they disinvited me from a strategic session," Hrebiniak recalls. "Some of the problems that were identified seemed to suggest poor leadership from the top.... They didn't want it to come out on their watch."

When companies have a culture in which managers are "more interested in hiding things than solving problems," there is little anyone can do to help, Hrebiniak says. "You need top management to react strongly. If they bury the stuff, they're dead.""

It is unfortunate that management usually discusses the undiscussables too late. It is evident that it will always be true that tone prevailing at the top is what sets other tones across each layer in any entity. 

Top management will always be responsible and accountable about the culture and ethical values in their entities. I would like to reiterate the fact that controls in general and internal control systems in specific will be of no value when top management does not support such control systems. Mere compliance with all kinds of polices, rules, and regulations is not enough. Great leadership is an ethical leadership that has no taboos when it comes to group politics and internal politics. Group loyalty may sometimes be a sort of collusion rather than any thing else. 

I do believe that unless top management leads by example at the highest ethical standards and supports each member their staff to speak up about each and any suspected immoral, unethical or corrupted acts, the collapse of such entities will be devastating and a matter of time. 

Executive Due Diligence Professional (EDDP) Launched in Amman - Jordan

L. Burke Files at Philadelphia University

                                             

Birzeit Consulting, the exclusive representative of the ADDP's Executive Due Diligence Executive certification program in the Middle East and Africa, AZ International, the exclusive provider of the EDDP program in Jordan, and the ADDP, USA launched the EDDP certification program last week in Amman - Jordan. 

The launch of the EDDP program was attended by the ADDP. The EDDP certification program will be conducted in Jordan in April and October 2012. 


L. Burke Files, the leading international authority of due diligence, presents and conducts the EDDP certification program.


The Executive Due Diligence Professional credential class is a two-day master class on the Science of Due Diligence. Each delegate will receive their Executive Due Diligence Professional credential  when he/she passes the exam and a one year membership in The Association of Due Diligence Professionals; the first and foremost professional association dedicated exclusively to the Due Diligence industry. 

Executive Due Diligence Professional (EDDP)

For the First Time in the Middle East and Africa

Earn Your Credentials as an Executive Due Diligence Professional - EDDP

The Executive Due Diligence Professional credential class is a two-day master class on the Science of Due Diligence. Each delegate will receive their Executive Due Diligence Professional credential  when he/she passes the exam and a one year membership in The Association of Due Diligence Professionals; the first and foremost professional association dedicated exclusively to the Due Diligence industry. 

Today, more than ever it is imperative that Executives be aware of the necessity of understanding the importance of Due Diligence to make thorough and well informed decisions. Due Diligence is more than checking credentials and financials during an acquisition but thoroughly understanding what is important in the proper functioning and management of an organization.

The two day class will provide the initial framework with which to begin the process of forming a dynamic organization focused on the priorities that will drive peak performance.

60 Minutes: Congress legalized insider trading

'60 Minutes' on " Honest Graft". This is not a soft graft. It is corruption based on any definition of corruption. Congress men and women should be brought to justice for any kind of misconduct including corruption. More is mentioned in this video.  

Lobbyist , Congress, Corruption: Stop Corruption in Washington DC

Crooked lobbyist Jack Abramoff explains how he asserted his influence in Congress for years, and how such corruption continues today despite ethics reform.

Anti-Corruption Links

Anti-Corruption Intergovernmental Organisations

African Development Bank Group

African Parliamentarians Network Against Corruption (APNAC)

African Union

Anti-Corruption Network (ACN) for Eastern Europe and Central Asia

Asian Development Bank (ADB)

ADB/OECD Anti-Corruption Initiative

Asia-Pacific Economic Cooperation

Council of Europe

European Anti- Fraud Office (OLAF)

European Commission

European Partners Against Corruption (EPAC)

Global Organization Against Corruption (GOPAC)

GOPAC-Europe

International Chamber of Commerce

International Group for Anti-Corruption Coordination (IGAC)

International Monetary Fund

Interpol

Organisation of American States

Organisation for Economic Cooperation and Development (OECD)

Resource Center of Regional Anti-Corruption Initiative for South East Europe Sothern African Development Community (SADC)

United Nations Criminal Justice Information Network (UNCJIN)

United Nations Economic Commission for Africa (UNECA)

UN Global Compact

World Bank

Stolen Asset Recovery Initiative (STaR) - World Bank and UNODC

World Economic Forum

Other International Organisations

International Anti-Corruption Academy (IACA)

International Association of Anti Corruption Authorities (IAACA)

International Business Leaders Forum (IBLF)

Independent Commission Against Corruption (ICAC)

TRACE International

Transparency International

Other Organisations by Country

Albania

Supervision of the internal audit
http://www.klsh.org.al/index.php?l=e

Argentina

Anticorruption Office, Ministry of Justice and Human Rights
http://www.anticorrupcion.gov.ar/

General Audit of the Republic of Argentina
http://www.agn.gov.ar/

Supreme Court of Justice (Corte Suprema de Justicia). Available only in Spanish
http://www.csjn.gov.ar/

Trust in Argentina (Confianza en Argentina). Available only in Spanish
http://www.fidentia.org.ar/seccs/carta.htm

Austria

Federal Bureau for Internal Affairs
http://www.bia-bmi.at/

Australia

Independent Commission against Corruption
http://www.icac.nsw.gov.au/

Brunei

Anti-Corruption Bureau
http://www.anti-corruption.gov.bn/

Brazil

Tribunal de Contas da Uniao
http://www2.tcu.gov.br/portal/page?_pageid=33,1&_dad=portal&_schema=PORTAL

Controladoria-Geral da União - CGU
http://www.cgu.gov.br/

Public Ministry campaign-"O que você tem a ver com a corrupção"

Transparency Portal

UNODC Brazil

Bulgaria

Financial Intelligence Agency
http://www.fia.minfin.bg/

Anti-corruption Coordination Commission
http://www.anticorruption.bg/index_eng.php

Ministry of Foreign Affairs
http://www.mfa.government.bg/index.php?newlang=eng

China

Independent Commission Against Corruption (ICAC)
http://www.icac.org.hk/eng/main/

Colombia

Presidential Programme to the Fight Against Corruption (Programa Presidencial de Lucha contra la Corrupción)
http://www.anticorrupcion.gov.co/

Transparency for Colombia (Transparencia por Colombia)
www.transparenciacolombia.org.co

UNODC Colombia

Ecuador

Comisión de Control Cívico de la Corrupción
http://www.comisionanticorrupcion.com/

El Salvador

http://www.probidad.org/tiki-index.php

Hong Kong

Hong Kong's Independent Commission against Corruption (ICAC)
http://www.icac.org.hk/eng/welc/index.html

India

Central Vigilance Commission
http://cvc.nic.in/

Department of Public Enterprises
http://www.dpe.nic.in/

Election Commission
http://www.eci.gov.in/

Ministry of Law & Justice
http://www1.oecd.org/daf/asiacom/countries/index_ID.htm

Central Bureau of Investigation
http://www1.oecd.org/daf/asiacom/countries/index_ID.htm

List of Agencies in the Government of India Fighting Corruption
http://www1.oecd.org/daf/asiacom/countries/index_ID.htm

Indonesia

Indonesian Corruption Eradication Commission (CEC), Komisi Pemberantasan Korupsi (KPK)
http://www.kpk.go.id/

Italy

" Per una Cultura dell'Integrità nella Pubblica Amministrazione", Scuola Superiore della Pubblica Amministrazione (SSPA)
http://integrita.sspa.it/

Korea

Anti-Corruption and Civil Rights Commission(ACRC)
http://www.acrc.go.kr/eng_index.html

Liberia

Center for Transparency and Accountability in Liberia (CENTAL)

Taking the fight against corruption to communities

Repository of corruption stories reported in the Liberian media

Malaysia

Anti-corruption Agency in Malaysia
http://www.developmentgateway.com.au/jahia/Jahia/pid/407

Mexico

Comisión Intersecretarial para la Transparencia y el Combate de la Corrupción (CITCC)
http://www.programaanticorrupcion.gob.mx/

The Republic of Montenegro Agency for Anti-Corruption Initiative

Information in English and Crnogorski

New Zealand

State and Service Commission, Integrity and Conduct
http://www.ssc.govt.nz/display/document.asp?navid=273

E-government in New Zealand
http://www.e.govt.nz/

Paraguay

Integrity National Plan (Plan Nacional de Integridad). Available only in Spanish
http://www.pni.org.py/Index.htm

Contraloría del Paraguay
http://www.contraloria.gov.py/

Peru

Anti-corruption National Commission (Comisión Nacional Anticorrupción)
http://www.cn-anticorrupcion.gob.pe/

Philippines

Office of the Ombusdman
http://www.ombudsman.gov.ph/index.php?pagename=Home&tag=

Transparent Accountable Governance
http://www.tag.org.ph/about/default.htm

Sierra Leone

Anti-Corruption Commission of Sierra Leone

Singapore

Corruption Practices Investigation Bureau
http://app.cpib.gov.sg/newcpib/user/default.aspx?pgID=21

South Africa

Public Service Commission
http://www.psc.gov.za/

Thailand

Office of the National Counter Corruption Commission
http://www.nccc.thaigov.net/nccc/en/main_eng.php

U.S.A

U.S.A. Senate Committee on Foreign Relations (Combating Corruption in the Multilateral Development Banks)
http://foreign.senate.gov/about.html

Interagency Ethics Council: Standards of conduct for federal employees
http://www.iecjournal.org/

IGnet - Federal Inspectors General
http://www.ignet.gov/igs1.html

Office of Government Ethics
http://www.usoge.gov/index.html

The Brookings Institution
http://www.brook.edu/gs/cps/50ge/endeavors/transparent.htm

United States Department of Commerce Office of General Counsel
http://www.ogc.doc.gov/ethics.html

Source: http://www.unodc.org/yournocounts/en/resources/index.html