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ACC Calls for Uniform Regulations to Curb Corruption in State-Owned Firms

A study conducted by the Anti-Corruption Commission (ACC) has shown the need for significant reforms to procurement practices among government-owned companies in order to ensure integrity.

The objective of the study titled “Strengthening Government and Government-Owned Companies: Procurement, Recruitment and Corporate Social Responsibility” was to examine the procurement, recruitment and Corporate Social Responsibility (CSR) activities of government and government-owned companies, identify corruption risks in these areas, identify areas for improvement and provide guidance and recommendations for improvement.

One of the me findings of the study was the lack of uniform regulations across SOEs being a barrier for government-owned companies. Each company follows its own policies, and these policies creates opportunities for high levels of corruption, it noted.

The study also found that companies are acting in a way that can give undue advantage to specific parties in procurement and recruitment processes and in allocating funds for CSR activities.

The ACC study said company-specific rules were imposed as there were no uniform rules to be followed by all companies and no way to monitor the compliance of SOEs. The study highlighted the need for a robust legal and regulatory framework and policies on procurement, recruitment and CSR activities to avoid facilitating corruption. The study also found that the Privatisation and Corporatisation Board, PCB, which regulates government-owned companies, is currently working on a systematic legal framework for the implementation of such uniform rules in companies.

The government is also taking steps to strengthen the management of government-owned companies. The Ministry of Finance and Planning has begun drafting a special bill to prevent the misuse of resources of government-owned companies, the study noted.

In addition, the study also noted that the PCB is working on developing robust standards and guidelines. Last year, PCB introduced revisions in human resource guidelines of SOEs to ensure that qualified employees are employed for vacancies. The PCB has also decided to introduce a special award to encourage companies to strengthen their management.