A new report by the Association of Chartered
Certified Accountants (ACCA), may have corroborated experts’ view that
bribery and corruption is a major contributor to the demise of 80 per
cent of Small and Medium Scale Enterprises (SMEs),within the first five
years of their establishment in Nigeria and sub-Saharan Africa.
77 per cent of accountants in sub-Saharan Africa, surveyed for a global study, believe that bribery is a major concern for businesses in the SMEs sector, and 64 per cent said it had a negative impact on the business environment as a whole.
Commenting on the report, Toyin Ademola from ACCA Nigeria, said: “While sub-Saharan Africa is a huge place, it is clear that there is a consensus among respondents that bribery and corruption damages a business’s reputation and makes it harder to attract investment. The big question for accountants here in Nigeria is: How do we tackle bribery and corruption? The research respondents said the most effective methods would be whistle blowing laws and more high profile prosecutions.”
The newly published research from ACCA further stated that more than 60 per cent of respondents did not support the idea that the law should treat bribery and corruption more leniently in the SMEs sector than in the large company or public sectors; but should be tackled across board.
The report, “Combating Bribery in the SMEs sector” was conducted by ACCA among 1000 of its global members.
Toyin Ademola reiterated: “This report has a clear message for accountants, SMEs and the government here in Nigeria. The full restoration of trust and confidence in the business sector can only be achieved when people believe that business is being conducted fairly and transparently.
“By adopting a value-based approach, businesses can help themselves and, indirectly, help to achieve the wider goal of enhancing confidence in the business sector as a whole. Accountants, who have twin responsibilities to give best advice to their employers or clients and an obligation to act in the public interest, have a major part to play in this process.”
The findings reveal a concern that many SMEs are not taking the right steps to mitigate the risks of exposure to bribery and corruption. It also suggests that many businesses have been willing to mis-state financial statements to cover up for bribery and corruption and that recourse to such practices has been exacerbated by the global financial crisis.
77 per cent of accountants in sub-Saharan Africa, surveyed for a global study, believe that bribery is a major concern for businesses in the SMEs sector, and 64 per cent said it had a negative impact on the business environment as a whole.
Commenting on the report, Toyin Ademola from ACCA Nigeria, said: “While sub-Saharan Africa is a huge place, it is clear that there is a consensus among respondents that bribery and corruption damages a business’s reputation and makes it harder to attract investment. The big question for accountants here in Nigeria is: How do we tackle bribery and corruption? The research respondents said the most effective methods would be whistle blowing laws and more high profile prosecutions.”
The newly published research from ACCA further stated that more than 60 per cent of respondents did not support the idea that the law should treat bribery and corruption more leniently in the SMEs sector than in the large company or public sectors; but should be tackled across board.
The report, “Combating Bribery in the SMEs sector” was conducted by ACCA among 1000 of its global members.
Toyin Ademola reiterated: “This report has a clear message for accountants, SMEs and the government here in Nigeria. The full restoration of trust and confidence in the business sector can only be achieved when people believe that business is being conducted fairly and transparently.
“By adopting a value-based approach, businesses can help themselves and, indirectly, help to achieve the wider goal of enhancing confidence in the business sector as a whole. Accountants, who have twin responsibilities to give best advice to their employers or clients and an obligation to act in the public interest, have a major part to play in this process.”
The findings reveal a concern that many SMEs are not taking the right steps to mitigate the risks of exposure to bribery and corruption. It also suggests that many businesses have been willing to mis-state financial statements to cover up for bribery and corruption and that recourse to such practices has been exacerbated by the global financial crisis.
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