PriceWaterhouseCoopers (PwC) released a report of a survey carried out to determine the prevalence of economic crimes yesterday. Based on the report, Kenya emerges as the third most corrupt country in the world.
The audit firm states that South Africa and France come in the first two positions.
Chief Justice Willy Mutunga also shared the similar opinions during a newspaper interview weeks back.
According to what the Chief Justice told Dutch newspaper NRC Handelsblad, Kenya had become a bandit economy where corruption has permeated through the whole levels of society. The firm also revealed that Kenya is brimming with economic crimes including, embezzlement, bribery and procurement fraud more than the rest of the countries in the globe.
What is more depressing from the survey according to PwC’s Forensics Leader in Eastern Africa, Muniu Thoithi is the reducing confidence in the ability of law enforcers to curb the growing crimes.
“A worrying trend in the survey is the low levels of confidence in local law enforcement’s ability to investigate and prosecute economic crimes.”
The report is thrown up at the time the country is yet to deal with increasing public unhappiness over the over the way public money is being stolen willfully by top government officials. Several graft cases are still ongoing and they’re unnecessarily being prolonged. The jury is yet to circle out how the government spent the Sh250 billion it raised from the Eurobond.
NYS scandal rolled in almost immediately after Eurobond and has webbed in many top wigs in the country. The scandal involves the loss or embezzlement of Sh791 million at the National Youth Service (NYS). As if these ones aren’t enough, the role of Kenyan electoral officials in bribery by officials of a UK security printing firm to win printing contracts for 2013 General Election materials has also been revealed by investigations. The act has also spread through into other levels of the country including the private sector, schools, electoral commission, etc.
It was recently revealed that three persons found out that they were already registered in IEBC when they went for the registrations themselves. Also, some schools have been shut out for employing unqualified and uneducated to lecture university students – quite appalling. A group of top managers of Imperial Bank are in court for reportedly robbing over Sh34 billion from bank deposits.
We can go on and on, but the more worrying thing it now seems never-ending the way it diffusing though the country. Critics blame Jubilee for failing to keep its promises of bringing graft to a final halt. And in most cases of economic crimes, the people who carried out these immoral crimes were basically insiders, something PwC’s findings have confirmed.
According to PwC survey, Kenya’s rates of economic crimes had grown widely to 17 per cent in just one year, making it third globally, seven percentage points behind South Africa.
Sixty-one per cent of the respondents from 99 organisations spanning different economic sectors in Kenya said they had suffered some form of economic crimes in the last 24 months — a nine per cent increase from 2014s 52 per cent.
South Africa (69 per cent) and France (68 per cent) got the highest score. Zambia tied with Kenya at 61 per cent in a survey that saw all the four African countries surveyed feature among the top-ten countries. Nigeria was the fourth African country in the survey.
Kenya is named the first in the list of countries where respondents had tiny faith in their law enforcement agencies. Seventy-two per cent of respondents revealed that their law enforcement agencies don’t have what it takes to fight what is fast turning into a national crisis. This was against the global average of 44 per cent. Only 46 per cent think the top level management regards bribery as an illegal practice.
According to the study:
“This indicates that the mindset of individuals within the organisations needs to be changed.”
37 per cent of respondents revealed that they had suffered procurement scam usually at the bidding stage in the last 24 months. This makes the crime the third most prevalent economic crime in the country followed by bribery and corruption. Then, accounting fraud, involving books of accounts, and cyber-crimes were pose in the fourth and fifth positions as the most prevalent forms of economic crimes respectively.
PWC is a multinational professional services network and the biggest professional services firm in the world. It is among the Big Four auditors, along with Deloitte, EY and KPMG. The firm has been ranked PwC as the most prestigious accounting firm in the world for seven years in a row. It was also named as the top firm to work for in North America for three consecutive years.