Stricter rules against bribery and corruption
Corporations will soon have to abide by stricter rules against bribery and corruption as Government and non-government entities join hands to promote a new corporate governance code in the Kingdom.
Transparency International Bahrain chairman Dr. Jassim Al Ajmi said a campaign to put a check against corruption will soon involve the private sector corporations - which are equally vulnerable to malpractices.
Dr Al Ajmi said that Bahrain has actually improved its transparency record over the past few years but the risk of corruption remains.
"We need to arrive at a common understanding of issue surrounding good governance and countering bribery and how we can counter that risk," said Dr Al Ajmi.
"Countries in the region in general and Bahrain in particular have made good progress in recent years but we should not be complacent," he said.
Dr Al Ajmi spoke yesterday at the opening of a one-day workshop by the Transparency International and the Bahrain Accountants Association on applying best practices in the private sector.
The new code being put in place is in line with international practices on corporate governance.
Salient points of this recommended programme include prohibiting enterprises from offering gifts, kickbacks, and any form of bribery to secure contracts.
This will also prohibit corporate organisations from making direct or indirect contributions to political parties and organisations involved in politics as a way of obtaining advantage in business transactions.
Peter Wilkinson of Transparency International (TI) said that countries should not wait before applying anti-bribery measures within their corporate structures.
He said that TI estimates as much as $1trillion being lost every year because of corruption.
He cited that agencies and sectors most vulnerable to corruption are those in the oil industry and construction industry.
Hameed Rahma, assistant undersecretary for domestic trade at the Ministry of Commerce, said they will campaign strongly among companies to comply with corporate governance codes.
He said they are looking at a three-year period to implement governance even among the SMEs - small and medium enterprises - in the country.
"Companies should comply with the best practices. We need to implement this and we see no reason why companies should not abide by the rules," Rahma said.
"Otherwise, the ministry can resort to imposing penalties or even freeze granting of CRs (commercial registration) just to ensure that business is being done honestly," he said.
By Titus Filio Contributor
© Bahrain Tribune 2007
