Monday, Sep 01, 2008
There was a company that employed around 22,000 people. It was one of the world's leading electricity, natural gas, paper, and communications companies. It claimed revenues of $111 billion in 2000. For six consecutive years Fortune magazine named it "America's Most Innovative Company".
Then in 2001, it was revealed that this company's reported financial condition was sustained mostly by "institutionalised, systematic, and creatively planned" accounting fraud.
The company I'm referring to is Enron, which was one of the "largest and most complex bankruptcies in US history".
In recent months, we have witnessed in our country of a minister of state who was relieved of his ministerial post by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.
This step was taken to allow the public prosecutor's office to begin criminal investigations against this minister.
While in Abu Dhabi police have arrested a sergeant with the Abu Dhabi Traffic Department who was planning to carry out a Dh 13 million car scam.
Recently, the Ministry of Labour also caught officials who had allegedly issued over 3,000 illegal work permits.
While in Dubai we have also witnessed statements by the public prosecutor's office, indicating that they are carrying out widespread investigations into local financial and real estate sectors to crack down on major corruption cases that have surfaced.
Dubai's government released a statement, which promised to deal harshly with officials accused of taking payoffs or with those who use their positions for financial gain. Recently the UAE Minister of Interior stated that the government would diligently fight corruption and ensure transparency and stressed that absolutely, no one, is above the law.
As a country, we have ranked highest among Arab countries on the transparency index. In recent years, we have been listed as the least corrupt Arab country. And yet it's impossible to assume that corruption will never exist, and this makes implementation of systems of anti-corruption critical, because as one expert clearly stated, "Corruption robs countries of their potential".
No easy task
Cracking down on corruption is no easy task. The reason is we are talking about human greed, a trait which is persistent and can be like a contagious disease which runs wildly and cunningly in environments lacking strong systems of governance, both in the corporate and civil worlds.
This is where strong progressive governance systems come into play. They ensure fairness, accountability, independent transparent auditing, and tough legislation.
We need strong systems of corporate and civil governance that aren't purely about establishing processes and seeking ISO and other awards, but systems which seek to create corporate and civil cultures that are based on rewarding talent, and based on instilling values and honest work ethics.
In 1994, Singapore's public sector pay system was created. This system pegged salaries of government ministers and top civil servants "to the money they might earn at the top of the private sector". The logic in the Singapore model is that "... you have to pay to keep them clean", which is essentially financially rewarding talent, but also more practically ensuring that such employees will then be free from want and the temptations of greed.
But obviously this in itself is not deterrent enough to stop corruption. Hence, there is need for healthy corporate/civil cultures and also the need for the "stick" - more precisely independent transparent auditing, and touch legislation which will punish those mercilessly who choose to steal and to exploit the trust that our country has granted to them.
I have to say, as an Emirati, it actually makes me sad and disappointed to hear that potentially many of those who have allegedly stolen from our country whether it be through bribes or embezzlement, are UAE nationals.
When the day comes that you choose to steal from your own country, or to abuse the trust of your position, one has to wonder how such a human being can go so wrong, and sell themselves for essentially the ability to purchase more material things in life.
We are at the crossroads. And as we build our nation, we should build it with systems and ethics which will practically and relentlessly protect us from corruption.
Najla Al Awadhi is a member of the Federal National Council, Deputy CEO Dubai Media Incorporated and General Manager of Dubai One TV.
By Najla Al Awadhi
Gulf News 2008. All rights reserved.
