No company is immune against corruption. While a carefully crafted anti-corruption policy and code of conduct remain key to preventing corruption, they are not enough. A single dubious employee who does not comply can cause considerable damage to the company. Strong internal controls can uncover irregularities that could turn out to be corrupt practices. Internal controls serve as the necessary verification and balancing to ensure employees are complying with the company’s anti-corruption policy, code of conduct and prescribed business processes.
Company’s must consider that accurate records are essential. They are useful for uncovering anomalies and vulnerabilities, and should be readily available for inspection whenever a transaction needs clarification. Financial documents (including ledgers, payment receipts, and goods receipts), contractual documents (including invitations to tender, contracts, and appraisal records), and administrative documents (including minutes of meetings, endorsements, and letters of appointment) should be properly itemized in company records and supported by original documentation.
Secondly, audit reviews helps in minimizing corruption loopholes. Regular audit reviews should be conducted to ensure that company procedures are being followed. Audit checks can be carried out periodically or on a random basis. It can also be done in-house or outsourced to an independent external third party who can then make suggestions for improvement.
Thirdly, We recommend company’s to state clear standardized operating procedures. Failure to comply with standard operating procedures can raise red flags and reveal suspected corruption. It must be clearly written, accessible and clearly communicated to all employees, and a whistleblower system installed since it’s a key capability to control bribery and corruption risks. Employees should be encouraged to make a report if they suspect something is wrong without fear of retaliation or reprimand if done in good faith. It should be created for vulnerable areas such as procurement and financial approval.