'Kingpins' in public service aiding graft

A survey by audit firm PwC has singled out ‘kingpins’ in public institutions who override procurement laws to engage in corrupt activities.

The survey that analyses economic crimes in the Eastern Africa region notes that these individuals are the setback in the fight against corruption, considering policies and procedures are in place.

The report is titled PwC’s Global Economic Crime and Fraud Survey 2022: Eastern Africa Report Protecting the perimeter: The rise of external fraud.

PwC says in the document released on Tuesday that countries in the Eastern Africa region have done relatively well in building and strengthening accountability through investments in public finance management PFM) and in oversight institutions.

It notes that PFM reforms have sought to improve the planning, budgeting and reporting processes.

The institutions have also received public and donor support which have helped in recording notable successes such as recoveries of unexplained wealth and convictions which the audit firm says have acted as deterrents to would-be perpetrators of corruption.

“The gains on the accountability front do not however seem to be replicated in respect to the second factor of the corruption equation, being monopoly and (or discretion),” the survey says.

With stretched oversight institutions at the national level, the survey says, monopoly of information and discretion of officers in key processes has created the opportunity for the various forms of economic crime, especially corruption, to materialise.

The survey, for illustration purposes, looked at procurement fraud in Kenya and Uganda.

“The respective procurement authorities undertake quarterly market surveys and publish average prices of commonly procured items to guide public procurements,” the survey reads.

“This has, however, not stopped public sector entities from procuring items at multiple times, sometimes more than tenfold, the average market price.

“The pertinent question is therefore: at whose discretion are such contracts executed?”

The survey says this happens even when the policies and procedures for fighting corruption appear to be all in place.