Bribery and corruption impact bottom line

Theft and the dilemma of customs officials holding up consignments in order to seek bribes were recurring themes that emerged in interviews with several consolidators contacted by FTW. Electronic clearance of goods has made transactions more transparent and traceable, but the problem persists. While industry players were reluctant to speak openly about the issue, many appear to regard bribing of government officials as an inevitable “additional tax” of doing business on the continent. “We believe that there is an increase in abuse of power on the part of individual officers, from various enforcement officers – from Sars and customs departments in some countries to other controlling authorities,” according to our source. His firm takes a zerotolerance stance toward corruption, and has been comforted that its complaints have not fallen on deaf ears. “What is encouraging, however, is that the authorities have totally co-operated when we have reported such abuses,” he said. According to another source, an area that requires improvement is the level of costs accruing and the time delay to the local importers as a result of Customs or Border Police examinations of cargo. “Very often this is handled very inefficiently by the authorities concerned. Not only does the importer have to pay exorbitant charges to the shipping lines to move the goods to a customs area but very high storage and demurrage accrue on a daily basis. The costs and the time taken are penalising importers and exporters heavily,” he said.