How corrupt is SA’s freight trade?

Corruption is alive and well
within the freight and logistics
industry and it is not just
applicable to the public sector.
This was the opinion of
several freight industry leaders
that FTW approached for
comment following the release
last week of Transparency
International’s Corruption
Perception Index (CPI).
Sue Moodley, managing
director of Transport.com, told
FTW that weak leadership
in any organisation often
led to corruption. “There is
a lot of job hopping in the
freight industry and those
corrupt individuals take
their corruption practices
with them. Furthermore,
with an industry that is
increasingly operating under
very tight margins, many
logistics suppliers are cutting
corners by not maintaining
their equipment. This makes
them vulnerable and open to
bribery,” she said.
Another transport operator
agreed, noting that the
logistics industry often fed
the corrupt policies within the
public sector. “There would
be no market for bribery
for example if the logistics
suppliers refused to pay them,”
he commented.
One respondent, who
represents an international
business chamber in South
Africa told FTW on condition
of anonymity that she believed
that corruption was endemic
in South Africa. “Corruption is
built into the national psyche.”
According to her, it is
this widespread practice of
corruption that deters foreign
investment.
A customs consultant
commented that he was
confronted by a situation
where an importer had
amended a supplier’s invoice to
try to beat the system and earn
extra cash.
He told FTW that he
reported the case to the
authorities. “We cannot simply
point fingers and say that
so-and-so does it and so will
we. Or expect government
authorities to take sole
responsibility for eradicating it.
We need to draw a line in the
sand, refuse to participate – on
any level – and take a stand
and report it when we see it
happening.”
Moodley believes that
logistics operators could cut
down on corruption by having
anti-corruption policies in
place and ensuring that they
have good systems that can
track individual behaviour
within a company and
pinpoint problems. “We have
a policy in place that includes
confidentiality agreements
regarding the business
practices of all our clients,” she
said.