Just $50 is enough to ensure that a piece of equipment valued at more than $250 million will arrive at its destination quickly and without too much hassle. Refuse to pay the $50 to the official and it could take weeks or even months before it finally gets to its destination. That is the reality of Africa when it comes to bribery and corruption, according to industry experts. Neil Gardener, logistics and trade compliance manager for Sub- Saharan Africa, Baker Hughes, said this was a situation they faced. “We had to move an expensive tool from Ghana to Mozambique. It cost some $250 million so there was very little room for error,” he said. “But we refused to pay the bribe resulting in the equipment taking more than four weeks to reach its destination as we had to re-route it via Johannesburg in the end. When one weighs up a $50 bribe with the cost of the equipment, it becomes easy to understand why companies give in and pay.” More and more companies need to understand the impact that bribery and corruption has and need to work together in not paying what can be termed anything from a facilitation fee to a tax or tariff. “One needs to know that when you are making these payments it is nothing more than bribery and corruption and by participating one is making the problem worse,” said Johny Smith, chief executive officer of the Walvis Bay Corridor Group. “I think corruption is definitely decreasing in certain countries in Africa where they are putting policies and procedures in place and are attempting to root out corruption. But with all the minerals and oil and gas being found across the continent, there are many new developing countries that are potentially seeing big paydays. Companies must operate in an honest way. If trade is respectable no matter what, corruption will decrease even more.” Gardener agrees, saying a zero tolerance towards bribery is necessary. “The more people implement this kind of policy, the sooner the continent will rid itself of the bribery and corruption elements.” INSERT ‘Refuse to pay the $50 to the official and it could take weeks or even months before your cargo finally gets to its destination.’ CAPTION Johny Smith ... ‘By participating one is making the problem worse.’
