Systemic corruption in public enterprises in the Harare metropolitan area : a case study

Abstract

The study sought to investigate the impact of systemic corruption in public enterprises in the Harare metropolitan area in Zimbabwe. This research study used a case and explanatory research designs as its major research approaches. The study was largely prompted by the high level of corruption in public enterprises as reported to the Anti - Corruption Commission and the media. In this study, fourteen (14) directors and twenty six (26) public enterprise officials were used as research subjects. Questionnaires, interviews and documentary reviews were used as research instruments to collect information on the impact of systemic corruption in public enterprises in the Harare metropolitan area. The study showed that low remuneration levels for both low and high level public enterprise officials, patronage appointment to higher level of management and the lack of political will to empower public enterprise officials on the evil of corruption were the causes of systemic corruption. Greed, the disintegration of work morality and ethics in the manner in which public affairs across public enterprises were being handled, were key causes of systemic corruption (see chapter 4 for details). The high level of secrecy in the management of public affairs, the lack of transparency, discipline, fairness, responsibility, equity and weak legal system on corruption were also noted to be corruption drivers. With regard the manifestation of corruption in public enterprises, it was established that systemic corruption occurred in the following forms: abuse of power, fraud, favouritism, embezzlement, weak control, extortion and ghosting.The study also showed that systemic corruption created problems such as administrative inefficiency and parasitism, a social atmosphere of tension and dishonesty within public enterprises (see chapter 4 for details). Corruption reallocated resources to the rich and powerful public officials who were aligned to the ruling party or those in authority. The study also noted that public enterprises officials were using technical complexity in procedures and regulations to conceal under-dealings.It was iv the findings of this study that rewarding for reasons not related to performance, dishonesty, over claiming expenses, falsification of reports/records and favouritism in public enterprises were high. The study also revealed that bid-rigging, shifting from core business, ghosting, and giving gratitude/gift to influence decision were some of the prevalent unethical activities in public enterprises. Against this backdrop, it is recommended that the level of remuneration in public enterprises for public officials is improved so that the minimum grounds for corruption motives are reduced. When salaries are too low, officers are obviously forced to indulge in unethical activities which in turn affect the general public directly or indirectly. It is critical that all public enterprise officials undergo training in the dimension of corruption and corporate governance as a means of empowerment. Corrupt individuals and business organisations in the Harare metropolitan area should not be employed or engaged in public related work and that public affairs must be managed in a transparent and open manner although confidentiality must be observed. The study also recommends that the appointment of public enterprise officials must be based on competence, relevant educational qualifications and experience. Another recommendation is that all cases of corruption must be treated as high level criminal cases which attract longer and deterrent court judgments (see chapter four for details).