Corruption ‘A Major Issue’ in Middle East

What’s the Story? Corruption is rife in the Middle East.

And what, so the question goes, do bears do in the woods?  Point taken but we have some science behind the observation. The fully trained and badged up researchers at PwC, the audit and consulting outfit, have released a study on the subject.

The highlights? Middle East business leaders are almost twice as likely as their global peers to say that they expect to be confronted by bribery and corruption. In interviews with 126 regional executives the firm found 39 per cent think they will face bribery and corruption this year, compared with the global average of 23 per cent.

And I bet very little is being done about it? You can collect on that bet. The study, spanning private sector and government-related entities, found internal audit functions uncovered fraud in 6 per cent of cases, far behind the global average of 14 per cent. The most common means of detection in the region was “by accident”

So fraudsters needn’t quake in their shoes? It’s certainly become a much more prominent issue of debate particularly in light of the Arab Spring.  ‘Corruption’ is a term that is heard a lot today in political debate in the region particularly in Egypt, Kuwait and Jordan. We’ve also had the long running battle between the Saudi conglomerate Ahmad Hamad Algosaibi and Brothers and the Saudi billionaire Maan al-Sanea.  And there have also been sustained anti-corruption drives in Dubai, following the property collapse.

But like ‘the Biblical Poor’ corruption will always be with us, will it not?  I haven’t noticed a shortage of brown envelopes recently.

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