Share

Corruption could cost Africa dearly

The Hague - A large Dutch staffing agency, Brunel, has pulled out of Nigeria because of corruption. Brunel has a presence in more than 40 countries, with a turnover of €100m (R1.47bn) in Nigeria alone.

Experts believe this could be the beginning of a larger trend, with companies deciding that it is simply not worth the trouble to continue investing in corrupt countries where doing business costs too much relative to profits.

Brunel CEO Jan Arie van Barneveld told the Dutch daily Financieele Dagblad: “Safety risks and bureaucracy have made it almost impossible to guarantee our quality of service and safety of our personnel in Nigeria.”

The company will not withdraw immediately and will carry out its obligations in accordance with existing contracts, but will not accept any new business.

“We do business there with big concerns in oil and gas, run by local bigwigs. They simply tell our employees that the bill of a million will not be paid unless certain persons are ‘facilitated’. To be clear: that is jargon for bribery. They always think of a reason not to pay. You simply don’t get your money.”

Barneveld said he personally refused to "facilitate" someone who would not pay a bill.

Brunel is also reviewing its future in Angola for the same reason.

Aldo Verbruggen, a former public prosecutor and currently a solicitor in Amsterdam, said corruption forms part of companies’ risk analysis. In the West, laws against corruption as well as punishment and policing have become considerably more rigorous.

The ever-increasing risks and costs of doing business with corrupt countries make it simply not worthwhile, especially if employees’ safety cannot be guaranteed.

According to analysts, corruption causes about 5% of worldwide gross national product to vanish into the pockets of the dishonest.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.2%
Rand - Pound
24.08
+0.1%
Rand - Euro
20.59
+0.0%
Rand - Aus dollar
12.36
+0.5%
Rand - Yen
0.13
+0.6%
Platinum
904.45
+0.2%
Palladium
999.75
-0.6%
Gold
2,152.84
-0.4%
Silver
24.91
-0.5%
Brent-ruolie
86.89
+1.8%
Top 40
65,923
-0.5%
All Share
72,134
-0.4%
Resource 10
53,280
-0.1%
Industrial 25
99,477
-1.0%
Financial 15
16,643
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders