• Home
  • Home
  • Daily Papers
  • Awards / Events
  • GlobalCapital
  • Free Trial
Close

Copying and distributing are prohibited without permission of the publisher.

Watermark
  • Print

Survey shows 'alarming' surge in corruption

By Chris Wright
09 May 2013

A survey of corrupt practices reveals worryingly high levels of fraud and malpractice across key EBRD region countries

A new report suggests worryingly high levels of corruption and malpractice among businesses in emerging European nations.

Ernst & Young’s Europe, Middle East, India and Africa Fraud Survey 2013, released this week, surveyed employees of large companies in 36 countries, some in the developed world, some in emerging markets.

Key findings for countries within the EBRD sphere of operations included:

Slovenia ranked second after Nigeria for prevalence of companies “cooking the books” – reporting financial performance as better than it is – with 66% of respondents reporting it happening there. In Russia, Croatia and Serbia more than half of respondents reported the practice, compared with an average of 38% for the survey as a whole.

Asked whether bribery or corrupt practices happened widely in business in their country, a remarkable 96% in Slovenia said yes – the highest in the entire survey. Exceptionally high responses also came in Croatia (90%), Slovakia (84%), the Czech Republic (73%), Hungary (70%), Serbia (83%), Ukraine (85%) and Russia (82%), compared with an average of 57% in the survey.

Figures were lower when employees were asked if it was common practice in their own sector to use bribery to win contracts. Russia was the only country in the survey where more than half of respondents (56%) answered yes.

 More from Emergingmarkets.org
 Read the latest news stories here
 Click here to read the latest features
 Register for free to receive the weekly newsletter

The survey showed 37% of respondents in Serbia, 28% in Russia and 25% in Croatia said they believed authorities in their country regulated foreign businesses more closely than local ones.

Ernst & Young declined to respond to Emerging Markets’ written questions about the survey.

However, speaking about the business environment worldwide, David Stulb, global leader for fraud investigation and dispute services, said: “The results make for uncomfortable reading. We found that executives and their teams are indeed under increased pressure – and it is being felt personally. They are also bleakly realistic about the market challenges they face.

“To find growth and improved performance in this environment, an alarming number appear to be comfortable with or aware of unethical conduct,” he said, citing recording revenues early, underreporting costs or encouraging customers to buy unnecessary stock.

Of all countries in the survey, Slovenia is likely to be most alarmed by the results: not only an EU state but a eurozone member, apparently showing more widespread corrupt practices than in Kenya or Nigeria, as well as its Balkan peers.

By contrast, in Transparency International’s Corruption Perceptions Index for 2012, Slovenia ranked 37th out of 176 countries, more than 100 places above Kenya.

- Follow us on twitter @emrgingmarkets

By Chris Wright
09 May 2013
  • HOME
  • GLOBALMARKETS
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. EBRD marks out green goals and Africa expansion for next five years

  • Print
  • Latest news from GlobalMarkets

    1. EM debt pressures build as IMF calls for ‘early’ action on restructuring

      15 Oct 2020
    2. Post-Covid world will demand ‘new more humane’ capitalism

      15 Oct 2020
    3. IADB to roll out hurricane clauses as small state pleas gain traction

      15 Oct 2020
    4. IMF will need Bank’s help to fulfil climate ambition

      15 Oct 2020
    5. Biden victory to boost Asia but China tensions to remain

      15 Oct 2020
  • Most viewed: GlobalMarkets

    1. EBRD marks out green goals and Africa expansion for next five years

Further reading

  • Corporate bond investors 'freaking out' at ECB amid 'unhealthy' market

    High Grade

    Corporate bond investors 'freaking out' at ECB amid 'unhealthy' market

  • NCB sells AT1, market anticipates govvie deal

    Middle East

    NCB sells AT1, market anticipates govvie deal

  • Aircraft lessors crowd to market after monster rally

    Corporate Bonds

    Aircraft lessors crowd to market after monster rally

  • People moves in brief: January 21, 2021

    People News

    People moves in brief: January 21, 2021

Global Capital

All material subject to strictly enforced copyright laws. © 2020 Euromoney Institutional Investor PLC group

About Us

  • About us
  • Contact us
  • Modern Slavery Act Transparency Statement

Connect with us

  • LinkedIn
  • @GlobalCapNews

Services

  • Advertise
  • Our partners
  • RSS
  • GlobalCapital Events
  • Events calendar
  • Social community

My Account

  • Renew
  • Subscribe
  • FAQ
  • Feedback
  • Terms and Conditions
  • Privacy Policy
  • Cookies

Quick Links

  • All League Tables
  • Bank Profiles
  • Bond Comments
  • Deals & Deal Pipelines
  • Polls and Awards
  • GlobalCapital Archive
  • Special Reports Archive