66% businesses in India resort to bribe to get their work done: Report
New Delhi, Dec 9, 2024
A LocalCircles report revealed 66% of Indian businesses admitted to paying bribes in the last year. 54% felt coerced, while 46% bribed voluntarily for faster processing. Despite digitization, bribery persists, particularly with government agencies, impacting areas like supplier qualifications and payments. However, both frequency and value of bribes reportedly decreased.
A recent report by the social media platform LocalCircles revealed that corruption continues to be a significant challenge for the business landscape in India, with almost 66 per cent of firms admitting to resorting to bribery in the last 12 months to get their work done and secure favorable outcomes.
The report noted that 54 per cent of the respondents were forced to bribe their way out of situations, while the remaining 46 per cent did so voluntarily for timely processing.
"As many businesses would vouch anonymously, bribes remain a way of life when it comes to getting government departments to speed up the permit or compliance process, obtaining duplicate copies of authority licenses, or handling property-related matters," the report stated.
Only 16 per cent of businesses claimed they had managed to get their work done without bribing, while 19 per cent reported they "did not have a need" to do so.
"This kind of bribery amounts to extortion, where permits, supplier qualifications, files, orders, and payments are routinely held up when dealing with government agencies," the report said.
According to the report, bribery continues to persist in certain areas despite digitization, often occurring behind closed doors and beyond the reach of surveillance cameras.
Businesses admitted to paying bribes over the past 12 months to various entities to qualify as suppliers, secure quotations and orders, and facilitate payment collections.
"Though initiatives like the Government eProcurement Marketplace are positive steps to reduce corruption, there are still opportunities for malpractice in areas such as supplier qualification, bid manipulation, completion certificates, and payments," the report stated.
Survey participants revealed that 75 per cent of bribes were paid to officials from departments such as legal, metrology, food, drugs, health, and others.
"Many also reported paying bribes to GST officials, pollution departments, municipal corporations, and power departments."
However, the respondents also reported a decline in both the frequency of bribery transactions and the overall value of bribes paid over the past 12 months.
Aakash Sharma, a partner at Deloitte India, noted that many organizations mistakenly believe that merely meeting the basic requirements of policies and procedures will protect them from regulatory oversight and possible penalties.
"While this approach may have been sufficient in the past, recent upward trends in corruption cases, combined with the changing regulatory landscape, require organizations to revisit their compliance framework and establish a robust anti-corruption program," Sharma added.
The survey covered business firms across 159 districts, gathering 18,000 responses between May 22 and November 30, 2024.
[The Times of India]
