Kisumu
23/10/07
 
CORRUPTION IS STILL RAMPANT IN EAST AFRICAN BORDER CROSSING POINTS.

By Leo Odera Omolo
 
The East African region loses more than USD 57,730 to corruption for every 100 transactions in tax revenue to corruption along the Northern Corridor, says the latest survey just released.
 
Clearing agents interviewed by research firm, the Steadman Group claimed that they pay customs officials’ bribes of between USD 100 and USD 150 depending on the value of the imported goods to expedite clearance and avoid high taxation.
 
According to the survey, the lead loser in the region is Uganda. The latest report is expected to provoke a lot of controversy.
 
It says, in June alone-when the survey was conducted – Uganda had an aggregated loss of USD 48,384 per 100 transactions; followed by Kenya USD 5,439 and Tanzania USD 3,867. The Democratic Republic of Congo lost only USD 40.
 
The survey pointed out several border crossing points which are the dens of corruption as Mutukula along Tanzania – Uganda and Busia along Kenya – Uganda transit points experiences the highest revenue loss to bribery in the Great Lakes region.
 
For every 100 transactions, USD 81,362 is lost at Mutukula, USD 34,083 at Busia and USD 3, 028 at Dar Es Salaam points.
 
Dar Es Salaam and Holili along Kenya – Tanzania border point leads in corruption cases. At both points, the chances of clearing agent paying a bribe stands at above 65 per cent.
 
The survey said Holili registered the highest bribery related loss of all transit points, whose 56 per cent of total cost of consignment went to bribes, translating into USD 4,530 while Dar Es Salaam lost 65 per cent (USD 2,040). Gatuna border at the Uganda Rwanda transit point registered the lowest loss of 3 per cent.
 
Mombasa port, however, was given credit by the report for having registered a remarkable improvement with bribes dropping to below USD 30 from previous USD 100 for every 100 transactions.
 
Goods most prone to bribery, according to the report are motor vehicle or machinery, perishable goods, electronics and chemical products.
 
Those interviewed by the survey, revealed that due to corruption at the border points, the cost of doing business within the region has significantly increased, led to delays and has resulted in failure to receive legitimate services.
 
The report shows that it normally takes a minimum of five days to clear goods at any of the transit points in Tanzania, and four days from other East African Community member states.
 
Corruption says, the report is a challenge across the region, but clearing agents operating through Tanzania border points suffer most.
 
The survey found that 73 per cent of clearing agents are asked to pay bribes at different transit points in Tanzania. This is followed by Kenya, 53 per cent and Burundi 52 per cent. Rwanda registered the most efficient documentation process while Kenya and Uganda registered the worst.
 
The survey shows that in most cases the bribes are initiated by customs officials but the amount of bribe is determined by the value of the consignments.
 
It shows that the bribe are always paid upfront and that the officials work independently hence increasing the number of those who have to be bribed.
 
The bribes are either paid differently or as part of service fee. Other methods used are to speed up customs services or establishing friendship with customs officials and using ‘’middlemen’’ as conduits.
 
Many clearing agents, however, feel that cases of corruption across the border points have slightly decreased with Uganda and Tanzania registering great success in the fight against the vice at transit points.
 
The attitude of exporters, importers and clearing agents was also questioned as those interviewed during the survey said it is acceptable to give a token of appreciation for a job well done and that corruption is deeply entrenched that it is almost impossible to eradicate.
 
To others, public officials are so poorly paid that they have no choices but to ask for extra payment and that paying bribes or doing favours is the only way to expedite clearance procedures.
 
In the Steadman Group survey, clearing agents reported that it is a waste o time to report bribery cases to the higher authorities or the police and anti-corruption authorities as they were subsequently either denied services or harassed in return.
 
They suggested better remuneration, education of clearing agents on corruption and heavy penalties for those caught red handed in the act. The clearing agent had proposed the establishment of anti-corruption hotline to curb the vice.
 
The Northern corridor links in the Great Lakes countries of Burundi, DRC, Rwanda and Uganda to the Kenyan Seaport of Mombasa and serves Northern Tanzania, Southern Sudan and Ethiopia.
 
Ends.
Leooderaomolo@yahoo.com