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SINGAPORE: Experts said there has to be greater co-operation between the public and private sectors to tackle corruption in the region and around the world.
And they said this is becoming increasingly important given the massive amount of stimulus funds governments are pouring into various economies amid the current downturn.
Speaking on Monday at an event organised by the Singapore Institute of International Affairs, they said this creates more opportunities for corrupt activities to take place.
The stimulus packages that have been introduced by various governments to deal with the global downturn involve big money. So how can they ensure the cash goes to the right places and not line the wrong pockets?
Some experts said the answer could lie in dishing out harsh punishments to offenders and making examples of them. Their case studies and heavy consequences should then be publicised in order to deter other companies. A recent example of this involves European engineering conglomerate Siemens.
Dr Simon Tay, chairman, Singapore Institute of International Affairs, said: "They had a very tough story where they were found guilty and decided to plead to the US commission.
"But they've turned that tough story into a good story because they've used the occasion to clean up the system and put in place, in the management of their company, the right incentives to make sure that their managers don't get tempted."
Last year, US authorities fined Siemens a record US$800 million over a case involving a slush fund the German firm had used to win overseas contracts between 2001 and 2007.
Experts said governments should also tweak the law books to reflect the gravity of corporate corruption.
Bertrand De Speville, principal, de Speville & Associates, said: "I think increasingly, now it's being recognised that corruption in the private sector - namely where both parties to the corrupt transaction are from the private sector - is just as harmful to the well-being of a country.
Observers said there have not yet been any documented cases of misuse of stimulus funds in the region or elsewhere. But they warn that governments should start conducting audits before it is too late. - 938LIVE/vm
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