Why several governments have failed to combat corruption and the key role of internal auditors in helping with the fight
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The role of Internal Audit in the public sector is critical to promoting transparency and accountability in Ghana and Africa as a whole. The Internal audit function is required to play a multifaceted role in combating corruption by identifying internal control weaknesses, assessing compliance with laws and regulations, and promoting ethical behavior within the public sector.
Ghana/Africa is blessed with vast natural resources and yet plagued with economic retrogression caused primarily by Corruption, and several governments' resolve to end this canker has proved futile from the days of Independence till date. Ghana scored 43 points out of 100 on the 2022 Corruption Perceptions Index reported by Transparency International. When ranked by score among the 180 countries in the 2022 Index, Ghana ranked 72nd, a record high within the decade.
Why are all the policies and resources deployed towards tackling corruption ineffective?
Why does Corruption in Ghana keep spreading and worsening from time to time and from government to government? The answer is simple. We have failed to tackle Corruption from within.
Corruption is a complex socio-economic phenomenon that is difficult to quantify and is often defined as the abuse or misuse of public office for private gains (World Bank, 1997, 2004).
Corruption comes in various forms such as Bribery, Embezzlement of state funds, Fraud, Facilitation payment, Collusion, Extortion, Clientelism, and Nepotism among others.
The Independence of the Internal Audit function is key to its effectiveness in addressing internal control deficiencies (Corruption etc.) and research has established an inverse relationship between the effectiveness of an Internal Audit function and the level of corruption prevalent within an organization.
Thus, by fulfilling its mandate effectively, Internal Auditors (IA) within
Government sectors can contribute significantly to reducing Corruption and improving good Corporate governance practices by;
Detecting irregularities such as Corruption, fraud, embezzlement, bribery, and all forms of Internal control weaknesses within Organizations.
Examining an Organization's Internal control system to identify vulnerabilities that could be exploited for corrupt activities. By pinpointing weaknesses, Internal Auditors help management strengthen controls to prevent and detect fraudulent activities.
Assessing an Organization's compliance with laws, regulations, and ethical standards. In Ghana, this includes evaluating adherence to the country's anti-corruption laws/policies and regulations.
Conducting risk assessments to identify areas of the Organization that are susceptible to corruption. By focusing on such high-risk areas, Internal Auditors can prioritize their efforts and resources effectively.
Identifying weaknesses or areas of concern and making recommendations for improving internal controls and processes. These recommendations help mitigate corruption risks and enhance good corporate governance.
However, the Internal Audit function, in reality, is plagued with total dependence on Management for resources to effectively carry out its mandate as enshrined in the PFM Act,2016 (Act 921) and the IAA Act,2003 (Act 658), a situation which impairs the objectivity of the Internal Auditor to effectively reduce Corruption risk and address internal control deficiencies prevalent with the public sector.
In conclusion, until the Internal Audit function within the public sector is restructured and empowered with the requisite resources to become wholly Independent of Management, the fight against Corruption becomes nothing but a wild goose chase.
