bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 20.04.2018 | Name days: Mirta, Ziedīte
LatviaLatvia

Study: corruption level in Latvia put in Europe’s highest risk group

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU58% of private and state sector management level professionals view corruption as widely spread in Latvia. This puts Latvia in Europe’s highest risk group alongside most Eastern European countries, according to results of EY Global Fraud Survey.

79% of respondents believe corruption risks apply to the public and private sector.

«In spite of major efforts to reduce corruption in Latvia over the course of many years, we see that Latvia’s corruption perception level is still far from European western nations. The survey points to a shocking fact that a confident majority of Latvian professionals admit that corruption is a major problem in the private sector. Such a major presence of corruption creates a serious burden for economic development. This is because corruption reduces economy’s efficiency. Without reducing corruption, Latvia is unlikely to reach western nations’ development levels,» comments EY partner in Baltics Diana Krisjane.

Latvia’s indexes are close to indexes of Central and Eastern Europe. Survey data shows that 70% respondents in Slovakia, 66% in Hungary, 60% in Croatia, 54% in Czech Republic and 48% in Serbia all mentioned widespread corruption levels in their home country. The worst indexes in EY survey were recorded in Ukraine, where 88% of respondents mentioned corruption is widespread among government-level specialists.

EY survey shows that Latvia’s corruption perception level is multiple times larger than the level of economically developed European member states. For example, only 4% of Swedish professionals view corruption as widespread in their country, followed by Germany and Holland with 6% each; Belgium, Ireland and Switzerland with 8% and Austria with 10%. Corruption levels are higher in Norway (16%), France (18%) and UK (28%). Corruption levels in Spain and Portugal are on the same level as Eastern European countries (50%).

«The survey also shows a number of positive trends. For example, three out of four survey participants note their company or organization has an anti-corruption policy. Only 15% of professionals believe strict compliance with anti-corruption policy and procedures negatively impacts their organization’s competitiveness,» said EY representative Liene Dobele.

76% of respondents believe compliance with ethics standards helps businesses and organizations become more successful.

«Results of the survey show that Latvian professionals’ opinion towards different corruption and fraud prevention processes is constructive and welcoming. This is good ground to help reduce corruption and fraud. It is necessary to continue realizing internal policy and other procedures into practice. We see that organizations actively perform internal audits and external financial revisions. They have also introduced the duty for employees to report conflicts of interests. However, in 30% of all cases employees are punished for violations of internal corruption prevention measures,» explains Krisjane.

Survey data shows that financial audit is the most popular corruption prevention tool in Latvia. It is used by 95% of respondents. Other popular measures include internal control (86%) and internal audit (81%). Trust hotlines are not yet popular in Latvia to be an effective mechanism – they are only available to 35% of respondents’ organizations.

Organizations have to perform regular corruption and fraud risk analysis, enhance internal control systems and actively use internal audit functions, Krisjane recommends.

Ref: 224.109.109.1595


Leave a reply

  1. Gunnar says:

    This index is not scientific (and doesn’t even perport to be). It is a rating of the citizens’ PERCEPTION of corruption in their own countries. Repondents are not required to validate their perceptions and hardly even to exemplify.

    Also, the corruption surveys in general automatically contain a strong cultural bias. In countries like Iceland, Norway or Finland it is the cultural norm to consider one’s own country as exceptional, unlike the other European countries and virtually free of corruption. However, if one actually were to syft through newspaper headlines and court documents, one would notice that there are literally tens of suspected or charged cases of corruption each year in these countries. If we see corruption as dishonesty in hiring processes, tendencies for the judicial process to support certain groups over others or tendency to discriminate in favour of national suppliers in procurement decisions, then Finland, Norway and each of the Nordic countries are much more “corrupt” than their citizens perceive.

    Thumb up 0 Thumb down 0

State Secretary: Latvia and China share good economic cooperation perspectives

To present topical issues of Latvian-Chinese economic cooperation to businessmen, as well as contribute to formation of new business contacts, officials have launched the Latvia-Ningbo Economic & Trade Cooperation Symposium, as reported by Foreign Affairs Ministry.

Wet summer boosted air travel via Tallinn Airport

In Estonian passenger aviation, a considerable 19% growth has been observed by the Tallinn Airport in 2017, which has explained the increase in passenger numbers partly with unusually bad weather conditions.

ABLV Bank urges FinCEN to withdraw «exaggerated accusations»

Lawyers of ABLV Bank, which is currently in the process of self-liquidating, urge US Department of Treasury’s Financial Crimes Enforcement Network to withdraw its published proposal, which details how ABLV Bank’s management had allegedly used bribes to influence Latvian officials and breach sanctions against North Korea.

Stoltenberg: NATO has no plans to boost military presence in Baltic States

NATO does not plan to increase its presence in Baltic States, which have requested additional aid against Russia’s potential aggression, as announced by the alliance’s Secretary General Jens Stoltenberg.

Mass evacuation in Berlin to defuse 500 kg bomb

In Berlin, after an unexploded bomb weighing 500 kg has been discovered, part of the German capital is being evacuated on Friday, April 20, in order to defuse the World War II weapon.

Friday will be warm and sunny in Latvia; weather to become cold and rainy later

Friday will be warm in Latvia, but weather will change on Saturday and Sunday – wind speed will increase and air temperature will drop. A wide low atmospheric pressure area above Northern Europe will be dictating weather next week. This means there will be more rain in Latvia, as reported by State Environment, Geology and Meteorology Centre.

New Cuba's President sees no room for capitalists in country

In Cuba, its First Vice-president Miguel Díaz-Canel has become the first President of the communist Carribean country ending the rule of Castro brothers.

Major political corruption case reaches court in Lithuania

A major political corruption case with involving MG Baltic, one of Lithuania's largest business groups, and two political parties, the Liberal Movement and the Labour Party, has reached Lithuanian court this week.

AHK warns: Latvia’s reputation worsens in investors’ eyes

In the evaluation of the business environment, Latvia was given 14 points among in a competition with twenty one countries. Latvia received the highest score for the quality of domestic deliveries, labour costs, payment discipline and higher education system.

Rīgas satiksme expects all 20 new low-floor trams to arrive this summer

In summer 2018 Rīgas satiksme hopes to receive all 20 new low-floor trams from Škoda. The company has not announced any specific terms as to when those trams may become available for passenger transport.

Organic food: MEPs support stricter regulations

On Thursday, 19 April, European Parliament approved new requirements and rules for production of high-quality organic food products, as BNN was told by EP Information Office in Latvia.

Birth rates in Latvia down – estimated population around 1 million 925 thousand

Since 2016 birth number in Latvia is reducing – in 2017 number of live births may be approximately one thousand smaller than in 2016. Number of newborn registered during the first three months of 2018 also was smaller than that recorded in the same period of 2017 – by 336 children.

East Capital’s fund buys Galleria Riga shopping centre

Asset-management company East Capital’s real estate fund East Capital Baltic Property Fund III has completed the deal for the purchase of Galleria Riga shopping centre.

Latvia’s parliament ratifies EU-Armenian partnership agreement

On Thursday, 19 April, the Saeima ratified the comprehensive partnership agreement between the European Union and European Atomic Energy Community on one side and Republic of Armenia on the other.

Unity: there are municipalities, in which heads of administration think they are kings

During their meeting with Latvia’s Environment Protection and Regional Development Minister Kaspars Gerhards, members of Unity’s Saeima faction concluded that there is still a lot of work left on the road towards enhancing democratic principles in municipal administrations.

Russian nuclear power plant to be towed through Gulf of Finland

In a move that has caused concern in Estonia, Finland and other Nordic Countries, Russia plans to tow a floating nuclear power plant, the Akademik Lomonosov, from the port of St. Petersburg through the Baltic and North Seas to Murmansk with it journey planned to begin on Friday, April 20.

Conversation with a politologist about voters in Latvia and stupid re-emigration plans

Among the new political parties in Latvia, only the New Conservative Party has chances of entering the 13th Saeima. Ratings of the Union of Greens and Farmers were not affected by the published oligarch talks. Unity will have recovered prior to elections, raising its rating to 5%, as BNN was told by politologist and University of Latvia Assoc. Prof. Ojārs Skudra.

39% of Estonians bought alcohol outside their country

With the alcohol excise in Estonia being considerably higher in than in its neighbouring Baltic country, Latvia, it has been found in a poll that close to 40% of Estonians have either purchased alcoholic beverages in Latvia or asked compatriots to buy some for them over the past 12 months.

Cuba selects first president after Castro brothers

The Cuban National Assembly has picked Raúl Castro's right-hand man, Miguel Díaz-Canel, as the sole candidate to succeed him as the President of Cuba, ending the family's long rule.

British Steels wants to purchase all of KVV Liepājas metalurgs assets

In a letter sent to KVV Liepājas metalurgs administrator Vita Dika, Privatization Agency’s subsidiary FeLM board member Jānis Rībens and CItadele Bank on 17 April, the consortium, which includes companies like British Steel, Greybull Capital and Estonian company Baltic Metal Holding, affirmed its interest in purchasing all assets of the insolvent company.

Turkey to hold snap presidential and parliamentary election

Turkey has unexpectedly decided to organise early presidential and parliamentary elections on 24 June, one an a half years earlier than scheduled.

Circular economy: more recycling, less waste in landfills

On Wednesday, 18 April, European Parliament approved new rules for circular economy, supporting plans for large-scale waste processing goals, as BNN was informed by the parliament’s information office in Latvia.

Government wants to reduce administrative burden for foreign students

Administrative burden for foreign students and researchers, as well as education and research institutions that host them is planned to be reduced in Latvia. This is provided by amendments to the Immigration Law conceptually approved by Saeima’s Defence, Internal Affairs and Corruption Prevention Committee on Wednesday, 18 April.

Lithuania asks Russia to explain patrol ship’s breach of country’s border

Lithuania has submitted a note to Russia, requesting explanations regarding a border breach incident on Monday, 16 March, when a Russian patrol ship crossed the two country’s border and spent at least two minutes in Lithuania’s territorial waters.

Latvia experienced more rapid growth in car registration numbers that EU in Q1

In the first three months of 2018 Latvia experienced a more rapid increase of the number of car registrations than the average in the European Union, according to the latest data from European Automobile Manufacturers Association.