New Zealand’s Robust Policies Against Corruption
Corruption is a global menace that harms society, businesses, and democracy. It corrodes justice, fuels crimes like human trafficking, and distorts markets. In the business world, it skews prices, undermines competition, and erodes trust. Public sector corruption siphons resources away from vital sectors like education and healthcare, hampering development. Given the close relationship between national, regional, and municipal governments, a culture of corruption in the highest ranks of government is likely to have a significant impact on lower levels as well, by either affecting the distribution of funds or condoning similar corrupt practices across the public and private sectors. As such, the Dynamic Cities Dashboard considers this to be an important indicator to track.
What was the challenge?
New Zealand has strong anti-corruption laws and the private sector plays a vital role in maintaining this high degree of integrity. Businesses must cultivate a zero-tolerance culture with robust compliance systems and clear anti-corruption policies. These measures apply to organizations of all sizes, even smaller enterprises. To foster a society with minimal corruption, New Zealand has adopted an array of policies.
What action was taken?
The New Zealand government employs a multi-faceted approach to combat corruption, targeting both public and private sectors. It emphasizes understanding and compliance with local laws in the regions where businesses operate. The legislation criminalizes bribery and corruption, challenging the notion that corruption is confined to the public sector. Key elements of the anti-corruption strategy include:
- Scope and Jurisdiction: New Zealand’s laws criminalize bribery and corruption within and outside its borders, applying to individuals and legal entities.
- Private Sector Corruption: The Secret Commissions Act addresses corruption offenses related to the private sector, prohibiting corrupt practices like bribing agents.
- Public Sector Corruption: The Crimes Act criminalizes bribery involving public officials, both domestically and in foreign contexts, with significant penalties.
- Increased Penalties and Corporate Liability: Recent amendments have escalated penalties for foreign bribery, emphasizing corporate liability when employees engage in corrupt acts.
- Facilitation Payments: The law allows exceptions for facilitation payments—or small payments meant to expedite a routine government action/process—but recent amendments narrow the scope and require proper accounting.
Since its creation in 1990, the Serious Fraud Office is the principal independent government agency responsible for investigating and prosecuting serious financial crimes. The International Anti-Corruption Coordination Centre was then launched in 2017 to provide further support for investigations and capacity building.
What changed?
Through New Zealand’s robust policies against corruption, the country as a whole consistently ranks within the top 3 countries in the world perceived to have a “clean” public sector, according to Transparency International’s Corruption Perceptions Index. Additionally, New Zealand ranks within the top 10 according to citizens’ perception of the rule of law.