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Citi Perspectives for the Public Sector
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2015 – 2016
9
risk both for the employee and the wider
organization. Moreover, the combination of cash
use and paper invoices makes fraud difficult
to detect because information is often hard to
access and reconcile against fund flows.
To overcome these problems, countries should
adopt a re-designed workflow that is fully
automated. Technology must be introduced
that can easily and quickly distribute approvals
and accounting, and which offers centralized
oversight of all government disbursements
and collections. While the suitable systems will
require significant upfront investment, they will
pay significant dividends in the future.
As part of this workflow, electronic payments
must be adopted. Large payments should be
made using automated clearing systems and
wire payments while low value payments,
for procurement and travel, can be paid for
by cards. Purchasing cards offer centralized
visibility and control — with unusual payment
behavior flagged automatically on an
administrator’s systems, for example — and
can be set with individual user limits. As
importantly, they provide an electronic trail of
spending, making it more difficult for fraud and
other corruption to occur.
Similarly, e-invoicing should be introduced,
with proper controls and distributed multi-
level approvals to digitize the front end of the
process. Moreover, both payments and invoicing
must be integrated with contract administration
and ERP systems to ensure efficiency and
visibility and limit fraud.
Benefits for all
Ending corruption benefits all of society.
By introducing e-procurement, e-invoicing
and electronic payments as part of the fight
against corruption, government becomes
more efficient, transparent and focused on
delivering value for money and effective
services. Moreover, the introduction of an
automated workflow opens up further efficiency
savings by generating management data that
can reveal waste that would be hidden in a
manual paper-based environment. Ultimately,
tackling corruption creates a more efficient
and sustainable investment and trading
environment that should boost
economic growth.
Reducing corruption also creates a level
playing field for companies: they no longer
have to put their firms at risk in order to win
business. Instead, they can focus on operational
excellence and meeting customers’ needs.
Meanwhile, smaller and unconnected businesses
and non-profit organizations that were
previously locked out of government contracts
can gain access to lucrative opportunities that
could transform the lives of those who work
for them.
Finally, the elimination of corruption helps
restore citizens’ faith in government. They
can be confident that proceeds are being
used effectively, services are provided by the
most suitable provider rather than the best
connected, and government employees have
gained their position on merit alone. Moreover,
transparent government procurement, which is
a critical part of anti-corruption efforts, should
result in resources being directed towards
initiatives that improve living standards.
Addressing corruption requires a major
commitment by government, companies and
a broader evolution of society more generally.
However, tools such as e-procurement,
electronic payments and purchasing cards
offer an effective way to drive the battle
against corruption while improving efficiency.
All countries must implement these tools so
that governments, companies and citizens can
benefit from reduced corruption.