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Using GRP Systems for Anti-Corruption

 

February 7, 2013

Doug Hadden, VP Products

We released a set of Public Financial Management (PFM) documents last week following on our mandate of sharing good practices for the community.

The fifth released document, embedded below, describes good practices in anti-corruption through the use of Government Resource Planning (GRP) systems. Back and front-office GRP systems can be powerful tools to prevent and uncover financial corruption such as ghost employees, tax evasion and procurement collusion. It’s clear that political will and accountability mechanisms are required to leverage tools. Independent audit and the rule of law are clearly required.

Anti-corruption initiatives tend to focus on creating special commissions. This is critical. But, it seems to me that there is a general assumption that technology, but itself, does not have any particular effect on corruption. There’s also the suspicion that automation can automate corruption – make corruption more efficient.

Our experience suggests that setting up controls and an audit trail dramatically changes behaviour. Controls can prevent circumventing the system. Audit trails and reports can expose corrupt activities.

Public Financial Management Good Practice Anti-Corruption using Financial Systems by FreeBalanceGRP

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Doug Hadden

Doug Hadden

Executive Vice President, Innovation at FreeBalance
Doug is responsible for identifying new global markets, new technologies and trends, and new and enhanced internal processes. Doug leads a cross-functional international team that is responsible for developing product prototypes and innovative go-to-market strategies.

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