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TheKenyaAnti-CorruptionCommission
Presented Dr. Arbogast Kemoli Akidiva
Principal Officer Education/CoordinatorPreventive Services Directorate
Ethics and Anti-Corruption Commission
During the International Business InformationManagement Association Kenya Chapter
Seminar entitled, Tax Compliance,
Transparency, Accountability, and Reporting
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TheKenya
Anti-CorruptionCommission
Without good governance, no amount of oil
or no amount of aid, no amount of effort can
guarantee Nigerias success. But with good
governance, nothing can stop Nigeria.
President Barack Obama on good governance
in Nigeria
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TheKenya
Anti-CorruptionCommission
Globalization
Internationalization
Democracy
Knowledge Society
HRBAD Bad Governance and Corruption
Crises of Legality and Legitimacy
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Anti-CorruptionCommission
Principle of Common/Public Good
Rights and Freedoms
Duties and Responsibilities
Delegated Authority
Governance Defined
the process and institutions by which authority in a
country is exercised. It is the process by which
governments are selected, held accountable,
monitored and replaced
Governments capacity to manage, formulate,implement, and enforce good policies and regulations
in relation to resources and service provision
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Anti-CorruptionCommission
The States Capacity to Promote Public Good
Demonstrating Commitment to Public Good
Championing Transparency and Accountability
Ensuring that Rule of Law is observed
Providing for Voice and Participation
Nurturing Social Capital
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Anti-CorruptionCommission
Leadership and Governance in the New Constitutional Order
Framing Context
Kenya Vision 2030
Constitution of Kenya 2010 Article 10 (i) provides: The national values and principles of
governance in this Article bind all State organs, State officers, public
officers and all persons whenever any of them
applies or interprets this Constitution;
enacts, applies or interprets any law; or
makes or implements public policy decisions. And
(2) The national values and principles of governance include
patriotism, national unity, sharing and devolution of power, the
rule of law, democracy and participation of the people;
human dignity, equity, social justice, inclusiveness, equality,
human rights, non-discrimination and protection of the
marginalised;
good governance, integrity, transparency and accountability;
Sustainable development. Dr. Arbogast K. Akidiva - Governance and Taxation in theNew Constitutional Dispensation 6Tuesday, April 17, 2012
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Anti-CorruptionCommission
Levels of Devolution Levels
Political
3 Tier System: National, County and Local Authorities
Administrative
Economic
Process of Devolution
(i) Big Push versus Small Steps;
(ii) Bottom Up versus Top Down
(iii) Uniform versus Asymmetric Devolution.
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Anti-CorruptionCommission
Corruption = Inclination + Opportunity
C (Corruption) = M (Monopoly Power) + D (DiscretionaryPower) A (Accountability) R. Klitgaard et. al.
Corruption is a transaction or attempt to secure
illegitimate advantage for national interests or privatebenefit or enrichment, through subverting or suborning a
public official or any person or entity from performing
their proper functions with due diligence and probity.
Fraser-Moleketi The systematic use of public power/office for private
benefit whose impact is significant on access, quality,
and equity in the human development process.
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Anti-CorruptionCommission
a) Complex Tax Systems
b) Unchecked Discretionary Powerc) Political Parties Financing
d) Opaque and Complex Rules, Laws and Processes
e) Punitive Penalty Systemf) Lax Institutional Controls
g) Frequent Contacts between Taxpayers and TaxAdministrators
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Anti-CorruptionCommission
Change Administrative Systems to Corruption
Reengineer administrative systems or procedures toenhance transparency and predictability
Introduce automation to limit official discretion and face-to-face contact
Implement Job Rotation and Staff Mobility Schemes
Publish Criteria on Official Delegation of Authority
Select Tax Officials based on Integrity, Academic andTechnical Competency
Use Integrity Testing Programmes such as PsychometricTests
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Anti-CorruptionCommission
o Change Rewards and Penalties facing Tax Officialsand Clients
1) Restructure Bonus/ Rewards Systems to ReinforcePositive Behavior
2) Encourage and reward officials who identifyvulnerabilities in administrative systems and procedures
3) Increase Penalties as Disincentive to engage in corrupt
behavior4) Ensure that penalties are calibrated to correspond to the
offense
5) Ensure that all officials, regardless of rank, are subjectto the same penalties
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Anti-CorruptionCommission
Increase Corruption Detection Likelihood
Undertake Analysis of Tax Administrative Systems
Assess Internal Controls, Reporting Relationships, StaffCompetence, Official Delegations, and Decision-MakingPowers
Identify Arenas of Corruption and institute Safeguards
Strengthen Internal Audit and Investigation Units Establish an Anonymity Corruption Reporting System
Alter Attitudes of staff and Stakeholders to Corruption
Set Tone at The Top and Raise moral costs of corruption
Implement Robust Professional Development and Training Develop and Socialize a Code of Conduct
Introduce a zero tolerance policy for acceptance of gifts
Name and Shame Corrupt officials
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Anti-CorruptionCommission
Provides for National and County Governments Taxregimes
Compels State and Public Officers to pay Taxes Full details of tax waivers and exemptions be fully
recorded Reasons for the waivers be fully explained
A report be made to the Auditor General on each waiver The above provisions are consistent with the principles of
Transparency and Accountability, Responsibility andResponsiveness
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Anti-CorruptionCommission
Interpreters of and Bridges to the Past, Presentand Future
Promoting Common/Public Good and HRBAD Principles
Practitioners in Public and Private Sectors
Upholding highest professional standardsCreators of Knowledge and a Change Agents
Role of Academician - Multiplier Effect
Coaching/Role Modeling/Mentorship
Members of the Community
undertake advocacy and advisory functions calling for
probity in the governance Processes
Champion Social interest matters
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Anti-CorruptionCommission
Enter into Integrity Pacts at the Personal and
Institutional Levels. Enact Legislation on Enforcement of Professional
Standards
Establish Codes of Conduct and Ethics
Make Wealth Declarations and Establish Follow-up
Provisions Implement Transparent and Effective Conflict-of-
Interest Guidelines
Implement Deregistration Mechanisms to ensureAccountability, Transparency and Responsibility.
Operationalize Information Disclosure Mechanisms
Institute Civil Society Oversight
Establish Robust Complaints Handling Mechanisms
Institutionalize Community of Practice
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it is far easier to have a good, clean governmentadministering a good, clean system than it is for a
good anti-corruption agency to clean up a corrupt
government and crooked system.
Chua Cher Yak, Director Corrupt Practices
Investigation Bureau, Singapore 2002
THANK YOUTuesday April 17 2012 Dr. Arbogast K. Akidiva - Governance and Taxation in theNew Constitutional Dispensation 16