Judge Hanoun: Corruption causes a decline in investment rates and the general budget deficit

[size=36]Judge Hanoun: Corruption causes a decline in investment rates and the general budget deficit[/size]

Local | 11:14 - 05/16/2024

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Mawazine News - Baghdad
The head of the Federal Integrity Commission, Haider Hanoun, confirmed today, Thursday, that corruption has caused a decline in investment rates and the general budget deficit.
Hanoun said during the working paper he presented at the Arab Forum for Anti-Corruption Bodies and Financial Investigation Units held in the Kingdom of Saudi Arabia and tagged (Combat Corruption and Its Necessity for Achieving Economic Growth) that “the measures taken by the Integrity Commission and the Iraqi government in the field of combating corruption in the year 2023 resulted in a growth in The economy, as Iraq recorded an increase in the gross domestic product and the balance of the money supply until the end of last year, while Iraq advanced according to the GDP data for each country issued by the International Monetary Fund three places to come in position (49).”
He referred to “the final statement of the International Monetary Fund experts issued on the third of last March regarding the continuation of economic growth in Iraq, the increase in non-oil revenues, the decline and decline of overall inflation, a decrease in food prices, the implementation of new controls to combat money laundering, and the private sector’s access to foreign currency.” at official prices for import and travel purposes.”
The head of the authority warned of “the economic effects caused by corruption at the local and international levels,” reviewing “some of these effects, such as reducing investment rates as investors flee from an environment in which corruption is widespread, due to their being forced to pay bribes, and its cause of exacerbation and deficit in the general budget through tax evasion.” Or attempt to obtain illegal tax exemptions.”
He added, "Among these effects are the increased cost and operation of projects, the weak efficiency and quality of public facilities, distortion of markets and misallocation of resources by reducing the government's ability to impose oversight and inspection systems, and the government's loss of supervisory control over banks, internal trade, and financial markets."
He warned that corruption leads to increased poverty rates, poor distribution of income, and the enrichment of the few at the expense of the many. Which leads to creating a state of discrimination, classism, and injustice among members of society, in addition to causing inflation by increasing the cost of business. As a result of the bribes and commissions paid by companies, which forces the consumer to pay a higher price for the commodity than its real cost.”
He noted “the necessary measures to combat corruption and achieve economic growth through two important measures: providing the protective environment and developing the institutional environment,” pointing out that “Providing a protective environment requires taking several measures and policies, the most important of which are: limiting monopoly in any type of economic activity, facilitating government procedures, and providing internal and external auditing agencies and supporting them with the powers and information that enable them to continuously monitor the institutions’ accounts,”
he pointed out, “the second part .” Among the necessary measures to combat corruption and achieve economic growth is the development of the institutional environment, through the presence of an independent judiciary, and the provision of a legislative institution that represents the people, legislating laws and holding the executive authority accountable, and relying on the principles of efficiency and integrity in hiring public employees, and paying attention to improving salaries and wages and supporting them with guarantees and incentives. And it provides an independent auditing body.”
The statement explained that “the forum, in which (75) speakers from (25) countries and (12) organizations participate, as well as (600) experts from financial investigation units, anti-corruption bodies, government agencies, international organizations, and financial and academic institutions, aims to chart a clear path for cooperation.” Among government agencies in the Kingdom of Saudi Arabia, counterpart organizations, and regional and international bodies, it represents a strategic opportunity to unify efforts between various institutions in order to confront the challenges of combating financial crimes, and a platform for presenting and launching practical initiatives with tangible results, while focusing on building capabilities and enhancing cooperation among the concerned parties. Which works to combat financial crimes, money laundering, and terrorist financing in the Middle East and North Africa region.
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