CORRUPTION EXISTS, BETTER BE PREPARED

Corruption is one of the most significant obstacles to the development of economic activity. One of the drawbacks to development in countries in Africa, Asia, and Latin America is precisely the existence of high levels of corruption, both in politics and in public administrations and the private sector. But it is not a problem limited to those areas of the world: also in Europe and the United States, cases of corruption occur periodically, undermining the credibility of democratic institutions.

To some extent, corruption is inherent in human nature and is an inseparable risk of commercial relationships. Laws alone are not enough to put an end to it. However, it is important for all countries to have an appropriate system of guarantees so that corruption can be combated once detected, and economic activity can take place in the atmosphere of trust and fairness required.

Spain is a country where, generally, these conditions for investment and exchange exist. It is a nation with solid institutions that act swiftly and decisively when symptoms of corruption are detected at any level of administration and society.

Of course, this does not prevent occasional cases of political corruption from coming to the forefront of the news, generating the logical scandal in public opinion and the natural concern of individuals and entities, including companies, whose activity depends on the actions of public employees and official bodies. Sometimes, certain companies find themselves involved in specific corruption cases, contributing to tarnishing the image of the entire productive sector.

During the previous tenure of the conservative People's Party, there were some relevant cases of corruption that ultimately led to the downfall of Mariano Rajoy's Government. In fact, Pedro Sánchez's first government was born in 2018 in a motion of censure in Parliament against Rajoy for his lack of firmness against corruption.

Until now, there had been no cases of corruption involving members of Sánchez′s Gabinet or prominent representatives of the main party in Government, the Spanish Socialist Party (PSOE). In recent days, however, José Luis ábalos, a former minister under Sánchez, a close friend of the prime minister and a prominent Socialist leader, was expelled from the party following the arrest of one of his closest collaborators for involvement in a corruption scheme. Although the case is still under investigation, the matter risks affecting other important collaborators of Sánchez and weakening the entire Government.

Similarly, the fact that in this investigation the names of some companies that paid commissions for the actions of certain public employees have emerged - sometimes related to the purchase of masks during the pandemic - has generated discomfort among citizens and suspicions about the relationship between public officials and companies.

The reality is that a vast majority of companies prefer to operate in a predictable political environment, subject to clear rules and under the control of strong and reliable institutions. Most companies prefer to operate according to laws that regulate and protect their activities and under the supervision of legitimate and impartial authorities. It is a minority of companies that seeks shortcuts within the system.

However, it is also true that it is important for companies to guard against corruption. It is essential that they have adequate advice in their dealings with politicians and the administration and develop a practice of serious and transparent institutional relations, with the help of true professionals. The recent events in Spain are a reminder of how much this is a necessity in the planning of all companies today. You have to accept it: corruption exits, it is better to be prepared to confront it.