APHAS 8TH ANNUAL NATIONAL DELEGATES MINI CONFERENCE
DECEMBER 8TH, 2007 KUMASI POLYTECHNIC

A TALK ON
OVERCOMING CORRUPTION AND SAFEGUARDING INTEGRITY WITHIN
THE MIDDLE INCOME LEVEL MANAGEMENT
THE ROLE OF HND ACCOUNTANCY GRADUATES IN NATION BUILDING
BY
PROFESSOR KWAME BOASIAKO OMANE-ANTWI
VICE RECTOR, PENTECOST UNIVESITY COLLEGE
AND
PRESIDENT OF THE INSTITUTE OF DIRECTORS, GHANA

INTRODUCTION

The word "corruption" has become a household word today in Ghana following the astonishing revelations of serious lack of accountability and transparency in the governance system in the country during the Public Accounts Committee (PAC) hearings in October, 2007.

The following words as used by social commentators further describe corruptible behaviors: unscrupulousness, immorality, impurity, depravity, degeneration, degradation perversion, distortion, dishonesty, crookedness, fraud, shadiness, bribery, extortion, vice, wickedness, iniquity, evil el cetera.
Today it appears our dear country Ghana is engulfed every where with the evil disease
"Corruption":

The disease 'corruption* has become a cancer eating deeply into the moral fabric; of the society and we need to find an antidote to the problem.

Why do individuals commit corruptible acts? Probably the most common reason is that the perpetrators are greedy; believe that they will not get caught. Various researchers, including criminologists, psychologists, sociologists, auditors, police detectives, educators, certified fraud examiners and others have studied the issue. They have concluded that three (3} basic factors determine whether and individual might commit a corruptible act.

These three factors called the Corruption (fraud) Triangle arc:

All the three elements exist in a typical corruption.
An individual's motivation can change due to external forces. An individual who is honest one day might commit fraud the next day due to external pressures. These pressures include financial pressures, vices, lifestyles beyond one's means, or outright greed. Work-related pressures could include not receiving desired job recognition, being overworked and underpaid.

Secondly, all individuals have opportunities to commit an act of corruption against the society, government, employers, suppliers et cetera. Perceived opportunity is often driven by the access an individual has to the entity's assets or financial documents, the skill of the individual to exploit the opportunity to commit fraud, and, in certain cases by the individual's seniority or trust within society or organisation. Many corporate frauds and corruptible acts have occurred due to breaches of trust by individuals to whom access privileges were granted. If an individual believes that the opportunity exists to commit fraud, conceal the fraud in the some way from others and avoid detection and punishment the probability of the individual committing fraud increases. When individual professional aspirations are being met, generally the individual is content. However, when the aspirations are not met, unconventional means that may include corruption sometimes sought.

The third element of the corruption triangle is an individual's rationalization for actions taken. If an individual can rationalize those questionable actions taken were not wrong, he or she might justify in his or her mind any improper behaviour. Common rationalizations for fraud activity include such statements as:

What the individual is attempting to do is to rationalize away the dishonesty of any wrongful action. As a Certified Fraud Examiner, I have made a bold attempt to dissect in brief the subject of corruption so that together with HND Accountancy graduates, we will be able to identify the 'red flags’ i.e. (the conditions, the risks) that we need to guard against in the fight to minimize corruption in the Society.

Overcoming corruption and safeguarding integrity within the middle level management of the governance of our mother Ghana requires a concerted effort:

Developing Self-Confidence
Polytechnic graduates (and in our case HND Accountancy graduates) should develop sell-confidence knowing very well that he/she has technical or vocational background that makes him/her a unique professional different from academic graduates who are much more generalist in outlook. In this regard, there is no need to feel inferior to the extent that some HND graduates are prepared to do in some circumstances, two or three years top up course just to get a first degree instead of practicing their chosen profession after graduation. Perhaps, in my opinion, it is a high time the government sort out HND) level
placement problem in the Ministries, Government Department as well as upgrade our polytechnics to technical degree awarding universities to overcome some of the apparent frustrations of the HND graduate. If an honest HND Accountancy graduate is frustrated at the job place, he/ she is likely to develop a strong motivation to be corrupt.

Ethical Conduct
A code of ethics is generally accepted as one of the criteria which, if present, indicate professional standards. The accountancy profession has formalized the moral principles to be followed by members with integrity, objectivity and independence as key elements. The existence of a written code of ethics is not of itself of great significance. Members of a professional group may adhere to a code even if it is only implied. The process, by which the ethical code is enforced, if indeed it is enforced, is a guide to whether the code strengthens the claim of the occupational group to professional status. Enforcement is by means of professional culture. Association of Polytechnic HND Accountancy students is an organization which provides group consciousness by means of professional discussion, the development of knowledge base in accountancy and so on. Accordingly, HND Accountancy graduates by implication should adhere to ethical codes of conduct. HND Accountancy graduates are likely to hold positions of trust in their accountancy career. Any breaches of such trust or privilege entrusted to them by virtue of their training in accountancy will lead to corruption. Sadly, some of the APHAS lenders in the past have riot shown accountability and transparency in the handling of the affairs of APHAS. I urge the current leadership to exhibit a shining example of nation building by overcoming corruption tendencies and safeguarding the integrity of APHAS.

Accounting Skill
Accountancy knowledge today super power in that accountants have become the priesthood of industry and good governance in the 21at century just as the lawyers became the priesthood of industry and governance immediately after the world wars. Accounting  skill/knowledge can be used today to inspire, implant, instill, enhance and enrich resources available to our organisation or a country. An accountant in the 21st century  team player who plays the key tool and role in advancing economic planning, development and activity leading to maximization of productivity, progress, profits, Gross National Product, efficiency, standard of life, wealth, harmony and unity and minimization of waste, idleness,
ignorance, inefficiency, poverty and illness. Simply put, the accountant in the 21st century is of paramount importance to the ultimate welfare of the billions of people living in developing countries where governments arc-engaged in institution policies that may enable them to narrow the gaps that separate them from developed countries as they try to make continuous and aggressive effort and endeavours to advance the economic progress and development of their countries, it means that as HND Accountancy graduate, your key success factors which will help you to contribute your quota to nation building and overcoming corruption will be: creativity, the capacity to innovate, management ability, responsiveness to new economic and technological conditions and the ability to anticipate changing needs of society.

The HND Accountant who is only good in number crunching will certainly give way to what I can conveniently call a decision accountant, ready to manage organisation in a dynamic global economic environment because he/she understands (lie facts behind the figures." That is, he/she call "figure out the figures" for decision making since he/she today has to deal with "things" that involve initiatives and variables that are determining factors in ensuring that competitive success of the organisation and its businesses. No wonder corporate Ghana today has a number professional accountants as managers
(cabinet ministers) of the economy.

Truly, more than in other period of our economic history, the HND Accountancy graduate in the year 2008 and beyond will be subject to a variety of contradictory forces, He/she will need to be a generalist while providing specialist insight. He/she has to be a team player and at the same time exhibit strong leadership skills. He/She will be at home utilizing high technology as well as traditional methods of financial reporting. He/she will have to advance 'strategies' that more than just obtain the maximum cash flow or maximum market share at the lowest cost.

'The HND Accountancy graduate will have to be a citizen of the community, the nation and ultimately, the world, while exhibiting the highest standards of ethical and moral behaviour. A critical part of the HND Accountancy graduates future development will be to act as a model of ethical behaviour and lead through example. To conclude my talk, permit me to run through the following checklist on the theme you have selected.

Corruption sometimes viewed us victimlc.ss crime of relatively little importance investor seen fur what it is a disease that can ruin lives, destroy the nation, damage investor confidence and destabilize society. A disease that has to be prevented and where found eradicated.

Some of the managers of the economy of the country have become highly involved personalities of corruption (1IIPC) as revealed by the Public Accounts Committee hearings.

Corruption has eaten deep into our society showing the reminiscence of the famous saying of the Ancient Mariner, - "Water, water everywhere'- corruption and so much corruption everywhere usually blamed on accountants. We need some governing rules to act as deterrence hence the law- "Causing financial loss should not be abolished but refined for easy and clear cut interpretation by the courts.

To answer the question why do individuals commit corruptible offences, there is the need to understand the three Corruption (Fraud) Triangle: motivation (perceived pressure or incentive), perceived opportunities and rationalization.

Understanding and addressing the corruption triangle elements and its ramifications through a concerted effort is a starting point in overcoming corruption. In this connection, the Government can play a significant role in integrating 1IND graduates strongly into the Nation Building by:

The HND Accountancy graduates should, on the other hand, develop themselves by:

In conclusion, let me tell you emphatically that you will need to "play God or Allah" a bit in your search for ways to overcome corruption and to help in Nation Building. The book of Life says in Proverbs 10:8-9 (GNB);

"Sensible people accept good advice. People who talk foolishly will come to ruin. Honest people are safe and secure, but the dishonest will be caught" Thank you and God bless you all!