Business Corruption in Colombia

Colombia has a booming economy and its government actively encourages foreign investment. Since the early 1990's the government has initiated liberalisation reforms, transforming the country into one of the most investment-friendly destinations in Latin America. Positive steps have been recorded in the country's democracy consolidation, one of which is the successful governmental transition from former President Uribe to current President Santos in 2010. Nevertheless corruption and security issues continue to pose major challenges to the country's economic growth and investor confidence. Despite President Santo's efforts to curb corruption, especially cases in which high-level officials are involved, structural and coordination hurdles challenge his administration's efforts.

Positive corruption developments :

• In January 2013, Colombia became the 40th Party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions .
• In May 2011, the Congress of Colombia approved a new Anti-Corruption Statute, which includes reforming the governmental anti-corruption agency (tsar), the regulation of lobbying activities in Congress, and more effective penal processes.
• Colombia has witnessed improvements in e-governance and in 2011. 700 procedures and electronic services were available on the government portal in 2011.

Risks of corruption :

• The government of Colombia's most urgent challenge is the security situation as illegal armed groups are a threat to several of the country's institutions through the use of violence, kidnappings and corrupt means.
• The public procurement system in Colombia is non-transparent and many cases of abuse of office in the awarding of public contracts have surfaced recently.

March 2013
GAN Integrity Solutions