Background and Rationale
In Bangladesh, companies are frequently exposed to corruption risks. Resisting and reporting corruption to the authorities includes the risk of repercussions: delays, illicit fines, and even threats of delicensing companies. Locally, there is limited public-private sector integrity dialogue in the maritime sector and no immediate mechanism to monitor and address integrity challenges in maritime trade. Corruption is pervasive at many levels of society, and enforcement of anti-corruption legislation is low. Facilitation payments are illegal but common practice, which increases the risk of corrupt demands in ports.
MACN’s Strategy
- MACN is partnering with UN Global Compact (UNGC) in Bangladesh to establish a national Collective Action Alliance to create a platform for dialogue with authorities on how to address current gaps in legislation and operational practices in ports. MACN will deploy several tools designed to empower the private sector to resist and report corruption and enhance compliance practices.
- By taking Collective Action and forming an alliance, the industry gains leverage and momentum to curb corruption and create a better business environment in Bangladesh.
- Additionally, those who join the alliance will get access to valuable compliance tools and MACN’s Integrity training to help comply with ever-tightening global anti-corruption laws.
Outcomes and Impact
Following project funding from the Siemens Integrity Initiative, MACN took decisive first steps in 2021 by establishing a new Collective Action Initiative in Bangladesh and conducted an initial assessment of corruption risks in Bangladesh with input from the maritime industry. MACN drafted a Code of Conduct to build an alliance with relevant stakeholders (including ship owners, port agents, exporters, business associations, and other supply chain partners). MACN worked with UNGC in Bangladesh to focus on the recruitment of international and local companies for this initiative. MACN held over a dozen bilateral recruitment calls and held a virtual recruitment and launch webinar.
In 2022, MACN worked closely with the Bangladesh Shipping Agents’ Association (BSAA) and the UN Global Compact in Bangladesh to mitigate corruption in the Maritime sector of Bangladesh. In May 2022, the Collective Action Initiative was officially launched. We are now focusing our attention on receiving more commitment from government stakeholders. Prevalent challenges are a result of a lack of coordination between relevant authorities and bureaucratic complications in the sector.