It is a recent phenomenon that business activities had been manipulated by political gangsters and mafia groups that stripped of the country a room for a healthy, equitable and fair competition. The racketeers as well treated consumer protection with a cold shoulder.
Under such a circumstance, it is unthinkable to conduct a healthy, equitable and fair competition as well as ensure consumer protection, so emphasized scholars. With this citizens’ complaint in mind The Ethiopia Herald has just approached a Professor of International Political Economy in American University at Washington DC, Fantu Cheru.
He said that the violation of business laws and ethics has been rampant in most sectors. Here, it suffices to take as an instance the Medical sector and cases of the Real Estate as well as mass distribution of goods and food items. In light of this, the ethical standard is the fundamental element of any business activity.
As an instance, he said, the medical field is assuming a business nature. As such, the medical professionals have to abide by business laws in ethically discharging the lofty responsibilities their profession charges them with. There is a need for a regulatory body on how the physicians are faring in their business and how they prescribe the pills. Follies are being evidenced in the medical profession. So, there has to be regulations for the legal system to respond fast recording complaints.
There should be a system for acceptance of urgent calls of complaints and responding immediately for the betterment of the medical services. He noted that there are so many government officials and private owners who indulge in improprieties immersing themselves in corruption networks. As a matter of fact, it was the network of crooked, mafias and gang members that dominated the business activity of the country.
As to him, in every sector, there were organized crooks and mafias that dominated the business. There was also a connivance of state officials with gang members. The state was gasping for air asphyxiated by gangsters. Though the law was there as a blueprint on papers, business firms were hamstrung to do things in a fairly and healthy ways.
According to him, in the absence of a clear regulatory market framework, it is not usual phenomena to come across illegal business activities by government officials and private owners. The key governmental institutions had been dominated by corrupt officials. Therefore, it was hard to expect a healthy competition and fairness. This was the problem of the then leadership.
So, the rules and regulations must be respected. Everybody should be treated equally in the business field. This is a governance problem. The business should be done by rules and regulations. The enforcement is very clear that nobody could violate the rules. There is a red line and punishment for those business firms that prove violators. Whenever everybody is in the scenario of illegal business activity, everybody opts to take advantage of it. It rests on the shoulder of governmental institutions to maintain a healthy competition. Rules and regulations are clear and the consequences are also very clear. So the rewards are also clear. Then, why must we be involved in the situation of breaking the law, because of governmental wrong-headed practices of some government officials,” he pointed out.
I don’t blame the consumer behavior; the problem lies in the structural framework. It is the problem of how the law is manipulated by a powerful group. The enforcers are aboard the corruption basket, he added.
He remphasized that unethical business tricks and the violation of business laws are highly apparent in the main sectors of medical, real estate and construction. The practice encompasses every profession. There is a call for putting in place clear rules, regulations and enforcement mechanisms and a procedure for accepting citizens’ complaints. All things in the business activity have to anchor themselves on the ethical standards and professionalism.
He remarked that lack of business ethics is part of the corrupted governmental system and a failed state. In the last 5 or 7 years, the judicial system had failed in its observance of business ethics and business laws for want of check and balance system. So, we need systemic change.
Economist Teklebirhan Gerbremichael on his part said that capitalism is a free-market and free competition economic and business system and as much it is governed by commercial and business laws, regulations and directives. However, across the world, there are several types of business and trade malpractice and infringements that should face legal redress through prison sentences and financial fines.
He further noted that in Ethiopia, common trade and business malpractices include, over-invoicing and under-invoicing, shoddy or sub-standard products at market prices, tax evasion, capital flight, money-laundering, operating without official licensing, monopoly pricing, price collusion, and among others.
It is up to the relevant government institutions and watchdog agencies to see to it that such business and commercial infringements are brought to light and adjudicated on through the legal system.
The Ethiopian Herald, Sunday Edition November 3/2019
BY MEHARI BEYENE
