Integrity Risks and Controls at the Time of the Pandemic

Civic Review· VOL 17. Special Issue, 2021, 60–72., DOI: 10.24307/psz.2021.0005

Dr. Bálint Tamás Vargha, Integrity Expert, State Audit Office of Hungary (This email address is being protected from spambots. You need JavaScript enabled to view it.); Prof. Dr. Erzsébet Németh, Professor, Metropolitan University, Director, State Audit Office of Hungary, (This email address is being protected from spambots. You need JavaScript enabled to view it.); Zsuzsa Borcsiczky, Analyst Auditor, State Audit Office of Hungary (This email address is being protected from spambots. You need JavaScript enabled to view it.).

Summary

The aim of the study is to examine the new challenges posed by the pandemic and the tools to manage them in the field of integrity. The spread of the novel coronavirus parallelly caused a surge in the demand in certain sectors, as well as a shortage of supply and the disruption of global supply chains. During the pandemic, healthcare workers had carried out their tasks under the pressure of an excess demand stronger than before, which increased the risk of corruption in the sector. Corruption schemes known beforehand have veered and the pattern of integrity risks have changed. Under the extraordinary circumstances, organisations might be obliged to choose between saving lives immediately and complying with the rules. The study points out that careful consideration is needed with regard to which rules can be neglected and which ones shall be maintained. Both positive economic incentives and sanctions have played a role in the management of integrity risks occurring in this field. The salary increase of medical doctors and sanctions related to offering and taking informal payments are important steps in the direction of strengthening integrity that clearly demonstrate the need for combined actions.

Journal of Economic Literature (JEL) codes: D73, D81, B27, H83
Keywords: integrity, risks, controls, pandemic, supreme audit institution