How Neosoft Investment Limited Aims to Help the Zambian Government Fight Corruption Using Advanced Data Analytics and AI

Corruption is widely recognized as one of the main obstacles to sustainable development in Zambia. According to Transparency International’s Corruption Perceptions Index, Zambia consistently ranks below the global average and other countries in the region. Over the past decade, developing countries have lost approximately US$400 billion due to corruption, significantly weakening the provision of critical public services such as health and education.

In 2021, Zambia reported 2,577 suspicious transactions and money laundering cases, a 13.7% increase from 2020. The value of these transactions was ZMW 6,533 million, a 6% increase from the previous year’s ZMW 6,160 million. According to Global Financial Integrity (GFI), Zambia cumulatively lost US$9.3 billion to illicit financial flows (IFFs) from trade mis-invoicing and balance of payments leakages between 1970 and 2008, with an annual average loss of US$2.9 billion between 2004 and 2013. These figures highlight the significant risk factors that make Zambia vulnerable to IFFs, particularly those stemming from corruption.

Challenges in the Fight Against Corruption

The slow adoption and limited access to technology hinder anti-corruption efforts in Zambia. Inadequate infrastructure, investment, and competencies are significant barriers to technological adoption in crime control and data management. The National Anti-Corruption Policy, launched in May, identified several gaps in the fight against corruption:

• Limited capacity of the Anti-Corruption Commission (ACC) to coordinate and mainstream corruption issues at all governance levels.

• Lack of a comprehensive coordination, monitoring, evaluation, and reporting structure.

• Corruption affects public service delivery, integrity, institutional performance, and the management of public resources.

• Vulnerabilities in public procurement, private sector, and corporate governance.

• Exploitation of natural resources.

• Gender-related corruption.

• Lack of effective monitoring and evaluation frameworks.

• Need for strategic partnerships and alliances to facilitate coordinated anti-corruption activities.

Neosoft Investment Limited: A Revolutionary Approach

Neosoft Investment Limited aims to revolutionize the fight against corruption in Africa, starting with Zambia. The company seeks to partner with the Anti-Corruption Commission to detect corruption risks in real-time.

How Neosoft Plans to Combat Corruption

Data Integration

Neosoft will consolidate various data sources from ministries, government agencies, city councils, the Zambia Public Procurement Authority, contract management systems, and Integrated Financial Management Information Systems (IFMIS). This will also include unstructured data in the form of PDFs and Word documents, such as contracts, laws, regulations, and invoices.

Data Engineering

• Download and Process Data: Internal and external data will be downloaded and processed.

• Rules-Based Scoring: Implement rules-based scoring to monitor and flag suspicious activities in procurement and operational data.

Real-Time Intelligence

• Real-Time Monitoring: Implement real-time monitoring to detect and prevent corruption activities as they occur, notifying relevant stakeholders.

• Risk Assessment Models: Implement real-time risk assessment models to evaluate the risk associated with procurement, contract, and operational data from city councils and government agencies.

Data Warehouse

• Store Cleaned Data: Store cleaned data from various sources for easy access and analysis.

Data Science

• Machine Learning: Continuously learn and adapt to new fraud patterns in real-time data using machine learning.

• Pattern Analysis: Identify fraudulent activities by analyzing patterns and anomalies in data.

Power BI

• Financial Crime Report: Generate comprehensive reports on financial crimes.

• Fraud Detection Report: Provide detailed reports on detected fraud activities.

Generative AI Apps

• Chatbots and Virtual Assistants: Develop question-and-answer chatbots and virtual assistants for investigators.

Crime Network Analysis

• Network Analysis: Identify individuals with the most connections in a criminal network.

• Bridge Identification: Identify individuals who act as bridges within a criminal network.

• Influential Individuals: Identify influential individuals within a network based on their connections.

• Cluster Detection: Detect clusters of accounts that frequently transact with each other, which may indicate money laundering rings.

The Importance of Timely Action

The Anti-Corruption Commission should act swiftly. Success stories from other countries leveraging technology to combat corruption underscore its potential. For instance, the Counter Fraud Authority in the United Kingdom saved taxpayers £311 million in its inaugural year of 2023, exceeding its target by over £100 million. This achievement highlights the profound impact advanced technology can have in combating corruption, and we are confident that we can replicate this success in Zambia.

By leveraging advanced data analytics and AI, Neosoft Investment Limited aims to provide the Zambian government with the tools and insights needed to effectively combat corruption, thereby contributing to the country’s socio-economic development.

Source: Neosoft Technologies