Article

REACTION

THE ROYAL AFRICAN SOCIETY
- What About The Damage We Do To Africa

Corruption and Money Laundering

The World Bank estimates that $ 1 trillion is paid in bribes each year throughout the world. African countries are prominent among those said by Transparency International's Corruption Index to be corrupt and the negative impact of high levels of bribery and theft is compounded by the tendency to take the ill-gotten proceeds out of the continent. Indeed, the African Union estimates that the continent loses as much as $ 148 billion a year to corruption. This money is rarely invested in Africa but finds its way into the international banking system. In 2002 an African experts group recommended that this should be classified as a 'crime against humanity' because of its impact on ordinary people). This money is often laundered and made respectable by some of the most well known banks in the City of London or the discreet personal bankers of Geneva and Zurich.

But while the Swiss have been cleaning up their banking system, the City of London is now the laundry of choice for much dirty money. It is estimated that a third of the money stolen by the Nigerian military dictator, Sani Abacha, and found by the Swiss authorities in Swiss banks, had been deposited first in the British banking system until it was clean enough to bank in Switzerland. Switzerland has already repatriated some of the funds deposited by the Abacha family.The UK was strikingly unhelpful when the new Nigerian government first asked for help in retrieving the stolen goods and so far has not repatriated any substantial amount of the money known to be sitting in London's banks.

The bribery of overseas public officials was only finally made illegal four years ago in a section of the Anti-Terrorism Crime and Security Act (2001). However, no British Citizen has yet been prosecuted under this act, though some investigations are under way. While corruption is not easy to investigate and prove beyond reasonable doubt, non-enforcement makes a mockery of the law.

Meanwhile, in some of the British 'overseas territories' not only has this not been outlawed but payment of bribes is also still tax deductible.“Nine Eleven” spurred western leaders to crack down on terrorist financing. Rising drug crime has forced them to put resources into tracking the huge funds of the drug trade. Computerisation of finances has made tracing laundered funds much easier. This shows that if the political will is there, it can be done.     [ back ]       read more >>