UK acts tough on shady firms
Story by PAUL REDFERN, NATION Correspondent, London
Publication Date: 03/29/2006
A powerful all-party UK parliamentary group wants London to act immediately against British companies involved with corruption in Africa.
The more than 170-member group's report released today, comes in the wake of massive UK media coverage of the corruption crisis in Kenya.
The emphasis of the report – "The other side of the coin: the role of UK corruption in Africa" – is a three pronged approach calling on the UK government to:
- Rigorously enforce existing laws against international bribery, corruption and money laundering;
- Bring a tough new anti-corruption Bill to parliament before the end of the year;
- Appoint an anti-corruption champion.
Chair of the group, Hugh Bayley says: "Corruption is bleeding Africa to death, and the cost is borne by the poor. The African Union calculates that $148 billion (Sh10.7 trillion) a year is corruptly spirited out of the continent. This is six times what Africa receives in aid.
"Much of the money is banked in Britain or our overseas territories and dependencies and sometimes British citizens or companies are involved in corrupt deals. We want our government to get tough on corruption..."
Mr K. Y. Amoako, former executive secretary to the UN Economic Commission for Africa and a member of the Tony Blair-chaired Commission for Africa says: "This study has proposed very bold actions that, effectively implemented, will make a significant contribution to the fight against corruption – the greatest impediment to investments in Africa.
"I hope it can inspire other countries to examine steps that their governments and citizens can take to tackle the supply side of corruption. While it is the primary responsibility of national governments, regional and civil society in Africa to root out and punish the corruption that damages the continent so badly, it is refreshing and encouraging to see such a candid look at the other side of the coin."
The parliamentary group on Africa decided to carry out an inquiry into corruption and money laundering for four reasons. Firstly, the scale, extent and impact of corruption and related capital flight undoubtedly present a critical obstacle to development in Africa.
Secondly, its 2005 report – "The UK and Africa in 2005: How joined up is Whitehall?" – identified corruption and money laundering as areas which require better policy.
Thirdly, the UK fully endorsed the report of the Commission for Africa which made a number of recommendations on how Western governments can support Africa’s battle against corruption. The UK also chaired the 2005 G8 Summit which committed to take action against graft.
Finally, the issues of corruption and money laundering were raised in consultations with members of the African Diaspora living in the UK.
"The Other Side of the Coin" looks at the responsibility of the UK to combat corruption and money laundering.
It recognises the extent of the problem globally, but focuses on Africa because this is of special interest to the parliamentary group.
Says the report that examines what the UK can do to help African countries fight graft: "(But) we do not excuse corrupt rulers from their ultimate culpability for stealing from their people."
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