Nigeria Now 32nd Most Corrupt, Says Transparency International

from This Day

Offshore financing aids official looting � Survey reveals
By Abimbola Akosile

In spite of President Umaru Yar�Adua�s avowed commitment to fighting corruption and the spirited efforts of the Economic and Financial Crimes Commission (EFFCC) to curb official graft, Trans-parency International (TI), the global anti-graft watch, yesterday released its 2007 Corruption Perceptions Index (CPI), ranking Nigeria 148 out of the 180 countries surveyed.

The latest ranking identified Nigeria as the 32nd most corrupt out of the 180 surveyed countries, alongside Angola and Guinea-Bissau.

Global financial centres were also accused of playing a pivotal role in allowing corrupt officials to move, hide and invest their illicitly gained wealth.

The case of Nigeria was cited in the corruption index, which stated that offshore financing played a crucial role in the looting of millions from the country and other developing countries such as the Philippines, thereby facilitating the misdeeds of corrupt leaders and impoverishing those they governed.

The Index, which was released at the Royal Institution of Chartered Surveyors in London, United Kingdom, ranked the 180 countries (highest country coverage of any CPI to date) by their perceived levels of domestic corruption, and is a composite index drawn from 14 expert opinions surveys.

Released annually since 1995, it (CPI) scores countries on a scale from zero to ten, with zero indicating the highest level of perceived corruption and ten indicating the lowest level.

In the latest release, Somalia and Myanmar shared the lowest score of 1.4, while Denmark edged up to share the top score of 9.4 with perennial high-flyers Finland and New Zealand. Nigeria was scored 2.2 out of a maximum 10 points, which showed a high level of perceived corruption.

The index, released annually since 1995, looks at public sector corruption based on expert assessments and is credited with putting TI and the issue of corruption on the international agenda.

The CPI 2006 ranked 163 countries, while 159 countries were graded in 2005. Nigeria also scored 2.2 in 2006, and was ranked 146th out of 163 nations, while in 2005, the country was ranked 152nd out of the 159 countries surveyed.

The 2007 CPI, carried out for Transparency International by Prof. Johann Graf Lambsdorff of the University of Passau in Germany, disclosed that concerted efforts are needed in rich and poor countries to stem the flow of corrupt monies and make justice work for the poorest.

The index also revealed that the divide in perceived levels of corruption in rich and poor countries remains as sharp as ever; and that developed and developing countries must share responsibility for reducing corruption, in tackling both the supply and demand sides.

According to the Index, corruption by high-level public officials in poor countries has an international dimension that implicates the CPI's top scorers, and bribe money often stems from multinationals based in the world's richest countries.

Speaking on the new Index, Mr. Huguette Labelle, Chair of Transparency International said, "despite some gains, corruption remains an enormous drain on resources sorely needed for education, health and infrastructure. Low scoring countries need to take these results seriously and act now to strengthen accountability in public institutions. But action from top scoring countries is just as important, particularly in cracking down on corrupt activity in the private sector".

The 2007 results, which stated that it could no longer be acceptable for the multi-national companies to regard bribery in export markets as a legitimate business strategy, also revealed a strong correlation between corruption and poverty continues to be evident.

Forty percent of those scoring below three, indicating that corruption is perceived as rampant, are classified by the World Bank as low income countries.

According to the Index, scores are significantly higher in several African countries in 2007. These include Namibia, Seychelles, South Africa and Swaziland, and the results reflect the positive progress of anti-corruption efforts in Africa and show that genuine political will and reform can lower perceived levels of corruption.
Other countries with a significant improvement included Costa Rica, Croatia, Cuba, Czech Republic, Dominica, Italy, FYR Macedonia, Romania and Suriname, the index stated.

Countries with a significant worsening in perceived levels of corruption in 2007 include Austria, Bahrain, Belize, Bhutan, Jordan, Laos, Macao, Malta, Mauritius, Oman, Papua New Guinea and Thailand.

The CPI claimed concentration of gainers in South East and Eastern Europe testifies to the galvanising effect of the European Union accession process on the fight against corruption, while at the same time, deeply troubled states such as Afghanistan, Iraq, Myanmar, Somalia, and Sudan remain at the very bottom of the index.

"Countries torn apart by conflict pay a huge toll in their capacity to govern. With public institutions crippled or non-existent, mercenary individuals help themselves to public resources and corruption thrives," said Labelle.

Insisting that good governance begins at home, the TI index disclosed that the poorest countries suffer most under the yoke of corruption, and that it is ultimately their responsibility to tackle the problem.

"Low scores in the CPI indicate that public institutions are heavily compromised. The first order of business is to improve transparency in financial management, from revenue collection to expenditure, as well as strengthening oversight and putting an end to the impunity of corrupt officials", the Index stated.

It said an independent and professional judicial system is critical to ending impunity and enforcing the impartial rule of law, to promoting public, donor and investor confidence; and that if courts cannot be relied upon to pursue corrupt officials or to assist in tracing and returning illicit wealth, progress against corruption is unlikely.

"Partnering with civil society and citizens is another essential strategy for developing countries seeking to strengthen the accountability of government. Civil society organisations play a vital watchdog role, can help stimulate demand for reform and also bring in expertise on technical issues. But, increasingly, many governments are moving to restrict the operating space of civil society", said Cobus de Swardt, Managing Director of Transparency International.

In addition, the Index claimed many countries are unable to shoulder the burden of reform alone, and that in countries where public sector institutions were historically based on patronage and nepotism rather than merit, reform takes time and can require a substantial investment of resources, as well as technical assistance.

As significant development assistance donors, it said top scoring countries play a special role in supporting greater accountability and institutional integrity in countries plagued by the highest levels of public sector corruption. Technical assistance is a key requirement of the landmark United Nations Convention against Corruption (UNCAC).

Describing corruption as a problem with global roots, the Index revealed that the top scores of wealthy countries and territories, largely in Europe, East Asia and North America, reflect their relatively clean public sectors, enabled by political stability, well-established conflict of interest and freedom of information regulations and a civil society free to exercise oversight.

Mr. Akere Muna, Vice Chair of Transparency International, pointed to the recovery of stolen assets as another area ripe for enhanced action by developed nations, and noted that criticism by rich countries of corruption in poor ones had little credibility while their financial institutions sat on wealth stolen from the world's poorest people.

It was also revealed in the corruption index that in many cases, asset tracing and recovery were hindered by the laundering of funds through offshore banks in jurisdictions where banking secrecy remains the norm.

The report noted that fighting corruption demands action on a broad front, and developing countries were urged to use aid money to strengthen their governance institutions, guided by national assessments and development strategies, and to incorporate strengthened integrity and corruption prevention as an integral part of poverty reduction programmes.

"Judicial independence, integrity and accountability must be enhanced to improve the credibility of justice systems in poorer countries. Not only must judicial proceedings be freed of political influence, judges themselves must be subject to disciplinary rules, limited immunity and a code of judicial conduct to help ensure that justice is served,� it stated.