Peter Hain challenges South African and international businesses to step up to stop corruption
11/12/2023
Lord Peter Hain was invited to address the South African government’s recent Anti-Corruption Conference in Pretoria, marking International Anti-Corruption Day on December 9th.
He spoke bluntly about the international companies who facilitated the decade of corruption examined by the Zondo Commission and asked penetrating questions about the lack of action to implement the 10 recommendations from the Commission’s report, with particular reference to the Public Procurement Bill 2023. Noting that most corruption seeps through public procurement, Lord Hain pointed to the obvious solutions to turning off that ‘tap’. He warned that business remained culpable if it did not ‘ostracise anybody still playing this game (of corruption)’. Lord Hain’s strong plea for support for an International Anti-Corruption Court was welcomed. His speech can be found in full here: https://bitly.ws/35nmm
ACTSA has campaigned with partners for decades on measures to stem and stop corruption. Our report published in 2020, ‘The Money Drain’ is still available to download here https://bitly.ws/35nCX. It concludes with our ten recommendations for the UK government in particular, to implement to reduce loopholes. The fact that more money LEAVES Africa than is sent in aid is a key reality. Global Financial Integrity estimates that developing countries lose more than ten times in illicit financial outflows due to corruption than they receive in foreign aid, the real figure probably much higher.[1]
More flows out of the developing world into Western accounts than the other way around, Africa particularly a victim with annual permanent outflows exceeding $100 billion a year. Making Africa a net creditor to the rest of the world: not the rich supporting the poor, but the poor supporting the rich.[2]
[1] Kar, D. and Freitas, S. (2011, December 15). Illicit financial flows from developing countries over the decade ending 2009. Washington, D.C.: Global Financial Integrity. https://gfintegrity.org/report/illicit-financial-flows-from-the-developing-world-over-the-decade-ending-2009/
[2] Baker, R. Invisible Trillions (New York, Berrett-Koehler Publishers, 2023)