Tag Archives: corruption

Fighting Corruption Matters for Indonesia’s Oil and Gas Industry


“If a company’s goal is to stay in business for a long time, why take the shortcut and pay bribes, which can damage the company in the long term?” asked Sammy Hamzah, president of Indonesian Petroleum Association, at the launch event of CIPE and International Business Links (IBL)’s new Anti-Corruption Compliance guidebook for mid-sized companies in Indonesia’s oil and gas industry.

“When a company commits a corrupt behavior, it takes on average 20 to 30 years to bring back the company’s credibility.”

Corruption is a major problem in Indonesia. According to a Gallup poll, more than 8 in 10 Indonesians say that corruption is widespread throughout the nation’s government and businesses. The oil and gas sector is particularly susceptible to corruption because of the multiple steps in the procurement and licensing processes, as well as the sheer amount of the money involved.

That’s why CIPE and IBL produced the guide. It’s intended to help mid-sized companies looking to become suppliers of local or international oil and gas companies to understand the business case for anti-corruption compliance and instruct them on how to create an internal compliance system.

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Kenya’s Renewed Commitment to Fight Corruption Needs the Private Sector


This post originally appeared on the Corporate Compliance Trends blog.

When I visited Nairobi a few weeks ago, the signs of President Obama’s recent visit to attend the Global Entrepreneurship Summit were still clearly visible all around – from welcome posters to the spruced-up cityscape. I was in Kenya to work with CIPE’s partner organization, Kenya Association of Manufacturers (KAM), on a training-of-trainers workshop devoted to anti-corruption compliance and practical ways in which mid-sized companies in particular can implement robust compliance programs. The topic is quite timely.

Corruption remains a key problems in Kenya, affecting both the country’s democratic and economic development prospects. It was one of the leading issued discussed during President Obama’s visit, which resulted in an agreement signed between the Kenyan government and the U.S. to introduce new anti-graft measures. The 29-point deal stipulates, among other things, that Kenya will step up investigations into corruption cases, increased U.S. assistance and advice to Kenyan anti-corruption agencies and advice on relevant legislation, and international commitments by Kenya to join the Egmont Group of Financial Intelligence Units and the Extractive Industries Transparency Initiative (EITI).

At the same time, profound challenges persist. Within days of Obama’s visit, Kenya’s Office of the Auditor-General released a troubling report that brought to light some uncomfortable numbers. According to the report, only 26% of money spent and collected by the government has been fully approved in an audit for 2013-2014. The health department alone failed to account for 22 billion Kenyan shillings ($216 million) worth of spending. What is more, over 12,000 false names were discovered on the government payroll.

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Guatemalan Youth Fed Up with Spectating Become Protagonists in their Country’s Future

Presentaci+¦n de Colectivo en UVG

By Dara Sanford

In the past few months, Guatemala has been hit by a wave of protests aimed at the government, focusing primarily on corruption endemic in the country. Thousands of Guatemalans, a majority of whom are Millennials, have taken to the streets to show they are fed up with corruption and that they want their government to do more in terms of responding to their needs.

One organization working on helping the Guatemalan youth demand more from the government through protests and various other channels is Cincoen5 (Five in 5). Cincoen5 is a collective of six organizations that work together to improve development in Guatemala focusing on five key areas: education, security, nutrition, infrastructure, and employment. The collective has a specific interest in helping youth become more politically active.

Since its creation in 2013, Cincoen5 has created and shared a long-term development plan for Guatemala, held multiple meetings around the country, including universities, and has remained an active participant in social mobilizations.

In this interview, we had the opportunity to talk to Walter Corzo, whose organization Jovenes Contra la Violencia (Youth Against Violence) is a member of the collective, about the current situation youth in Guatemala are facing, the work of Cincoen5, and what the collective is planning for the future.

Q: First, what are some of the challenges the youth in Guatemala are facing right now and how can increased participation in the political process help alleviate some of these challenges?

A: There is a big call for change. This is because the young people don’t see their needs being acknowledged by the government. What we are doing right now is putting a lot of pressure on the system, but government is resistant to making changes. In Guatemala, 50 percent of people live in poverty, and that is a huge problem.

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Progress on Pro-SME Legislative Reform in Ukraine


Kiev is Ukraine’s political and economic capital. (Photo: Wikimedia Commons)

The Ukrainian government is in the difficult position of trying to overhaul a wide range of economic, judicial, and political institutions, all while fighting a war in the country’s east. The challenges are stark: Ukraine is in the midst of its worst recession since 2009, and the government expects the economy to shrink by 9.5 percent this year, with annual inflation likely to reach 48 percent. Thus it comes as no surprise that many Ukrainian citizens have begun to complain that the government isn’t doing enough, or that the pace of change after the EuroMaidan is too slow.

A policy paper released by the Friedrich Naumann Foundation in November 2014, not long after the current government took office, analyzed a range of Ukrainian policies that are slanted against the business community, creating particular challenges for small and medium-sized enterprises (SMEs).

While the reform effort since 2014 has been intense, many SME owners are still not satisfied with efforts to ease the regulatory burden, according to the findings of a national survey of over 1,600 SMEs, recently conducted by CIPE as part of the USAID project Supporting Urgent Reforms to Better Ukraine’s Business Environment (SURE) .

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Rising Corruption in Karachi


Corruption in Pakistan is not a new issue, but as of late it has had a detrimental effect on the country’s economic fortunes and its ability to attract foreign investment. A 2014 report by Transparency International Pakistan found over Rs. 8.5 trillion ($94 billion) was wasted due to corruption and bad governance from 2009-2013, during the previous administration led by the Pakistan People’s Party.  Pakistan currently ranks 126 out of 175 nations in Transparency International’s Global Corruption Perception Index, and lags behind neighboring countries in economic development due in part to rampant public sector corruption at both the national and provincial level.  According to Fasih Bokhari, former chairman of the National Accountability Bureau, five to seven billion rupees ($51 million to $72 million) are wasted per day due to corruption and overall inefficiency.

Major General Bilal Akbar, Director General of Pakistan Rangers, Sindh, a border security and law enforcement agency, estimated that over Rs. 230 billion ($2.3 billion) is illegally extorted or otherwise collected in Karachi each year.  General Akbar also stated that political party members, city and district government officials, and law enforcement personnel are complicit in these illegal activities, and that the money extorted is frequently used to fund terrorist and gang-related criminal activities.

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Talking Trash in Lebanon

Photo: Lebanese Examiner

Photo: Lebanese Examiner (AP Photo/Hassan Ammar)

More than a week ago, the city of Beirut ceased trash collection when the landfill stopped accepting deliveries. It turns out the city’s biggest landfill is, well… full. Since then, the streets of this beautiful capital on the Mediterranean Sea have been filled with piles of garbage, rotting in the summer heat– 20,000 tons and counting. This creates obvious health hazards, and undercuts the city’s peak tourist season. Many residents are wearing masks to deal with the stench.

The Lebanese people are rightfully outraged. They see the garbage crisis as a manifestation of larger institutional failures. The country has been without a president for more than a year, and the parliament has extended its own mandate until 2017 without holding elections. The political deadlock breeds institutional paralysis, which in turn exacerbates corruption in a destructive cycle. Essential services like electricity, water, and, sure enough, waste removal are disrupted. CIPE’s longtime partner and Lebanon’s leading anti-corruption watchdog, the Lebanese Transparency Association (LTA), is not sitting idly by.

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Protest Movement Electrifies Armenian Civil Society

(Photo: BBC)

(Photo: BBC)

By Ann Mette Sander Nielsen

The Electric Yerevan protests began on June 19, when protesters gathered on the street to express their discontent with the local power company, the Electric Networks of Armenia (ENA) and its planned 14 percent increase in electricity tariffs from August, the third price raise within the past two years, which would result in a more than 60 percent overall increase in electricity tariffs.

Public discontent was further aggravated by a report revealing evidence of gross corruption and mismanagement at the utility. The report exposed the extravagant lifestyle of the ENA management and revealed that the ENA has accumulated debt by overpaying suppliers and contractors.

On June 23, four days after the start of the protests, roughly 2,000 protesters gathered on Baghramyan Avenue to express their grievances with the ENA management. They were blocked by police forces, and in response the protesters sat down and spent the night there. They were forcibly dispersed by police water cannons and around 250 people were detained.

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