Curbing financial crime among Third World elites
| Published date | 01 October 2005 |
| Pages | 371-381 |
| Date | 01 October 2005 |
| DOI | https://doi.org/10.1108/13685200510620920 |
| Author | Gerald Anselm Acqaah‐Gaisie |
| Subject Matter | Accounting & finance |
Curbing Financial Crime among
Third World Elites
Gerald Anselm Acquaah-Gaisie
INTRODUCTION
Good governance adopts policies and practices that
promote the interests of the governed. Politicians are
elected and ocials appointed to advance stability,
prosperity and dignity. They operate judiciously,
accountably, responsibly and in a transparent manner,
and use community resources optimally for the
common wealth. The UN High Commission on
Human Rights observes:
`Governance is the process whereby public insti-
tutions conduct public aairs, manage public
resources and guarantee the realization of human
rights. Good governance accomplishes this in a
manner essentially free of abuse and corruption,
and with due regard for the rule of law. The true
test of ``good'' governance is the degree to which
it delivers on the promise of human rights: civil, cul-
tural, economic, political and social rights. The key
question is: are the institutions of governance eec-
tively guaranteeing the right to health, adequate
housing, sucient food, quality education, fair jus-
tice and personal security?'
1
Good governance has realistic, audited programmes
to combat corruption, and does not send good
money after bad. Corruption in ocials is a grave
breach of trust. It connotes decay, immorality, or
impairment of integrity or virtue. It denotes the
abuse of power (in politics, the corporate sphere and
public service) to gain personal advantage in the
form of ®nancial or other material resources or in reci-
procal favours. The culprits exploit their oce to win
advantages to which they are not entitled. They are
not up to the tasks of good government, but seek
oce to milk the system. Given the opportunity and
the ease of concealment, the temptation is rife in
societies inured to it. Beyond a criminal law which
detects it and orders restitution, a fearless press, a vig-
ilant democracy and a savvy electorate is what is
needed.
WHO DOES THE STEALING?
2
Ayittey observes that there was colonial exploitation
in the past, but today the main exploiters and oppres-
sors of African peasants are the African elites. African
ocials, public and private, extort commissions on
foreign loan contracts and deposit them in overseas
banks. The people who are supposed to defend and
promote the peasants' interests have been responsible
for the institutionalised looting and capital ¯ight that
plague the African economy. An estimated $20bn,
more than what Africa receives in foreign aid, vanishes
from Africa annually.
3
Herman Cohen, former US
Assistant Secretary of State for African Aairs, said
in 1991:
`Over the last 10 years, Africans themselves have
exported $20bn a year into bank accounts in
Europe [and the US] buying real estate. So if Afri-
cans don't have con®dence in their own continent,
why should the rest of the world?'
4
CORRUPTION BY OTHER ELITES
It is not only politicians. High-ranking ocials in the
judiciary, civil service, state and corporate institutions
also engage in corruption. A civil servant whose signa-
ture is needed to process a document may delay until
the client pays a bribe. A businessman seeking a bank
loan may have to bribe the manager; an institution
manager may demand kickbacks in a tendering pro-
cess. Often the person who pays most wins the con-
tract, little consideration being given to competence:
people who know little about engineering may win
construction projects and then sell the contracts to pro-
fessionals for substantial gain; police may extort
money from drivers; soldiers may take bribes from
political aspirants to stage a coup d'e
Âtat and hand pol-
itical power to those who paid. Corruption is so ende-
mic in many third world societies that many see it as
the norm. The corruption seeps down: the oce mes-
senger may elicit a bribe before letting a client into the
boss's oce.
There follows in alphabetical order some examples
of corruption by political elites in third world
Page 371
Journal of Money Laundering Control Ð Vol. 8 No. 4
Journalof Money Laundering Control
Vol.8, No. 4, 2005, pp. 371± 381
#HenryStewart Publications
ISSN1368-5201
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