Financial Crime World

Chad’s Infrastructure Boom: A Mirage of Prosperity

Chad has been experiencing an intense construction boom in recent years, with numerous prestige buildings, universities, hospitals, and roads sprouting up across the country. However, despite this flurry of activity, the benefits of these projects have failed to trickle down to the majority of citizens.

The Reality Behind the Boom

According to a recent report by the Bertelsmann Foundation, many of these facilities remain empty due to a lack of users and personnel to run them. The construction of new roads, bridges, government office buildings, and oil infrastructure has also been marred by corruption and cronyism.

The Oil Sector: A Model for Development or a Hotbed of Corruption?

The country’s oil sector, which was seen as a model for development, has also been plagued by corruption and mismanagement. Despite the establishment of a system to ensure that 80% of oil revenues were spent on priority social sectors such as health and education, the government has been accused of misusing these funds to fuel wars and rebellions.

The Watchdog’s Role

The College de Contrôle et de Surveillance des Resources Pétrolières (CCSRP), an independent watchdog organization, was established to monitor revenue management and approve projects financed with oil revenues. However, its powers were gradually reduced in 2008, and it is no longer able to effectively control the use of these funds.

The World Bank’s Withdrawal

The World Bank pulled out of a project in Chad in 2008 due to concerns over corruption and mismanagement. An investigation by the New York Times uncovered numerous abuses, including shoddy construction work and inflated prices for goods and services.

Future Plans: Will They Benefit the Majority?

Despite these challenges, plans are underway to construct new infrastructure projects, including an international airport, a railway connecting the country to the sea via neighboring countries, and an industrial zone 40 kilometers outside N’Djamena. However, without effective governance and transparency measures in place, it is unclear whether these projects will benefit the majority of citizens.

Corruption Challenges

The construction sector in Chad faces significant corruption challenges, including bribery and cronyism. According to a recent Enterprise survey by the World Bank/IFC:

  • 58.6% of firms surveyed reported being expected to make an illegal payment to obtain a construction permit.
  • 47.3% were expected to make a gift of an estimated value of 4.3% of the contract value to secure a government contract.

Recommendations

To ensure that Chad’s infrastructure boom benefits the majority of citizens, it is essential to address the challenges of corruption and mismanagement. This can be achieved through:

  • Strengthening transparency and accountability measures in the construction sector.
  • Implementing effective governance structures to oversee public procurement processes.
  • Improving record-keeping systems to monitor the flow of oil revenues from companies to government accounts.
  • Enhancing the independence and powers of watchdog organizations such as the CCSR.

Conclusion

By addressing these challenges, Chad can ensure that its infrastructure boom is not just a mirage of prosperity, but a reality that benefits all citizens.