Financial Crime World

Corruption in Chad: A Complex Web of Governance Issues

Construction/Infrastructure Sector

Chad’s construction and infrastructure sector is plagued by a lack of coordination and development, leading to empty buildings due to insufficient personnel and users. This sector is also marred by widespread corruption, with bribery and cronyism being common practices.

  • Major infrastructure projects underway, including:
    • Road and bridge construction
    • Government office buildings
    • Oil infrastructure
  • Corruption in the sector:
    • Bribery and cronyism are prevalent
    • Procurement Office and Infrastructure Ministry are perceived as prone to cronyism in awarding contracts

Oil Sector

Chad’s oil sector has been marred by corruption and opaque arrangements since its inception in 2003. The original petroleum management system was amended in 2006 to allow the President to allocate revenues for war efforts and military equipment, leading to patronage structures and increased corruption.

  • Key issues:
    • Independent watchdog organization CCSRP had its powers reduced in 2008
    • Opaque arrangements replaced the original petroleum management system
    • Patronage structures have led to increased corruption and cronyism

General Corruption Situation

Chad’s governance is characterized by weak institutions, endemic corruption, and a lack of regulatory capacity. This has resulted in widespread bribery and inadequate record-keeping systems to monitor oil revenues.

  • Key issues:
    • Weak governance and ill-functioning institutions
    • Lack of transparency and patronage structures
    • Bribery is widespread in both the construction/infrastructure sector and oil sector

Conclusion

Chad’s corruption situation is complex and influenced by weak governance, lack of transparency, and patronage structures. The country faces significant challenges in addressing corruption and improving its overall governance system.