Financial Crime World

Chad’s Grip on Corruption

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Chad, a country rich in natural resources, has been plagued by widespread corruption, with government officials and business leaders alike engaging in bribery and embezzlement.

Widespread Bribery and Embezzlement

Procurement officials have been demanding bribes from entrepreneurs, with one instance involving a payment of approximately USD 350,000. Despite this, the official told the entrepreneur that paying the bribe would not even guarantee them the contract, prompting the executive to pay an even larger sum.

Lack of Transparency and Favoritism

The lack of transparency in government contracting has led to widespread favoritism and cronyism, with contracts often being awarded to companies connected to government officials or their relatives. For example, a private company owned by a relative of the president was granted the right to print passports.

Despite efforts to reduce corruption, Chad’s legal framework is weak and not adequately enforced. The country has yet to sign the United Nations Convention against Corruption and is not a part of the OECD Convention on Combating Bribery.

Harassment and Intimidation of Civil Society Groups

Civil society groups have also faced harassment and intimidation for speaking out against corruption, with journalists and whistleblowers frequently facing harsh consequences.

Natural Resource Curse

Chad’s abundance of natural resources has done little to alleviate poverty and food insecurity, with pervasive corruption at all levels contributing to institutional instability and market distortion.

Extractive Industry Transparency Initiative

The Extractive Industry Transparency Initiative has reported that Chad has made significant progress in increasing transparency around oil deals, but more needs to be done to address the root causes of corruption.

Expert Advice

Experts warn that companies operating in Chad must take extra precautions to mitigate corruption risks associated with public procurement. “It’s essential for businesses to use specialized due diligence tools to identify and assess potential corruption risks,” said a leading expert on anti-corruption.

Recent Fines and Convictions

In related news, a Canadian court recently fined Griffiths Energy CAD 10.35 million for bribing the wife of the Chadian ambassador to Canada in 2009 with CAD 2 million for access to oil fields in Chad.

International Pressure

The international community is urging Chad to take immediate action to address corruption and promote transparency and accountability in government contracting.

Sources

  • Bertelsmann Foundation: Bertelsmann Transformation Index 2016
  • The World Bank: Doing Business 2016
  • Transparency International: Overview of corruption and anti-corruption in Chad, 8 August 2014
  • Extractive Industry Transparency Initiative: “Opening the Chadian black box”, 2 June 2014
  • FCPA Blog: “After Griffiths case, Chad boots ambassador who ran ‘haven for white-collar criminals”, 30 January 2013

Note: This article is a rewritten version of the original text and does not reflect the views or opinions of any individual or organization.