Financial Crime World

Corruption Plagues Mali’s Economy and Institutions

Mali, a West African nation struggling to rebuild after years of political instability, is plagued by pervasive corruption that affects almost every aspect of life, according to a recent comprehensive report.

The Extent of Corruption in Mali

The report surveyed various sectors, including real estate, taxation, customs, public procurement, natural resources, and civil society, revealing widespread corruption. Here are some key findings:

  • Real Estate: Lack of transparency and accountability has led to bribery and corruption in the sector.
  • Taxation: Tax officials frequently offer lower tax rates in exchange for bribes or gifts, with the vast majority of Malians believing that tax officials are involved in corruption.
  • Customs: Irregular payments and fraud are common when importing and exporting goods due to porous borders and political instability.
  • Public Procurement: Irregular payments or bribes are common in awarding public contracts or licenses, with the Office of the Auditor General uncovering several cases of large-scale corruption.

Challenges Faced by Civil Society

Mali’s civil society is active, but freedom of speech is restricted, and media self-censorship is common due to recent domestic conflicts and economic difficulties. Despite these challenges, the civil society network is expanding with the help of donor countries.

Recommendations for Reform

To mitigate corruption risks, companies are advised to use specialized due diligence tools on public procurement and natural resources. The government must also take concrete steps to strengthen its anti-corruption laws and enforcement mechanisms to create a more transparent and accountable business environment.

Sources

  • Bertelsmann Foundation: Bertelsmann Transformation Index 2016
  • World Bank: Doing Business 2016
  • World Economic Forum: Global Competitiveness Report 2015-2016
  • Transparency International: People and corruption: Africa survey 2015 - Global Corruption Barometer, December 1, 2015
  • Afrobarometer: AD56: Police corruption in Africa undermines trust, but support for law enforcement remains strong, November 2, 2015
  • Overseas Security Advisory Council (OSAC): “Mali 2015 Crime and Safety Report,” August 5, 2015
  • International Monetary Fund: Mali: Technical Assistance Report- Anti-Corruption and Anti-Money laundering, July 2015