Financial Crime World

Corruption in Chad: A High-Risk Country

Chad is considered a high-risk country for corruption, plagued by a weak legal framework and lack of enforcement. Corruption affects various sectors, including public procurement, natural resources management, and civil society participation.

Public Procurement: A Breeding Ground for Corruption

  • The procurement process in Chad is often marred by corruption, with officials delaying tender processes to extort bribes.
  • Contracts are frequently awarded to companies connected with government officials, creating a conflict of interest.
  • Businesses operating in Chad should use specialized due diligence tools to mitigate the risks associated with public procurement.

Natural Resources: A Haven for Corruption

  • The management of natural resources, particularly oil extraction, is plagued by corruption.
  • Secrecy around deals between companies and the government contributes to this risk.
  • Transparency and accountability are essential in the management of natural resources to prevent corruption.

Legislation: Weak Framework

  • Chad’s legal framework aims to curb corruption but lacks adequate enforcement.
  • The law does not stipulate penalties for non-compliance with asset declaration requirements, making it difficult to hold individuals accountable.
  • Whistleblowers are not protected, creating a culture of silence and fear.

Civil Society: Restricted Freedoms

  • While the constitution allows freedoms of press and expression, these rights are severely restricted in practice.
  • Journalists who speak out about corruption face harsh consequences, including intimidation and imprisonment.
  • Civil society participation is limited due to the restrictive environment.

International Cooperation: A Missed Opportunity

  • Chad has not signed the United Nations Convention against Corruption or the OECD Convention on Combating Bribery.
  • This lack of commitment to international standards undermines efforts to combat corruption and promote transparency.

Examples of Corruption

  • Companies have been fined for bribing officials, such as Griffiths Energy being fined CAD 10.35 million in Canada for bribing the wife of the Chadian ambassador to gain access to oil fields.
  • These examples highlight the need for stronger legal enforcement and protection of whistleblowers.

Recommendations

To combat corruption effectively, Chad should consider:

  1. Implementing stronger legal enforcement and protecting whistleblowers.
  2. Promoting transparency and accountability in public procurement and natural resources management.
  3. Signing international conventions against corruption to demonstrate commitment to combating graft.