Financial Crime World

Title: Corruption Runs Rampant in Mauritania: A Business Threat in the Extractive Industries and Public Services

Background

Mauritania, located in West Africa, is known for its abundant natural resources, including mineral deposits and rich fishing grounds. However, this potential economic powerhouse continues to face the persistent challenge of endemic corruption, which impacts various sectors, from public services to the extractive industries.

Corruption in Licensing and Permits

  • Extractive industries, particularly the mining sector and fishing trade, are the most vulnerable to corruption in licensing.
  • Local politicians’ associates and relatives are often awarded contracts and licenses in these industries.

Patronage Networks

  • The political landscape is deeply entrenched in patronage networks, with favoritism used to secure public contracts.
  • Businesses face challenges in Mauritania’s investment climate due to an inefficient legal system and administrative barriers.

Judicial Corruption

  • Companies face significant constraints due to the risk of corruption within Mauritania’s judiciary.
  • Bribes are exchanged for favorable judicial decisions, and corrupt cases are rarely prosecuted.

Corruption in Public Services and Police Force

  • Bribes are common in public services and police forces for approvals and services.
  • Impunity is a significant issue in the police force, with few investigations or prosecutions of reported police corruption.

Anti-Corruption Measures and Challenges

  • Mauritania has a legal anti-corruption framework, but enforcement is lacking.
  • The Penal Code criminalizes corruption, but authorities have been inconsistent in enforcing the laws.
  • Public officials are subject to financial disclosure laws, but these procedures have not been carried out since 2013.

Positive Developments

  • Mauritania was accepted as a compliant country of the Extractive Industry Transparency Initiative (EITI) in 2013.
  • Starting a business has become easier, with lower requirements compared to regional averages.

Challenges and Solutions

  • Mauritania needs to prioritize effective anti-corruption measures and increase transparency to attract foreign investment and foster economic growth.

Sources

  • Doing Business 2016, World Bank & IFC
  • Transformation Index - Mauritania 2016, Bertelsmann Foundation
  • African Integrity Indicators - Mauritania 2016, Global Integrity
  • Global Competitiveness Report 2015-2016, World Economic Forum
  • Global Enabling Trade Report 2014, World Economic Forum
  • Human Rights Practices Report - Mauritania 2014, US Department of State
  • Enterprise Surveys - Mauritania 2014, World Bank Group
  • “Confronting Corruption in Mauritania’s mining industry,” Risk Advisory 2013
  • “Mauritanian firm target of Kinross probe, document says,” The Globe and Mail, 2016
  • “Mauritania arrests Interior Ministry official for corruption,” The News Herald, 2016
  • Investment Climate Statement - Mauritania 2015, US Department of State
  • Mauritania, UN Convention against Corruption, Ratified on January 27, 1999.