Financial Crime World

Central African Republic: Corruption and Bribery Rampant in Logging Sector

BANGUI, CENTRAL AFRICAN REPUBLIC - Corruption and bribery have become a way of life in the Central African Republic’s logging sector, with companies paying large sums to officials to secure permits and protection. According to a new report by Global Witness, this phenomenon is not limited to just one aspect of the industry.

Widespread Corruption

  • Logging companies are forced to pay up to CFA 150,000 to 200,000 (approximately EUR 30) per truck to bypass customs officers at the border.
  • Some companies have reportedly paid as much as CFA 100,000 to 130,000 (approximately EUR 15-20) in bribes to officials to ensure that documents are signed and official papers are up-to-date.

Public Procurement System

  • The report highlights the widespread corruption and bribery in the country’s public procurement system.
  • Companies are strongly advised to use specialized due diligence tools to mitigate the risks associated with public procurement in the CAR, where clientelism, racketeering, and bribery are rampant.

Natural Resource Sector

  • Logging companies have been known to provide gifts to new political leaders, including freezers or envelopes filled with cash, to secure their support.
  • In return, officials protect or defend companies at ministerial meetings.
  • The situation is further complicated by the lack of government control over territory in the South West of the country, where armed groups engage in illegal logging activities. Poaching is also a significant problem, with wild animals often being taken out of the country in collusion with state officials.

Diamonds

  • Despite the risks, diamonds make up around 50 percent of the country’s export earnings, but largely circumvents official channels.
  • The legal framework regarding anti-corruption is inadequate and not enforced.
  • Bribery by local companies of foreign officials and bribery by foreigners of local officials rarely punished.
  • The CAR has ratified the United Nations Convention against Corruption, but is not a party to the OECD Convention on Combating Bribery.

Civil Society and Media

  • Civil society groups have been excluded from most political and economic processes, and freedom of assembly and association is severely restricted.
  • Journalists and media outlets also face significant challenges in reporting on corruption and other issues due to threats and intimidation by armed groups and government officials.

Conclusion

The situation highlights the need for greater transparency and accountability in the country’s natural resource sector, as well as stronger anti-corruption laws and enforcement mechanisms.