Financial Crime World

CENTRAL AFRICAN REPUBLIC: Anti-Corruption Laws and Regulations Lacking in Effectiveness

The State of Corruption in the Central African Republic

Despite being endowed with valuable resources such as diamond, gold, and uranium, the Central African Republic (CAR) has a dismal Gross Domestic Product (GDP) of USD 2.52 billion. The poor economic performance is partly attributed to endemic corruption mainly by the political elite and government officials.

A Lackluster Anti-Corruption Framework

According to Transparency International’s Corruption Perception Index, CAR was ranked 154th out of 189 countries in 2021, a decline from the previous year’s 146th. Despite efforts to increase transparency in resource ownership and allocation, CAR needs to adopt a far better anti-corruption policy alongside a strengthened judiciary to improve its economy.

Weak Constitutional Framework

CAR has a weak constitutional framework for fighting corruption, with only two main anti-corruption provisions:

  • Responsible Governance (Article 146)
  • Financial Disclosure Article

The High Authority for Good Governance was formed in 2016 to bring equity and transparency in resource allocation. However, a weak judiciary has led to the disregard of some corruption cases, preventing it from being efficient.

Lessons from Rwanda’s Success Story

Rwanda, which is more populated and with fewer resources, has made significant strides in reducing corruption through its National Anti-corruption Policy. The policy includes:

  • Law enforcement and oversight institutions
  • Cross-cutting actions to be undertaken by all stakeholders

The Rwandan Judiciary is also hailed for its effectiveness, with a special chamber of judges specifically meant to handle economic crimes.

Corruption Permeates the Government

Corruption permeates the three arms of government in CAR, with political influence over the judiciary leading to disregard of many corruption cases. This has created a thriving space for corrupt government officials, who divert funds from the economy into their own pockets.

Border Control Issues

The porous border points have also contributed to the loss of revenue from natural resources, as customs officers take bribes and allow smuggled resources to illegally leave the country. A study on illicit gold flows from Central and East Africa revealed that Cameroon is the main destination for smuggled gold from CAR, with 97.5% of gold produced being smuggled out of the country.

Recommendations for Improvement

For CAR to reach its potential:

  • Adopt a national anti-corruption policy that contains guidelines governing both the private and public sectors
  • Strengthen the judiciary by providing adequate funding and staffing
  • Reduce the involvement of legislators in amending anti-corruption laws

Conclusion

Not only does corruption undermine CAR’s prospects for economic development, but it has also opened it up to local and international conflict profiteers. To break this cycle of corruption, the government must take decisive action to strengthen its institutions, improve transparency, and ensure accountability at all levels.