Financial Crime World

Corruption Plagues Government Procurement Process in Chad

Khartoum, Sudan - A recent investigation has uncovered widespread corruption in Chad’s government procurement process, where officials demand bribes from businesses seeking to win contracts.

Widespread Corruption

  • Entrepreneurs are being asked to pay hefty sums of money to secure deals.
  • Officials are demanding bribes even after the contract has been awarded.
  • The practice is believed to be rampant across all sectors, including construction and services.

Notable Case

  • A procurement official demanded an envelope containing approximately USD 350,000 from an entrepreneur.
  • When the executive refused to pay, he was told that the bribe would not guarantee him the contract, leading him to pay even more money to secure the deal.

Delayed Contract Awards and Favoritism

  • Tenders dating back to 2012 and 2013 are still stuck in limbo due to officials delaying contract awards to extort more bribes.
  • Businesses report that favoritism plays a significant role in government decisions, with public funds often diverted for personal gain.

Nepotism and Cronyism

  • Nepotism and cronyism are believed to be widespread in government procurement, with officials frequently awarding contracts to friends and family members.
  • The practice of breaking up large contracts into smaller deals in order to avoid regulatory scrutiny is also common.
  • Chad’s legal framework for curbing corruption is weak, with laws often unenforced and whistleblowers not protected from retaliation.
  • Anti-corruption prosecutions are reportedly used as a tool to eliminate political opposition, rather than to combat graft.

Lack of Transparency and Accountability

  • Despite efforts to increase transparency, Chad remains one of the few countries in the world that has not signed the United Nations Convention against Corruption or the OECD Convention on Combating Bribery.
  • Local NGOs have been working to monitor corruption and hold the government accountable, but their efforts are often hindered by restrictions on civil society participation and freedom of expression.

Risks for Businesses

  • The World Bank has ranked Chad as one of the most corrupt countries in the world.
  • Transparency International has warned that corruption poses a significant threat to economic development and stability.
  • As a result, businesses operating in Chad are advised to use specialized due diligence tools to mitigate corruption risks associated with public procurement.