Financial Crime and Corruption Widespread in Lesotho, Despite Efforts to Combat It
Lesotho, a developing country in southern Africa, has long been plagued by financial crime and corruption. Despite having laws and regulations in place to combat the problem, public officials have often acted with impunity.
Background on Corruption in Lesotho
According to the Directorate on Corruption and Economic Offenses (DCEO), parliament passed anti-corruption legislation in 1999 that provides criminal penalties for official corruption. However, the agency has struggled to effectively implement these laws, and many public officials have been able to engage in corrupt practices with little fear of reprisal.
High-Profile Cases of Corruption
In recent years, there have been several high-profile cases of corruption involving government ministers and officials. In 2013, two sitting and former ministers were indicted by the DCEO for separate incidents of corruption, but their cases have yet to be resolved.
Government Efforts to Combat Corruption
The government has taken some steps to prevent corruption, including passing a law in 2006 that requires public officials to disclose their financial information. However, this law has not been fully implemented, and many officials have failed to comply with its provisions.
International Agreements
Lesotho is also a signatory to several international agreements aimed at combating corruption, including the United Nations Anticorruption Convention and the African Union Convention on Preventing and Combating Corruption. However, it is not yet a member of the OECD Convention on Combating Bribery.
Impact of Corruption on Businesses
Despite these challenges, many companies operating in Lesotho have reported that they do not view corruption as an obstacle to doing business in the country. In fact, no U.S. firms have identified corruption as a major issue when investing in Lesotho.
Government Procurement
However, corruption remains a significant problem in government procurement and is often committed by lower-ranking public officials. The DCEO has encouraged companies to establish internal codes of conduct that prohibit bribery of public officials, and most companies have effective programs in place to detect and prevent bribery.
Reporting Corruption
For those who want to report instances of corruption, there are several resources available:
- Sefako Seema, Prosecutor at the Directorate on Corruption and Economic Offenses
- Other agencies and organizations dedicated to combating corruption
By working together to combat financial crime and corruption, Lesotho can create a more transparent and accountable government that benefits all citizens.