Financial Crime World

Here is the article in markdown format:

Corruption Risks in Chad

Chad has a significant problem with corruption, particularly in government procurement and natural resource management. Here are some key risks:

Government Procurement


  • High risk of corruption in government procurement
  • Nepotism and cronyism are pervasive in government procurement
  • Favoritism in decision-making by government officials is common
  • Public funds are frequently diverted
  • Companies experience difficulties when trying to bid for contracts due to corrupt practices

Natural Resources


Chad’s economy is heavily reliant on oil extraction, which creates a high risk of corruption and mismanagement. The secrecy surrounding oil deals with companies and the government contributes to these risks.

Institutional Risks


Corruption fosters institutional instability, misuse of land, and market distortion in Chad.

Legislation


Chad’s legal framework for curbing corruption is weak and not adequately enforced. This leads to:

  • Whistleblowers being unprotected and facing intimidation and harassment when accusing others of corruption
  • Anti-corruption prosecutions being used as a tool to eliminate political opposition

Civil Society


Freedom of press and expression in Chad is severely restricted, with most media outlets controlled by the state. Journalists, high-profile persons, or religious leaders speaking out about corruption face harsh consequences.

Local NGOs


Local NGOs focus on monitoring corruption, particularly in the oil sector.

Sources

The information provided comes from various sources, including:

  • Bertelsmann Transformation Index 2016
  • Doing Business 2016
  • Global Competitiveness Report 2015-2016
  • Investment Climate Statement - Chad 2015
  • Freedom of the Press 2015
  • Freedom in the World 2015
  • Human Development Index 2015
  • Macra Tadin: ‘Lea Practiques Deviantes des Marchés publics au Tchad’
  • Country Report on Human Rights Practices - Chad 2014
  • The Global Enabling Trade Report 2014
  • Transparency International: Overview of corruption and anti-corruption in Chad
  • Extractive Industry Transparency Initiative: “Opening the Chadian black box”
  • FCPA Blog: “After Griffiths case, Chad boots ambassador who ran ‘haven for white-collar criminals’”