Financial Crime World

Eritrea’s Special Courts Remain Inactive, Corruption Runs Rampant

Asmara - Despite claims of stability and security, Eritrea has been plagued by corruption and impunity for decades. The country’s military-headed special courts, meant to oversee corruption cases, have remained largely inactive, allowing officials to operate with impunity.

Corruption and Impunity

The ruling People’s Front for Democracy and Justice (PFDJ) controls all major companies in the country through its Hdiri Trust Fund, which is audited by the party’s financial head. This lack of transparency and accountability has created a culture of corruption, where officials are free to embezzle funds and engage in illegal activities with impunity.

  • The PFDJ controls all major companies through its Hdiri Trust Fund
  • Lack of transparency and accountability creates a culture of corruption
  • Officials operate with impunity

Limited International Cooperation

Eritrea’s attitude towards international cooperation has been steadfastly negative, viewing it as a threat to its independence. As a result, the country has limited ties with the international community and has not ratified many international agreements, including those related to human rights and anti-corruption efforts.

  • Eritrea views international cooperation as a threat to its independence
  • Limited ties with the international community
  • No ratification of international agreements on human rights and anti-corruption

Impunity and Human Rights Abuses

The lack of an independent judiciary and democratic institutions in Eritrea has created a climate of impunity, where crimes against humanity are committed with relative ease. The special courts, which were meant to address corruption cases, have become defunct, replaced by informal and arbitrary activities of power holders.

  • Lack of independent judiciary and democratic institutions
  • Climate of impunity allows for human rights abuses
  • Special courts are inactive

Prison System and Human Rights

The country’s prison system is also severely overcrowded and harsh, with prisoners, including children and former government officials, being held incommunicado for indefinite periods without charge or trial. Human rights abuses are rampant, with reports of arbitrary arrests, torture, and forced labor.

  • Prison system is overcrowded and harsh
  • Prisoners are held without charge or trial
  • Human rights abuses are widespread

Economic Regulatory Capacity

Eritrea’s economic regulatory capacity remains substandard, with the government’s irrational financial policy leading to a steady expansion of the currency black market. The PFDJ and military have a monopoly on the economy, controlling all major companies and enterprises without subjecting them to financial oversight.

  • Economic regulatory capacity is substandard
  • Government’s financial policy leads to currency black market growth
  • PFDJ and military control the economy

Civil Society Repression

The country’s civil society is also severely repressed, with NGOs, labor unions, and organized interest groups prohibited from operating. Human rights are regularly violated, and civil rights and freedom of expression and assembly are absent.

  • Civil society is severely repressed
  • Prohibition on NGOs, labor unions, and organized interest groups
  • Violation of human rights

Human Rights Abuses in Ethiopia

In recent years, there have been reports of Eritrean troops committing human rights abuses against refugees in Ethiopia, including harassment, arbitrary arrests, killings, and rape. The government has also been accused of controlling the illicit smuggling of its own citizens and profiting from it.

  • Human rights abuses against refugees in Ethiopia
  • Reports of harassment, arbitrary arrests, killings, and rape
  • Government controls illegal smuggling of its own citizens

Conclusion

Despite these challenges, Eritrea remains a member of the Eastern and Southern Africa Anti-Money Laundering Group and has not been identified as having strategic anti-money laundering and counter-terrorism financing deficiencies. However, the country’s lack of transparency and accountability makes it difficult to assess its progress in this area.

  • Eritrea is a challenging environment for both domestic and international actors
  • Lack of transparency and accountability undermines stability and security