Financial Crime World

Eritrea’s Corrupt System: A Recipe for Impunity

A Beacon of Instability and Fear

ASMARA - Despite its claims to be a beacon of stability and security, Eritrea has been plagued by widespread corruption and human rights abuses. The country’s military-backed government has maintained a stranglehold on the economy, judiciary, and civil society, leaving citizens vulnerable to arbitrary arrest, detention, and persecution.

A Culture of Impunity

  • A special court system, headed by military officers, was established to oversee corruption cases, but it has remained largely inactive.
  • The PFDJ’s Hdiri Trust Fund controls all major companies in the country, with the financial head of the party responsible for auditing the fund. This lack of transparency has created a culture of impunity, where those in power are above the law.

International Cooperation and Self-Reliance

Eritrea’s attitude towards international cooperation is also problematic. The government views foreign assistance as a threat to its sovereignty and has instead opted for a strategy of self-reliance. However, this approach has failed to deliver economic growth or social development, leaving the country reliant on:

  • A poorly paid national service program
  • A 2% tax on its diaspora

Judicial System in Shambles

The judiciary is in shambles, with instances of executive interference and arbitrary arrest and detention common. Prison conditions are harsh, with prisoners often held without charge or trial for indefinite periods. The lack of an independent judiciary has created a climate of impunity, where crimes against humanity have gone unpunished over the past 25 years.

Economic Regulatory Capacity

Eritrea’s economic regulatory capacity is also substandard, with:

  • A cash-based economy
  • Limited regulatory structures making it vulnerable to money laundering and related activities
  • An irrational financial policy, which fixes the nakfa to the US dollar at a rate of 15 to 1, has led to a steady expansion of the currency black market

Civil Society Restrictions

The country’s civil society is also severely restricted, with:

  • Human rights activists facing persecution
  • Journalists and religious groups facing persecution
  • Independent media outlets shut down since 2001
  • No procedures in place to identify and support victims of trafficking or organized crime

Refugee Treatment

In recent years, Eritrea has become notorious for its treatment of refugees, including allegations of:

  • Harassment
  • Arbitrary arrests
  • Killings
  • Rape by Eritrean forces against Eritrean refugees in Ethiopia

The country’s lack of cooperation with international organizations and its refusal to engage with the global community has only exacerbated its problems.

Conclusion

As a result, Eritrea remains one of the most isolated and repressive countries in the world, with little hope for change in the near future. Its citizens continue to suffer under a system that prioritizes the interests of the ruling elite over their basic human rights and freedoms.