Financial Crime World

Corruption in Tajikistan: A High-Risk Environment

Tajikistan is plagued by a high risk of corruption across various sectors, including customs administration, public procurement, and natural resources. This article highlights the key areas where corruption is prevalent and the challenges faced by businesses and investors.

Customs Administration: A Corrupt System

The customs administration sector in Tajikistan is marred by corruption, with high risks for businesses due to:

  • Burdensome procedures: Complex and time-consuming processes create opportunities for bribes and irregular payments.
  • Patronage networks: Foreign companies face difficulties trading in products monopolized by members of the presidential family and senior government officials.
  • High expectations for gifts: Over a third of companies expect to give gifts to secure a government contract.

Public Procurement: Favoritism and Lack of Transparency

The public procurement sector is characterized by:

  • Favoritism among procurement officials: Well-connected companies are favored over others, hindering competitive bidding.
  • High risk for foreign investors: The lack of transparency in the procurement process makes it challenging for foreign companies to participate.

Natural Resources: Corruption and Lack of Regulation

The natural resources sector is plagued by:

  • Reluctance from the government: Mining licenses are not provided, and regulations are opaque.
  • Corruption and lack of accountability: The absence of transparent regulations creates an environment conducive to corruption.

Institutional Framework: Inefficient and Plagued by Patronage

Tajikistan’s institutional framework to combat corruption is:

  • Inefficient: Corruption within the government hinders effective anti-corruption efforts.
  • Plagued by patronage: Senior officials hold secondary positions in businesses, creating conflicts of interest.

Civil Society: Limited Freedoms and Restrictions

Tajikistan’s civil society faces challenges due to:

  • Limited freedoms of speech and press: Authorities restrict independent journalists through legislation and regulations.
  • Self-censorship: The lack of freedom of expression leads to self-censorship among citizens.
  • Internet restrictions: Online press and social media websites are frequently blocked by the government.