Transparency International's weekly newsletter and supplement to our Daily Corruption News, 15 September 2017

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Hi there,

In the past week, attempts to weaken the fight against corruption in Guatemala and Tunisia have provoked outrage by citizens who watched as their legislatures tried to introduce laws that let the corrupt off the hook.
 
In Guatemala it revolves around granting immunity to politicians and in Tunisia it's allowing those who stole from the state under the regime of the former President Ben Ali getting amnesties for their crimes.

Remember Guatemala's President Jimmy Morales from a few weeks ago? When he tried to expel the head of the anti-corruption commission, known as CICIG, working under a UN mandate, he was stopped by the Constitutional Court. It seemed clear that Morales was trying to avoid investigation into suspected irregularities in his 2015 election campaign.

Backlash was swift and the anti-corruption commissioner was allowed to stay, however the saga continued this week when Guatemala's Congress approved a "national emergency" decree to get rid of penalties for illegal election financing.
 
Coincidence? 

This move triggered more protests in the capital Guatemala City, and although the decision was withdrawn a couple of hours later, for many Guatemalans, it was another blow to anti-corruption efforts in the country and trust in their government and elected officials. 

The stark reactions of protesters and the opposition show that they have hope that institutions like the CICIG can change things – which is why they must be protected.

In Tunisia, after two years of protest from civil society, the parliament passed a law granting amnesty to corrupt officials of the Ben Ali-era. This unfortunately has not been withdrawn.
 
Although lawmakers argue that this so-called 'economic reconciliation' is necessary for the country to move on, it flies in the face of the very ideas people were fighting for in Tunisia's 2011 revolution: the need to hold the corrupt accountable

Drawing a line under the past by pardoning the corrupt is not going to bring justice and equality to the country. Transparency International strongly condemns this new law and urges an open dialogue within Tunisian society.
 
 

News from Transparency International

French Digital Award for Transparency
 

Call for Applications!

We are pleased to announce the launch of the Digital Award for Transparency. This award honours individuals and civil society organisations who have developed innovative digital technology tools used to improve governance in Francophone developing countries - winners will receive 10,000€! Apply here.

Democracy Day
 

We celebrate International Democracy Day

This year's theme is Democracy and Conflict prevention, with the UN recognising Sustainable Development Goal (SDG) 16 – Peace, Justice and Strong Institutions as key to achieving democracy. We want to highlight the importance of fighting corruption in order to achieve this. Read about our work around SDG 16.

 

Corruption in the news this week

Our top three stories

Brazil: Meet the corrupt, jailed politician who has the rest of Brazil’s political elite terrified
Washington Post (13 September)

When Brazilian President Michel Temer was caught on tape in May seemingly greenlighting a bribe to silence a jailed politician, his fate became the talk of the nation. Less discussed was the man allegedly paid to stay silent: Eduardo Cunha.

 
Global: Doctors who take pharmaceutical money use Twitter to hype drugs
Reuters (11 September)

Some cancer doctors use Twitter to promote drugs manufactured by companies that pay them, but they almost never disclose their conflicts of interest on the social media platform, a new study shows.

 
South Africa: McKinsey and KPMG targeted in South Africa graft scandal
Bloomberg (14 September)

After helping topple one of Britain’s best known public-relations companies, South African anti-corruption groups are now targeting U.S. consultancy McKinsey & Co. and auditing firm KPMG LLP for doing work for businesses tied to the Gupta family and President Jacob Zuma’s son.

 

Natural resources and corruption

Venezuela: Venezuela's attorney general details Orinoco oil corruption scheme
TeleSur (14 September)

The Venezuelan Attorney General has been giving details of a corrupt production scheme in the Orinoco Oil Belt. Tarek William Saab told the National Constituent Assembly that US$200 million dollars had been embezzled between 2010 and 2017.

 
Global: Gunvor in Congo
The Public Eye (12 September, TI mention)

Public Eye has investigated some very lucrative contracts that relate to Gunvor’s business in the Republic of Congo. The story’s ingredients are explosive: black gold, politics, and suspicions of corruption. It is a story emblematic of problems that plague the trading sector. And it demonstrates the role of Switzerland in the resource curse, whose victims live in resource-rich countries but remain imprisoned by poverty.

 
Australia: Australian miners back ethical supply of minerals as illegal mining in Africa impacts gorilla habitat
ABC News (11 September, TI mention)

The global thirst for the minerals needed for new technologies has unearthed the unethical practices of miners in some African countries. The demand for batteries for smart phones, tablets, laptop computers and battery storage is fuelling a tech-metals boom.

 
Zimbabwe: How diamonds fund Zimbabwe’s secret police
Bloomberg (11 September)

Zimbabwe’s government is using money earned from diamond exports to fund its Central Intelligence Organisation, blamed for a raft of human-rights abuses as it’s helped to keep President Robert Mugabe in power since 1980, Global Witness said.

 

Banks & Money Laundering

Australia: It's not just CBA: all the banks are exposed to millions in money laundering
Sydney Morning Herald (15 September)
 
Indonesia: Indonesia tightens rules to curb money laundering, terror funding
Reuters (13 September)
 
Global: Spain probes Chinese bank ICBC's European unit on money
OCCRP (12 September)
 

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