Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts

Wednesday, 15 July 2015

South Sudan: four years of independence amidst violence, blood and corruption

Article published in Cafebabel

Southern Sudanese soldiers parade at the John Garang Mausoleum during the celebrations of independence day in the city of Juba.  © European External Action Service

Four years have passed since the independence of South Sudan but the country is facing an enormous humanitarian crisis since the outbreak of the civil war, last December. Political impasse due to corruption is the major concern in a country rich in oil and yet one of the least developed countries in the world. 

On the occasion of South Sudan’s independence from Khartoum, on 9 July, High Representative Federica Mogherini, EU Commissioner for International Cooperation and Development Neven Mimica, and EU Commissioner for Humanitarian Aid and Crisis Management Christos Stylianides, have shared some thoughts and demonstrated some commitment towards the Sudanese people. “Genuine peace negotiations are the only way forward and need to be revitalised swiftly. The EU pledges its full support for the peace efforts being made and recognises the steps to date. But it’s too little and too slow. Government and opposition leaders remain unwilling to engage seriously or to stop using violence as a means to achieve their objective,” stated the European representatives. 

The European Commission estimates that around 4.1 million people are currently in life-threatening situations and in need of urgent medical care. Since the dawn of the conflict around 1.6 million people have been displaced and over half a million (590 000) are living now in neighboring countries. Before such a devastating situation, the European Union had contributed, along with the Member States, some €217.5 million in 2015. In early May, the United States pledged $5 million to help set up an accountability mechanism for South Sudan. 


A Country Weakened by its Past 


Four years ago, after a referendum held in line with the Comprehensive Peace Agreement (CPA), South Sudan, a country with 8.26 million inhabitants and one of Africa’s biggest oil producers, has turned into a state. Recognised as the newest nation in the world, the most triumphant scene of African progress since the end of apartheid in South Africa, the country located in Central Africa faces now a serious humanitarian crisis that began in December 2013. The international community was blamed of lacking efficacy to ensure that South Sudan would develop into a democratic and stable nation. 

More than any other part of Africa, the Sudan is defined by civil war. It was ruled by the Ottoman Empire, and then ushered into the 20th century by a discriminatory arrangement of Egyptian and British control. Colonial efforts at modernisation were confined to the north while the south was left to exploit land and slaves. 

On 15 December, an armed conflict erupted at the centre of the South Sudanese governmental authority, the presidential palace in Juba, the capital. This confrontation divided army officers loyal to president Salva Kiir, of Dinka origins, and discontented soldiers supporting his ex-deputy Riek Machar, of Nuer roots, becoming into a tragic civil war, in which more than 50,000 people were killed. Kiir accused Machar of plotting a coup attempt, while Machar blamed the president for trying to kill him. The Dinka and the Nuer are the two most prominent and most populated tribes in South Sudan: longtime rivals who had battled over land and resources since at least the 19th century. 

Internally Displaced Persons (IDPs) at Zam Zam camp outside El Fasher, Sudan. | (cc) United Nations Photo


Corruption in South Sudan, what else? 


Nevertheless, there is so much more behind religion that one cannot see. According to Global Witness, a NGO dedicated to exposing corruption, there is no evidence that oil revenue in South Sudan is reaching those who need it most. Identified as the most important source of income, just 5% of the latest budget was used on healthcare, education and infrastructure combined. The oil industry is definitely the root of this revolting conflict and several battles have been fought in order to control the sought after black gold. 

Before the unleash of the armed conflicts, South Sudan’s government spent months developing laws which should ensure that the country’s oil sector was not a source of corruption or conflict. However, as of December 2013, since the outbreak of the conflict, all the work done to improve governmental transparency has fallen apart. 

Last April, South Sudan received a $500 million loan from the Qatar National Bank (QNB), which means that the African country will owe around $781 million, interest inclusive, paid over a seven years period. Naturally, the government has suggested a payment in oil, should cash be lacking. The problem with this agreement is the certainty that the money invested will not go to the country, people’s needs, and infrastructures, but yes into private pockets. Here we have a good example of a parasite country. A country that chooses to live from other country’s financial support instead of making the most out of its natural resources to enrich the country and its people. 

Political deadlock 


On the 29 May, Kenyan president Kenyatta announced plans to merge Intergovernmental Authority for Development (IGAD) peace process and SPLM (Sudan’s People Liberation Movement) reunification process. Due to quarrels between president Kiir and former vice-president Machar, in Nairobi, the merged process was stalled 28 June. 

This political impasse has been costing the lives of thousands of South Sudanese people as conflicts continue in Equatoria and Bahr el Ghazal. 

On the 30 June, the United Nations released a human rights report documenting widespread rape and women buried alive. Why is the international community so quiet before such outrageous actions? Why do some lives matter less than others?

Thursday, 22 January 2015

Hungarians against Orbán demand for Democracy

Article published in Cafebabel

Hungarians protesting on the national holiday, 15th March 2007. Habeebee © Flickr

The Hungarian people are not sleeping. Tired of corruption and lack of transparency, another protest will take place while Chancellor Angela Merkel pops up for an official visit. 

Hungary against the System 


When Hungarian Prime Minister Viktor Orbán is ranked in second place by the Organised Crime and Corruption Reporting Project (OCCRP), we understand the swingeing concern that Hungarian citizens are going through. On the top of the table is, naturally, Russian President Vladimir Putin, Orban’s good friend. 

White House Vigil To Save Net Neutrality White House Vigil To Save Net Neutrality | (cc) Stephen Melkisethian/Flickr 

The problem in Hungary is dramatic as the whole system is enrooted in corruption. In one of many public demonstrations, last October, the citizen protest was against the government’s intention of taxing internet traffic, the biggest anti-government protest in the past four years, but the problems in the country go beyond that. The Hungarian people live in “pitch black” when it comes to institutional decisions, blind by a government with no respect towards the citizens. The New Year began with more protests asking for democracy, in Budapest. Activists said Orbán was not representing public interests in his policies, the Associated Press reported, regarding his efforts to tax the Internet.

Hungarians have condemned Orbán, also leader of conservative party Fidesz, for what they perceive as governmental corruption. Fidesz holds a two-thirds majority in parliament, which in 2013 allowed Orbán to pass a new constitution that centralized power. Under this system, and despite constant protests which are systematically ignored, he appointed people to lead the court system, the bank and the media. Before this picture, it looks more like Hungary is still living under a Soviet regime. 

The hope and solution for this scourge could be found in civic groups like MostMi! (NowUs!). Nevertheless, the question whether this political movement has a future remains among the analysts as one of the founders, Zsolt Várady, announced his withdrawal due to the lack of time and divergences with the other founder, Bori Takács. The non-partisan movement is currently in a fragile situation not promising great expectations in order to change the society. 

Merkel and Putin to visit Hungary 


In July 2014, the Hungarian government has reached a deal with Russia regarding the Paks nuclear power plant and a related 10 billion euros Russian state loan. With this agreement, Hungary’s gas storage facilities would be sold to Russia’s Gazprom increasing the country’s dependence on Russia. Opposition tried to scrap the Pak contract but without success. 

In an unusual criticism of Orban’s policies from a member of his own party, Zsolt Nemeth, chairman of Parliament’s Foreign Policy Committee said that Hungary should make it clearly about its relationship with Russia, which according Nemeth is becoming far… 

The next protest is scheduled for the 2nd of February, on the occasion of German Chancellor Angela Merkel’s visit to Budapest. But it is not only Merkel the expected visit. Putin is also in the guest list scheduled for the 17th of February.

Wednesday, 26 November 2014

Shameless Corruption in Portugal

Article published in Cafebabel

"Most corrupted country, according to the Portuguese", Lisbon. Pedro Duarte Gonçalves © Flickr

Over the past weeks, politics in Portugal have been under fire, delighting the mainstream media. Corruption has been on the top of the agenda with high representatives of the State being caught by the Justice. 

Firstly, following the Golden Visa scheme, which allows citizens from outside Schengen Area to have a residence permit in Portugal in exchange of a minimum investment in the country of 500 thousand euros, a fraudulent scheme was found and it became a public case with the detention of high representatives of the Portuguese political scene. 

“Maze Operation” the designed name for the investigation, was exactly a maze of relationships inside of the government, opening way to bribes in order to issue golden visas. On the top of the net was the President of the Institute of Registry and Notary (IRN), António Figueiredo and Maria Antónia Enes, Secretary-General of the Justice Minister. These two are suspected to negotiate and inflate Real Estate prices in exchange of golden visas issued in a dodgy quick way, through some real estate agencies. 

Is there any way to save us from corruption? Paolo Marconi © Flickr 

According to the Judiciary Police, there is proof of bribes and also illegal transferences financial transactions through this illicit service. Another public figure caught in this scheme was the President of the Foreign and Borders Service (SEF), Manuel Jarmela Paulos, in functions since 2005, suspected of closing his eyes to this fraud. In fact, Manuel Paulos is charged of two corruption crimes, being benevolent with the fraud and charging 10% commissions to accelerate the attribution of golden visas. Between the 11 detained, one of them, Jaime Couto Alves, leads a company, Projects & Business, also suspected of collecting prospective clients. And trough this company is the link to Intern Administration Minister, Miguel Macedo, who resigned when the scandal became public. Macedo was a partner of Project & Business, but he is believed to have sold his shares in 2011. The resigned minister was caught in wiretaps which led to an investigation of his office by the Judiciary Police. The golden visa legislation was launched in Portugal, in 2012, by the Foreign Affairs Minister, Paulo Portas. 

The straw that broke the camel's back 


Last week, the media bomb exploded when former Prime Minister and former Socialist Party leader, José Sócrates, was detained. Despite a large percentage of the Portuguese population have serious issues against Sócrates, his detention has targeted the media with lots of criticism. The former Prime Minister was arriving to Lisbon Airport, coming from Paris, and he had a flashy and shrill reception not only with the police but also with the hungry media. 

José Sócrates is accused of qualified tax fraud crimes, corruption and money laundering. After an exhausting interrogatory, enforcement measures were known yesterday and the former Prime Minister is in custody, in Évora, where he asked to be transfered, moving away from Lisbon. The public opinion is divided regarding this case, with some people strongly supporting the Justice’s way of action and others condemning its invasive conduct. 

This is the first time in the history of the Portuguese democracy that a former Prime Minister is confronted by the Justice, however, corruption cases in Portugal are sadly common. Apito Dourado, Freeport, Submarinos, Taguspark e Face Oculta are some of the many examples that have rotten the state of the Portuguese democracy. Let us not forget the words of the Justice Minister, Paula Teixeira da Cruz, “the time of impunity is over.” 

Sunday, 16 November 2014

LuxLeaks: How The Biggest Global Corporations Have Cheated Us

Article published in Cafebabel

People manifesting against corporate greed. Charles Edward Miller © Flickr

One week, a scandal. After a week under the Commission's presidency, Jean-Claude Junker has already been accused of having colluded with facilitating corporate tax dodging. 

After an investigation by the International Consortium of Investigative Journalists and media across 32 countries, 548 Luxembourg tax rulings were leaked, exposing a scheme approved by the tax office of Luxembourg, during the time when Juncker was Prime Minister of the duchy. At stake, is a law which allows corporations of magnanimous tax immunity from royalties, through complex webs of internal loans, interest payments and filtered profits, through Luxembourg subsidiaries. In other words, a bulky tax con-trick. 

A lot of renowned big world corporations, from Apple to Deutsche Bank and from Burberry to Amazon, have all protected secret tax deals from Luxembourg, allowing many to reduce their tax bills. Meanwhile, during a Eurogroup meeting in Brussels, Luxembourg finance minister Pierre Gramegna, said that "this is an untenable situation for us and our citizens in Europe, who have to pay taxes while some companies pay so little." 

This scandal unleashed an outrage within the MEPs, who have immediately reacted, demanding explanations and clarifications over the case. Socialists, Greens and Liberals, in the European Parliament, have been increasing pressure towards the Commission's President, in order to have factual answers. 

The president of the European Parliament, Martin Schulz, did not spare criticism towards Juncker, pointing out the lack of credibility attached to the Commission's chief. "What worries me most is the fact that the reported practices were manifestly legally possible in some countries. This reality means that we need to urge the member states to work with us to end systematic tax evasion practices in Europe, be it in Luxemburg or any other country,” said Schulz. 

The defendant, Juncker, faced the journalists in the Commission and later he appeared in the Parliament, where he stated once again that the law was legal and approved by the Commission at the time. But he forgot to mention that his government wrote and devised the law. However, the Commission’s President recognised that “even if the corporate tax relief is legal, it might not be ethical.” As a last measure, Juncker announced a proposal for a common tax base in the European Union. 

Luxembourg is not the first tax haven we hear about. The extent of this tax scheme is worldwide, and this is a major issue that deeply affects our lives, yet there is not much we can do as citizens besides spread social awareness. Tacitus, a Roman politician, once said, "the more laws a government enacts, the more corrupt the government". Through an ancient Roman illustration, we have the picture of one of the most shameful contemporary spectacles happening in the European Union. 

Tax evasion infographic. © European Union 2013 - European Parliament