By David White, Africa Editor
Financial Times
http://news.ft.com/cms/s/3de59ba6-be05-11da-856c-0000779e2340.html
Published: March 28 2006
The failure of the government to crack down on companies involved in corruption abroad will come under strong criticism this week.
A report by a parliamentary panel due to be presented tomorrow accuses the government of "a lack of political will at the highest levels to take a lead in fighting global corruption".
Focusing on Britain's dealings with Africa, it hits out at "the limbo-like state of anti-corruption legislation" in the UK and "the fragmentation and under-resourcing of investigatory and enforcing agencies". The report by the Africa all-party parliamentary group finds government action falling short of the aims set out last year by the British-led Commission for Africa, which highlighted the need for more transparency to fight corruption.
The commission, chaired by the prime minister, called for more action by developed nations to repatriate illicitly acquired assets, force banks to inform on suspicious accounts and deal with bribe-givers. Its recommendations were followed up by pledges at last July's UK-hosted summit of Group of Eight leaders.
"It is disappointing that we are failing to take the lead on some of the anti-corruption commitments," the report says. It urges the government to speed up introduction of a new anti-corruption bill, calling for it to be brought to parliament before the end of this year.
The government has been holding consultations following criticism by a joint parliamentary committee of draft legislation presented in 2003. The UK's current corruption laws go back to 1916 or earlier.
"The government puts ticks in the right boxes but what I want to see is some action on people who break the law," Hugh Bayley, Labour chairman of the Africa group, commented.
The report calls for sanctions barring companies from public procurement contracts if they are convicted - or if there is overwhelming evidence - of corruption, and to push for a European Union-wide blacklist database.
This would follow the World Bank, which publishes a list of companies barred from contracts it finances. The bank's current list of 213 disqualified companies includes 39 from the UK.
Recommending the appointment of an "anti-corruption champion" to oversee policy implementation over the next two years, the report also calls for Britain to align itself with US practice and bar companies convicted of foreign bribery offences from government export backing.
The report, "The Other Side of the Coin: The UK and Corruption in Africa", argues that Britain should do more to tackle the "supply side" of corruption, combat money laundering and safeguard development aid from abuses. It says the UK should take a leadership role in pushing for implementation of the UN convention against corruption, which it ratified last month.
The report cites estimates that $150bn (£85bn) leaves Africa annually in illicit proceeds.
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The version of this article in the Brussels FT edition is slightly different. The Title is 'Britain accused of failing to combat African corruption' and it ends by with:
'Recommending the appointment of an 'anti-corruption champion', the report also calls for Britain to align itslef with US practice and bar companies convicted of foreign bribery offences from government export backing.'