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Monthly Archives: October 2024
New Podcast Episode, Featuring David Jancsics
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Guest Post: Lessons from the Extractive Sector for Fighting Corruption in Green Energy
Today’s guest post comes from Mark Robinson, Executive Director of the Extractive Industries Transparency Initiative (EITI), and Maja de Vibe, Senior Vice President at Statkraft, Europe’s largest producer of renewable energy. They write in a personal capacity, building on a joint research paper published by the Basel Institute on Governance.
In response to the global climate crisis, countries around the world are seeking to shift to clean energy. The result is massive pressure to invest in solar, wind, hydropower, and green hydrogen projects. As this critical investment moves forward, it is more important than ever to address the corruption and governance risks around issues like supply chains, licensing, land leases, community consultation, tax and royalties. After all, as investment in the renewables sector grows, so does its attractiveness to those seeking to exploit opportunities for bribery and fraud. Making good governance and anticorruption a priority can help the green energy sector mitigate the risks to communities and the environment, and ensure more equitable sharing of the benefits and burdens of renewable energy development
Yet while companies are increasingly aware of governance and corruption risks in the renewables sector, there has been insufficient action to address them so far. There are numerous reasons for this, including the fact that companies might prioritize more immediate needs, such as securing finance or community support, or they may lack the knowledge and capacity to analyze and address corruption risks. Continue reading
The U.S. Congress Must (and Can) Right the Supreme Court’s Wrongs
This past June, in a case called Snyder v. United States, the U.S. Supreme Court dealt another blow to federal anticorruption law. The defendant in Snyder was a former mayor of an Indiana town. During his time as mayor, he helped steer a city contract to a certain company, and that company subsequently paid him $13,000 in “consulting fees.” He was convicted under a federal statute, 18 U.S.C. § 666, which makes it a federal crime for a state or local official to “corruptly solicit[,] demand[,] …or accept[] … anything of value from any person, intending to be influenced or rewarded in connection with any” federally funded program. The question in the case was whether this statute prohibits so-called “gratuities”—payments that are corruptly made to a government official in recognition of action that an official has taken or has committed to take, but without evidence that the promise of the payment was what induced the official to take that act. The Court held that § 666 does not prohibit gratuities. In other words, as long as there is no agreement beforehand, the Court held that § 666 allows people or businesses to reward their state and local officials for favorable government action. In so holding, the Supreme Court has in effect provided a blueprint for using money, gifts, and other material incentives to influence state and local government.
The Court’s Snyder decision is yet another in a string of recent cases that have undermined and impeded federal anticorruption prosecutions in the United States—a string that includes McDonnell v. United States, Kelly v. United States, and Percoco v. United States. These decisions have been criticized—often fairly—for their narrow, crabbed reading of the relevant statutes. But it is a bit too easy to make the Court the sole villain of the story. As the Court itself has emphasized, it is Congress’s responsibility to create clear laws. And Congress should not be given a free pass in light of its failure to respond to the Court’s decisions.
It is true, as noted on this blog (see here and here) and elsewhere (see here, here, and here), that Congress appears at best uninterested in, and at worst hostile to, enacting more robust anticorruption laws. Yet we should not be too quick to conclude that getting meaningful amendments to the laws that the Supreme Court has interpreted narrowly would be a political impossibility. Indeed, at the end of August three Members of Congress (two Democrats and one Republican) introduced the No Gratuities for Governing Act, which would amend § 666 to expressly prohibit gratuities, and in so doing would hold state and local officials to the same standard that applies to federal officials (codified at 18 U.S.C. § 201). Three Senators (all Democrats) introduced a parallel bill in the Senate, the Stop Corrupt Gratuities Act, in early September. Despite the understandable cynicism about the ability of the U.S. Congress to act on this matter, there are several reasons why this proposed legislation might actually have a fighting chance:
Open letter to OECD Antibribery Convention’s Working Group on Italy’s Noncompliance
In a world where the fight against corruption remains an uphill struggle, the OECD Antibribery Convention is a signal achievement. The 38 members of the OECD, the world’s richest nations, have bound themselves to make it a crime under their domestic law for any person or entity subject to their jurisdiction to bribe an official of a foreign country. What was once common practice by large multinational corporations is now subject to stiff fines for the corporation and prison sentences for their executives.
To ensure their commitment is more than just words on paper, convention parties regularly review each other’s compliance. But as this blog has reported, recent decisions by the Italian judiciary and the Italian government now threaten the enormous progress made in curbing foreign bribery (here, here, and here). Italy’s compliance is being discussed this day by the group charged with reporting on compliance with the Convention. In the letter to group members reprinted below, current and former corruption prosecutors, investigators, academics, and activists urge the group to hold Italy to account for its noncompliance.
The letter remains open for signature. Those who wish to add their names should do so by submitting a comment to this post.. Italy’s noncompliance must remain at the top of the international agenda to fight corruption.
We the undersigned anti-corruption experts and practitioners are writing in the context of discussions about Italy and its resistance to recommendations contained in the Working Group’s (WG) 2022 Phase IV report on Italy.
We wish to inform you of our immense concerns about Italy’s performance pre and post the Phase IV report issued by the WG. In particular, we would point you to the following:
Continue readingOpportunity for Civil Society Organizations Concerned with Corruption to Provide Input to 4th International Conference on Financing for Development
The UNCAC Coalition, a global network of close to 400 civil society organizations in over 120 countries committed to furthering implementation and monitoring of the UN Convention against Corruption, urges CSO’s working on corruption to provide input to the 4th International Conference on Financing for Development (FFD4).
UN Member States will there decide how to resource the pursuit of the Sustainable Development Goals, international development, and support reform of the international financial architecture.
The Conference will take place from 30 June to 3 July 2025 in Spain. The consultation that will inform the negotiations is open until 15 October COB EST (find more details below).For corruption to feature prominently as a cross-cutting issue, it is crucial that as many civil society organizations and other stakeholders as possible make their own submissions.
Continue reading