How Can an Anticorruption Agency Repair Its Reputation After a Scandal? Lessons from Ghana

Corruption-plagued countries often create independent anticorruption agencies (ACAs) to ensure the integrity of other institutions. But sometimes ACAs get caught up in their own scandals—scandals that can undermine their credibility and hard-won public trust. ACAs may be particularly at risk because of the threat they pose to powerful elites, who will always be on the lookout for ways to undercut ACAs. Of course, ACAs should be attuned to these risks and to put measures in place to minimize them. But no preventative system is perfect. What to do when it fails? When an ACA’s reputation has been besmirched by an internal corruption scandal, what can the agency do to restore public trust?

Ghana’s experience may offer some lessons. In 2008, Ghana established the Commission on Human Rights and Administrative Justice (CHRAJ), which is responsible for anticorruption enforcement, among other things. CHRAJ has done much good work, from conducting investigations of corruption allegations to producing conflict-of-interest guidelines and a code of conduct. But in 2011, the CHRAJ was rocked by an internal scandal when it was revealed that Lauretta Lamptey, then chief of the CHRAJ, had misappropriated public funds to renovate her official residence, to pay hotel bills, and to upgrade her air tickets. The scandal “dented the image of the CHRAJ both nationally and internationally” and jeopardized public trust in the CHRAJ and the willingness of Ghanaian citizens to report corruption cases to the commission.

Damage control was absolutely crucial—and seems to have been largely successful. According to the US State Department’s Ghana 2016 Human Rights Report, public confidence in the CHRAJ is again high. The CHRAJ’s relative success in restoring credibility after its internal corruption scandal suggests a few guidelines for how an ACA can respond effectively in this sort of situation:

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Announcement: New York Activists Soliciting Comments on Proposed Constitutional Amendment to Create a Public Integrity Commission

While most of the posts on this blog focus on national-level corruption, we’ve also had quite a few posts on corruption in certain subnational jurisdictions—and for one reason or another, we’ve had a particularly large number on corruption in New York State (see, for example, here, here, here, here, and here). While New York is by most accounts not among the most corrupt states in the U.S. (see here and here), corruption there has attracted a great deal of attention given New York’s social, political, and economic importance—and the egregiousness of some of the state-level corruption that has been discovered or alleged in New York state politics.

Is institutional reform the answer? Last year, GAB contributor Kaitlin Beach argued that U.S. states should follow Australia’s example by establishing anticorruption agencies (ACAs) at the state level, and it seems some New York activists have been thinking along similar lines (though perhaps without the explicit foreign inspiration). A coalition of nongovernmental organizations—including Columbia Law School’s Center for the Advancement of Public Integrity, the New York City Bar Association’s Committee on Government Ethics, and the New York chapters of the League of Women Voters, Common Cause, and the Public Interest Research Group—has, under the auspices of the “Committee to Reform the State Constitution,” been developing a proposed amendment to the New York State Constitution that would create a new “Commission on State Government Integrity,” that would assume the responsibilities (now dispersed among various other state organs) for investigating and penalizing ethics violations (as well as other forms of workplace misconduct) for both the legislative and executive branches, and for administering and enforcing campaign finance laws.

The full text of the draft of the proposed amendment is available here. I have not yet had an opportunity to read it carefully and form my own opinion. But I wanted to post an announcement about this proposal expeditiously, because the Committee to Reform the State Constitution is actively soliciting comments on its draft, and has requested that such comments be submitted by March 9th (a week from this Friday). Many of this blog’s readers may have relevant expertise—and perhaps also a useful comparative perspective—that may be helpful to these New York activists as they develop and refine their proposal. I encourage any of you out there with an interest in the institutional design of anticorruption agencies to take a look at the current draft proposal and to submit comments, if you have something potentially useful to contribute. Comments should be emailed to comments@detercorruption.info.

Depoliticizing the Removal of Heads of Anticorruption Agencies

In December 2017, a civil society organization that aligns itself with Philippine President Rodrigo Duterte made good on its threat to submit an impeachment complaint against Conchita Carpio Morales, head of the Philippines’ independent anticorruption agency (ACA), known as the Office of the Ombudsman. This came after President Duterte himself called for the impeachment of Ombudsman Morales, publicly accusing her of engaging in “selective justice” and of being part of a “conspiracy” to oust him. Notably, President Duterte leveled these accusations at a time when the Office of the Ombudsman had opened an investigation into the Duterte family’s alleged hidden wealth, and into a multi-billion peso illegal drug trafficking case that implicates President Duterte’s son. This is hardly a unique case. In Nigeria, Nepal and Ukraine, among other places, conflicts between politicians and ACA heads have resulted in the latter’s actual or threatened removal.

Unfortunately, most countries place the decision whether to remove an ACA head in the hands of their politicians (see here and here). The Chief Executive often plays a key role in removals—sometimes on his or her sole authority (as in Afghanistan, Brazil, Botswana, South Korea, Mexico, Singapore, and Tanzania), or in conjunction with the legislature (as in Uganda and Lithuania) or a judicial body (as in Ghana and Kenya). In most other cases, the power of removal is exercised by parliament or any of its members or ministers, often through an “impeachment” process of some kind. Only Barbados, Bangladesh, and Yemen have removal procedures for ACA heads that are strictly and purely judicial in nature.

While there are, at present, no universally-accepted standards against which ACAs are measured, the non-binding 2012 Jakarta Statement on Principles for Anti-Corruption Agencies lays out principles for states to follow in establishing or maintaining effective ACAs. The Jakarta Statement’s position on appropriate procedures for removing an ACA head may be influential in shaping how at least some countries address this issue. And because the Jakarta Statement is currently being revisited (see here and here), now is an opportune time to consider revising its provision regarding the removal of ACA heads.

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Saudi Arabia’s Anticorruption Purge: A Sham to Consolidate Power and Lure Investors

Saudi Arabia’s crown prince, Prince Mohammad bin Salman (MBS, for short), has been cleaning house. In the last month, he has arrested 11 princes, four ministers, and dozens of ex-ministers, all of whom are being held in five star hotels across Riyadh. He has also detained more than 200 others for questioning. Scores of commentators and media personalities have praised MBS’s anticorruption purge (see here and here), while others have condemned it (see here and here), which goes to show just how difficult it is to understand what the recent anticorruption purge means in the context of a country like Saudi Arabia. On the one hand, in Saudi Arabia, any measure to address corruption seems to be cause for optimism. Taken against the backdrop of the many social reforms advanced by MBS, ranging from permitting women to drive, diversifying the economy, and moderating the religious establishment’s brand of Islam, the anticorruption measures appear to be part of a genuine effort to reform Saudi Arabian society. Yet this optimistic assessment naively conflates a progressive social agenda that taps into our hopes for Saudi Arabia’s future (and the Middle East’s writ large) with what Saudi Arabia’s anticorruption purge really is: an attempt to consolidate MBS’s power and reassure foreign investors. Continue reading

Fixing Everything But What’s Broken: Malaysia after the 1MDB Scandal

The Malaysian 1MDB scandal sparked the largest investigation in the history of the U.S. Department of Justice Kleptocracy Asset Recovery Initiative and has revealed serious problems with Malaysia’s anticorruption infrastructure. The DOJ has filed civil forfeiture claims for $1.7 billion in assets obtained with funds diverted from 1MDB, a sovereign wealth fund ostensibly intended to promote economic development in Malaysia. The money ended up in a stunning variety of locations around the globe. Nearly $700 million found its way into the Malaysian Prime Minister’s personal bank accounts. His stepson’s production company suddenly had the funds needed to back the Hollywood movie The Wolf of Wall Street. A financier with close ties to the government bought an Australian model jewels worth $8.1 million.

Meanwhile, the Malaysian government insists there is nothing to see here. The newly-installed Malaysian Attorney General cleared Prime Minister Najib Razak of all wrongdoing and put a stop to the investigation by the independent Malaysian Anti-Corruption Commission (MACC). As an earlier post explained, the previous Attorney General, who headed an inter-agency task force investigating the 1MDB scandal, resigned under suspicious circumstances, and Najib appointed his replacement. Najib also replaced several cabinet members who had called for investigations into 1MDB. The breakdown of justice in the 1MDB scandal may seem all the more surprising to outside observers, since Malaysia had appeared to be making strides in addressing its corruption problem, and the MACC—which was founded in 2009 and modeled on Hong Kong’s Independent Commission Against Corruption—had received fairly good reviews (see here, here, and here).

In the wake of the 1MDB scandal, there have been a variety of proposals for improving Malaysia’s anticorruption efforts. Most of these proposals, especially those emanating from the government, involve a flurry of activity and the creation of new anticorruption institutions. For example, the government has recently proposed creating a new National Integrity and Good Governance Department. The Malaysian Bar has called for the establishment of an Independent Anti-Corruption Commission (IACC) to provide oversight for MACC. The MACC itself, despite its inaction on 1MDB, is ramping up other anticorruption campaigns. This all fits an unfortunate pattern in Malaysia: creating lots of new agencies or new structures, or undertaking other actions that make the government “look busy,” but that don’t actually get to the heart of the main problem: the lack of a politically independent anticorruption prosecutor.  Continue reading

Is China’s Anticorruption Crusade Reaching a Turning Point? Towards What?

In April 2014, a post on this blog claimed that the People’s Republic of China’s anticorruption campaign was reaching a turning point, and suggested that the campaign might be “significantly curtailed” in light of troubling signs of economic slowdown and strong pushback from other senior Party leaders. This prediction seemed reasonable at the time, yet more than three years later, the campaign shows no signs of winding down: Reports on senior government officials’ downfalls or corrupt fugitives’ repatriation from overseas still hit headlines on an almost daily basis. A recent development, however, does suggest that China’s anticorruption campaign might be reaching a different sort of turning point—turning from a near-exclusive emphasis on aggressive enforcement to institutional reforms that address the root causes of corruption.

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Guest Post: Anticorruption Enforcement Is the Key to Democratic Consolidation–Not the Other Way Around

GAB is delighted to welcome Cristina Nicolescu-Waggonner, visiting professor of Political Science at Pomona College and Scripps College, Claremont, to contribute the following guest post, drawn from material in her new book, No Rule of Law, No Democracy:

It is fashionable to argue that the only way to root out systemic corruption is to establish a political system characterized by genuine democratic accountability and the rule of law. Unfortunately, corruption – specifically the conflicts of interest of political and judicial leaders – does not allow for this sort of development. True, there may be democracy, but in the presence of widespread corruption it will remain in a perpetual state of unconsolidated democracy, without true rule of law. And in such weak democracies, the electoral process stimulates rather than discourages corruption: Eager to win and short on cash, politicians make deals with businesses and misappropriate public funds to finance campaigns, a vicious cycle that starts political tenure with illicit means. Different from lobbying, this illegal activity puts the breaks on rule of law reform. Corrupt politicians, afraid of retribution, do not reform or establish enforcement mechanisms: supervisory commissions, integrity agencies, anticorruption institutions, genuinely independent courts, whistleblower protection, etc. This dilemma is exemplified by the Czech Republic, which does well on various international democracy and rule-of-law indexes, but in fact is a corruption hotbed, with politicians, members of the judiciary, and business people involved in a web of misappropriation of public funds—partly for personal enrichment, but more importantly for election and re-election. The same vicious cycle is prevalent in new democracies all over the world, from Brazil to Romania to South Korea to Mexico to Tunisia: Corruption negatively affects the process of democratization and stalls it before democracy can have a chance to fight corruption.

So, what can we do? Continue reading