Incorporating Anticorruption Measures in the African Continental Free Trade Agreement (AfCFTA)

On April 2, 2019, The Gambia became the 22nd country to ratify the African Continental Free Trade Agreement (AfCFTA), which was the minimum threshold to approve the deal among the 55-member states of the African Union (AU). The AfCFTA aims to provide a single continental market for goods and services, as well as a customs union with free movement of capital and business travelers. Although the agreement will enter into force one week from tomorrow (on May 30, 2019), the negotiations for the Protocols and other important matters such as tariff schedules, rules of origin, and sector commitments are still being negotiated. However, once the treaty is fully in force, it is expected to cover a market of 1.2 billion people and combined gross domestic product of $2.5 trillion, which would make it the world’s largest free trade area since the creation of the World Trade Organization. This could be a game-changer for Africa. Indeed, the U.N. Economic Commission on Africa predicts that the AfCFTA could increase intra-African trade by as much as 52.3%, and that this percentage will double when tariff barriers are eliminated. The AfCFTA promises to provide substantial opportunities for industrialization, diversification, and high-skilled employment. And the AU’s larger goal is to utilize the AfCFTA to create a single common African market.

Yet there are a number of challenges that could thwart the effectiveness of this new treaty in promoting free trade and economic development. Corruption is one of those challenges. International indexes indicate that Sub-Saharan Africa is perceived as the most corrupt region in the world, with North Africa not much better. The current version of the treaty, however, does not address corruption directly. It should. Continue reading

Tracking Corruption and Conflicts of Interest in the Trump Administration–May 2019 Update

For the past two years (since May 2017), GAB has been tracking credible allegations that President Trump, as well as his family members and close associates, are seeking to use the presidency to advance their personal financial interests, and providing monthly updates on media reports of such issues. The May 2019 update is now available here. A couple of the more notable new developments in this update:

  • IRS Commissioner Charles Rettig, who is currently fighting at House Committee request for President Trump’s tax returns, owns two Trump-branded properties from which he receives substantial rental income–the value of which is arguably affected by the overall value of the Trump brand.
  • Special Counsel Robert Mueller’s report cites former Trump attorney Michael Cohen’s statement that Trump at several points suggested that his presidential campaign would function as an “infomercial” for Trump-branded properties.
  • New information revealed through a Freedom of Information Act request indicates that since 2017 at least seven foreign governments have rented units at a Trump-managed property in New York (the Trump World Tower).

As always, we note that while we try to include only those allegations that appear credible, we acknowledge that many of the allegations that we discuss are speculative and/or contested. We also do not attempt a full analysis of the laws and regulations that may or may not have been broken if the allegations are true. For an overview of some of the relevant federal laws and regulations that might apply to some of the alleged problematic conduct, see here.

Tracking Corruption and Conflicts of Interest in the Trump Administration–April 2019 Update

Since May 2017, GAB has been tracking credible allegations that President Trump, as well as his family members and close associates, are seeking to use the presidency to advance their personal financial interests, and providing monthly updates on media reports of such issues. The April 2019 update is now available here. A couple of the more notable new developments in this update:

  • Ballard Partners, a lobbying firm with close ties to the Trump administration, is apparently explicitly directing the firm’s clients to book rooms and hold events at the Trump International Hotel in Washington, DC, as a way to influence the administration
  • The Trump Hotel is selling merchandise with images of the White House, in an apparent attempt to further marketize/monetize President Trump’s official position.

As always, we note that while we try to include only those allegations that appear credible, we acknowledge that many of the allegations that we discuss are speculative and/or contested. We also do not attempt a full analysis of the laws and regulations that may or may not have been broken if the allegations are true. For an overview of some of the relevant federal laws and regulations that might apply to some of the alleged problematic conduct, see here.

Tracking Corruption and Conflicts of Interest in the Trump Administration–March 2019 Update

Since May 2017, GAB has been tracking credible allegations that President Trump, as well as his family members and close associates, are seeking to use the presidency to advance their personal financial interests, and providing monthly updates on media reports of such issues. The March 2019 update is now available here. A couple of the more notable new developments in this update:

  • A House of Representatives Oversight Committee released a report on a Trump Administration proposal to transfer nuclear technology to Saudi Arabia. President Trump’s son-in-law and senior advisor Jared Kushner was directly involved in discussions of this proposal. Brookfield Management, the asset management firm that effectively bailed out the Kushner family company by leasing the Kushner-owned property at 666 Fifth Avenue, also recently purchased a nuclear services company that would have directly benefited from the Saudi deal.
  • The General Services Administration (GSA) inspector general released a report questioning the GSA’s earlier decision that the Trump International Hotel’s lease on the D.C. Old Post Office was consistent with the terms of the lease; the IG stopped short of saying that the GSA’s determination was improper, but criticized the GSA lawyers for not addressing the constitutional issues implicated by this deal.

As always, we note that while we try to include only those allegations that appear credible, we acknowledge that many of the allegations that we discuss are speculative and/or contested. We also do not attempt a full analysis of the laws and regulations that may or may not have been broken if the allegations are true. For an overview of some of the relevant federal laws and regulations that might apply to some of the alleged problematic conduct, see here.

Tracking Corruption and Conflicts of Interest in the Trump Administration–February 2019 Update

Since May 2017, GAB has been tracking credible allegations that President Trump, as well as his family members and close associates, are seeking to use the presidency to advance their personal financial interests, and providing monthly updates on media reports of such issues. The February 2019 update is now available here

As always, we note that while we try to include only those allegations that appear credible, we acknowledge that many of the allegations that we discuss are speculative and/or contested. We also do not attempt a full analysis of the laws and regulations that may or may not have been broken if the allegations are true. For an overview of some of the relevant federal laws and regulations that might apply to some of the alleged problematic conduct, see here.

Putting Elected Officials in Charge of Elections Is a Recipe for Corruption: Evidence from U.S. States

One of the stories that figured prominently in last November’s U.S. elections was that of Brian Kemp, then Georgia’s Secretary of State and now the state’s new Governor. As Secretary of State, Kemp was responsible for administering the state’s elections—but in 2018 he was administering the very election in which he was running for governor, which creates an inherent conflict of interest. Indeed, there was plenty of evidence that Kemp used his position as Secretary to increase his odds of winning the election: He attempted to close polling locations in neighborhoods likely to vote for his opponent, promulgated abnormally stringent voter registration rules that put thousands of voters’ eligibility into question, and launched what most observers considered to be a groundless investigation into his opponent’s campaign in the week before the election. Ultimately, after ignoring calls for him to recuse himself, Kemp announced that he would resign as Secretary of State two days after the election, while the votes were still being counted. Kemp was eventually declared the winner, though his opponent, Stacey Abrams, never fully conceded, vowing to sue Kemp for “gross mismanagement of the election.”

It’s hard to see how an election administrator’s use of his power to benefit his own political campaign is anything other than corrupt. Indeed, Kemp’s controversial election illustrates how the U.S. electoral process is particularly vulnerable to this sort of corruption. (And, it’s worth noting, while Kemp drew most of the attention, there were two other candidates in the 2018 elections that found themselves in the same position, with one choosing to recuse himself from the recount process back in August 2018 during a close primary.) In most U.S. states, the Secretary of State (who is responsible for administering the state’s elections) is an elected official, and in over half of the states, Secretaries of State can run for public office while serving as Secretaries. This is out of step with most of the developed world, where election administration is independent and apolitical. Reformers have called for changes to this system before, so far without much success. But the atmosphere may now be ripe for anticorruption advocates to propose referenda to create new, independent, and non-partisan systems for election administration. A well-designed system could eliminate the clear conflicts of interest raised by people like Brian Kemp, while also tackling the more insidious and less obvious forms of corruption that arise when party members use their power over election administration to ensure that their party stays in power.

What might such a system look like? Canada may provide a useful model, given its similarities to the U.S., particularly with respect to its federalist structure. In Canada, each province is responsible for administering its provincial elections, while the Canadian national government administers national elections. The Canadian election administration systems share a few key components that keep the electoral commissions independent and non-partisan, and that all U.S. states should adopt: Continue reading

Tracking Corruption and Conflicts of Interest in the Trump Administration–January 2019 Update

Since May 2017, GAB has been tracking credible allegations that President Trump, as well as his family members and close associates, are seeking to use the presidency to advance their personal financial interests, and providing monthly updates on media reports of such issues. The January 2019 update is now available here. There are a number of important (and disturbing) additions to this month’s update. Most notably:

  • Federal prosecutors are now investigating a range of possible legal violations related to Trump’s inauguration committee, which raised a record amount ($107 million) for President Trump’s inauguration. According to reports, there is evidence that much of this money was raised from questionable sources, and that much of it was spent in ways that brought windfall profits to the Trump Organization–in violation of various federal laws. In particular, on the fundraising side, it seems that both domestic and foreign interests donated heavily to the inaugural committee with the apparent intent of influencing US policy. And on the spending side, the inauguration committee spent heavily at Trump Organization properties, apparently at above-market rates. Though the investigation is ongoing, there’s at least suggestive evidence that the inauguration committee might have been a surreptitious way for interest groups and foreign governments to funnel money directly to the Trump family.
  • Previous editions of this tracking project have noted concerns about the Trump Organization’s past and current business dealings in the Dominican Republic. A recent Global Witness report suggests that although the Trump Organization claims that its current business in the Dominican Republic is a continuation of an older deal that started before Trump took office, in fact the Trump Organization and its local partner are pursuing an entirely new development project, in clear violation of President Trump’s pledge that the Trump Organization would not pursue any “new foreign deals” during his presidency.
  • Jared Kushner and his family stand to benefit personally from a federal program–the “Opportunity Zone” program–that offers large tax breaks to developers who invest in low-income neighborhoods. This program was heavily promoted by Ivanka Trump, Kushner’s wife, and though neither of them will play a direct formal role in determining which neighborhoods will be designated “opportunity zones” eligible for tax credits, there is an obvious conflict of interest concern, especially since the Kushner family owns multiple properties in areas that have already been designated as opportunity zones–including neighborhoods that are actually quite affluent.

As always, we note that while we try to include only those allegations that appear credible, we acknowledge that many of the allegations that we discuss are speculative and/or contested. We also do not attempt a full analysis of the laws and regulations that may or may not have been broken if the allegations are true. For an overview of some of the relevant federal laws and regulations that might apply to some of the alleged problematic conduct, see here.