Leading the British government in their fight against world poverty

	About DFID
	Millennium Dev't Goals
	Country Profiles
	News & Press
	Publications
	Case Studies
	Procurement
	Consultations
	Research
	Funding Schemes
	Recruitment

10. Tackling corruption and promoting good governance

What we agreed at Gleneagles

The G8 will support the Extractive Industries Transparency Initiative and would ratify and implement the UN Convention against Corruption (UNCAC).

The G8 will encourage all countries to require enhanced due diligence of Politically Exposed Persons and to strengthen anti-bribery requirements for Export Credit Agencies.

The G8 agreed to support the Africa Peer Review Mechanism (APRM), under which African governments hold each other to account on a whole set of political, economic and corporate governance standards, while respecting African ownership.

The G8 agreed to support the implementation of good governance national strategies, including the Africa Peer Review Mechanism recommendations, and to provide greater support in public financial management.

How is the UK doing?

vest worn by election monitors in DRC The UK is the largest supporter of the Extractive Industries Transparency Initiative (EITI) – contributing $5.41 million. The EITI has been set up to fight corruption through increased transparency of payments from companies to governments and to help make sure that natural resources and the wealth they generate are well governed. The UK ratified the UN Convention Against Corruption in February 2006.

The UK’s Serious Organised Crime Agency (SOCA) has established new structures to make sure we take a proactive response to money laundering by foreign 'politically exposed persons' (PEPs). The Export Credits Guarantee Department fully implemented the OECD Action Statement on Export Credits, by revising its procedures from July 2006.

The UK has provided $2 million to the APRM Secretariat Trust Fund and has also provided $300,000 to the UN Economic Commission for Africa to support the APRM. The UK has also provided funds through bilateral programmes to support country review processes in Ghana, Kenya, Rwanda, Mozambique and Uganda.

The UK provides extensive support for national public financial management reform efforts through DFID’s Country Offices. The UK has also been a major contributor to international efforts in this area, for example the Public Expenditure and Financial Accountability (PEFA) Programme.

How the international community is doing

There has been good progress on the Extractive Industries Transparency Initiative (EITI) – with 26 countries now implementing the initiative and seven reporting revenues received.

Eighty-seven countries have now ratified the UN Convention Against Corruption. This means they have agreed to establish effective systems to deal with corruption and to co-operate with one another in the global fight against it.

Since 2002 twenty-six countries have signed the Memorandum of Understanding for the APRM. Ghana, Kenya and Rwanda have all been peer reviewed and the reports are now publicly available. They have now begun the process of integrating review recommendations into Poverty Reduction Strategy Plans or national budgetary processes.

Two other countries, South Africa and Algeria have completed the process and will be presented for review at the next African Union Summit in July. Another six countries are advanced in the process.

Overall progress to date in implementing the APRM has been slow. African leaders, with the support of the international community, need to demonstrate the political will for completion of the review process and integration of recommendations to improve governance into national strategies..

What should happen next?

The APRM will be a focus of German G8 Presidency as part of the good governance agenda. It is hoped that this will encourage faster implementation of the APRM and encourage more countries to join without undermining African-ownership.

The European Union, through the European Development Fund, has agreed to provide further support to those countries committed to good governance, for example those countries involved in the APRM.

The G8 is also discussing the development of a Good Financial Governance Action Plan with African countries. This will help countries improve the efficiency and effectiveness of their public finance through initiatives such as the PEFA programme.

The UK will encourage other countries to sign UNCAC, and to take forward efforts on asset recovery, technical assistance for developing countries and review mechanisms.

The UK and others are encouraging emerging economies like China, India and Brazil to join the EITI. We will support this through a UN resolution to establish EITI as a global standard.

Where it is making a difference:

Nigeria was the first African country to publish financial details as part of its commitment to EITI – and for the first time its people really know what their country earns from its oil and gas. Now they will want to know how their money is spent. The Metropolitan Police have responded to requests from the Nigerian Government relating to criminal activities by two former Nigerian State Governors Joshua Dariye and Diepreye Alamieyeseigha. In one case £1 million has been returned. In the other, property bought in London – which was frozen by swift UK police action under the 2002 Proceeds of Crime Act – will now be sold, so that the funds can be returned to the people of Nigeria from whom they were stolen. In total, £34.6 million of Nigerian assets is currently under restraint.

Azerbaijan joined the Extractive Industries Transparency Initiative in June 2003 as it depends on oil and gas resources that are being developed by international companies. A National Committee on EITI was established in November 2003 and three reports (published between March 2005 and January 2006) have provoked wide debate – particularly as they exposed discrepancies between the numbers reported by companies and the Government. Azeri civil society is now more closely involved in discussions with both the Government and the oil companies. In turn, this has stimulated a wider public debate on how transparency and accountability can contribute to democracy and the rule of law.

Ghana was the first country to be peer reviewed in Khartoum, in January 2006, and was praised as a model for the APRM process across Africa, and for the steady progress it has made in becoming a strong democracy over the last decade. The President gave his personal backing to the process, and the review report has been published. Ghana has issued its Monitoring and Evaluation report on the implementation of its national PoA for the period January to June 2006. This is a requirement of the APRM process that progress reports should be submitted every six months. Ghana's success in getting through the process is attributed to the structure, composition and autonomy given to the Governing Council, the body that steered the review exercise. The government's role was limited. The long-term success of the APRM in Ghana will be judged on the government's commitment to integration of the plan into national strategies and implementation of those recommendations.

Last updated: 12 March 2008