The cost of corruption

December 9th marked International Anti-Corruption Day, a day to raise awareness on combating corruption, and supporting transparency and good governance. Corruption inflicts substantial costs upon the economy, society and security.

Corruption drives instability, popular protests and revolutions. It can encourage insurgency movements and be exploited by terrorist groups to gain popular support. It decreases confidence in rule of law. As the United Nations Secretary General has said, “Peace and stability, human rights and effective governance, based on the rule of law, and transparent institutions are outcomes and enablers of development.”

Transparency International ranks Malta 43 out of 175 on its Corruption Perceptions Index (2014) and a percentile ranking of 79% in its Control of Corruption (2010) tool. The US is 17 out of 175 and 86% on the same measures. The Council of Europe estimates that hundreds of billions of euros are paid in bribes every year. But corruption is more than just paying monetary bribes. 

Large or small, acts of corruption result in a heavy financial burden on citizens, especially the poor. Regardless of how corruption presents itself in our respective countries, it is clear we can all do more to promote good governance at home.  

We must commit to fight corruption and promote transparency in the international community.  Established anti-corruption measures and “good governance” practices exist. The United Nations Convention Against Corruption (UNCAC, 2005) sets out the international standards accepted by the vast majority of countries, including Malta and the United States.

UNCAC stresses prevention and criminalising a wide range of acts of corruption offences. It requires signatories to cooperate with one another in every aspect of the fight against corruption.  This includes cooperating on asset-recovery, particularly important for many developing countries facing plundered national treasuries due to high-level corruption.

Regular reporting evaluates each country’s adherence to the international standards. As of November 2014, there are 173 parties to the Convention, which include 170 UN member states, the State of Palestine and the European Union. It remains the broadest framework for tackling this disease.

In addition to UNCAC, Malta is a signatory to three anti-corruption conventions and has been a member of the Council of Europe Group of States against Corruption since 2001. Locally, the Maltese government has implemented the National Anti-Fraud and Corruption Strategy, which includes the Protection of the Whistleblower Act (2013) and the removal of the time-bar on corruption offences committed by politicians. Altogether, the strategy ensures cooperation among several local entities to identify and prosecute cases of corruption, money laundering, financial mismanagement and fraud.  

The United States leads anti-corruption efforts by example internationally. We are party to four different anti-corruption efforts and support strong international enforcement and capacity building. Within our own borders, anti-corruption remains one of the highest priorities for domestic law enforcement authorities. We conduct vigorous prevention and enforcement operations and we believe in transparency.  

What we need more of as a community, are robust implementation and enforcement of these recognised measures. The international standards are clear and widely accepted. There are regional agreements to help implement them. Let us work together to apply best practices in our societies. Not doing so is unacceptable. It harms society, the economy, and our security in many ways. It can undermine faith in democracy when ordinary citizens believe their leaders use their authority for personal gain. Corruption is a disease and enforcement is the cure.

We are proud to work with our international partners in combating corruption and promoting good governance. The United States stands ready to work with Malta’s anti-corruption institutions to bring corrupt individuals to justice, whether through technical assistance and training, or working cooperatively to find evidence and/or stolen assets held abroad.

In 2013, Malta and the United States signed the bilateral Foreign Account Tax Compliance Act (FATCA) to combat tax evasion and increase transparency on financial accounts held by US taxpayers overseas. It is essential for the United States and Malta to continue their partnership.  Corruption knows no borders, and so our efforts must be a team endeavour to achieve results.  

Money and influence should not decide access to education, work and services. Instead, the playing field should be made level for all.