BRAMA, Mar 26, 2004, 9:00 am ET
Press Release
Political corruption undermines hopes for prosperity and stability, says Peter Eigen
Statement by Peter Eigen, Chairman of Transparency International (TI), launching the TI Global Corruption Report 2004
London, 25 March 2004 — "Political corruption undermines the hopes for prosperity and stability of developing countries, and damages the global economy. The abuse of political power for private gain deprives the most needy of vital public services, creating a level of despair that breeds conflict and violence. It also hits the pockets of taxpayers and shareholders worldwide. The problem must be tackled at the national and international level.
"Transparency International's Global Corruption Report 2004, launched today, with a special focus on political corruption, is a call to action to bring integrity and accountability into governance, to stop bribery by multinational companies, and to curb the flow of stolen assets into secret bank accounts in the west.
"The scale of political corruption is vast, and it has been sustained by the complicity of western banks and the active bribe-paying of multinationals, in particular in the fields of public works, arms and defence, and oil * and gas.
"The special focus of the GCR 2004 on political corruption includes expert reports on the regulation of political finance, the disclosure of money flows into politics, and the repatriation of wealth looted by politicians. Two industry case studies - on the arms and oil sectors - demonstrate the role of the private sector in supplying corrupt political funds. The GCR 2004 also includes the findings of the latest research into corruption and ways to combat it.
"Political will is essential to winning the battle against corruption, and international financial institutions and donor governments must engage with developing country governments that demonstrate the political will to fight corruption. To make sure that this will can be realised, donor governments must insist on adequate civil society monitoring of good governance in recipient countries.
"To mark the publication of the GCR 2004, today TI is launching its Standards on Political Finance and Favours, setting out a blueprint for transparency in political and campaign finance in a year which sees key elections in countries where political corruption has been a persistent problem. Elections will be held in the coming months in Indonesia and the Philippines, two countries still reeling from the corrupt legacy of Mohamed Suharto, and both Ferdinand Marcos and Joseph Estrada respectively.
"The TI Standards include conflict-of-interest legislation, and independently monitored annual disclosure of party income and expenditure. The recommendations include a diversified funding base, fair access to the media and provisions for civil society monitoring of political finance.
"Donations to political parties and candidates to elected office must not be a means to gain personal or policy favours. Parties and candidates must practise transparency. Political parties, candidates and politicians should disclose detailed information about assets, donations, in-kind donations, loans and expenditure, on an annual basis as well as before and after elections, to an independent agency.
"Independent public oversight bodies endowed with the necessary resources must effectively supervise the observance of regulatory laws and measures. Together with independent courts, they must ensure that offenders are held accountable and duly sanctioned.
"Diversified funding should be sought through: state funding and subsidised access to the media; the encouragement of small donations and membership fees; and controls on corporate, foreign and large individual donations. Spending limits should be considered.
"Candidates and parties must be given fair access to the media. The media should play an independent role, free from political interference, both in election campaigns and in the broader political process.
"Civil society should have the opportunity to actively participate in promoting adequate legislation in the field of political finance and in the monitoring of political finance and its impact on political representation."
The TI GCR 2004 can be downloaded free at www.globalcorruptionreport.org. Alternatively it may be ordered (price $24.95/ ?15.99) through online booksellers, local bookshops (ISBN 0 7453 2230 1) or the publisher (www.plutobooks.com).
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