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Combating Corruption in the Middle East

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Combating Corruption in the Middle East Combating Corruption in the Middle East This book examines the phenomenon of ‘grand corruption’ in Kuwait and the pattern in the wider region. Taking an interdisciplinary approach, the work places corruption in its socio- logical, political, and economic context to explore the relationship between the characteristics of Kuwait as a state with an endemic corruption problem. It then focuses on laws and regulations as key problem-solving mechanisms. In doing so, it identifies, explores, and assesses the existing counter-corruption laws and regulations in Kuwait in a broad socio-political-economic context. The work goes beyond doctrinal legal research, employing empirical methodology based on semi-structured interviews with elite politicians and professional experts from criminal justice and non-governmental organisations (NGOs). These valu- able and original insights are reflected upon throughout the study. The grand corruption that permeates the tier of high-profile officials in Kuwait is replicated in many developing countries where accountability mech- anisms regularly suffer from lack of enforcement. The appeal of this book is its application to numerous jurisdictions, and the Gulf Cooperation Council (GCC) countries and Middle East in particular. It will be a valuable resource for academics, researchers, and policymakers working in the areas of financial crime and corruption. Khaled Al-Rashidi is an assistant professor in the Criminal Law Department at School of Law, Kuwait University. The Law of Financial Crime Series Editor: Nicholas Ryder Available titles in this series include: Financial Crime and Corporate Misconduct A Critical Evaluation of Fraud Legislation Edited by Chris Monaghan and Nicola Monaghan Corporate Liability for Insider Trading Juliette Overland Corruption in the Global Era Causes, Sources and Forms of Manifestation Lorenzo Pasculli and Nicholas Ryder Counter-Terrorist Financing Law and Policy An analysis of Turkey Burke Uğur Başaranel and Umut Turksen Integrity and Corruption and The Law Global Regulatory Challenges Edited by Nicholas Ryder and Lorenzo Pasculli Regulating and Combating Money Laundering and Terrorist Financing The Law in Emerging Economies Nkechikwu Valerie Azinge-Egbiri Combating Corruption in the Middle East A Socio-Legal Study of Kuwait Khaled S. Al-Rashidi For more information about this series, please visit: www.routledge.com/The- Law-of-Financial-Crime/book-series/FINCRIME Combating Corruption in the Middle East A Socio-Legal Study of Kuwait Khaled S. Al-Rashidi First published 2021 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 Khaled S. Al-Rashidi The right of Khaled S. Al-Rashidi to be identified as author of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Al-Rashidi, Khaled, author. Title: Combating corruption in the Middle East: a socio-legal study of Kuwait/Khaled Al-Rashidi. Other titles: Law of financial crime. Description: Abingdon, Oxon; New York, NY: Routledge, 2021. | Series: The law of financial crime | Includes bibliographical references and index. Identifiers: LCCN 2020046166 (print) | LCCN 2020046167 (ebook) | ISBN 9780367721763 (hardback) | ISBN 9781003153740 (ebook) Subjects: LCSH: Political corruption–Kuwait. | Political corruption– Kuwait–Prevention. | Political corruption–Law and legislation–Kuwait. Classification: LCC JQ1848.A56 C63 2021 (print) | LCC JQ1848.A56 (ebook) | DDC 364.1/323095367–dc23 LC record available at https://lccn.loc.gov/2020046166 LC ebook record available at https://lccn.loc.gov/2020046167 ISBN: 978-0-367-72176-3 (hbk) ISBN: 978-1-003-15374-0 (ebk) Typeset in Galliard by KnowledgeWorks Global Ltd. This book is dedicated to all stakeholders in Kuwait who have genuine intent to understand and combat corruption. Contents List of legal and regulatory instruments x List of cases xii List of acronyms and abbreviations xv Acknowledgement xviii Notes for the reader xix 1 Introduction 1 1.1 What is this book about? 1 1.2 Originality 5 1.3 Methodology: Socio-legal research 8 1.3.1 Library-based research 8 1.3.2 Qualitative research: Fieldwork study 10 1.3.3 Comparative legal research: Policy transfer 12 1.4 Outline of the book 14 Bibliography 16 2 The phenomenon of corruption 18 2.1 Introduction 18 2.2 What is corruption? Literature review 19 2.2.1 Corruption: An ill-defined concept 21 2.2.2 Patterns of corruption 22 2.2.3 The effects of corruption 26 2.2.4 Causes of corruption 30 2.3 Kuwait and corruption 33 2.3.1 Conceptualising corruption in Kuwait 33 2.3.2 Corruption patterns 35 2.3.3 Effects of corruption: The corruption– governance nexus 37 2.3.4 Causes of corruption 41 2.4 Conclusion 68 Bibliography 69 viii Contents 3 Counter-corruption: Values and strategies 76 3.1 Introduction 76 3.2 Counter-corruption values 76 3.2.1 Legitimacy 78 3.2.2 Effectiveness 103 3.3 Counter-corruption strategies 109 3.3.1 Social empowerment 109 3.3.2 Law enforcement 115 3.3.3 Situational crime prevention (SCP) 118 3.4 Conclusion 123 Bibliography 124 4 Kuwaiti criminal counter-corruption measures 130 4.1 Introduction 130 4.2 What is corruption in Kuwaiti law? Setting the scope of chapter 131 4.3 Current criminal counter-corruption measures 134 4.3.1 Bribery 134 4.3.2 Diversion of public funds 141 4.3.3 Abuse of function 148 4.3.4 Illicit enrichment offence (IEO) 157 4.3.5 Money laundering offence (ML Offence) 166 4.3.6 Proceeds of crime 170 4.3.7 Whistleblowing 179 4.4 Critique of the Kuwaiti criminal response to corruption and suggested reforms 184 4.4.1 Assessment of existing criminal counter- corruption measures 184 4.4.2 Innovative measures 189 4.5 Conclusion 199 Bibliography 200 5 Kuwaiti non-criminal counter-corruption measures 205 5.1 Introduction 205 5.2 Working definition for corruption in non-criminal contexts 206 5.3 Current non-criminal counter-corruption measures 206 5.3.1 Enforcement pyramid 207 5.3.2 Persuasive measures 210 5.3.3 Civil law measures 218 5.3.4 Administrative measures: disciplinary offences 224 Contents ix 5.4 Critique of the existing non-criminal counter- corruption measures and suggested reforms 228 5.4.1 Assessment of existing non-criminal counter-corruption measures 229 5.4.2 Innovative measures 232 5.5 Conclusion 241 Bibliography 242 6 Conclusion 246 6.1 Introduction 246 6.2 Research objectives and key findings: What has been found 246 6.3 Originality: A fieldwork study 257 6.4 Future research 260 Bibliography 263 Appendices 264 1.1 Appendix 1: Interview guide 264 1.2 Appendix 2: Translation of some of the most relevant cited legislation 268 Index 275 List of legal and regulatory instruments Legal and Regulatory Instruments (Kuwait) Administrative Disputes Act 20/1981, 89, 207, 221 Amiri Decree on the Establishment of Supreme Petroleum Council 1/2013, 58n321 Anti-Money Laundering and Countering Financing of Terrorism Act 106/2013 (and its Statutory Instrument No. No. 37/2013), 104, 132, 214, 252, 268 Anti-Corruption Authority and Financial Disclosure Act 2/2016 (and its Statutory Instrument No. 300/2016), 2n1, 54, 257, 268 Associations Act 24/1962, 111, 113, 113n264 Audio-Visual Media Act 61/2007, 111 Capital Market Authority Act 7/2010 Chamber of Commerce Act 1959, 194 Civil Service Act 15/1979 (amended by Act No. 9/2015) and its Statutory Instrument, 34n142, 84, 103, 207, 211, 211n28, 224n126, 225–227, 226n137, 228n53 Civil Law Act 67/1980, 273 Code of Conduct of Public Officials Circular No. 11/2012, 104, 151, 207, 211 Conflict of Interests Act 13/2018 (and its Statutory Instrument No. 296/2018), 269–270 Criminal Justice Act 17/1960, 90, 220 Criminal Law Act 16/1960, 104, 132, 271 Criminal Law Act 31/1970, 104, 132, 272 Currency, Central Bank of Kuwait and Banking Business Act 32/1968, 216, 216n71 Electronic Transactions Act 20/2014, 194 GCC Common Customs Act 10/2003, 132, 194 Income Tax Act 3/1955, 66n376, 132 Kuwaiti Constitution 1962, 36, 36n155, 47, 50n257, 52n267, 54n282, 80, 80n21, 81n27, 83, 86n65, 88n88, 88n90, 94, 97, 101n188, 102, 111n251, 123, 147, 155n155, 159–160, 165, 177, 209n17, 240 List of legal and regulatory instruments xi Legal Advice and Legislation Department Act 12/1960, 207, 221 Legal Profession Act 42/1964, 216 National Assembly Election Act 35/1962 (amended by Act No. 9/1998), 48n243 Press and Publication Act 3/2006, 111 Protection of Public Funds Act 1/1993, 84, 132, 219, 273, 274 Public Tenders Act 49/2016, 83 Ratification of Convention on the Taking of Evidence Abroad in Civil or Commercial Matters Act 8/2002, 222n113 Ratification of the UN Convention against Corruption Act 47/2006, 14n55, 84n52, 177n331, 177n333 Ratification of the UN Convention against Transnational Organized Crime Act 5/2006, 19n4 Resolution No. 1532/2013 on the Establishment of the Kuwaiti Financial Intelligence Unit, 169ns266 State Audit Bureau Act 30/1964, 83, 207, 225 Statistics and Census Act 27/1963, 36n151 Trial of Ministers Act 88/1995 (amended by Act No.
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