Political Corruption in the Arab World A Case Study JUNE 2014 JUNE 2014 This report was prepared in partnership Work Team: Table of Contents with: Main researcher: Dr. Ahmad Abu-Dayyia- The Lebanese Transparency Association Palestine Transparency Morocco Ms. Hoda Ghosn- Lebanon Introduction 4 I Watch Organization- Tunisia Ms. Aya Jarad- Tunisia Yemeni Team for Transparency and Dr. Ahmad Moufid- Morocco Methodology and objectives of the report 8 Integrity Dr. Abd-Albaqi Shamsan Qayed- Yemen The Coalition for Integrity and Dr. Yosri ‘Azbawi- Egypt Roots of corruption in political systems of the Arab World 8 Accountability- AMAN- Palestine Egyptians without Borders (EWB) Main manifestations of political corruption in the Arab World 12 1. Control of the three authorities 12 2. State of the executive authority 14 Supervision by Preventing conflict of interest 15 Dr. Azmi Shuaibi-AMAN’s Commissioner for Combating Corruption Financial and asset disclosures 16 This report was prepared within the context of a project in the Arab region led by AMAN, Right of access to information 18 and under the supervision of Transparency International. The project is funded by SIDA +UKFCO + German FO. Procedures for appointing senior positions 19 The report aims to diagnose the phenomenon of political corruption in the Arab world Safeguards concerning rights and freedoms 22 by defining its forms, and challenges in combating it, as well as to pin point related gaps in the legal, political, and economic spheres in six Arab countries: Palestine, 3. State of the legislative authority 23 Morocco, Egypt, Yemen, Tunisia, and Lebanon. The purpose of this diagnosis if to provide practical recommendations that would facilitate the planning and implementation of 4. State of the judicial authority 26 interventions that would pressure related parties to put a stop to political corruption. 5. Integrity of general elections 28 Publications of the Coalition for Integrity and Accountability-AMAN: 2014 6. Management of public funds and property 30 Transparency Palestine 7. Monitoring and control institutions and apparatuses 34 ISBN No: 9789950356153 8. State of the armed forces and security institutions 37 9. Political parties 41 10. Non-Governmental organizations 44 11. The Media 46 Conclusions and recommendations 49 Recommendations 55 Annexes 60 Resources and references 119 Political Corruption in the Arab World JUNE 2014 legislations to their favor. Moreover, they also have the power to influence decisions of some judges and officials in monitoring and control institutions of the state. Furthermore, often, their loyalists are able to hold central positions in the most sensitive institutions of the state including media outlets INTRODUCTION: and public and professional institutions, hence granting them additional power and control over The nature and manifestations of political corruption processes of decision making. differs from one country to another. However, in all cases it translates into corruption acts committed Moreover, these groups are intertwined with well by a specific ruling class and individuals, politicians, known businessmen and elites from the private leaders of political parties, and members of sector through shared goals and interests. This government (ruling elites), regardless of their political network of alliances and mutually exchanged affiliations and or positions. Political corruption is favors and positions between the players enables when this “Elite” group of individuals colludes to: them literally to capture institutions of the state. exploit their position of power to influence decisions, This in return is what makes the process of policies, and legislations to their favor whether it is for addressing the issue of combating corruption, by personal interest, or to support loyalists, obtain illicit conventional means, futile. gain for personal wealth, enhance personal financial To further complicate the situation, these groups and social status, or fund election campaigns. It is also are more likely to be the ones who would also when one facilitates obtaining and legalizing build the security sector in the form of strong bribery in return for granting the use or possession apparatuses that generally would defend the of state land, or for granting contracts, privileges, regime, the president or king and all those in permits, licenses, or trade agreements. Such actions power and their loyalists as they are considered and behavior transform the public treasury into symbols of the state. The price for this defense is personal bank accounts for this elite group, including returned in the form of privileges and assurances excessive spending on personal recreation activities for officials of these apparatuses. And more often and smuggling of public funds abroad to bank than not, these officials and loyalists become vital accounts and or investments. partners to the ruling class. Kleptocracy is the name given to countries where Political corruption is also often accompanied by political corruption is widespread. In these countries, arbitrary use of authority against powers granted wealth of officials and the ruling class (elites) is to other parties of the political system. This is done achieved at the expense of the people, usually with the purpose of achieving gains and interests through looting of public funds. that differ from those that the power was granted It is worth noting that these (elites) usually have to them in the first place, hence becoming a control over decision making in the state’s institutions totalitarian regime that controls the details and including majorities in parliaments, hence influencing positions of decision making at the political and 4 5 Political Corruption in the Arab World JUNE 2014 economic levels. In addition, this regime and its decisions are not subject to Moreover, political corruption is a threat to democracy and the rule of law, any legal or popular accountability or external monitoring and control. This particularly, in developing countries that are in a transitional stage, as in some is mainly due to: immunities granted, as well as weakness of parliaments, Arab countries. It also causes devastating effects at the economic, social and monitoring and or judiciary officials who are subordinate to the regime. cultural levels; a main cause of eruption of protests by movements in many These factors gradually transform the system into an authoritarian regime that Arab countries at the end of 2010. These movements also sought to challenge does not respect the principle of separation of powers even if at times some the corrupt authoritarian regimes to make substantial positive changes in semblance of a democratic system seems to be maintained, such as holding supporting and protecting: public freedoms, human rights and the dignity presidential and parliamentary elections, or formulating a constitution that, at of the Arab citizen, anti-corruption efforts, including demand for return of the end, it would reinforce its reins of power over the state. stolen assets. As it stands, these countries are still in the process of re-writing a new social contract that promotes the concept of separation of powers, and Abuse of power, being a form of political corruption is a direct violation ensures the end of tyranny and corruption. This phase requires joint efforts of of the rule of law, epitomized by placing self-interest before public all parties, including intellectuals and experts, local and regional, to contribute interest while serving in a public office. A good example is when the to the development of a national vision that would illustrate the shape and judiciary’s independence is undermined by being made subordinate to form of a contemporary civil state; a state that would be based on good other powers, and in particular, it is when public prosecution apparatuses governance and citizenship. Also to ensure the establishment of a national become defenders of the regime rather than the citizens. integrity system that prevents opportunities of corruption and impunity for the corrupt. Once achieved, there will be need to provide an accurate diagnosis of Political corruption is embedded with many devastating consequences at the 1 the phenomenon of corruption in the Arab world including its forms, negative political, economic and social levels, some of which: decline in the role and effects, and underlying causes. The diagnosis will serve as a prelude to obtain participation of the people in public affairs, which in turn leads to confusion in political will for combating corruption; develop strategies and action plans the mind of citizens of the concept of citizenship regarding duties and rights. that are country specific and necessary for preventing the return of corruption, Moreover, It also reduces the role of the middle class to serving a limited first and foremost, political corruption. group of elites in the military institution; security institutions; private sector; leaders of political factions; or representatives of sects. In other words, political Finally, in order to contribute directly to the democratic process, sought by corruption leads to the control of a small group over the various aspects of the anti-corruption movements and activists, which revolves around the life, which results in a superficial participation in public life. This weakens basic principles and provisions of the constitutions of Arab countries, and the legitimacy of the political system and undermines the foundations of to