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Overview of Corruption and Anti-Corruption in Ghana

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Overview of Corruption and Anti-Corruption in Ghana www.transparency.org www.cmi.no Overview of corruption and anti-corruption in Ghana Query Could you please provide an overview of corruption and anti-corruption in Ghana? Purpose revenues in a transparent manner and avoid a “resource curse”. Our agency is planning to increase its development cooperation and open an embassy in Ghana. The The government has a strong anti-corruption legal information will serve as input to preparation for this. framework in place, but faces challenges of enforcement. A number of institutions were established Content in the 1990s to address corruption, such as the Commission on Human Rights and Administrative 1. Overview of corruption in Ghana Justice, the Serious Fraud Office, and the Public 2. Anti-corruption efforts in Ghana Procurement Authority. The Serious Fraud Office has 3. References recently been replaced by the Economic and Organised Crime Office with additional powers to investigate and prosecute corruption cases. However, various reports Summary underline the need to strengthen the independence and capacity of these various anti-corruption bodies. Major governance indicators show that Ghana has achieved significant progress over the last few years in Considered as one of the most vibrant emerging terms of government effectiveness, transparency of the democracies in the region, civil society has the political regulatory framework and control of corruption. space to develop, meet and campaign for anti- However, although it not perceived as extensive as in corruption issues freely and without major interference. most other African countries, corruption remains a significant problem in the country. Petty corruption is 1 Overview of corruption in persistent and there is evidence of forms of political corruption including looting of state assets. Sectors Ghana most affected by corruption include the police, political parties, and public financial management - in particular Extent of corruption with regard to public procurement, tax and customs administration. With the recent discovery of offshore oil Since the 2000 presidential elections which led to a fields, the country’s past record in managing its mineral peaceful transfer of power from Jerry Rawlings to John wealth has raised concerns over its ability to manage oil Kufuor, Ghana has enjoyed relative political stability in a region plagued by conflict and insecurity. Author(s): Marie Chêne , Transparency International, [email protected] Reviewed by: Robin Hodess, Ph.D., Transparency International, [email protected] Date: 22 February 2010 Number: 271 U4 Expert Answers provide targeted and timely anti-corruption expert advice to U4 partner agency staff www.U4.no Overview of corruption and anti-corruption in Ghana Increasingly, the country is considered to have a widespread and systemic in the country. Corruption relatively well-functioning democracy, and elections are scandals involving high ranking officials regularly hit the generally perceived to be free and fair, as headlines, such as Dr Richard Anane, former Road demonstrated by the December 2008 presidential Transportation Minister, or the son of former President elections which brought President John Atta Mills to Kufuor (Freedom House, 2010). More recently, two power in a peaceful transition process. Corruption has ministers of state were forced to resign after a British been – and continues to be - on the political agenda for construction firm, Mabey and Johnson, acknowledged many years 1 . John Kufuor had a “zero tolerance” in 2009 having paid a total of USD 761,725 in bribes to policy on corruption and his successor, President John Ghanaian government officials during the 1980s and Atta Mills, pledged to root out corruption and improve 1990s (Global integrity, 2009). While generally sharing governance as part of his electoral promises. The first the view that corruption in Ghana is not as widespread months of his mandate have indeed focused on as in many other African countries, the US Department investigating corruption, increasing government of State‘s 2009 Investment Climate statement also transparency and improving living standards for the reports that American firms are often asked for poor (Freedom House, 2010). “favours” from contacts in Ghana in return for facilitating business transactions (US Department of State, 2009). While it is still too early to assess the impact of these Similarly, Ghana performs relatively poorly in the Index most recent anti-corruption initiatives, many sources of Economic Freedom 2010 with a score of 39 % in claim that Ghana is doing better than many other terms of freedom from corruption (Heritage Foundation, African countries in this regard. Major governance 2010). Ghanaians themselves perceive corruption to be indicators confirm that Ghana has achieved remarkable a stumbling block for the country, with more than 90 % progress in terms of democratic governance in the last of respondents of an urban household survey decade. Transparency International’s 2010 conducted in Southern Ghana in 2005 stating that Corruption Perceptions Index ranks Ghana in 7th corruption is prevalent and a serious problem in the place of the 47 African countries assessed (and 62nd of country (Ghana Integrity Initiative, 2005). the 178 countries assessed), with a score of 4,1 on a 0 to 10 scale. According to the 2009 World Bank’s Forms of Corruption worldwide governance indicators, Ghana has also consistently improved its performance in terms of Petty and bureaucratic corruption control of corruption over the past few years, scoring 59,5 % on a 0 to 100 scale in 2009 compared to 47,6 in Although generally decreasing, TI’s Global Corruption 2004. The country has also achieved significant Barometer 2010 confirms that Ghana continues to be progress on all other dimensions of governance affected by high levels of petty bribery, with 37 % of assessed, including in terms of voice and respondents (compared to 42 % in 2009) reporting that accountability, political stability, government they have paid a bribe to obtain a service in the 12 effectiveness, regulatory quality and rule of law. months preceding the survey. Reflecting these positive trends, Ghana remains one of While Ghana has improved its regulatory framework in the easiest places to do business in West Africa and a number of areas - such as administrative procedures has been ranked as one of the top 10 economies for for starting a business, paying taxes and trading across doing business in Africa as a whole (World Bank/IFC, borders - low salaries and inefficient government 2010). Only 9,8 % of the firms surveyed by the 2007 bureaucracy continue to provide both opportunities and World Bank Enterprise Survey identified corruption as incentives for corruption and rent-seeking behaviour a major constraint to doing business in the country, (World Economic Forum, 2009). According to the 2007 compared to an average of 36 % in other African World Bank Enterprise Survey, close to 40 % of countries (World Bank, 2007). companies operating in Ghana expect to make informal payments to get things done, 23 % to get an operating In spite of these noteworthy improvements, other licence and 18 % in meetings with tax officials. reports and indicators suggest that corruption remains Political corruption Ghana is often referred to as one of the most vibrant emerging democracies in Africa. Elections are usually www.U4.no 2 Overview of corruption and anti-corruption in Ghana considered to be free and fair, and Ghanaians can politics among MPs in Ghana has persisted and even participate freely in the political process, including increased through the country’s democratisation through the right to vote, compete for public office, and process (Lindberg, S, 2003). elect representatives (Bertelsmann Foundation, 2010). However, there have been allegations of fraud during According to Lindberg, practices of patronage include the 2008 election campaign, including instances of favours such as attending to individuals’ school fees, violence and reported irregularities in the registration electricity and water bills, funeral and wedding process with some political parties allegedly bussing expenses; distributing cutlasses and other tools for potential voters from neighbouring countries and agriculture, finding someone a job or a place to stay, enticing minors to register (Ghana Integrity Initiative, contracts, or other services; or even handing out ‘chop- 2008). money’ or small cash sums to constituents. It might also entail personal assistance in dealing with the According to the 2010 Global Corruption Barometer, authorities, whether police, courts, headmasters, local political parties are perceived to be one of the most government officials or ministries. corrupt institutions in the country, scoring 4,1 on a 1 (not corrupt) to 5 (extremely corrupt) scale. The Sectors most affected by corruption in weaknesses of Ghanaian political parties are usually Ghana attributed to inadequate funding, weak internal structures, lack of transparency and low organisational Natural resource management capacity. As a result, political parties are often dominated by strong individual personalities, usually Ghana has large reserves of minerals such as gold, referred to as “founding fathers,” who tend to use the timber, cocoa, diamond, bauxite and manganese which parties as their personal fiefdoms (Ghana Centre for represent a major source of foreign exchange. Democratic Development, 2005). The recent discovery of off-shore oil 2 and its In terms
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