Banks accused on African corruption

AFRICA:WESTERN BANKS are as culpable in African political corruption as the politicians there who steal money from their people, a leading expert on African corruption has said.

Akere Muna, president of the Pan-African Lawyers' Union and of Transparency International Cameroon, told a conference in Dublin yesterday, hosted by the Trinity International Development Initiative, that "everyone knows where there is stealing, the handler is as culpable as the thief.

"Nobody mentions the banks. Leaders who steal money, they give it to western banks. These banks keep the money for eight and nine and 10 years. Can you imagine what they do with this money? It is immoral for these banks to take the money. If an African leader puts $15 million a year into a bank account, for God's sake, it's not a salary."

Addressing the conference, titled Strengthening Institutions for Development and Poverty Reduction, Mr Muna defined corruption as the use of entrusted power for private gain. It was "endemic" in Africa, he said. "People believe it's okay to do it. They don't look at the consequences of a corrupt act."

Peter Power, Minister of State for Overseas Development, said Ireland was on target this year to donate 0.54 per cent of gross domestic product to overseas aid, and 0.7 per cent by 2012.

"Despite progress made, there are still enormous challenges, particularly in the institutional capacity of developing countries to elect governments fairly."

Elena Panaritis, a specialist in property rights at the University of Pennsylvania, said secure property rights were necessary for development.

An insecure property rights system, she said, led to enduring poverty, social disorder and a weak, thin, middle class.