Transparency International Newsletter

Transparency International Newsletter

From: (Tobias Eigen) Date: 14 Mar 94 23:33:05 -0500 Newsgroups: bit.listserv.devel-l Subject: Transparency International February Newsletter Message-ID: <> Organization: Baobab FTSC <-> UUCP Gateway, Washington DC

===================================== Transparency International Newsletter

===================================== February, 1994

[This is the first electronic publication of the newsletter. Transparency International is now accessable via the internet address . TI has recently set up two e-mail services of interest, dubbed TI_FORUM and TI_PRESS. Instructions for subscribing to these services are at the end of this newsletter. You are encouraged to spread this newsletter as far and wide on the internet as possible.]


Transparency International (TI) is opposed to corruption in international business transactions. Does this actually mean that TI is demanding that businesses who are unhappy with the existing state of affairs simply withdraw from corrupt marketplaces, leaving the field wide open to their competitors and throwing their employees out of a job? And if a business declares its support for TI, what implications does this have for the ways in which it is expected to conduct its business internationally? These are questions which our supporters are asked continually. But the answers are simple.

TI is not so naive as to believe that international corruption can be eliminated at the stroke of a pen. Rather, we are convinced that a gradual, programmatic response is the only one likely to be effective. Nor does TI expect those who wish to raise ethical standards - and to found international commerce on genuine international competitive bidding rather than on competitive bribery - simply to leave the corrupt playing- field to those who are content with the existing state of affairs. So the answer to the first question is an emphatic "No." What TI is looking for are commitments from major international corporations that they are:

(a) opposed to corruption in international business transactions; and (b) prepared to work with individual governments and with TI in ways designed to eliminate corruption progressively, marketplace by marketplace and market sector by market sector. The rules should change for everyone, at the same time, so that no one is comparatively disadvantaged. This way everyone stands to gain.

So TI is non-threatening. It does not seek unrealistic commitments. Where governments are content with a status quo in which corruption looms large it will be business as usual. Where they are not, the coalition TI is continuing to form will be ready to provide them with support as they address one of the major challenges of the contemporary world.

-- Peter Eigen, Chairman of the Board (





TI has received a request for assistance from the Government of Benin. Applications for funding have been made and TI will be in a position to move as soon as this comes through. Indications from Mali suggest that TI may be active there sooner rather than later.

Meanwhile, in English-speaking Africa, Board members Frank Vogl and Laurence Cockcroft have both been in East Africa on separate business missions recently, but took time out to foster TI's African program in Uganda and Tanzania.

Jeremy Pope has also been in London for a promising series of meetings with senior diplomats from Ghana and Uganda. Consultations with the Commonwealth Secretariat foreshadow possible funding for both in- country and regional activity, and participation by the Commonwealth's International and Commercial Crime Unit. Present plans are for TI to mount preparatory missions to both Ghana and Uganda about the middle of the year, and for a regional meeting to be mounted in Southern Africa before the year's end.

An early preparatory mission to South Africa is also under consideration.

Middle East and North Africa

TI is exploring which Arab country would commit itself to setting up a program with TI. The Arab Fund for Social and Economic Development in Kuwait has signaled interest. Sonja Hegasy has spoken to various intellectuals in Morocco, where corruption seems to be discussed more freely in the press. The so-called "Tabitgate" scandal last year uncovered the case of a chief of police from Casablanca who had amassed about DM four million in illicit payments on his bank accounts.



Progress is being made with the formation of a national chapter in Kenya with the formal approval of the draft constitution pending. Board member Joe Githongo is the driving force behind this interesting development and can be contacted on fax: 254-2-331 068


Mauritius Enacts Anti-corruption Legislation

The Parliament in Mauritius has enacted legislation to establish an Anti-Corruption Tribunal which is to have both investigative and adjudicative functions. The opposition parties criticized the legislation as poorly drafted and unlikely to be effective. According to press reports, "corruption is institutionalized in Mauritius." L'Express, 14 January 1994

Brazil Reforms Debate Resumes

Brazil's stalled constitutional review finally resumed on 19 January. The review had been on hold since October because of a corruption scandal in Congress and is "likely to make significant changes to the country's creaking political system." Congressional immunity, which has allowed some Congressmen to escape criminal charges, would in future only extend to guaranteeing freedom of speech and association. "Analysts agree that all these changes would make small but important changes to the way Brazil is governed." Financial Times, 20 January 1994

"Crisis Looms" in Zambia

Zambia's Minister of Finance is reported as having presented his 1994 budget "against a deepening crisis." 1993 financial targets have been missed and austerity policies will have to continue. Allegations of "cabinet-level corruption have led to resignations and dismissals, while [aid] donors are threatening to withhold aid unless Lusaka cleans up its act." Financial Times, 24 January 1994

"Insatiable Appetites" in Mozambique

The Financial Times reports that "Maputo-based businessmen, long- accustomed to necessary kickbacks, complain that government officials facing early retirement now have insatiable appetites." Elections are scheduled for October. Financial Times, 26 January 1994



A preparatory mission to South Africa is planned for late March or early April.

Board Member Frank Vogl represents TI to speak on "Corruption in International Business Transactions" at the triennial World Public Relations Conference, Punta del Este, Uruguay from 12-15 April.

Member of the Advisory Council, Dieter Frisch, will take part in a seminar held by the European Business Ethics Network (EBEN) from the 13th to 14th April in Weingarten, Germany.


TI Contributes to the Commission on Global Governance and UNDP

Responding to separate requests, TI in January provided background papers for both the UNDP's 1994 Human Development Report and for the Commission on Global Governance (a successor to the Brandt and Brundtland Commissions, jointly chaired by Sir Shridath Ramphal and Ingvar Carlsson). Papers for the UNDP were written by George Moody- Stuart "Grand Corruption in Third World Development"; Johan Galtung "State, Capital and the Civil Society: A Problem of Communication"; Laurence Cockcroft "The Policy Stance of Selected Industrial Countries on Corruption in International Business Transactions and the Scope for Future Action"; Ulrich Albrecht "Subsidies and Other Ways (Donor) Countries Facilitate Arms Exports"; Peter Eigen "TI Country Program in Ecuador: A Practical Approach for Building Islands of Integrity"; Thomas Gallagher "Money Laundering as an International Problem and the Steps being Taken by Governments to Combat this Illegal Activity"; and Fredrik Galtung "A Review of Transparency International's Activities in 1993". The paper for the Commission on Global Governance was prepared by Jeremy Pope. Several of the papers are expected to be published. TI gives priority to in- country work but also has a clear role in the wider sphere of international awareness-raising.


The Board of Directors would like to welcome the following distinguished personalities to the Advisory Council:

Peter Berry, Managing Director of the Crown Agents (UK) Alain Marsaud, Member of Parliament (France) Peter MacPherson, President of Michigan State University (USA) Joe Wanjui, Member of the Board Unilever (Kenya)


The core operating budget was financed with the generous support of the following donors:

Ecuador Government Global Coalition for Africa Netherlands Foreign Ministry Senate of Berlin, Germany Switzerland Foreign Ministry Artware Company, Germany Banque Bruxelles Lambert, Belgium Boeing Company, USA Coopers & Lybrand, UK Crown Agents, UK Enron Corporation, USA General Electric Company, USA German Agency for Technical Cooperation Innovative Technologies Holding AG, Switzerland Nuffield Foundation, UK Rowntree Trust, UK Schering AG, Germany Union des Groupement d'Achats Publics, France

The Swedish International Development Authority (SIDA) and the Ford Foundation are the latest organizations to declare financial support.


Berlin International Secretariat at Full Strength

Since our last issue, TI's Berlin headquarters has come up to full strength with Jeremy Pope taking up the post of Managing Director. Pope, a New Zealander with considerable experience in the Pacific, Asia and Africa, was for the past 14 years Legal Counsel to the Commonwealth Secretary-General and Director of the Commonwealth Secretariat's Legal and Constitutional Affairs Division. Sonja Hegasy has replaced Sophia Schlette as our second Program Officer. Hegasy finished her M.A in Middle East Studies at Columbia University in 1990 and has done extensive research in the Middle East. Margit van Ham, who has held diplomatic posts in Indonesia and Malaysia, has taken up the position of Office Manager.

TI Enters the Electronic Age

TI is now also accessible via electronic mail at the Internet adress:

TI has established two electronic services that are accessible to all via Internet. If you have an electronic mail (e-mail) address on any major network please consider subscribing to the lists below. They are free of charge. Participation in the TI e-mail lists provides you with a direct and uncomplicated form of communication with TI on an efficient, inexpensive and reliable basis.

The following two electronic mailing lists are currently accessible from TI: TI-Forum: A public forum dedicated to the discussion of corruption and the role of TI is to play.

TI-Press: A read-only service providing TI press releases, bulletins and other related papers and publications.

To join these mailing lists send a message addressed to:

using the command >sub ti_forum< and/or >sub ti_press< in the body of the message.

We urge you to take advantage of this powerful service. If you do not currently have an address on an electronic network and you would like to establish one, please contact Kabissa Communications, our partner in this venture, for further information and a free estimate.

Kabissa Communications 4122 Edmunds Street, N.W. 2 Washington, DC, 20007, USA Tel: 1-202-298 8369 Fax: 1-202-342 7176 BBS: 1-202-342 7176


Transparency International e.V. Hardenbergplatz 2 D-10623 Berlin, Germany Tel: 49-30-261 6015 Fax: 49-30-262 8583 E-Mail:

Editors: Fredrik Galtung, Sonja Hegasy, Jeremy Pope Design & Layout: Donated by the Artware Company, Berlin

Contributing authors: Isabel Blackett, Laurence Cockcroft, Tobias Eigen, Dolores Espanol, Fritz Heimann, Frank Vogl

Bank Account No. 09 332 145 00 Dresdner Bank Berlin (Bank code 100 800 00)

Editor: Ali B. Ali-Dinar
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