Developing Countries: Corruption (Hansard, 10 May 2001)

§ Baroness Amos
My Lords, our bilateral programmes provide a wide range of assistance relevant to the needs of each country. They include support for national anti-corruption strategies; for example, the establishment of specific anti-corruption agencies; strengthening capacity for financial management; strengthening public oversight through parliaments; and supporting civil society to promote transparency and accountability.
The Department for International Development is also collaborating with other development agencies and contributing to multilateral efforts, through supporting the strengthening of financial intelligence units and regional anti-money laundering mechanisms.

§ Baroness Whitaker
My Lords, I thank my noble friend the Minister for that positive answer. I declare an interest as a member of the advisory council of Transparency International. But, bearing in mind the substantial criticism of the Government by the signatory states of the OECD anti-bribery convention and the fact that our law has not been updated since 1916, will the Government now leave the company of Turkey, Brazil, Argentina and Chile— the only remaining states not to implement the convention—and bring forward legislation to make it an offence for British citizens to bribe foreign public officials, as promised in the White Paper?

§ Baroness Amos
My Lords, the Home Office published proposals for reform in June 2000. I am sure that my noble friend Lady Whitaker is aware that we are committed to putting beyond doubt by legislation our compliance with the OECD convention. Exceptionally, that will extend jurisdiction to cover 1073 acts of corruption committed abroad by UK nationals, which takes the convention wider. One effect will be to clarify that there can be no tax deductibility for bribes.

§ Lord Redesdale
My Lords, following on from that answer, can the Minister say whether this is a matter of priority, because 38 of the 50 companies blacklisted by the World Bank for promoting corruption are actually domiciled in the UK?

§ Baroness Amos
My Lords, I can tell the noble Lord, Lord Redesdale, that it has come to our attention that those 38 companies are owned or operated by only two people.

§ Lord Alton of Liverpool
My Lords, will the Minister agree that in countries such as Benin—where the Government of President Kérékou have firmly spoken out against the practice of child slavery and the use of children as forced labour—nevertheless, the involvement of western companies, particularly in the manufacture of cocoa and subsequently in the chocolate industry, is frequently through collaboration with racketeering and profiteering in both countries? It is very difficult in a country such as Benin, which is strapped for resources, to have the necessary policing arrangements to prevent such corruption taking place. Is there anything further that Her Majesty's Government can do, not least in the light of the recent tragedy in Benin?

§ Baroness Amos
My Lords, we have a clear anti-corruption strategy which has four different elements to it. We are supporting developing countries that are themselves committed to effective anti-corruption policies. We want to drive out bribery from international trade and business, which was the nub of the noble Lord's question. We want to deter money laundering and protect development assistance. In addition, we work with organisations such as the ILO on issues of forced child labour to ensure that standards are in place in developing countries to protect children from forced labour.

§ Lord Howell of Guildford
My Lords, fighting corruption in developing countries is extremely important. The noble Baroness and her noble friend are absolutely correct about that. Is it not important to ensure that corrupt practices that are widespread around the world and are too often regarded as customs are not introduced or re-injected back into our own country? Is it not even more important to ensure that everyone in our own Government, from the Prime Minister downwards, has the greatest possible care and scruple in any connection or communication with people from developing countries who have been suspected or charged with practices of this kind?

§ Baroness Amos
My Lords, I am not surprised by the noble Lord's question, which is slightly wide of the Question on the Order Paper. I thought that noble 1074 Lords opposite could not resist this opportunity to make what I can only describe as a cheap electioneering point. I absolutely refuse to indulge in it because it is the present Government who have taken pains to ensure that corruption, both at home and abroad, does not feature in our politics.