Apungwa Cornelius Ntabe, Research Associate, African Political Economy Policy Lab
cornelius@africacfsp.org

The global crisis caused by the COVID-19 pandemic has placed unprecedented strain on public health systems and decimated economies, lives, and livelihoods. The distribution of cash grants and significant amounts of money flowing through global financial systems in the form of debt relief, loans from multilateral institutions, and government stimulus packages have been wrought with irregularities, some due to the weak underlying infrastructure necessary for distribution and others due to corruption. The paper argues for the establishment of anti-corruption hotlines and public campaigns by governments to raise awareness of the risks and consequences of corruption. Urgent responses to the COVID-19 pandemic should not come at the expense of continued corruption.

Introduction

The SARS-CoV-2 virus and the disease it causes – COVID-19 has brought about serious human suffering, uncertainty, and major economic disruption on a global scale.²World Health Organization, “Coronavirus Disease (Covid-19): Sars-Cov-2 Evolution (Q&a),” accessed. https://www.who.int/news-room/q-a-detail/sars-cov-2-evolution. The pandemic presents a “perfect storm” for corruption as the massive mobilization of resources to respond to the health and economic crises of COVID-19 has created multiple opportunities for abuse.³Maira Martini, ““Covid-19: A Perfect Storm for the Corrupt?” Medium: Voices for Transparency,” (2020), accessed 18 – December – 2020, https://voices.transparency.org/covid-19-perfect-storm-for-the-corrupt-c42eb9dfc234. These opportunities are compounded by the suspension of corruption prevention organizations and enforcement mechanisms due to the public health emergency.⁴World Justice Project, “Corruption and the Covid-19 Pandemic,” (2020), accessed 10-February 2021, https://worldjusticeproject.org/sites/default/files/documents/Corruption-10.20.20.pdf.

Corruption has historically been a hurdle in Africa, undermining growth, democracy, and governance, and thus violating the rights of millions.⁵African Union Commission, “Domestic Resource Mobilization: Fighting against Corruption and Illicit Financial Flows,” Addis Ababa: AUC Publishing (2019). Corruption not only undermines credibility and trust in governments, but also impedes the development of economic, social, and human capital, which is fundamental to long-term progress.⁶A Rocha Menocal et al., Why Corruption Matters: Understanding Causes, Effects and How to Address Them: Evidence Paper on Corruption (London: DFID. decision making and integration into the project cycles www, 2015). Corruption erodes the trust that the public sector can act in citizens’ best interests. Furthermore, corruption wastes taxes earmarked for crucial areas such as infrastructure development, education, economic opportunities and the delivery of basic services for local communities.

Risks inherent in a system are likely to be magnified during a large-scale crisis that requires an immediate government response to protect peoples’ health and livelihoods as corruption impedes life-saving resources from reaching those in need.⁷Gretta Fenner and Mirella Mahlstein, Curbing the Risks of and Opportunities for Corruption in Natural Disaster Situations (International Law and standards applicable in natural disaster situations …, 2009). Moreover, corruption undermines trust in institutions, which is critical to an effective collective response to such crises. Health Minister of South Africa, Dr. Zweli Mkhize has decried how corruption, has become an “added burden” particularly in pricing and tender irregularities, alongside the fight to save lives from Covid-19.⁸Sipho Mabena, “Corruption an ‘Added Burden’ in Fight against Covid-19, Says Mkhize,” (2020), accessed 18 – December – 2020, https://citizen.co.za/news/covid-19/2360955/corruption-an-added-burden-in-fight-against-covid-19-says-mkhize/.

Statement of the problem

The outbreak of the COVID-19 pandemic raises many challenges for governments around the world, and those in Africa are no exception. The critical consequences of the pandemic have particularly affected vulnerable and disadvantaged groups and communities, which already faced difficult living conditions. In order to sustain the health and livelihoods of their citizens and avoid economic collapse, most African countries have taken significant measures over the past year.

Such measures have included direct cash disbursements, short and medium-term forgivable loans and deferment of payments, as well as tax rebates.⁹United Nations Office on Drugs and Crime, “Covid-19 Emergency Support Packages in West and Central Africa – an Overview and Analysis of Fraud and Corruption Risks,” (2020), accessed 18 – December – 2020, https://www.unodc.org/res/corruption/covid-19-emergency-support-packages-in-west-and-central-africa_html/UNODC_Covid_19_Emergency_Packages_Oversight.pdf. The vast amount of resources allocated, and the speed at which they are being disbursed, present opportunities for corrupt practices, such as embezzlement, bribes, and price gouging in essential medicines, medical supplies and equipment, and the manipulation of procurement processes for crucial health sector resources. Anti-corruption safeguards are largely absent from emergency frameworks, thereby limiting opportunities for oversight and accountability concerning how such funds are used and whether they have a measurable impact on crisis response and recovery.

Moreover, significant amounts of money are flowing through global financial systems in the form of debt relief, loans from multilateral institutions, and government stimulus packages. The International Monetary Fund (IMF) and World Bank have mobilised $57 billion to assist African countries in their management of the pandemic, with a further $13 billion expected from private creditors. Nigeria is raising over a trillion naira (approximately USD $2.5 billion) to mitigate the effects of COVID-19. The Nigerian government were also recently awarded a $3.4 billion IMF rapid relief loan. Meanwhile, South Africa has announced a R500 billion (approximately USD $23 billion) economic stimulus and social support package for the country that can be financed through the IMF, BRICS and the African Development Bank.¹⁰Sope Williams-Elegbe, “Corruption, Procurement and Covid-19 in Africa,” (2020), accessed 18 – December – 2020, https://www.openownership.org/blogs/corruption-procurement-and-covid-19-in-africa/.

There are also nearly €2.1 billion (approximately USD $2.5 billion) in bilateral official development assistance (ODA) currently committed to supporting developing countries as part of the crisis response.¹¹OECD, “Policy Measures to Avoid Corruption and Bribery in the Covid-19 Response and Recovery,” (2020), accessed 18 – December – 2020, https://read.oecd-ilibrary.org/view/?ref=133_133216-hn3bqtlvkw&title=Policy-measures-to-avoid-corruption-and-bribery-in-the-COVID-19-response-and-recovery.

Even under ordinary circumstances, social and economic protection programs bring considerable corruption risks, including the potential manipulation of beneficiary lists (bribery or exercising undue influence to exclude eligible beneficiaries or include noneligible beneficiaries) or interference with the disbursement of resources (the diversion of funds by administrative staff, payments made to “ghost” beneficiaries, collusion between staff and beneficiaries or solicitation of kickbacks in return for the release of payments).¹²Marie Chêne, “Corruption Prevention Strategies in Cash Transfer Schemes,” U4 Expert Answers (2010). When beneficiary criteria are not transparent or when public officials have wide discretion in the selection of beneficiaries, there are opportunities for abuse.¹³Ibid.

If left unaddressed, these risks can affect the integrity of the management of large-scale funds, established to mitigate the socio-economic impact of COVID-19, long after the pandemic fades away. This paper draws attention to rampant corruption within the generosity of governments and international donors in Africa. Such corruption debases benevolent efforts and exasperates the unconducive environment created by the pandemic. Fighting corruption during the pandemic is essential, as the malice of corruption agitates already precarious situations. Policy recommendations are advised below to assist policy makers in addressing this issue during the pandemic.

Analysis of the problem

The distribution of cash grants and food parcels to food-insecure communities has been wrought with irregularities, some due to the weak underlying infrastructure necessary for distribution and others due to corruption.¹⁴Sope Williams-Elegbe. This is because the temptation has been to side-line transparency and accountability during the crisis, and treat the pressing needs created by the pandemic as being inconsistent with accountability and transparency measures.

The Ebola epidemic in West Africa between 2013-2016 that led to thousands of deaths and socioeconomic disruption mainly in Guinea, Liberia and Sierra Leone, provided an indication of the consequences of not monitoring financial flows provided from domestic and development assistance. It is estimated that of the development assistance made available to the government of Sierra Leone, 30% of funds were unaccounted for due to fraud and corruption.¹⁵Ibid.

During the COVID-19 pandemic, the IMF has encouraged countries to endeavour to ‘keep the receipts.’¹⁶Ibid. Indeed, governments must keep clear audit and accounting trails, and not defer accountability to the post COVID-19 crisis period. For lower income and emerging economies, the strain of ex post auditing on already constrained prosecutorial authorities (most chief prosecutors have complete authority and control over the prosecution policies and practices in their jurisdictions, constrained only by the broad outlines of criminal justice statutes, case law, and court procedures that are under the authority of the judiciary) may make this untenable. ¹⁷Candace McCoy, “Prosecution,” in The Oxford Handbook of Crime and Criminal Justice (1998). It may also inhibit vital government functions required for rebuilding economies after COVID-19. Further, it may stifle action where departments are paralysed due to ongoing investigations at a time when governance capacity will be needed for recovery purposes. Therefore, it is highly recommended that all governments intensify their anti-fraud and anti-corruption measures in parallel with the fight against the pandemic.

Several examples of corruption scandals revolving around COVID-19 have been identified within Africa already. For example, the chair of a local government council in Nigeria was arrested in May for using his position to redirect palliatives intended for vulnerable populations toward local law enforcement staff and colleagues.¹⁸K Ellena, A Brown, and C Dreher, “Preventing Government Corruption in Crises,” The International Foundation for Electoral Systems (IFES) (2020). In Zimbabwe, Dr. Obadiah Moyo was sacked as health minister in July 2020 after being charged in connection with the unlawful procurement of USD $75 million worth of medical equipment.¹⁹BLOOMBERG, “Covid Corruption Plague Spurs Political Shake-up across Africa,” (2020), accessed 18 – December – 2020, https://www.polity.org.za/print-version/covid-corruption-plague-spurs-political-shake-up-across-africa-2020-09-03. He is currently awaiting trial on COVID‐related corruption charges. In Somalia, four health officials have already been jailed for misappropriating funds.²⁰Oil Spill Protest, “Corruption and Covid-19’s Effect on Economies,” Africa Research Bulletin 2020 (2020). Health officials in Botswana, Somalia and Uganda have also lost their jobs, whereas cabinet ministers in Malawi and the Democratic Republic of Congo have been implicated in corrupt deals.²¹David Herbling Monique Vanek, “Covid Graft Plague Spurs Political Shake-up across Africa,” (2020), accessed 18 – December – 2020, https://www.bloombergquint.com/politics/covid-corruption-plague-spurs-political-shake-up-across-africa. There have also been anti-corruption demonstrations in several countries, protesting the misuse of funds intended to fight COVID-19.²²Andrew Wasike, “Kenya: Crackdown on Demo over ‘Theft’ of Covid-19 Funds,” (2020), accessed 11-February-2021, https://www.aa.com.tr/en/africa/kenya-crackdown-on-demo-over-theft-of-covid-19-funds/1949336.

Policy recommendations

The large scale of emergency spending by governments exposes them to a variety of corruption risks that may undermine the effectiveness of government responses. The strains placed on the public sector in responding to the current situation present opportunities for corruption to flourish. Some policy recommendations to avert these from happening include:

1. The implementation of hotlines for the users or citizens to report corruption in any public service sector. During a natural disaster in Bosnia-Herzegovina in 2014, anti-corruption hotlines were implemented to allow for citizens to report instances of corruption.²³Sarah STEINGRUBER et al., “Corruption in Time of Covid-19: A Double Threat for Low Income Countries,” U4 Anticorruption Resource Center. U4 Brief 6 (2020). A similar approach could be applied to allow not only for reporting of corruption, but also to report proliferation of misinformation.
   
   
2. The establishment of oversight bodies is highly recommended. Oversight and regulation should be used to identify public institutions that might need extra support to mitigate corruption risks before they take on additional pandemic related responsibilities—whether purchasing medical supplies at scale, building a new hospital or distributing grants to businesses in need of support. By making the best use of existing and available knowledge, public and private sector organizations can work collaboratively, and in real-time, to limit state exposure to corruption and address existing weaknesses before scaling up their response. The use of pre-existing digital platforms, both for distribution of benefits, as well as for addressing grievances and fostering partnerships with oversight from the private sector and civil society organizations, can build greater oversight and trust.
   
   
3. States must remain accountable for resource mobilization and spending. It is essential to continuously verify suppliers, specify robust technical requirements for goods and services, and determine competitive prices to ensure that public funds are used effectively. In addition, when suppliers are paid in advance, the ability of contract managers to confirm the complete delivery of goods and services according to the necessary specifications becomes even more critical. To protect against these risks, public institutions can verify suppliers through online portals, check beneficial ownership and set procurement conditions in framework agreements. To foster greater accountability, it is important that government actions are clearly articulated, rules are enforced, violations are addressed, and problems remedied as quickly as possible and in a transparent manner. Follow-up actions include dismantling temporary or emergency powers and provisions, conducting reviews and bringing perpetrators to justice. Communication to the general public on all government actions from the allocation of funds to their use, as well as publicly reporting about the measures being taken to prevent corruption and to follow up on violations, will not just deter corrupt behaviour in this situation but will help maintain the focus on the broader corruption agenda.
   
   
4. More so, the establishment of a specialised task force by the government and international bodies to address corruption is highly supported. This specialized task force will investigate and help prevent fraud and corruption in the implementation of COVID-19 emergency support.
   
   
5. Governments should galvanise the public through awareness-raising campaigns against corruption, while addressing its risks and consequences in the disbursement and allocation of stimulus funds. This includes the abuse of emergency business grants by established companies, the creation of fake companies to take advantage of the current situation, or organized criminal groups impersonating companies in need.
   
   
6. Lastly, digitalization of financial and service delivery information will improve the accuracy of information available to the public. Digitalization reduces corruption and facilitates advocacy and civic participation. Service users are best placed to monitor the services on which they depend, due to greater incentives and information, as well as the possibility of face-to-face interaction with frontline providers.²⁴Sue Cavill and M Sohail, Accountability Arrangements to Combat Corruption: Literature Review (Loughborough University, 2007).

Conclusion

Many of the typical corruption risks seen in the public sector are elevated during emergencies but traditional strategies can still mitigate such risks. Robust due diligence, transparent processes, and accountability mechanisms, such as real-time audits and the publication of audit findings on a monthly basis, are just a few examples of strategies that can limit exposure to pandemic related risks and keep emergency funds secure.

It is critical to continue to hold a strong stance against corrupt practices during the response to the COVID-19 pandemic. Anti-corruption procedures and systems of accountability will ensure that development aid is deployed to benefit those who need it the most. A wave of corruption-related incidents linked to the current situation underscores the importance of continuing and strengthening transparency and accountability efforts.

Combating corruption and building a culture of integrity must be measured for impact and influence. Necessary reforms may be politically contentious and challenging to implement and may not be feasible. Overcoming the challenges can be difficult but experience shows that, implementing the necessary reforms for combating corruption and building a culture of integrity can be done by paying attention to the reform process itself by making changes to the reform procedures during implementation when need arises.

Therefore, urgent responses to the COVID-19 pandemic should not come at the expense of the ongoing fight against corruption. There is an understandable pressure to address immediate and urgent needs in healthcare, social safety nets, and economic stimuli. Responding with speed may mean that the standard procurement and other accountability procedures must be relaxed. As such, government officials must balance the need for discretion in public spending with maintaining accountability and transparency mechanisms. This paper calls on governments to clearly articulate their actions, enforce rules, address violations, and remedy problems transparently and as quickly as possible.