Ndiva Kofele-Kale: Reliance on Article 66 to Combat Official Corruption in Cameroon is Misplaced

Interviewed by Dibussi Tande (Part I)

Ndiva Kofele-Kale, Professor of Public International Law at Southern Methodist University in Dallas, Texas, is a leading scholar on official corruption in developing countries. He is also at the forefront of the growing movement to make corruption a human rights violation punishable under international law.

In this interview with Dibussi Tande, Prof.Kofele-Kale talks about the anti-corruption drive in Cameroon, and the need to establish international mechanisms for dealing with corruption by high-ranking government officials. 

Question: What is your preliminary assessment of the ongoing anti-corruption campaign in Cameroon?

Answer: I think the jury is still out and any predictions on the final outcome would be premature. In the end, it may just turn out that the arrests of few top officials will amount to nothing more than a smokescreen or “wool pulled over our eyes,” to borrow your phraseology. I hope that I am wrong on this one and pray that subsequent events will prove me wrong given the awfully high stakes involved!

In a recent article in The Post newspaper, you proposed a debt-franc swap program as a means of recovering funds embezzled by Cameroonian officials. Can you explain this proposal in lay man’s terms?

I will try. Your typical debt-equity swap operates this way:
(1) Let’s suppose that a US commercial bank loans $200 million to the Cameroon Government, say, in 1982 when the economy was robust, but is now unsure that Government will be able to continue servicing the loan and to eventually repay the principal. Anxious to avoid a possible default or tedious periodical rescheduling negotiations, the bank decides to sell the debt that it holds at a discount of, say, 50 cents for each dollar to a US investor wishing to make a new investment or expand existing operations in the debtor-country (Cameroon). The $200 million debt is discounted to $100 million;
(2) the US investor then purchases the $200 million debt for $100 million in cash;
(3) the Cameroon Government then redeems the debt notes by paying the investor an amount, usually less than the face value of the purchased debt, say, $170 million instead of $200 million, but on condition that the funds are invested in Cameroon;
(4) if the investor accepts, Government will then pay him in local currency (francs CFA), bonds, assets or state-owned shares in a local enterprise such as SOTUC or CAMAIR. In my proposal, debt owed to the members of the Paris Club, for example, is discounted along the lines just described. On the basis of a limited amnesty program, the Odong Ndongs and Siyam Siewes with significant assets stashed abroad will be allowed to purchase the discounted debt notes with the embezzled funds. They can then redeem the debt notes from BEAC or the Ministry of Economy and Finance in CFA francs for investment in local enterprises.

Some have criticized this proposal because it apparently rewards bad behavior …

I take their point. Legal purists will find the use of amnesty in corruption cases offensive because it goes against the goals of deterrence, criminal responsibility, and the removal of guilty officials from positions where they are likely to continue engaging in corrupt practices. I do not believe, however, that criminal prosecutions alone will resolve the full range of problems spawned by official corruption. Some form of limited or general amnesty will have to be used alongside criminal prosecutions as part of negotiations for the return of embezzled funds. The lessons learnt from 40 years of recovery efforts demonstrate the limitation of conventional legal methods in the war against grand corruption. Given the staggering amounts of national wealth lost annually through corruption, there is urgent need to come up with creative and innovative solutions for recovering and repatriating some, if not all, of these illicit assets. Victim states should not hesitate in exploring non-traditional approaches such as the debt-local currency swap program I have proposed in their recovery efforts. Trade-offs will have to be made between using scarce resources on prosecutions and punishment which hold out no promise of recapturing embezzled wealth or focusing these limited resources to recover and repatriate the peoples’ money. In the final analysis, Cameroonians will have to make this call.

In his January 19th 2006 declaration, the US ambassador to Cameroon was of the opinion that the implementation of Article 66 of the Cameroon constitution (which requires that high-ranking state officials declare their assets at the beginning and end of their tenure) might very well be the solution to endemic corruption in Cameroon. Do you share his optimism?

I have quite a different take on these disclosure obligations. Article 66 is a toothless bull-dog and sooner or later Cameroonians will come to realize that reliance on it is misplaced for several reasons. In the first place, the Article is silent on the scope of disclosure expected: is it only assets owned by the public official directly, or indirectly as well? Does the scope of disclosure require the official to divulge information about assets, including investments, bank accounts, pensions and other intangibles, as well as real property and major items of personal property in Cameroon and in other countries? Who or which agency should these declarations be directed and will an oral deposition suffice? Arguably a new member of government can discharge his public disclosure burden by declaring his assets to a few journalists summoned to his parlor for a ‘press conference’!

Article 66 also fails to spell out the penalties, if any, for false or misleading disclosures. The intent behind this type of disclosure requirements is to deter official corruption and to identify and exclude corrupt officials. This objective cannot be attained when provision is not made for penalties for failure to disclose as required, or for making false or misleading disclosure, that are severe enough to act as a significant deterrent. An example of a disclosure requirement with teeth can be found in the 1992 Constitution of Ghana which requires an identified class of public servants to submit to the Auditor-General a written declaration of all property or assets owned by, or liabilities owed by, him whether directly or indirectly, before taking office, at the end of every four years; and at the end of his term of office. The provision makes failure to declare or knowingly making false declaration a punishable offence.

Finally, Article 66 provides no mechanisms for verifying these disclosures. Nothing  prevents a newly-appointed government minister from declaring  assets of 800 million francs CFA that he clearly does not have but which he hopes to fleece from his ministerial budget while in office and then to declare that amount when he is “called to other duties”!

To be continued...

Tags:cameroon corruption international  law Africa

Comments

[paolo laurent]

LIKE MANY ANGLOPHONE SCHOLARS, THEY ALWAYS
MISPLACED THE PRIORITY. IE. WHICH CAMERON,
THEY ARE FOCUSING. SOUTHERN CAMEROONS, HAVE NEVER BEEN INTERNATIONALLY RECOGNISED AS A
PROVINCE OF LA REPUBLIQUE DU CAMEROUN, AND LA REPUBLIQUE DU CAMEROUN, HAVE NEVER GONE BACK TO THE UN, THE OFFICIAL REGISTER
SOUTHERN CAMEROONC AS IT PROVINCE SOO, WHERE
IS LAW AND LOGIC. IS IT SIMPLY BECAUSE A
NATION HAVE ARMED FORCES, THAT IT CAN WITH
COMPLETE ANOMNITY, OCCUPY ANOTHER, AND USE
ITS MILITARY TO CONTROLIT?
NO BODY CAN TALK ABOUT CORRUPTION WITHOUT FIRST TALKING ABOUT THE, TWO-NESS OF THESE
WEST AFRICAN STATES.

[muna loko]

This interview definitely passed you by, Mr. Paolo Laurent!! Prof. Kale is an international lawyer who deals with corruption at International lawyer. That means he is free to give his opinion about corruption issues in any country in the world. Which is why he has written about countries as diverse as Chile, Ghana, and the Philipines. So there is nothing wrong with him talking about corruption in Cameroon, especially since it affects your dear Southern Cameroons directly...

Please clarify me here; Southern Cameroon's nationalists don't want any Southern Cameroonian scholar to talk about anything other than Southern Cameroons? Your country will not have any expert on Arab, US or European affairs? No understanding of world affairs to map a place for your country on the international scene? Even the "evil" Biya has never made such an outrageous demand!! Southern Cameroons shall be free? I doubt it with folks like you running the show...

[Ma Mary]

Every cause has its share of hot heads and shallow actors like poor Paolo. Do not let that deceive you for one moment, loko. Southern Cameroons shall be restored like a dozen other occupied countries around the world.

[kange williams wasaloko]

I will like to thank pr.Kale for such brillant ideas about anti corruption plan. Even though his plan sounds a bit complicated, he is just playing the role of the intellectual in the society.This should sound as an example to most of our intellectuals in the diaspora that instead of just condemning the system, they should give proposals on how the country can come out from the economic crisis.If the government fails to listen the almighty God will atleast be their witness.I stongly believe that if Pr. Kale organises a press conference in Yaounde with the asistance of the american embassy in yaounde the government may be forced to buy his ideas.

[Ma Mary]

Sure Wasaloko, some of us intellectuals are working overtime to split from la Republique. We actually do not believe that the marriage with la Republique is a done deal. It only looks so on the surface. Back in in its hey day, British colonial rule on Gold Coast (Ghana) looked like a done deal. There is no such thing, only perception. This is a message to those of you Southern Cameroonians who are wasting their time. Francophones and French will never listen They think you are fools for being so serious about probity.

[Abangma Peter]

[Cameroon Tribune - 17/03/2006]

Managers Soon To Declare Assets, Property

Two draft bills were tabled at the National Assembly yesterday during a plenary sitting.

Members of Parliament will henceforth engage in serious work for the March ordinary session of the 2006 legislative year. Since the official opening ceremony of the session last March 9, they have been comparatively busier with putting in place the National Assembly bureau, Committees and their executive so that work on examining draft bills can start.

Yesterday, March 16 during a plenary sitting presided over by the First Vice President of the National Assembly, Etong Hilarion, two draft bills were tabled. The highly awaited draft bill was that relating to the declaration of assets and property
...
Chapter one of the draft bill specifies persons liable to the mandatory declaration of assets and property to include all authorising officers of public funds within any partnership or any private body receiving public funds as subsidies or grants. The draft bill is clear in its chapter two as procedures for the declaration of assets and property and the type of property are stated. In this way, the declarants must, within three months of their election or appointment and at the end of their tenure of office, report on the status of their property to the competent Committee. It further specifies that declarations shall concern the assets and property of persons liable as well as those held in community with spouse or in co-ownership. An Assets and Property Declaration Reception Committee shall receive the declarations. The draft bill provides the possibility for declarants to request a compromise, as well as various sanctions for refusal to declare their assets and property of false declarations.

[Riccardo]

Brother Kange William,

You have said it all. Many Cameroonians live abroad, enjoy prosperity and peace but are eager to call for hate and division the Country. They have no ideas to offer but they dream of creating their own Kingdom.
Pof. Kale is a True Son of Cameroon. He is a Progressive Cameroonian who has been working very hard to help his country to move forward. I have met him personally in Dallas and I have always known him to be a TRUE PATRIOT.
He is someone CAADIM and the people of Cameroon respect.
Prof. Kale makes Progressive English and French Cameroonians very proud.
Progressive Cameroonians are winning and we will take back our Country with ideas not ethnic cleansing, tribalism, division, hate and creation of another Corrupt Kingdom.

May God Bless him!

Riccardo
CAADIM

[paolo laurent]

ricardo talk about your fathers
plantation de cafe in bafoussam. thats all
you knows about. not intellectual matters.
JUST LOOK AT THE CURRENCY ON THIS POSTING,
THE GOVERNMENT SEAL /COAT OF ARMS.
WHERE DOES THIS EMULATES ANY THING
SOUTHERN CAMEROONS ON IT,
DONT BLACK LEGS LIKE RICARDO THINK FOR A SECOND THAT, , THE 6.5M SOUTHERN CAMEROONIANS, ALONG WITH THEIR ANGLOSAXON
TRADITION OUGHT TO HAVE THEIR COUNTRY BACK AND RULR AS THEY SOO WISH, WITHOUT RASCALS LIKE BIYA AND CO, POOKING THEIR SMELLING NOSES?

[MATHIAS ATELEFACK (ATELO)]

I will be copiously grateful if someboby can kindly send to me the contact information of KANGE WILLIAM WASSALOKO ( by email) or my email address to him. Thanks for the help.
With Warm Regards,
Atelefack M.F.

[che Sunday]

Profesor Ndiva's analysis is very timely, given the magnitude at which funds are leaving Africa for clandestine destinations in Europe and North America. There is a catch though, embezzling Africans are not likely to repatriate their hidden loot without some punitive measures facing them. The process also needs the cooperation of nations where these funds are hidden. Recall the case of Umaru Diko in Nigeria where Nigeria tried kidnapping him from Britain only to have Britain rescue him? The money was hidden in British Banks, there was no incentive for the British cooperating. Switzerland has created enormous wealth for herself by encouraging foreign investors to steal. She allowed all currencies into the country and charged interest on foreign accounts, with the promise of safeguarding your wealth as well as confidentiality. Africans can only speculate as to how much their governments have stolen from them. The receiving countries make no effort in helping. They chastisize Africans for corruption, preach a lot of anti-launering rhetoric to who cares to listen, yet, the bulk of the stolen loot sits in their Banks. How do you reconcile such double standards? The profs. hypothesis is well founded, its the forces that have been instrumental in our misery that will be hard to deal with.