German MPs and the politics of fountain pens

Any Brits reading German newspapers this week may well have felt a strange sense of déjà vu. Germany has its very own parliamentary expenses drama to deal with, and it has echoes of the 2008 episode that shook the UK’s political establishment. No matter how the so-called ‘Montblanc Affair’ pans out, a number of former and current parliamentarians (‘MdBs’) have some explaining to do. SCSC Director Dan Hough explains.

August is generally a quiet time for news. The Germans tend to call it the ‘Sommerloch’ (literally the ‘Summer Hole’) where little of note happens. Given some of the policy challenges that Germany currently faces (internal security, refugee integration, dealing with Brexit, the latent Eurocrisis) the summer of 2016 was never likely to be quite as quiet as usual, but a left-field drama surrounding fountain pains is threatening to leave a lot of former and current parliamentarians red-faced.

The affair is actually nothing new. Indeed, rumours of inappropriate use of parliamentary expense accounts surfaced back in 2009. But seven years later and these rumours have taken on new impetus. So what is going on?

The politics of stationary (!)
The affair centres around expenditure on, of all things, stationary. Hardly the stuff of which high profile dramas are normally made. The background is that German MdBs have a yearly budget of €12,000 with which they can kit out their (and their assistants’) offices. That money gets spent on everything from paper to mobile phones … and pens.

In some cases, Montblanc pens. For those not aware of the finer points of the stationary art, Montblanc pens do not come cheap. Indeed, they generally run in to the hundreds, and sometimes thousands, of Euro. Until March 2010, and to the surprise of many Germans, MdBs were perfectly entitled to splash out on luxury fountain pens such as these; the only thing they couldn’t do was spend more than the stipulated €12,000 per annum on all stationary combined. Rumours that MdBs and/or people in their offices were gaming the system by acquiring expensive pens and, say, giving them as Christmas presents were rife.

The mystery list
The affair had lost much of its salience over time, largely as no one knew who the MdBs concerned were. The federal parliament refused to publish more details about these cases than it had to by law – and that law said that as long as the overall amount spent was less than the maximum then there was, as the saying goes, nothing to see here. By August 2016 the Bild Zeitung, Germany’s most widely-read newspaper, was upping the ante. It had managed to get hold of a list (see here) – it refused to say where from – that revealed the names of 116 MdBs who’d acquired Montblanc pens. And, the Bild was quick to say that the list wasn’t complete and that there could subsequently be more revelations to come.

The list included politicians from all parties. High profile names such as the then home secretary, Otto Schily (SPD), were on there, as were two former General Secretaries of Angela Merkel’s CDU; Ronald Pofalla and Laurenz Meyer. Indeed, Mayer appeared to have bought 14 Montblanc pens in one 10 month period. Even the anti-capitalist Left Party wasn’t exempt; Diana Golze, then MdB and currently social minister in the eastern state of Brandenburg, was on there, too.

The party politics of scandal
The German commentariat has unsurprisingly been up in arms about MdBs splashing out on these luxury items. But, much as in the UK in 2008, parliamentarians have been careful not to break the rules. As noted above, as long as they (i) spend their money on items officially sanctioned by parliament and (ii) their spending doesn’t exceed 12K in total, they are in the clear.

In terms of the first of those points, there has been further intrigue. The Bundestag publishes a catalogue of stationary items that MdBs are free to purchase. MdBs (or more likely their assistants) order from that catalogue and parliamentary authorities pay the bill. Montblanc pens were included. MdBs are subsequently not only spending within the prescribed limit, but they are buying products that the authorities themselves prescribe (or, prescribed at the time, at least).

There may nonetheless be more to this stationary catalogue than meets the eye. Indeed, it might well play a role in explaining how the list of miscreants came to light. The company that until mid-summer 2016 provided the stationary, Bürofa, got in to a dispute with the parliamentary authorities over the costs it was charging to provide the goods. Andrea-Grigor Siewert, the company’s owner, claimed that demands to cut prices were out of order; indeed, if Bürofa did as the parliamentary authorities wanted it’d be forced in to bankruptcy.

Whether those claims are true remains a moot point. But one thing is clear. Siewart is a member of the Alternative for Germany (AfD), a new, right-wing party that is causing quite a stir in Germany. Indeed, he’s a former treasurer of the party in the Berlin district of Pankow. Claims that his political allegiances have cost the company the contract have not been slow in forthcoming.

One thing Bürofa does do, however, is possess a list of to whom it has provided which products. Parliament has shredded all of its information in this regard (it was only legally required to keep it for five years) but Bürofa hasn’t; by law, it needs to keep hold of all of its files for ten years. Might that be the source of the MdBs who’ve splashed out? Siewart certainly hasn’t denied it.

The challenge of ‘legal corruption’
Even though the ‘Montblanc Affair’ has been ongoing for the best part of seven years, it still has some life in it. Parliamentarians will not find it easy explaining how they came to spend thousands of Euro on pens when there are clearly plenty of other causes in need of attention (and money). The politics of this looks bad, no matter where you are on the political spectrum.

It is also an interesting case from a corruption perspective. Defining corruption is a task fraught with difficulty. Traditionally viewed as the abuse of a public role for private gain, the real world nonetheless illustrates that notions of ‘abuse’ and even ‘public roles’ and indeed ‘private gain’ are contested. This is particularly so when parliamentarians shape the rules that they themselves have to abide by. Put another way, rational actors are unlikely to craft rules that they know they are going to go on and break.

In terms the affairs of parliamentarians, the way round this has to centre around external oversight. Post-2008 the UK responded by creating the Independent Parliamentary Standards Authority (IPSA). That body was given “the remit and powers to introduce independent regulation of MPs’ business costs and expenses and, subsequently, pay and pensions”. IPSA has not been without its critics, but it does at least mean that parliamentarians no longer regulate their own financial affairs. Germany might well need to think about doing something similar in the future.

Posted in Uncategorized

‘Something is Rotten’: Brexit and its Consequences for (Anti-) Corruption in the UK

Following the recent EU referendum result (Brexit), across the UK almost everyone seems to agree – whatever their political bent – that something is rotten in the state of British politics.

The appalling campaigns that led up to Brexit, including the misleading statements of the Leave campaign, the so called “Project Fear” of the Remain campaign and the apparent media bias in favour of Leave, all mean that not only has the referendum’s legitimacy been questioned, but we face an existential crisis about the nature and character of the UK and its political system.

But, what has corruption got to do with any of this? Isn’t this just the hustle of real world politics? Can we really identify corruption at the heart of the conflict we see today in Westminster and beyond?

In this post I present some ideas to promote debate on these important questions. I suggest that corruption could prove essential to understanding how we arrived at the Brexit decision and how we might proceed from here, and that Brexit could lead to a more refined definition of corruption itself and how it functions in the UK context.
Brexit as an impact on anti-corruption progress

Corruption certainly has very much to do with Brexit, even if it is simply as a beneficiary of the uncertainty that has ensued. A great concern for corruption experts is that Brexit will signal a retreat for anti-corruption legislation and policy: with David Cameron’s resignation as PM, anti-corruption might fall off the political agenda and the commitments made at the 2016 London Anti-Corruption Summit could come to naught.
Transparency International and Corruption Watch have both provided insight into the potential threats to anti-corruption progress, including resource pressure on anti-corruption institutions affecting prevention and enforcement; the increased risk of regulatory capture as the UK seeks to retain its economic competitiveness; and bribery risks associated with entering new markets.

These challenges are rich seams for corruption research and should be pursued to ensure that the anti-corruption efforts of the last 20 years are not swallowed up in the post-Brexit turmoil.

Corruption as a lens to analyse Brexit and post-Brexit negotiations
The EU referendum took place within the turbulence and complexity of real world politics and there will inevitably be many ways to understand the outcome. For example, there are convincing arguments to suggest Brexit was in part the result of inequality and political unrest in a skewed economic landscape that has not fairly distributed the benefits of globalisation, and that the unpleasant rhetoric against immigration also played a role in convincing voters to reject EU membership.

However, a corruption perspective has the potential to supplement this work and contextualise and clarify more mainstream accounts. This might include investigating the Brexit vote as a revolt against perceived corruption and elitism, or analysing the impact of the lobbying power wielded by media moguls and big business.

A corruption approach can also inform our analyses of the post-Brexit negotiations. These will be a critical opportunity to apply corruption research techniques to a complex yet distinct policy-making context. What kind of transparency provisions will be in place? Who will participate or be excluded? What kind of accountability mechanisms will ensure that private or corporate interests do not capture the process?

Brexit as a way to expand our understanding of corruption
If a corruption lens is a useful analytical tool for Brexit, we might also consider whether Brexit can teach us something new about corruption. In the UK, there have been calls to reinvigorate analysis and move beyond more traditional approaches to defining corruption (see Whyte 2015; Beetham 2015). I suggest that as policy and politics in the UK is remade post-Brexit, it could provide a unique opportunity to develop our understanding of corruption and its shape and force in UK politics.

Traditional approaches might be complemented by an expanded notion of corruption. Closer attention could be paid to the distinction between legal and illegal forms of corruption (Kaufmann and Vicente 2005) or Thompson’s (2013) concept of institutional corruption. Institutional corruption shifts focus from “private gain” towards benefits that can be political or institutionally useful, emphasises systemic processes rather than one-off acts of “abuse,” and engages with a tendency to undermine an institution’s primary purpose (e.g. to protect the “public interest”).

These kinds of approach – while challenging – open up corruption study to analyses of democratic institutions and the ways in which they can be disarmed in the face of challenges to their power. They also open up the potential to refresh the debate about what the “public interest” might be and the multiple ways in which different forms of corruption can undermine this interest. Ultimately they might help to devise new ways of safeguarding the integrity of the post-Brexit negotiations and the interest of the people on whose behalf countless agreements will be made in the coming years.

Rebecca Dobson, rjs.dobson@gmail.com

References
Beetham, D., “Moving Beyond a Narrow Definition of Corruption,” in How Corrupt is Britain?, edited by D. Whyte, London: Pluto Press, 2015.
Kaufmann, D. and P.C. Vicente, “Legal Corruption,” World Bank, 2005. http://siteresources.worldbank.org/INTWBIGOVANTCOR/Resources/Legal_Corruption.pdf
Thompson, D.F., “Two Concepts of Corruption,” Edmond J. Safra Working Papers, No. 16, 2013.
Whyte, D., “Introduction: A Very British Corruption,” in How Corrupt is Britain?, edited by D. Whyte, London: Pluto Press, 2015.

Posted in Uncategorized

Kosovo, social media and the fight against corruption

The fight against corruption need not necessarily be a responsibility only of governments, NGOs or the international community. It can start from you and me. As corruption continuously damages people across all parts of society, some have come to realise that not doing anything about it is in and of itself part of the problem. Anti-corruption discourse tends to be identified as a global movement led by international actors at international conventions, or by initiatives that national governments introduce. Indeed, sometimes these can and do have positive results. On many other occasions, however, they can be a disappointment, and both a waste of time and money.

An example of this is Kosovo, where significant resources have been employed to tackle grand and petty corruption. Making progress has proven difficult, and Kosovo continues to stagnate in 103rd place in the Corruption Perceptions Index. However, a new way of thinking has entered the anti-corruption discourse in Kosovo, seeking to dig out embedded roots of corruption. These efforts are intended to change the cultural perceptions and norms of people in Kosovo towards corruption. They aim to help people desist from facilitation payments, bribery, informal gifts and such like. If citizens are not aware that these processes are wrong and damage society, then one enabling tool to create change is simply to talk about it- and there is no better platform to do that than social media.

The UNDP mission in Kosovo took the initiative to include social media as an alternative way of monitoring and controlling corruption, and also to use this initiative as a platform to raise awareness and open a debate around corruption. In partnership with Internews Kosova and the Balkan Investigative Reporting Network (BIRN), the UNDP has developed a web-platform (“Kallxo”) which allows Kosovo citizens to report corruption in real time through multiple channels, including social media, SMS and the web. By mapping reported cases of corruption, this project aims at attracting citizens’ participation and raising awareness about the amount and form of corruption occurring in Kosovo.

However, this project is achieving much more than just prompting a debate about corruption and the abuse of power. The website reported 900 cases one year after launching the platform and these cases spanned from corruption in government, educational institutions, fraud at the local level and misconduct of public officials.

This success prompted people to view the role of public officials differently, expecting more transparency and accountability. Although this started only as an ‘information-sharing’ initiative about cases of corruption and poor performance of public administrators, it soon became a ‘crowd-sourcing strategy’ for civil society organisations. According to the UNDP’s latest report this meant that social media could fulfil a watchdog function and collect reports about cases of wrongdoing on the part of the authorities. It could also encourage civic engagement and collect information that would help overcome the resistance of public officials. In respect to this, Kosovo’s Anti-Corruption Agency claims to have strengthened its efforts to combat corruption. In 2013 Kosovo’s Chief State Prosecutor adopted an action plan to fight corruption finding 1,232 cases of corruption involving 3,123 suspects, out of which indictments were filed against 780 suspects.

Communicating and sharing information through social media involves a ‘collective action’ solution to corruption. What does this entail? In simple terms, collective action theory highlights the relevance of other individuals’ decisions (or non-decisions) in affecting ones own behaviour. When corruption is seen as ‘normal’, people may be less willing to abstain from corruption or take the first step in implementing reforms.

Can social media cure these endemic illnesses in society? Well, not completely, but it can make a contribution. While social media is a great tool for raising awareness and changing norms and perceptions, it cannot tackle serious incidences of grand corruption. Since this initiative depends on citizens’ participation and interest in anti-corruption, there might be a risk of a lack of commitment and trust between citizens to create this change. To mitigate these risks anti-corruption institutions need to manage expectations and better understand the functions that corruption may play, particularly in weak institutional environments such as Kosovo.

Kosovo’s website is now not only used to report corruption but also other cases of inefficiencies in public services at the local level. To date, around 30 municipalities in Kosovo have placed “Kallxo” on their official website to facilitate the municipality’s interaction with citizens. Kosovo’s internet penetration is 76.6%, almost the same as in developed countries. Surely, as argued by the UK Ambassador in Kosovo, Mr. Ruairi O’Connell, if used effectively this can help achieve a great political and cultural change in terms of tackling corruption.

Anti-corruption institutions have invested a great deal of effort in combating corruption in Kosovo. Those committed to fighting corruption must understand the power that social media has to change or reinforce public opinion on corruption. Its ability to work with traditional media could incentivise these anti-corruption efforts, creating an even greater chance for politicians to join the club, when they know the world is watching.

Rrita Ismajli, University of Sussex

Posted in Uncategorized

Foreign Aid and Corruption; Sussex investigates

New SCSC research explores how and why aid goes astray

This week tabloid headlines screamed that the UK spends too much on foreign aid. Oh, and by the way, it is all either wasted or siphoned off by corrupt elites. The irony was that the headlines were driven by the announcement of the latest Aid Transparency Index, which ranks donors according to how transparent they are about their spending. If donors were not making huge efforts to become more transparent, the tabloids would not be able to run these stories.

Development aid – where wealthy countries giving money to support the long-term development of poorer countries – is always controversial. Governments hesitate to look too generous with distant foreign populations while their own people are feeling the pinch. And the tension mounts with every scandal suggesting that corrupt governments siphon off aid, so that it never reaches the intended recipients.

The donor community has responded in part by bypassing governments, channeling aid directly to civil society organisations and communities. But that puts donors in an awkward position: if they challenge or bypass recipient governments, they might get thrown out altogether.

Far better would be for aid agencies to learn to better control the way in which governments spend their funds. Yet until now, aid agencies have had only blunt tools available to check whether recipient governments use aid for agreed purposes – rather than handing it out to cronies so that it ends up being spent on the flashy cars or villas that feature in tabloid accounts.

A new research project led by Olli Hellmann, Mihály Fazekas and myself, and funded by the British Academy/Department for International Development Anti-Corruption Evidence programme, addresses this problem. We develop an innovative methodology using detailed procurement data made available since 1998 by major donors including EuropeAid and the World Bank. More than 50% of development aid is delivered through procurement.

From this ‘big data’, we calculate targeted proxy indicators of corruption. These are based on analyzing co-variation in ‘red flags’ in the process of awarding contracts (e.g., extremely short tender periods) and outcomes on procurement markets (e.g., only one bid received). The methodology has been widely endorsed by both academic and development communities.

We then use these indicators to systematically study two questions relating to the causal determinants of corruption in foreign aid, with a strong focus on the context in recipient countries.

First, we explore how the risks of corruption in aid spending are affected by the political context in recipient-countries. We expect that the degree to which power is centralized and the level of political competition will affect the techniques used to steal money, as well as the market outcomes.

Second, we test how different institutional control mechanisms work – in and of themselves, and in these different political contexts. Some tools might work better in centralized regimes, others where power is more dispersed.

Our findings will help donor agencies to develop more efficient delivery and monitoring mechanisms for their aid, tailored to the risks in a specific context. We will also make our data analysis tools available to donors so that they can incorporate them into their evaluation frameworks beyond the life of the project. We hope to deliver not only a better understanding of how corruption occurs and can be controlled, but also concrete tools to help donors ensure that aid reaches its targets.

Liz David-Barrett

Posted in International Development

Cricket, corruption and the challenge of reform

When corruption is mentioned, it is easy to instantly assume lots of things.  Of one those assumptions is likely to be that whatever is happening, it is happening far from the UK’s shores.  What one doesn’t tend to think of are green cricket fields in central Chelmsford, home of Essex County Cricket Club.  Yet it was here that many of the good cricket-loving citizens of middle England were first directly introduced to the sport’s problem with corruption.  Indeed, Essex’s Danish Kaneria and Mervyn Westfield, the key protagonists in that story, have both been banned from cricket for their involvement in spot-fixing during a 2009 one-day tournament.

When the allegations first surfaced cricket, and cricket fans, were still largely in denial.  Research has since shown that the sport is clearly vulnerable to corruption and furthermore that it is struggling to deal with the challenge of counteracting it, with Transparency International reporting that urgent action is required to deal with the changing nature of the challenge.

The International Cricket Council (ICC) has been trying – generally with limited success – to tackle corruption. In 2000 it formed the Anti-Corruption Unit (ACU) to try and counter the increasing allegations of corruption in the sport, giving the Unit the power to investigate individuals suspected of being involved spot-fixing. The ACU also has a role in education – all players involved in international cricket go through its educational programmes to learn about the risks of corruption, including the tactics used by corruptors and the punishments that can come from accepting money and engaging in fixing. Although these provide a good start, they have not managed to prevent corruption from happening, with problems outside the ACU’s control, some of which are discussed below, still being prevalent in many areas of modern-day cricket.

The challenge of getting players to talk

Corruption, as is widely acknowledged, is notoriously difficult to detect.  One small moment in a match, such as when Pakistani bowler Mohammad Amir bowled a number of no-balls against England, can bring huge amounts of money for those betting on the game without having much of an effect on the overall outcome.

The ICC had been trying to get to grips with the corruption challenge a long time before messrs Westfield, Kaneria and Amir came to prominence.  Lord (Paul) Condon, former Commissioner of the Metropolitan Police in London and former head of the ACU, released a hard-hitting report highlighting a ‘climate of silence, apathy, ignorance and fear’ in the game.  Players feared coming forward to talk to the authorities about corruption, particularly when their teammates were involved, as doing so risked them being branded as informants or being ostracised by their fellow players.

There is plenty of evidence supporting this – to take but one example, Aaqib Javed, a Pakistani international, lost many friends when he spoke to the Qayyum Commission, which investigated corruption within Pakistani cricket.  Aaquib talked about the challenge of fighting off bribe-givers and how even high-profile players such as Waqar Younis and Wasim Akram has allegedly been approached.  Suffice to say, Javed’s time in the national team did not last much longer after this, his international career ending abruptly at a relatively early age.

Given Javed’s problems after testifying, it is unsurprising that other players have not wanted to come forward to talk about corruption. Recently, Hong Kong’s Irfan Ahmed was banned for five years for not declaring that he had been approached about taking a bribe. He did not accept it, but he was banned as he didn’t willingly come forward.  The attempted bribe allegedly came from Nasem Gulzar, a close friend and former mentor of Ahmed. It is tough not to feel sorry for Ahmed as in reality he was not involved in fixing any game and was no doubt caught in a difficult predicament.  Perhaps the banning of players in situations like this is nonetheless a step in the right direction for the ICC as it could bring others out to avoid receiving a similar fate. Regardless of that, it is a prima facie example of how tricky these cases can be to deal with.

The emergence of T20

The growth of cricket as a sport has resulted in a large increase in the number of opportunities for corruption to develop. Twenty20 cricket appears to be particularly susceptible as, since its introduction to the professional arena in 2003, it has attracted both big crowds but also big money.  Domestic tournaments such as the Indian Premier League (IPL) and Australian Big Bash League certainly provide some excellent entertainment, they also open up ample chances to corrupt players.

How has this been happening?  In essence it is all about picking the right target. The sums of money involved in the IPL create a clear disparity between players, with, for example, Australian international Shane Watson earning around a million pounds for his involvement in the 2016 tournament. This huge pay-packet makes it unlikely anyone would target him – he has too much to lose.  But there are plenty of players who will be earning closer to 10,000 pounds in the tournament, and their financial situations certainly put them in a different, and perhaps more vulnerable, position.

The 2013 IPL saw the rise of a massive spot-fixing scandal involving a large number of Rajasthan Royals players and even one umpire, Asad Rauf. Of the players, Sreesanth, Ankeet Chavan and Ajit Chandila were all banned from cricket for life by the Board of Control for Cricket in India after their involvement in spot-fixing became clear, while Rauf was banned from umpiring for five years. The IPL is not alone in facing problems with corruption, but it does highlight that despite the best attempts of the ACU fixing is unfortunately still prevalent in the game.

Ways forward

The problem that the ACU faces is that proving that fixing has happened is a real challenge. Justice Qayyum’s report into corruption in cricket noted that most evidence is ‘primarily opinion and based upon personal suspicion’ rather than any truly incriminating proof. Essentially, it is difficult to make the difference between someone deliberately playing badly and someone just underperforming.  A cricketer could very easily be struggling with the conditions or simply having an off day – and there’s nothing corrupt about that.

Justice Qayyum made a similar point about lower-paid players. If Pakistan’s players at the time of his report were better paid, they would have been less likely to seek remuneration in other forms. Paying players more is much easier said than done, but while there are players like Irfan Ahmed who will only be earning less than £1,000 a month, there will always be easy targets. With the Twenty20 World Cup starting shortly, there will be plenty of targets as the associate nations start to play live on television for millions around the world to watch and bet on.

The de Speville Review

An independent review into the ICC’s anti-corruption capabilities resulted in a list of 27 recommendations being made by Bertrand de Speville, an anti-corruption consultant who was formerly head of the Independent Commission Against Corruption in Hong Kong.  13 of the recommendations in the report were accepted by the ICC. Some were actually already in place.  However, a number were rejected as the ICC had reservations about them. Some of these rejections make sense as de Speville doesn’t appear to place adequate importance on the confidentiality of players.  He suggests, for example, that all allegations be made public regardless of their accuracy and also advocates investigating players’ bank accounts to try and delve into ‘unexplained wealth’.

Of those recommendations that the ICC did accept, banning the acceptance of ‘gifts’ without the ICC’s permission certainly seems logical.  Furthermore, applying this rule to everyone involved in professional cricket clubs, from players to board members, is also an important step forward. Gifts may not necessarily lead to corruption but they could become a gateway into something far more serious.

As well as this, increasing the transparency of the ACU is important in allowing the public to see exactly what is happening, whilst also including a separate clause that this transparency should not come at the expense of necessary confidentiality. De Speville also suggests the appointment of a communicator who has experience as a cricket player to be able to teach current players about corruption. Finally, setting up a frequent survey of players could help start discussions about corruption, encouraging them to come forward and talk about bribery, potentially removing the apathy and ignorance that Lord Condon wrote of.

Unfortunately there is no mention of the problem cricket has with money, and how some players can be tempted far too easily in to inappropriate relationships. This does not necessarily mean that players need to be paid more, but it does show that increasing the penalties for being involved in corruption and then implementing those changes on an international scale would completely change the concepts of risk and reward in players’ minds.

The ACU may never truly win the fight against corruption given that many of the problems are outside its control.  However, the changes made after de Speville’s recommendations are certainly a step in the right direction.  And that has to be a good thing.

Richie Vaughan

University of Sussex

Posted in Sport

Strawberries, cream and … courtsiders; tennis and the challenge of tackling corruption

Tennis, in the UK at least, is a sport of strawberries, cream and luscious green lawns. It couldn’t be more middle-England. Elsewhere in the world they may not, Melbourne perhaps to one side, have the lawns, but tennis is still seen as a sport of grace, style and elegance. It’s not supposed to be about corruption, thrown points and betting syndicates.

Following a report by Buzzfeed and the BBC allegations of match fixing have none the less cast a dispiriting shadow over the game. Indeed, the allegations look set to tarnish a sport which prides itself on good, clean, family fun. According to the BBC the head of the Tennis Integrity Unit has revealed that there were 246 alerts of suspicious betting on matches in 2015. Furthermore, 16 players were repeatedly flagged as potentially being involved.

These are dangerous signals. Any sport that wants to uphold its reputation as being clean needs to show that it has processes in place to deal with allegations like these and, if needed, to punish any miscreants found guilty. The Tennis Integrity Unit (TIU), formed in 2008, should be the tool through which tennis can sort this out. However, the tennis authorities have already tacitly admitted that they are not currently able to do this by announcing that there will be an independent anti-corruption review of the TIU,  The review will focus on transparency, independence and if the integrity education programme should be extended. But has not said how long the review will last.

What might tennis learn from the literature on anti-corruption organisations? The authorities could do worse than take a look at the work of Gabriel Kuris, an American academic. He highlights the potential problems of immediately enforcing stricter laws following scandals. Calls for integrity units ‘with more teeth’ are often made in the wake of a corruption scandal. More teeth means, for many, strong(er) law enforcement powers, but, as Kuris demonstrates, just granting these units these powers does not necessarily make them more effective. On the contrary, simply enacting stricter laws can in fact be counterproductive.

Kuris describes anti-corruption units as either guard dogs or watchdogs. The guard dogs are the units with strong investigative powers who seek, pursue and engage the threats. They have, in other words, real ‘teeth’ with which to go after alleged miscreants. Watchdog ACAs, on the other hand, rely on collecting witness testimony and issuing public reports. Watchdogs may not possess teeth that are as big and sharp, but they can on occasion be better able to combat corruption. Watchdog ACAs are, in other words, much more about the bark and much less about the bite – and for tennis that might be no bad thing.

Anti-corruption agencies that rely on well-developed sets of potential punishments that they themselves have a responsibility to administer require (lots of) resources and real in depth knowledge to make charges stick. These anti-corruption systems can be hard to maintain and require a level of expertise in the alleged misdemeanours that tennis does not readily have available. Until tennis as a sport is able to allocate enough resources to the TIU then pinning hopes on a guard dog institution is simply unrealistic.

Within the TIU there is a lack of resources and arguably a lack of political will and some within the Buzzfeed and BBC investigation even suggest it may have covered up previous issues of match fixing. The Tennis Integrity Unit may subsequently be better off following a watchdog model of anti-corruption.

Watchdog ACAs are able to act more like investigative journalists. Those involved are not forced to focus on producing evidence that would stand up in a court of law, rather they can concentrate on highlighting potential wrong-doing and bring it to the relevant authorities’ attention. This would also enable tennis to think more broadly about how to deal with the endemic of betting that now exists. A full-time betting analyst working with the TIU would certainly make a contribution to understanding rather more about how betting relationships work and pinpointing potential problems before they arise. The TIU has, according to the organisation’s head, Nigel Willerton recognised the need for this and within the review they will be looking into the potential for employing a betting analyst.  Tennis would also be able to quickly raise awareness of specific problems without having to wait for prosecutions to be handled.

The focus may still understandably be on prosecutions, but looking to the future is also key to the success of anti-corruption initiatives. The initial focus for cleaning up tennis, as with any body in sport, should be on developing internal procedures and ensuring an open and independent leadership. This would encourage the greater oversight that is so desperately needed. The TIU should encourage those both inside and outside (such as sponsors) the sport to inspire younger players to avoid corruption whilst at the same time highlighting where the potential pitfalls lie and how to avoid getting caught up in them. There is currently and Integrity Education Program in place but this will need to be extended to encompass more players. The importance for tennis is to bring back trust in the sport and trust in the players themselves.

Tennis would benefit from adopting a watchdog ACA approach as it enables the authorities to be proactive. Kuris suggests that ACAs that follow this model are better able to devote their resources to prevention as they do not have to use the(ir inevitably limited) resources for detailed investigations. Tennis would be able to highlight the corruption risks that the sport faces and create mechanisms to prevent them from flourishing further without being bogged down in trying to bring charges against previous suspects.

Tennis prides itself in ‘family fun’, and having investigations without risk of litigation may encourage more of an open and honest conversation about these issues. However, tennis would require support from other bodies if it adopted a watchdog system of anti-corruption. But corruption in sport remains high on the agenda of many governments and NGOs and if tennis shows it is willing to take the initiative in rooting it out then there is every reason to believe that it will receive considerable support.

Hope is certainly not lost for tennis. But those within the sport need to act on the allegations made and they need to be seen to be taking a pro-active stance in addressing the problem. Then, and only then, will tennis be able to regain some of the trust that has been lost and become the ‘clean, nice, family sport’ which it prides itself on being.

Tilly Prior

University of Sussex

Posted in Sport

Tennis, court-siders and the challenge of dealing with sports betting

Anyone who’s spent any time watching sport on British TV will be more than familiar with the dulcet tones of Ray Winstone.  Sport is, so the actor famous for his hardman persona will tell you, “all about the in-play” as he plugs the odds for the self-proclaimed world’s largest online gambling company.  According to one of their competitors “sport means more when you bet on it” whilst a third betting company ratchets up the excitement by claiming that “right now, anything could happen”.  If you believe the adverts, the sporting world is a fast-moving, emotionally-charged adrenalin rush where banter and pay outs dominate.

Glamorous though it may look (to some), there is plenty going on beneath the surface that the watching punter won’t be aware of.  Indeed, even investigative journalists who spend their lives looking in to how sport works know that things go on that even they can’t really get a handle on.   It is, for example, one thing having a five pound flutter on five correct results to keep yourself amused on a Saturday afternoon, it is quite another to be in regular contact with participants to try and get ahead of the game.  And, as we know, that happens far more frequently than sport purists have traditionally been prepared to admit.

Where once football and cricket led the way, tennis now seems to be the focus of attention.  Indeed, recent reports give the impression that tennis is a sport beset by betting problems.  As Sean Ingle revealed in the Guardian on Tuesday 9th February, there is an ever-growing body of evidence that shows tennis umpires, for example, in an increasingly worrying light.  In the lowest ranking tennis tournaments, umpires can be asked to use hand held devices to automatically update scores.  These scores naturally flash up in the stadium but, with data systems such as those developed by Sportradar, they can also instantly flash up in the betting shops and on to computer screens around the world.

In a world ever more obsessed with sport, this is great for someone who thinks they’ve spotted a diamond or can see a shock coming.  They can back their judgement and bet as the game continues (‘in play’).  Just like stock market traders, they are putting their money where their mouth is and, if their hunches are right, reaping handsome rewards.

The problem comes in that with ever-increased amounts of data comes the potential for (quick and skilful) manipulation of it.  As Sean Ingle notes, if an umpire takes 30 seconds or so to update the score in a tennis game, then that gives someone at the match the chance to place bets whilst the ‘old’ odds are still in place.  The ‘court-sider’ is either placing a bet on something that has already happened or is advising others to do the same.  In worlds of big revenues these time-lapses can make real differences to who wins and how much they win.  It’s also not surprising that some inside tennis (and tennis won’t be alone) look upon it as a chance to make a quick buck.

In corruption terms this is a classic principal/agent challenge.  The paying public provide the funds that help the sport remain viable.  They do this either by going to the events themselves, or prompting sponsors to underwrite them (the events) in the hope that the connection will help them in their business activities. They are the ‘principals’ who, in theory at least, have the power to decide whether tennis as a commercial entity ultimately has a future or not.  The agents – the players, the officials and those who are involved in getting the game played – do their best to provide a genuinely competitive product to appeal to the watching public.

There is, however, always the option of doing things that whilst often insignificant for the final result, undermine the very ethos around which sport is played; deliberately bowling a no ball in cricket, trying to ensure there are a set number of throw ins in a football game and so on.  The agents have, in other words, discretion as to how the game is actually played, and it is often the human touch – the inspirational moments and the mistakes – that make sport what it is.

The challenge for those interested in tackling the corruption that underpins some of the betting scandals is how best to regulate this discretion.  In a world where it is simply expected that people ‘do the right thing’, then there is no problem.  But that is not a world that we can take for granted. Rules, regulations and procedures, however, only ever get us so far in this regard – in the end, decisions are made, actions are taken, and they are, at least in some part, at the discretion of the participants involved.  If they weren’t, we’d be watching robots going through the motions.

What, in other words, do we do when an athlete has a breakdown and loses from a seemingly impregnable position?  Or what do we do when somehow a victory is pulled miraculously from the jaws of defeat?  In the true Corinthian spirit we should applaud all the actors involved and be pleased that sport is providing such great entertainment.

But in a world of dark corners, rapid data flows and lots of money, that Corinthian spirit simply cannot be taken for granted.  The sharp-eyed and unscrupulous will use the discretion that is inherent in all sporting contests to make their living.  Furthermore, we shouldn’t be surprised when they concentrate on (1) sport at slightly lower levels, (2) sports where individuals (as opposed to teams) have rather more leeway to shape outcomes and (3) where data is available in abundance.  An awful lot of sport falls in to those categories.

The world of anti-corruption analysis has long been warning that sport needs to up its game.  A world without corruption is impossible, but a world where sport is a multi-billion pound business needs to adopt the same standards of compliance and oversight as do other global businesses.  As things stands, sports such as tennis are illustrating more or less exactly how not to do that.

By Dan Hough

 

Posted in Sport

The UK makes the top ten in the CPI, but let’s not get too carried away

Transparency International (TI), the world’s leading anti-corruption NGO, has published the latest edition of its annual Corruption Perceptions Index (CPI). On the face of it, the 2015 CPI shows the UK to be doing rather well. But let’s not get carried away, there’s still plenty of work to be done.

How much corruption exists and which states are best at fighting it? Transparency International, a leading anti-corruption NGO, has developed a way of giving us at least an indication as to what the answers to these questions might be. Every year TI publishes data on perceptions of corruption around the world. The 2015 version, published on 27 January, included 168 countries and territories, with every one being given a score out of 100. The nearer to three figures a country is, the better it is performing. The nearer to zero a country is, the more work it has to do.

As has become the norm, the Nordic countries come out on top – Denmark is in first place (91 points), whilst Finland is second (90) and Sweden third (89). North Korea (8) and Somalia (8), on the other hand, are joint 167th (and last). Over the last 12 months the UK’s performance has improved noticeably. In 2014 Britain registered 78 points for 14th place. In 2015 this improved to 81 points and 10th respectively. Given that it takes time for change to happen, this leap is noticeable, and only a handful of countries can claim to have made more progress than the UK has this year (Czech Republic, Rwanda and Kuwait being good cases in point).

Why the improvement? On the one hand David Cameron’s governments have quietly begun to push a series of anti-corruption initiatives; in December 2014 the UK produced its first anti-corruption plan, for example, and David Cameron has made a number of big speeches where the issue of corruption has come up (see this one in July 2015 in Singapore for arguably the best example). Furthermore, both the Con-LD coalition and the Tory government that has followed it have made a relatively big deal out of tackling thorny issues such as revealing more about who profits from owning companies (so-called ‘beneficial ownership’).  The UK Prime Minister is also trying to mobilise international support for his anti-corruption agenda, and this will come to a head at a global anti-corruption summit in London in May 2016.  All of this is positive and, slowly but surely, the UK is making a name for itself as a real anti-corruption advocate.

We do, however, still need to be careful in reading too much in to all of this.  That’s so for two reasons. On the one hand the CPI is certainly not without its critics, and there are sound reasons not to take its findings too seriously. On the other hand the UK still faces a host of corruption challenges, and some hard yards lie ahead if these challenges are going to be met.

In terms of the CPI, it’s not clear that the results actually reflect the reality on the ground. Boiling down perceptions of corruption to one solitary number is undoubtedly an overly simplistic way of assessing the amount of corruption that is perceived to exist. Plus, in complex societies the types of corruption that financial centres such as the City of London face are likely to be altogether different to those facing, say, rural communities in northern Scotland.

Secondly, the CPI doesn’t even claim to measure what is really going on; TI, on the contrary, is always quick to claim that it measures perceived and not actual levels of corruption. Whilst knowing how people view problems is undoubtedly useful, it’s not the same as knowing what is actually going on. A nuance that can be lost all too quickly.

Respondents to the surveys included in the CPI are also left to define corruption for themselves. Practically, this makes sense, but it will of course mean that different people will be responding to a phenomenon that they could quite plausibly understand in different ways. Finally, the CPI also claims to concentrate solely on public sector corruption. That’s fine as far as it goes, but what of the regular stream of private sector indiscretions? Think Libor, think VW emissions, think GSK. The corrupt acts of private sector firms and individuals have impacts on the wider public (in these cases on the interest rates you pay, the air you breathe and the cost of the drugs that you need when you’re ill) and yet they are purposefully avoided.

So what should we make of the UK’s apparent anti-corruption success story? On the one hand, the CPI should never be taken too seriously. It has too many flaws for that. But paradoxically it may well be precisely these flaws that make people think a bit more and dig a bit deeper to work out what really is going on. In the case of the UK that digging will lead to a Prime Minister who does seem keen to make progress in this area. That doesn’t mean that the UK is sailing in tranquil waters; on the contrary, it should prompt us to engage with the challenge of, say, dealing with the money-laundering that goes through the UK’s outsized financial services sector and the open data agenda. If the CPI makes even a small contribution to helping us make progress there, then it is a parlour game worth persevering with.

Dan Hough

University of Sussex

Posted in Uncategorized

The EITI and the challenge of transparency

The Extractive Industries Transparency Initiative (EITI) has now been around for well over a decade (see here for more on the EITI’s history).  Formed as a response to the much vaunted ‘resource curse’, the EITI has developed a position for itself as an important and innovative actor in the fight against natural resource-focussed corruption.  Indeed, it leads the way in developing consultative processes for more openness in the oil, gas and mining sectors.

The EITI board met for the 31st time in Kiev from 7th– 10th December 2015.  And, there was important (internal) business to hand.  There are important changes happening within the EITI, one of which being the appointment of a new chair to continue the work of former UK politician Clair Short.

Fredrik Reinfeldt, the former Swedish Prime Minister (2006-2014), has now taken up his post as her successor.  On doing this he made an upbeat speech, claiming that he was “thrilled to be nominated as the next Chair of the EITI”.   He further added that “questions about openness, transparency and accountability have always been close to my heart” and that he was passionate about seeing natural resources “used in an equitable manner for the benefit of all citizens”.  

Reinfeldt will have plenty to keep him busy.  One of his first tasks will be to oversee the (s)election of new members to the EITI board in 2016 and shortly after that to co-ordinate and lead the EITI Global Conference in Peru (see here).

The challenges that led to the creation of the EITI remain every bit as significant now as they were back then.  The aim of improving transparency in the extractive industries is as important for developed countries as it is for less developed countries. In the USA, for example, big players such as Exxon Mobil Corp have not shared information about the taxes they pay at home, and that even though the company is a member of the EITI US Multi-Stakeholder Group (MSG). Indeed Exxon is one of several energy companies that has failed to share U.S. specific tax information for a recent report released by the EITI.

There is another potentially serious challenge facing the new chair, the board and the EITI secretariat in Oslo. Clare Short highlighted the issue in her November Newsletter before she handed over to Reinfeldt:

The issue for the EITI is whether we should make something compulsory and set up many countries to fail or whether we should continue to encourage all countries to make progress.  The real issue is how the EITI should build on the work so far to encourage continuing progress towards the EITI Principles in all countries” 

Civil society groups, one third of the voting members of the EITI board, have been uncompromising in pursuing this relatively hard-line aim at a time when the chair believed more diplomacy was needed. Some London based ‘transnational advocacy non-governmental groups’ (TANGOs) have regularly blocked pleas from the board and industries to allow more time for some countries, such as Azerbaijan, to provide company and tax information to the EITI.

For those not quite so familiar with the EITI’s procedures, membership is often critically important to less economically developed countries (even with natural resources) not least because membership is also a qualification for international aid from the World Bank.

On the other hand London based TANGOs set standards for other MSGs around the world. Recently, for example, they introduced new guidelines for the disclosure of Beneficial Ownership information in UK extractive industries. This was first accepted by members at the UK EITI MSG last year and it has now been accepted by the EITI board:

EITI civil society organisations are normally expected to affiliate to Publish What You Pay (PWYP), an offshoot of Global Witness (GW created PWYP in 2002). Some NGOs, one a former affiliate of PWYP in the Democratic Republic of Congo, are nonetheless now applying directly to Oslo for associate membership of the EITI. This may also lead to opportunities for them to apply independently of PWYP for EITI board membership (for more on PWYP’s selection criteria for EITI board membership see here).

The EITI, as is evident from the above, is evolving. It might subsequently be worth keeping a closer eye on it in years to come.

 

Martin Brown

University of Sussex

Posted in Uncategorized

On collision course: anti-corruption in Tanzania under Magufuli

Nicknamed the ‘bulldozer’, Pombe Magufuli is fast becoming a proverbial knight in shining armour just weeks after he was sworn-in as the fifth president of Tanzania. His radical approach to public service reform, economic austerity and anti-corruption is being hailed across the African continent and has been a subject of viral memes on twitter.

A day after he was inaugurated, for example, the president took an unannounced and unguided tour of one of the national hospitals, and finding it in a shocking state – with patients sleeping on the hard floor and vital diagnosis machines broken – fired the board and acting director there and then (see here). In another surprise visit by Magufuli’s new Prime Minister, Kassim Majaliwa, to the port in Dar es Salaam, it was discovered that taxes amounting to 40 million USD had not been paid. The president immediately suspended the Tanzania Revenue Authority’s (TRA) Commissioner General and had him arrested together with five other top TRA officials.

Magufuli has also banned business class travels for all public officers except the President, Vice President and Prime Minister, introduced significant cuts in tax exemptions and replaced the often lavish national independence celebrations with a nation-wide clean-up campaign. He has promised zero-tolerance for corruption and ordered the creation of a special court for corruption cases (see here).

These unconventional methods raise some interesting issues concerning the fight against the endemic graft that has dogged the African continent in the past 40 years.

One argument is that when corruption is entrenched and normalised, as it is believed to be the case in Tanzania, such an abrupt intervention is critical. The radical approach can introduce ‘uncertainty’ in the corruption-prone environment, breaking the shared expectations and resulting predictability that sustain corrupt systems. The chain of corruption can be broken, albeit temporarily, when potential wrongdoers are unable to anticipate the type of response their actions will elicit from the top political echelons.

Additionally, the abrupt crackdown on corruption can instil fear among the ‘usual’ offenders working in cahoots that often straddle the private sector and government. This is already happening in Nigeria where the fear of the new president, Muhammadu Buhari, is said to ‘be whipping [the] Nigerian bureaucracy into shape’ (see here). Indeed, instilling fear was one of the important weapons in the anti-corruption arsenal of Singapore under the leadership of Lee Kuan Yew. When he was quizzed about his fear-instilling methods, Yew once remarked: “Between being loved and being feared, I have always believed Machiavelli was right. If nobody is afraid of me, I’m meaningless.”

But Yew seemed to understand that healing the cancer of corruption requires a careful combination of fear, voluntary compliance by public officials and broad-based community involvement. In addition to raising salaries of public officials, there were efforts to encourage the Singaporean public to be vigilant and to take full ownership of the war on corruption. Incidentally, the consistent show of political will and commitment to fight corruption is a decisive short-cut to winning the hearts and minds of the citizens to rally behind an anti-corruption campaign. A genuine commitment to tackling corruption by a country’s number 1 can inspire a badly needed citizens-led anticorruption movement and become the single most important bulwark for the islands of integrity or the so-called ‘positive-outliers’ in Tanzania.

The challenge is, however, that the political conditions that exist in Tanzania may not be conducive for the Singaporean approach to anti-corruption. Lee Kuan Yew could literally go after anyone suspected of corruption without risking his political career; he could afford to step on big toes and still remain in power. Being the most popular figure in his People’s Action Party (PAP), and in Singaporean politics in general, Lee was relatively unencumbered by political machinations, a luxury that Magufuli on the other hand can only dream of. Although he is credited with being one of the most consistently well performing ministers, is relatively young (55 years old) and has a chemistry PhD, Magufuli was not his party’s (Chama Cha Mapinduzi) first choice. He owes his nomination to the alleged fall-out between the party’s top brass and the former Prime Minister, Ngoyai Lowassa, who was more popular and viewed as the strongest contender.

While Magufuli’s impressively ‘clean’ record during his tenure as the minister of Public Works demonstrates his commitment to integrity, and lends credence to his anti-corruption drive, one wonders whether he has the political wherewithal to take on the big wigs of the Chama Cha Mapinduzi (CCM) when the need arises. He might be ‘clean’ but some influential members of the CCM may have put their hands in the cookie jar; can the president remain true to his word and crack the whip without fear and favour?

For someone who started so brightly, showing prejudice in an anti-corruption clampdown can cause more damage than was ever inflicted by all the former presidents combined. It has the potential to generate more cynicism among the ordinary Tanzanians who have pinned their hopes on him to take the country forward.

In the context of multi-party pluralism, the war on endemic corruption can never be a one man show. The new president needs to find strong allies within the CCM and the bureaucracy. The former is more urgent. Intra-party collective action against corruption will sustain the momentum and ensure that other arms of state, especially the judiciary, take anti-corruption much more seriously. But where the incentives for intra-party anticorruption collective action will come from is, so far, an enigma. Why should the CCM be more committed to the war on corruption now than ever before?

Moletsane Monyake, University of Sussex

Posted in Uncategorized