Central African Republic Corruption Report

Corruption in the police force is a high risk for businesses operating in the Central African Republic. The widespread conflict within the country and the succession of several rebel movements has meant that the state does not have a monopoly on the use of force, and local security forces. The police do not have authority over all parts of the country (BTI 2016). During the 2013 crisis, private companies suffered from insecurity and fell victim to looting, kidnapping, and damages to installations and offices (Crisis Group, Jun. 2014). Despite support from the local police and from various international bodies, companies should note that law enforcement is weak (Amnesty International, Feb. 2016). Additionally, reports of abuse of function by peacekeepers are widespread, and often involve extortion in exchange for food or basic services (Washington Post, Feb 2016).

Corruption is a high risk for land administration, and negatively affects the private sector (BTI 2016). The weak rule of law limits the protection of private property (BTI 2016). Registering property takes investors on average 75 days (DB 2016). The ongoing conflict exacerbates the situation and has around 435,000 people displaced throughout the country (ICRC, Feb. 2016). Private businesses and civilians’ homes are regularly plundered and destroyed by militants on both sides of the conflict. With livestock and land destroyed, the agricultural economy, and the livelihood of 75 percent of the population has come to a halt (FitW 2015).

There is a high risk of corruption in the customs administration. Trade in and out of the CAR is restricted by limited infrastructure, and the landlocked position of the country (BTI 2016). The country gets 80 percent of its imports via a corridor linking the Cameroonian port, Douala to the capital, Bangui (Bloomberg, Feb. 2016). The key transit route has been rehabilitated in 2014, and several border checks have been put in place during 2015 (DB 2016). Cameroonian truck drivers report regularly to being asked for bribes at the border, and on the route (Bloomberg, Feb 2016). Reportedly, Séléka groups set up informal roadblocks between the Cameroonian border and Bangui, extorting CFA 20,000 (EUR 30) from bypassing trucks (Global Witness, Jul. 2015). At the same time, logging companies report to pay as much as CFA 150,000 to 200,000 from the forested area of CAR to Douala, Cameroon (Global Witness, Jul. 2015).

Smuggling is very common, especially between Cameroon and Sudan (Crisis Group, Jun. 2014). In 2013, Chinese citizens were arrested at the airport with gold and false documents issued by the mines ministry (Crisis Group, Jun. 2014). Another private operator reportedly had arrangements with customs officers to allow the transportation of diamonds (Crisis Group, Jun. 2014). Finally, those who are caught for attempted smuggling are rarely get prosecuted (Crisis Group, Jun. 2014).

The time for obtaining, preparing, and submitting documents during port or border handling, plus customs clearance and inspection procedures averages 161 hours when exporting, and 74 when importing (DB 2016).

There is no data available on corruption in CAR’s public procurement; however, companies should note that pre-coup corruption was widespread, and the conflict is likely to have exacerbated the situation (ICS 2012).

In 2014, transitional leader Samba-Panza was implicated in a corruption scandal involving the embezzlement of more than CFA one billion (USD 2 million) of the funds provided by Angola for the transitional government, but the audit commission looking into the issue was abandoned (HRR 2014). Companies are strongly recommended to use a specialized due diligence tool on public procurement in order to mitigate corruption risks associated with public procurement in the Central African Republic.

Corruption in the natural resource sector is a very high risk for companies operating in the CAR. Clientelism, racketeering, and bribery have especially high risks for companies operating in the logging sector (Global Witness, Jul. 2015). Logging companies commonly provide gifts to new political leaders when government changes occur, reportedly these include freezers or envelopes with cash of CFA five to 10 million (Global Witness, Jul. 2015). In return, the officials protect or defend companies at ministerial meetings (Global Witness, Jul. 2015). Companies routinely receive officials on weekends and give them drinks and bribes of around CFA 100,000 to 130,00 (EUR 150-200), in order to ensure relevant documents are signed, and official papers are up-to-date (Global Witness, Jul. 2015). Logging permits are often obtained per collusion with officials.

In the absence of government control, public funds are frequently misappropriated; the special forest tax fund CAS-DF is known to be used by ministers to cover their travels abroad (Global Witness, Jul. 2015). Logging goes largely unchecked, and inspections are often paid for by the logging companies themselves (Global Witness, Jul. 2015). On occasion, companies have gone into business with those in power. SEFCA was in business with Ange-Félix Patassé, president between 1993 and 2003, by managing a concession of 652,000 hectares held by his logging company, La Colombe Forêt SN (Global Witness, Jul. 2015). Today, SEFCA employs as its legal representative, Nicolas Tiangaye, Prime Minister under Séléka President Michel Djotodia, and also a potential candidate in the next presidential elections (Global Witness, Jul. 2015).

The government has no control over territory in the South West of the country, and armed groups engage in illegal logging activities (Global Witness, Jul. 2015). Apart from logging, poaching is a high risk in the CAR (The New Yorker, May 2015). Especially during the civil war, wild animals were poached, sometimes in collusion with state officials (BTI 2016). Diamonds make up around 50 percent of the country’s export earnings, but largely circumvents official channels (FitW 2015).