Channels of corruption in Africa: analytical review of trends in financial crimes

Author:Kempe Ronald Hope, Sr
Position:Development Practice International, Oakville, Canada
Pages:294-306
SUMMARY

Purpose The purpose of this paper is to identify and analytically review the trends of financial crimes as channels of corruption that impact the development process and economic progress in Africa. Design/methodology/approach This paper outlines the trends in financial crimes by compiling statistics derived from a scan of the publicly available survey and other published data... (see full summary)

 
FREE EXCERPT
Channels of corruption in Africa:
analytical review of trends in
nancial crimes
Kempe Ronald Hope, Sr
Development Practice International, Oakville, Canada
Abstract
Purpose The purpose of this paper is to identifyand analytically review the trends of nancial crimes as
channelsof corruptionthat impact the development process and economic progress in Africa.
Design/methodology/approach This paper outlines the trends in nancial crimes by compiling
statisticsderived from a scan of the publicly availablesurvey and other published data related.
Findings The nancial crimes of embezzlement and theft, bribes and kickbacks, money laundering and illicit
nancial ows and state capture are all channels of corruption that are prevalent in Africa with signicant
negative effects on the continents socio-economic development progress. The magnitude of these crimes has
been trending upward with the resultant effect that corruption continues to have signicant negative impacts on
Africas current and future development prospects. To develop policies to minimise these negative effects, it is
necessary to quantify and continuously monitor the magnitude of these various corruption channels.
Originality/value The main value of the study is the insights it provideson the nature and extent of the
trends in nancial crimes as channels of corruption in Africa, and the resultant negative impact on socio-
economicdevelopment in the region.
Keywords Africa, Financial crimes, Bribes and kickbacks, Corruption channels,
Embezzlement and theft, Money laundering and illicit nancial ows
Paper type Research paper
1. Introduction
Corruption involves behaviour on the part of ofceholders or employees in the public and
private sectors, in which they improperly and unlawfully advance their private interests of
any type and/orthose of others contrary to the interests of the ofce or positionthey occupy,
or otherwise enrich themselves and/or others or induce others to do so by misusing the
positionin which they are placed. Thereare basically two classications of corruptionpetty
(low level, small scale, administrative, or bureaucratic) or grand (high level, elite, or usually
political)and these may be exhibited throughmany channels with the principalones being:
Bribery, kickbacks and facilitation payments;
Embezzlement, theft and fraud;
Offering or receiving of an unlawful gratuity, favor or illegal commission;
Favoritism, nepotism, patronage and clientelism;
Money laundering and illicit nancial ows; and
State capture and conict of interest/inuence peddling (Bussell, 2015;Graycar,
2015;Hope, 2017;Nichols, 2017).
Corruption is a pervasive problem in African countries where bad governance tends to
proliferate and institutionsare weak. Among other things, corruption drains resources away
JFC
27,1
294
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 294-306
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2019-0053
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm

To continue reading

REQUEST YOUR TRIAL