Sub-Saharan Africa (Corruption and the Economy)

Debate between Stephen Phillips and Pauline Latham

Wednesday 1st July 2015 Commons Chamber

[Stephen Phillips]

I am grateful to the hon. Gentleman for his intervention, and he is absolutely right. I shall come on to his point in due course.

Corruption in the developing world has been a hidden problem for too long, though it is now beginning to be brought home to us by the constant threat to our security and by an untrammelled immigration that sees fires set at the entrance to the channel tunnel in France. It is something that requires effort from every Government across the world to challenge, but it is also something that I fear is still too far down the political agenda across the world to be effectively tackled.

Nothing much is changing in terms of advancing the anti-corruption agenda. On 9 December 2013, on international anti-corruption day, the UN Secretary-General pointed out that

“corruption suppresses economic growth by driving up costs, and undermines the sustainable management of the environment and natural resources. It breaches fundamental human rights, exacerbates poverty and increases inequality by diverting funds from health care, education and other essential services. The malignant effects of corruption are felt by billions of people everywhere.”

[Pauline Latham (Mid Derbyshire) (Con)]

Does my hon. and learned Friend agree that until all Governments have zero tolerance of corruption, they will never be able to invest what they need to invest in health and education, as he said? They should take a leaf out of Rwanda’s book, as that is what it has done, and it is investing consistently, which other countries are not.

[Stephen Phillips]

My hon. Friend is right. I cannot speak specifically about Rwanda, but unless and until all countries bear down on corruption, this will be a problem that endures.

Very little progress has been made since the Secretary-General made those remarks two years ago. Still the procurement managers sit in their air-conditioned offices marking the passage of time on their gold Rolexes; still corporate interests buy their way out of laws designed to protect the environment and to ensure that they pay proper amounts of taxation; still wealthy individuals and businesses ease their passage through difficult lawsuits by ensuring that the judiciary across Africa knows which side is more likely to pay more for the “right” result.

Let us take but one area. In its report “Making a Killing”, published this year, Save the Children estimated that the lost tax revenues to developing countries in sub-Saharan Africa due to illicit financial flows was in the order of $15 billion—a figure that dwarfs this country’s annual aid budget and would pay for 1.8 million healthcare workers. That is a loss of revenue to sub-Saharan Africa in just one area, which is largely made possible by a corruption that allows the maintaining of tax laws and treaties that favour rich corporations which are prepared to bribe Governments and parliamentarians to secure their favoured status. The report fails to take account of perhaps even larger revenues that are lost because a blind eye is turned—once it has been paid for—to direct tax evasion. That is morally wrong. It sustains endemic poverty, and, as I have said, it threatens our own security.

We are not without an international framework within which to deal with the issue. In 2003, the United Nations opened for signature the international anti-corruption convention, which the majority of countries in the world have now ratified. It established some common standards in relation to, for example, criminalisation and law enforcement in chapter III, and international co-operation in chapter IV. However, although monitoring finally began in about 2010, it has been patchy and inconsistent. It also suffers from the major failing that review takes place principally “in region”, thus opening up a whole new field to corruption as non-compliant countries with mutual interests are able to score one another for compliance. One issue that the Minister could usefully discuss with his counterparts in the Foreign and Commonwealth Office is how the convention can be updated to ensure proper monitoring.

I believe that the OECD anti-bribery convention has been ratified by only 41 countries. What efforts are the Government making to ensure not only that it is more broadly adopted, but that it is actually enforced by those who have signed it? In its most recent report on the implementation of the convention in 2015, Transparency International found that there was “little or no enforcement” of it in many states, including the Republic of Ireland. There was “active enforcement” only in the United Kingdom, the United States, Germany and Switzerland.

The conventions are, however, only part of the solution. They assist in establishing common international standards, but without enforcement—or, for that matter, the institutions that are necessary to ensure enforcement—they are essentially meaningless.

Ebola

Debate between Stephen Phillips and Pauline Latham

Wednesday 5th November 2014 Commons Chamber

[Stephen Phillips]

Of course I share that concern. I think that if soldiers, whether they are reservists or regulars, are being sent to Sierra Leone or, indeed, to any of the affected countries, they must be given proper training so that they do not expose themselves in any way to the possibility of infection.

Although a large section of the media has begun to shift the spotlight to other issues in recent days, I fear, as many do, that things will get worse before they get better. However, there is some good news. Following the Prime Minister’s Cobra meeting to discuss Ebola a month ago, the UK is now helping to lead the international response. That could, of course, have come sooner, but come it has. I understand that we are now one of the largest donors, that we have committed £125 million to the effort, and that we have, in Freetown, not only the Royal Fleet Auxiliary Argus with its hospital facilities, but several hundred military personnel. We have a good reputation in the region, and those heroes—which is what the personnel who have gone to Sierra Leone are—along with everyone else who travels to west Africa to help its people in this dreadful time, deserve our thoughts, our prayers and our support.

No doubt the Minister will tell me whether I am correct, but I assume that France, which I understand is taking the lead in Guinea, and the United States, which I understand is fulfilling a similar role in Liberia, are playing similar roles in the countries where they are leading the efforts. But is that enough? For our part, here in the United Kingdom, it may be, but when we hear of the efforts being made by other countries, it would seem not. The position may well have changed, and I should be glad to hear from the Minister that it has, but to learn that Canada, for instance, has pledged the equivalent of only £18.6 million is profoundly depressing, although it is doubtless a matter for Canadians. We learned this morning that Australia, which had originally given the equivalent of £6.2 million, is now doing rather better, having agreed to commit funds for the construction of a 100-bed treatment centre that the UK is building, but does that mean extra funds, or funds that the UK would have been providing in any event? Perhaps the Minister will tell us.

In September, the Secretary-General of the United Nations indicated that $600 million would be required just to fund the WHO road map to bring the outbreak to an end. No doubt the Minister will wish to update the House on where current international commitments have taken us. However, he will be aware not only that many consider that sum to be an underestimate, but that it is feared that very little of what has been committed appears to have paid for very much in the affected region. It is not just a question of money, or of promises which, all too often, appear to be poorly translated in practice; it is a question of how money is spent.

[Pauline Latham (Mid Derbyshire) (Con)]

What concerns me about this issue now is that many thousands of people are going to die. We already see hundreds of children being left as orphans. Does my hon. and learned Friend think that some of the money that we are spending in Sierra Leone, and in other countries, should be spent on helping those orphans—who have survived the disease—to come to terms with their position, and to seek a better life for the future?

[Stephen Phillips]

Of course I agree with my hon. Friend. I shall be dealing with the question of diversion of resources shortly, but I can tell her now that one of one of the great concerns is that funds are now being directed towards Ebola that were formerly used to deal with other health problems in the affected countries.

Significant sums are undoubtedly being channelled through non-governmental organisations, as they have to be, for the simple reason that there is no infrastructure in the region that is sufficient to cope with the outbreak, or with the funds that are being channelled to deal with it. However, we need to know that our money is being well spent, and it is not always clear that that is the case. For example, the International Rescue Committee, an NGO that is laudably trying to help the fight in Sierra Leone, is apparently charging the King’s Sierra Leone Partnership, another NGO, $5,000 a month for the use of each of its vehicles. Why? How can that sum be justified? How can the administrative costs associated with the unnecessary transfer of those funds be justified? Where are the funds coming from in the first place? I do not expect the Minister to be able to answer any of those questions tonight, but they demonstrate that we need to get a grip on the ground, and to ensure that in Sierra Leone, where we are taking the lead, moneys are being properly directed.

Another example is the medical and laboratory facilities that we have constructed in Kerry Town, which opened this morning. I understand that all the out-of-country medical staff are staying at an hotel called The Place. It is one of the most expensive hotels in Sierra Leone, perhaps the most expensive. Save the Children told me today that it has have negotiated a special rate, that rooms are being shared, and that it is necessary for its staff to stay there for reasons of hygiene; but is that really the best use of funds, and what alternatives were considered? I do not know, and if the Minister is handing taxpayer money to Save the Children, he will no doubt want to find out.

Let me turn to the UN Mission for Ebola Emergency Response. It has, I am told, 65 staff in Freetown. What are they doing? I know not and, it seems, neither does anyone else in the country. Here is what someone on the ground said to me in an e-mail:

“Their role is unclear, so far they are just eating money and trying to raise more. Not helping fight Ebola.”

What is needed are health workers, an issue to which I shall shortly come, not administrators spending money on salaries, allowances, accommodation and drivers.

The health systems of all the principally affected countries have been overwhelmed. It is frankly amazing that so many health professionals from here and other countries are prepared to risk their lives to help. They are the real heroes, but there are problems in this area as well.

The first is the disincentive to volunteering that is caused by much of the media coverage surrounding the outbreak. For tabloids to question whether Ebola might become airborne when all the virologists tell us that is highly unlikely is hardly helpful. This is not a film with Dustin Hoffman; it is a real-life situation where responsible reporting is required, including reporting how difficult it is to become infected by the Ebola virus in the absence of contact with an individual displaying symptoms.

Politicians are scarcely blameless. What sort of message, for example, do the Governors of New York and New Jersey think they send out to those who might volunteer by imposing unjustified quarantine requirements on asymptomatic patients which have no basis in scientific fact? What sort of message do the Governments of Canada and Australia think they are sending when they impose travel restrictions on those coming from west Africa which again have absolutely no basis in scientific fact? Cheap scaremongering politics at the expense of lives is not only counter-productive; it is just plain wrong.

Politicians in this country are not immune in this regard. The Minister will know that after British Airways took the unilateral decision to pull its west African routes—another decision which had no basis in medical or scientific fact—the only airline still flying directly to the principally affected countries was Gambia Bird, yet I understand that in early October the Government either ordered or told Gambia Bird to stop its flights. The World Health Organisation has been clear that international air travel is a very low-risk vector for infection, so why did the Government give that direction? Perhaps the Minister can tell us, because a difficult journey involving a long layover in Casablanca or elsewhere en route to the region is scarcely a compelling incentive to dedicated medical staff to volunteer to assist.