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Saturday, June 25, 2005

Donating toThieves

Americans are a kind and generous people who want very much to help those who suffer deprivation and oppression. On the other hand, no one wants to see his contributions toward world hunger and poverty going to line the pockets of corrupt officials. There has to be accountability for the money that Americans donate, there have to be strings attached, and there has to be American oversight. There also has to be the threat of dire consequences for those who would steal the money that Americans wish to channel to those in greatest need.

This disheartening article describes a theft of staggering proportions in Nigeria and makes it clear that without the safeguards just mentioned, we may as well be flushing our charity down the commode. The report comes at an inauspicious moment, just as Bob Geldof's Live 8 concerts to raise aid for African people languishing in abject poverty under corrupt regimes draw close (July 2nd):

The scale of the task facing Tony Blair in his drive to help Africa was laid bare yesterday when it emerged that Nigeria's past rulers stole or misused £220 billion. That is as much as all the western aid given to Africa in almost four decades. The looting of Africa's most populous country amounted to a sum equivalent to 300 years of British aid for the continent. The figures, compiled by Nigeria's anti-corruption commission, provide dramatic evidence of the problems facing next month's summit in Gleneagles of the G8 group of wealthy countries which are under pressure to approve a programme of debt relief for Africa.

Gordon Brown, the Chancellor, has spoken of a new Marshall Plan for Africa. But Nigeria's rulers have already pocketed the equivalent of six Marshall Plans. After that mass theft, two thirds of the country's 130 million people - one in seven of the total African population - live in abject poverty, a third is illiterate and 40 per cent have no safe water supply.

Mallam Nuhu Ribadu, the chairman of the Economic and Financial Crimes Commission, set up three years ago, said that £220 billion was "squandered" between independence from Britain in 1960 and the return of civilian rule in 1999.

The stolen fortune tallies almost exactly with the £220 billion of western aid given to Africa between 1960 and 1997. That amounted to six times the American help given to post-war Europe under the Marshall Plan. British aid for Africa totalled £720 million last year. If that sum was spent annually for the next three centuries, it would cover the cost of Nigeria's looting.

Corruption on such a scale was made possible by the country's possession of 35 billion barrels of proven oil reserves. That allowed a succession of military rulers to line their pockets and deposit their gains mainly in western banks. Gen Sani Abacha, the late military dictator, stole between £1 billion and £3 billion during his five-year rule.

"We are only now beginning to come to grips with some of what he did," Mr Nwajah said. Nigeria has scoured the world for Abacha's assets but has recovered only about £500 million.

Olusegun Obasanjo, the current president, founded the commission and launched a crackdown on corruption to try to end the country's reputation as Africa's most venal. The figures all apply to the period before he came to power.

Mr Obasanjo will travel to the G8 summit to press the case for debt relief. Nigeria is Africa's biggest debtor, with loans of almost £20 billion, because previous rulers not only looted the country but also borrowed heavily against future oil revenues. The G8 has refused to cancel Nigeria's loans, despite writing off the debts of 14 other African countries this month. Prof Pat Utomi, of Lagos Business School, said that was the right decision. "Who is to say you won't see the same behaviour again if it is all written off?" he said.

Indeed. After having stolen £220 billion they want their £20 billion debt to be forgiven?

The United States must henceforth insist that the donors of our foreign aid be permitted to oversee its distribution to the people who need it or the aid will simply not be forthcoming. It must no longer be left up to a bunch of corrupt government officials to decide how our charity will be disbursed. Until we have such assurances the Bush/Blair initiative to rescue Africa from poverty should be put on hold.