Opinion: Let’s Hold the Kleptocrats to Account

We have a heavy moral obligation to provide such assistance as developing countries struggle to care for those infected and to recover from the economic impact of the coronavirus. So all of this is very good news. But it is necessary to add a note of caution. The World Bank estimates that every year, corrupt officials worldwide steal US$20-billion to US$40-billion from money intended as development assistance. While Canada and other donors hasten to make the much-needed aid available, we must surely be concerned to limit the amounts that will fall into the wrong hands.

Now, corruption is not limited to developing countries. Its insidious taint is seen worldwide. But some of the most notoriously corrupt governments are among those that are most likely to receive the lions’ share of pandemic-related aid.

Two recent and innovative proposals might help. Each of them is designed to deal with political corruption: to deter it, to detect it, and to punish it.

The first is a recommendation from the World Refugee Council (WRC) relating to frozen assets. The WRC proposes that countries should not only freeze purloined assets found in their jurisdictions, but also adopt legislation permitting a court order authorizing the confiscation of those assets and their repurposing for the benefit of refugees in cases where there is not a trustworthy government to receive the funds back.

The idea is to introduce accountability for the thieves and generate much-needed resources for refugee services. Take the example of Venezuela. Suppose Nicolas Maduro deposited cash in Canadian banks. Under the WRC proposal, that money would not only be frozen, but could be seized and used for the benefit of the millions of Venezuelans driven from their homes into neighbouring states by Mr. Maduro’s violent and oppressive regime. Such an approach would provide accountability and help fund the refugee housing and social services that Venezuela’s neighbours cannot afford to provide.

The Trudeau government has pledged to enact the proposed legislation, and depending on the availability of time in the Parliamentary calendar, it could be adopted this year or next.