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As we follow the recent American-style media circus posing as the Conservative Party leadership contest set to determine the interim Prime Minister until the next General Election, we are reminded that both ‘finalists’, Rishi Sunak and Liz Truss are pretty much showing us their real faces fairly early in the show, while they pander to their own, in a frenzy to be seen as the modern-day version of Thatcher. Truss’ emulation of the ‘Iron Lady’ through evident vocal coaching to sound more ‘masculine’ and ‘assertive’ has helped her come across even more awkward and inept than before; perhaps the ‘Wooden Spoon’ may be a more appropriate title. Nevertheless, with promises to cut taxes…despite having announced 15 tax rises in just over 2 years…‘restore trust’ in politics…despite having been directly complicit in keeping the outgoing clown Prime Minister (Boris Johnson) in power for so long given his track record for lying…and continue with an illegal migration policy that will see refugees and asylum seekers deported to Rwanda, we are reminded that it is not the British public that will get a say in who will represent our country on the global stage, but a comparatively handful of Conservative Party members.
Lest we forget that the Conservative Party membership is dominated by middle-aged white men, many with nationalist and strongly-held religious views, seeking to preserve traditions that go back (sometimes) centuries. It seems inevitable then that the next leader will not be a racially minoritised candidate, despite being the elite private-school multi-millionaire type that Conservative voters have grown to love since the 2010’s, paving the way for Liz Truss to put her very important ideas surrounding growing British apples and setting up pork markets in Bejing to the forefront of the current populist political model we have unfortunately allowed to flourish in the UK. Truss may find meeting the Queen during her term as quite awkward given her openly anti-monarchist history. She also seems, despite having voted to remain in the European Union in the 2016 Referendum, to have jumped on the bigoted Brexit bandwagon that is slowly eroding the last remaining remnants of democracy in this country. We know that every crumb of functioning public sector life has been crushed over the past 12 years:
- Students have seen their EMA’s and grants scrapped, and their university tuition fees trebled;
- Teachers across most education institutions are in both a pay and retention crisis;
- The National Health Service is in much the same critical position with a massive shortage of GP’s, doctors and nurses and record-level waits for hospital treatments;
- The social care sector has been decimated leaving the elderly and vulnerable both financially and physically worse off;
- Those with disabilities are disproportionately disadvantaged by so-called ‘welfare reforms’ which introduced a Universal Credit benefit merger;
- Cuts to legal sectors and legal aid has left the poorest in society unable to afford high-quality legal advice and representation in court;
- Children have seen their benefits cut and, with a sharply rising inflation rate and a looming recession by the end of this year, the use of food banks among the poorest families has been higher than ever recorded…
…and there are many other examples. Without getting into yet another Brexit debate, there is no doubt that the very act of voting to leave the EU in 2016, and its subsequent consequences, has had a long-lasting impact in these services, one which we cannot hope to treat for many years. Let us not be in any illusion that either of these candidates will swoop in and majestically heal the UK from the deep wounds this Party has inflicted for 12 years, nor that there will be some miraculous light at the end of the tunnel of tyranny. Perhaps this is a rather pessimistic outlook on the years leading up to the next General Election, but unless in the unlikely event the soon-to-be PM decides to call a snap election to allow the public to finally boot out the last of this government and pave the way to some change, the situation seems rather hopeless…at least for the time being.
Sometime last week, I was amid a group of friends when the argument about the Pandora papers suddenly came up. In brief, the key questions raised were how come no one is talking about the Pandora papers again? What has happened to the investigations, and how come the story has now been relegated to the back seat within the media space? Although, we didn’t have enough time to debate the issues, I promised that I would be sharing my thoughts on this blog. So, I hope they are reading.
We can all agree that for many years, the issues of financial delinquencies and malfeasants have remained one of the major problems facing many societies. We have seen situations where Kleptocratic rulers and their associates loot and siphon state resources, and then stack them up in secret havens. Some of these Kleptocrats prefer to collect luxury Italian wines and French arts with their ill-gotten wealth, while others prefer to purchase luxury properties and 5-star apartments in Dubai, London and elsewhere. We find military generals participating in financial black operations, and we hear about law makers manipulating the gaps in the same laws they have created. In fact, in some spheres, we find ‘business tycoons’ exploiting violence-torn regions to smuggle gold, while in other spheres, some appointed public officers refuse to declare their assets because of fear of the future. Two years ago, we read about the two socialist presidents of the southern Spanish region and how they were found guilty of misuse of public funds. Totaling about €680m, you can imagine the good that could have been achieved in that region. We should also not forget the case of Ferdinand Marcos and his wife, both of whom (we are told) amassed over $10 billion during their reign in the Philippines. As we can see below that from the offshore leak of 2013 to the Panama papers of 2016 and then the 2017 Paradise papers, data leaks have continued to skyrocket. This simply demonstrates the level to which politicians and other official state representatives are taking to invest in this booming industry.
These stories are nothing new, we have always read about them – but then they fade away quicker than we expect. It is important to note that while some countries are swift in conducting investigation when issues like these arise, very little is known about others. So, in this blog, I will simply be highlighting some of the reasons why I think news relating to these issues have a short life span.
To start with, the system of financial corruption is often controlled and executed by those holding on to power very firmly. The firepower of their legal defence team is usually unmatchable, and the way they utilise their wealth and connections often make it incredibly difficult to tackle. For example, when leaks like these appear, some journalists are usually mindful of making certain remarks about the situation for the avoidance of being sued for libel and defamation of character. Secondly, financial crimes are always complex to investigate, and prosecution often takes forever. The problem of plurality in jurisdiction is also important in this analysis as it sometimes slows down the processes of investigation and prosecution. In some countries, there is something called ‘the immunity clause’, where certain state representatives are protected from being arraigned while in office. This issue has continued to raise concerns about the position of truth, power, and political will of governments to fight corruption. Another issue to consider is the issue of confidentiality clause, or what many call corporate secrecy in offshore firms. These policies make it very difficult to know who owns what or who is purchasing what. So, for as long as these clauses remain, news relating to these issues may continue to fade out faster than we imagine. Perhaps Young (2012) was right in her analysis of illicit practices in banking & other offshore financial centres when she insisted that ‘offshore financial centers such as the Cayman Islands, often labelled secrecy jurisdictions, frustrate attempts to recover criminal wealth because they provide strong confidentiality in international finance to legitimate clients as well as to the crooks and criminals who wish to hide information – thereby attracting a large and varied client base with their own and varied reasons for wanting an offshore account’, (Young 2012, 136). This idea has also been raised by our leader, Nikos Passas who believe that effective transparency is an essential component of unscrambling the illicit partnerships in these structures.
While all these dirty behaviours have continued to damage our social systems, they yet again remind us how the network of greed remains at the core centre of human injustice. I found the animalist commandant of the pigs in the novel Animal Farm, by George Orwell to be quite relevant in this circumstance. The decree spells: all animals are equal, but some animals are more equal than others. This idea rightly describes the hypocrisy that we find in modern democracies; where citizens are made to believe that everyone is equal before the law but when in fact the law, (and in many instances more privileges) are often tilted in favour of the elites.
I agree with the prescription given by President Obama who once said that strengthening democracy entails building strong institutions over strong men. This is true because the absence of strong institutions will only continue to pave way for powerful groups to explore the limits of democracy. This also means that there must be strong political will to sanction these powerful groups engaging in this ‘thievocracy’. I know that political will is often used too loosely these days, but what I am inferring here is genuine determination to prosecute powerful criminals with transparency. This also suggests the need for better stability and stronger coordination of law across jurisdictions. Transparency should not only be limited to governments in societies, but also in those havens. It is also important to note that tackling financial crimes of the powerful should not be the duty of the state alone, but of all. Simply, it should be a collective effort of all, and it must require a joint action. By joint action I mean that civil societies and other private sectors must come together to advocate for stronger sanctions. We must seek collective participation in social movements because such actions can bring about social change – particularly when the democratic processes are proving unable to tackle such issues. Research institutes and academics must do their best by engaging in research to understand the depth of these problems as well as proffering possible solutions. Illicit financial delinquencies, we know, thrive when societies trivialize the extent and depth of its problem. Therefore, the media must continue to do their best in identifying these problems, just as we have consistently seen with the works of the International Consortium of Investigative Journalists and a few others. So, in a nutshell and to answer my friends, part of the reasons why issues like this often fade away quicker than expected has to do with some of the issues that I have pointed out. It is hoped however that those engaged in this incessant accretion of wealth will be confronted rather than conferred with national honors by their friends.
BBC (2021) Pandora Papers: A simple guide to the Pandora Papers leak. Available at: https://www.bbc.co.uk/news/world-58780561 (Accessed: 26 May 2022)
Young, M.A., 2012. Banking secrecy and offshore financial centres: money laundering and offshore banking, Routledge