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What’s happened to the Pandora papers?

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.

Via BBC https://www.bbc.co.uk/news/world-58780561

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.

References


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

“…the result is the same:  beasts of prey and ignorant thieves”

Photograph by AP in The Guardian

Since the ousting of a close Putin ally (ex-President Viktor Yanukovich) from Ukrainian politics and territory in 2014 during the Euromaidan revolution, the closeness the country had come to actually joining the defensive NATO alliance seems to have irked Putin enough to swiftly “recognise the independence” of, as with Crimea in 2014, two Eastern-Ukrainian regions, Donetsk and Luhansk. It is not a new politically strategic move and certainly not unique to Russia. Examples of this kind of act can be seen around the world in regions where complex power interplays are rendering regional enclaves powerless in garnering enough support for the recognition of their own independence from oppressive regimes, genocide or in securing mere rights to self-determination (e.g. Kashmir in Northern India, Artsakh in South-Eastern Armenia etc.).

Yesterday morning we awoke to the news that Russia’s Vladimir Putin had ordered a full-scale attack on Ukrainian sovereign territory, in violation of international law (among many other violations of basic morality and human decency). I should emphasise here that this is a Putin-centred issue rather than one which encompasses the Russian Federation, since it is not inconceivable to suggest that ordinary Russian citizens are not particularly excited that their relatives, friends, children are being sent to die like cattle in another country while their billionaire leader basks in complete safety in his ivory tower. With an attack from the northern, eastern and southern borders of the country…and now the imminent arrival of Russian troops in Ukraine’s capital Kiev…this does not seem like just a case of Putin’s desire to rebuild a modern-day Russian empire incorporating its former Soviet nations, but a much deeper personal desperation to be seen to be the only globally-remaining strong leader.

The stepping down of Angela Merkel in Germany, ousting of Donald Trump from the US, and the failure of Brexit in achieving what he thought would be a political and economic disaster for the European Union, have all contributed to Putin’s desperation. The poisoning and subsequent arrest/detention of Alexei Navalny, the populist Russian opposition leader who in recent years managed to almost successfully stage a political coop against Putin, demonstrates the lengths Putin will go to convince his increasingly oppressed citizens that the alternative to his leadership will equate to the kinds of political and economic failures they have witnessed of Western nations.

It is clear that the UK’s sanctions have not gone near far enough in preventing the kinds of miscarriages of justice that will inevitably follow from Putin’s appointment of a de facto Russian leader on Ukrainian soil without democratic support from the Ukrainian people. But I wonder whether the seemingly lazy response from Boris Johnson and the UK Conservative Party is indicative of the deeply-rooted corruption which helped his eventual election into British politics. We had for many years been aware of the extent of foreign money laundering through UK banks by Russian and Azerbaijani oligarchs, the billions of pounds’ worth of UK property owned by those with close ties to the Kremlin, the millions donated to fund the Conservative Party, and perhaps most significantly, the “we’ll return the favour” investments by Conservative politicians in Russian-owned banks, stocks and shares. Is it then surprising that Putin was so supportive of the Brexit campaign and the election of Donald Trump, both seemingly aimed at destabilising the West; the US, UK and EU? Surely, now is the time for the British public to demand the highest level of openness and transparency of their politicians, particularly those who have already been elected under the banner of lies. Perhaps this will help in our collective political and economic response to miscarriages abroad, as well as within our borders.

NATO nations’ unwillingness to intervene, militarily, in this conflict is evidently the green light Putin needed to set foot in sovereign territory under the guise of “denazification” (bizarre considering Volodymyr Zelenskyy – the current Ukrainian President –  is himself Jewish).  This should form a stark reminder to former Soviet nations not to be seduced by the thought of reliving some kind of Soviet nostalgia of perceived religious and cultural similarities with Russia which has been drip-fed for many years since the collapse of the USSR. Those living in this hazy nostalgic dream will soon forget the reality that the experience of a Russian invasion will be grounded not in the form of communism which once secured its citizens with guaranteed housing, easy employment, and annual trips to the sanatorium…but in a dangerous oppressive dictatorship and an isolationist economic model. To quote a well-known message from a 1993 Russian film Window to Paris: ‘Sure. You brought up builders of communism. Now, it’s builders of capitalism. And the result is the same: beasts of prey and ignorant thieves’.

Former Soviet nations not aiding and abetting the current aggression in Ukraine (as Belarus is doing) should now be alert to the fact that they will never be safe in a military limbo, nor under Putin’s wing. It is a time where citizens of these regions should let go of any hope of a return to a “simpler way of life” and move to securing effective political and military support for their nations away from Russian influence.

Jimmy Carr and Acceptable Racism

Hope by Elijah Vardo: https://www.travellerstimes.org.uk/features/hope-romani-artist-elijah-vardo

Jimmy Carr’s Dark Material stand-up comedy is the latest in a long line of everyday racism that has been subjected to a trial by TwitterThe context in which the joke is told is as follows:  

A wealthy white gorger man mocks Roma and Sinti people because of who they are. His mostly white gorger audience than laughs and finds this hilarious. This man’s stand-up is so successful that it is endorsed by Netflix, of which the CEO appears to be a rich white gorger man. Both Jimmy Carr and Netflix profit from dehumanising a marginalised group of people.  

If the joke had been delivered to audiences which were predominantly Gypsy Roma and Traveller people this would not have been viewed as funny. To adapt Emma Dabiri’s (2021, p. 98) work, ‘a ‘joke’ in which the gag is that the person is [a Gypsy, Roma or Traveller] isn’t a joke, it’s just racism disguised as humour’ (2021, p. 98).  

Carr’s joke should not be surprising as he prides himself on his use of homophobic, racist and misogynistic ‘career ending’ jokes and these jokes are enjoyed by many.  

The anti-racist Twitter reactions to this joke could provide some hope that many people are becoming more willing to challenge racism. Some Tweets were aimed at increasing the awareness and calling-out racism. Many Tweets were kind, and others were asking for Jimmy to provide a genuine apology. Although, Carr’s words (plus the support of the audience and Netflix) are a symptom of a racist society, so does the focus on Carr’s interpersonal actions mean that people are being distracted from the broader structural issues of racism and white supremacy?   

After scrolling though Twitter there was a clear divide between those claiming to be ‘anti-racist’ and those claiming that ‘the freedom of speech’ is more important than combating racism. This left me thinking,  

How do we get to a point where people are willing to recognise that oppressive systems impact us all, but differently, in some way shape or form?  

And; 

How could people be encouraged to fight against unequal and damaging systems in a way that encourages social change and forgiveness rather than hate and division? 

It seems that online activism might be useful for raising awareness and giving voices to those pushed out of mainstream media. However, if focused on just ‘calling out’ individual acts of racism whilst online there is a danger of being caught up in an online culture war and not actually doing much to change structural issues in the offline world.  

Whilst the Jimmy Carr Twitter debates continue, the Police, Crime, Sentencing and Courts Bill which could further damage Gypsy Roma and Traveller lives is in the final stages of Bill passage. As well as this, inequality and misery is set to become further entrenched with the impending surge in energy bills. All of this is thanks to a government which is a mess, corrupt and devoid of any sense of morality. Even so, maybe Jimmy Carr should stick to making jokes about his own experiences of upper class tax avoidance next time.  

Note: Thank you to Emma Dabiri’s What White People Can Do Next (2021) for helping me to articulte my frustrations with online Twitter debates.

Hope’ by Elijah Vardo: https://www.travellerstimes.org.uk/features/hope-romani-artist-elijah-vardo

Organisational reputation: A euphemism for institutional corruption and violence

The Independent Inquiry into Child Sexual Abuse published a damming report regarding child protection in religious organisations and settings. One of the findings was that ‘In many cases, concerns about external involvement are connected to a desire to protect the reputation of a religious organisation’.  Of course, there are many other issues highlighted in the report, but I wanted to concentrate on this notion of protecting organisational reputation. When I hear the phrase ‘organisational reputation’ my blood generally runs cold because I know that behind these words lay a multitude of sins.

Companies and public sector bodies have policies that are designed, at least in part to protect organisational reputation. The rationale behind these policies often lacks transparency. It might be that the protection of the organisation’s reputation ensures it maintains its customer or client base, an enhanced reputation sees more customers or clients, a poor reputation might see this dwindle, to the detriment of the organisation and ultimately to the detriment of its employees and owners.  It is difficult to recover from a poor reputation and in the case of business, this is sometimes catastrophic.

However, behind the notions of organisational reputation and policies lays a multi-layer of complex organisational and human behaviours which ultimately lead to institutional corruption and violence. Things will go wrong in organisations, whether that be as a result of human behaviour such as poor decision making or illegal activity or as a result of system failure, such as the failure of software or hardware.  Any of these failures might harm the reputation of the organisation and herein lies the nub of the matter.  When there are failures, because of organisational culture, which often finds its basis in finding someone to blame, there is a propensity to try to keep the issues ‘in house’, to protect the organisation. By doing so, managers and those in charge ensure that they are not scrutinised regarding the failure, be that individual failures, failures of policies or failures of systems and processes.  So, the organisational reputation is not necessarily about protecting the organisation, it is more about avoiding scrutiny of those individuals in power. The mention of organisational reputation in policies and processes has another effect, it silences employees. Whistle blowing policies are subjugated to notions of organisational reputation and as a result silence is maintained for fear of some form of informal sanction.  The maintenance of silence ensures organisational reputation, but this corruption also ensures continued institutional violence and corrupt practices. The longer it continues the more those in power have a vested interest in ensuring that the issues are not addressed, lest they are uncovered as offenders through their inaction.  ‘We are all in this together’ takes on a new meaning.  Thus, corrupt or criminal practices simply continue.

And if the wrongdoing is uncovered, becomes public, then the first reaction is to find a scapegoat thus avoiding the scrutiny of those in power. Rarely in these inquiries do we find that those put in the dock are the managing directors, the chief constables, the heads of children’s services, the archbishops or politicians.  Rarely do we see those that caused the problem through inadequate or unworkable policies or strategies or working conditions are ever brought to book. Often its simply portrayed as one or two bad apples in the organisation. Thus, organisational reputation is maintained by further institutional violence perpetrated against the employee. That is not to say that in some cases, the employee should not be brought to book, but rarely should they be standing in the dock on their own.

For ‘organisational reputation, just read institutional corruption and violence.

The pathology of performance management: obscuration, manipulation and power

My colleague @manosdaskalou’s recent blog Do we have to care prompted me to think about how data is used to inform government, its agencies and other organisations.  This in turn led me back to the ideas of New Public Management (NPM), later to morph into what some authors called Administrative Management.  For some of you that have read about NPM and its various iterations and for those of you that have lived through it, you will know that the success or failure of organisations was seen through a lens of objectives, targets and performance indicators or Key Performance Indicators (KPIs).  In the early 1980s and for a decade or so thereafter, Vision statements, Mission statements, objectives, targets, KPI’s and league tables, both formal and informal became the new lingua franca for public sector bodies, alongside terms such as ‘thinking outside the box’ or ‘blue sky thinking’.  Added to this was the media frenzy when data was released showing how organisations were somehow failing.

Policing was a little late joining the party, predominately as many an author has suggested, for political reasons which had something to do with neutering the unions; considered a threat to right wing capitalist ideologies.  But policing could not avoid the evidence provided by the data.  In the late 1980s and beyond, crime was inexorably on the rise and significant increases in police funding didn’t seem to stem the tide.  Any self-respecting criminologist will tell you that the link between crime and policing is tenuous at best. But when politicians decide that there is a link and the police state there definitely is, demonstrated by the misleading and at best naïve mantra, give us more resources and we will control crime, then it is little wonder that the police were made to fall in line with every other public sector body, adopting NPM as the nirvana.  

Since crime is so vaguely linked to policing, it was little wonder that the police managed to fail to meet targets on almost every level. At one stage there were over 400 KPIs from Her Majesty’s Inspectorate of Constabulary, let alone the rest imposed by government and the now defunct Audit Commission.  This resulted in what was described as an audit explosion, a whole industry around collecting, manipulating and publishing data.  Chief Constables were held to account for the poor performance and in some cases chief officers started to adopt styles of management akin to COMPSTAT, a tactic born in the New York police department, alongside the much vaunted ‘zero tolerance policing’ style.  At first both were seen as progressive.  Later, it became clear that COMPSTAT was just another way of bullying in the workplace and zero tolerance policing was totally out of kilter with the ethos of policing in England and Wales, but it certainly left an indelible mark.

As chief officers pushed the responsibility for meeting targets downwards through so called Performance and Development Reviews (PDRs), managers at all levels became somewhat creative with the crime figures and manipulating the rules around how crime is both recorded and detected. This working practice was pushed further down the line so that officers on the front line failed to record crime and became more interested in how to increase their own detection rates by choosing to pick what became known in academic circles as’ low hanging fruit’.  Easy detections, usually associated with minor crime such as possession of cannabis, and inevitably to the detriment of young people and minority ethnic groups.  How else do you produce what is required when you have so little impact on the real problem?  Nobody, perhaps save for some enlightened academics, could see what the problem was.  If you aren’t too sure let me spell it out, the police were never going to produce pleasing statistics because there was too much about the crime phenomenon that was outside of their control. The only way to do so was to cheat.  To borrow a phrase from a recent Inquiry into policing, this was quite simply ‘institutional corruption’.

In the late 1990s the bubble began to burst to some extent. A series of inquiries and inspections showed that the police were manipulating data; queue another media frenzy.  The National Crime Recording Standard came to fruition and with it another audit explosion.  The auditing stopped and the manipulation increased, old habits die hard, so the auditing started again.  In the meantime, the media and politicians and all those that mattered (at least that’s what they think) used crime data and criminal justice statistics as if they were somehow a spotlight on what was really happening.  So, accurate when you want to show that the criminal justice system is failing but grossly inaccurate when you can show the data is being manipulated.  For the media, they got their cake and were scoffing on it.   

But it isn’t just about the data being accurate, it is also about it being politically acceptable at both the macro and micro level.  The data at the macro level is very often somehow divorced from the micro.  For example, in order for the police to record and carry out enquiries to detect a crime there needs to be sufficient resources to enable officers to attend a reported crime incident in a timely manner.  In one police force, previous work around how many officers were required to respond to incidents in any given 24-hour period was carefully researched, triangulating various sources of data.  This resulted in a formula that provided the optimum number of officers required, taking into account officers training, days off, sickness, briefings, paperwork and enquiries.  It considered volumes and seriousness of incidents at various periods of time and the number of officers required for each incident. It also considered redundant time, that is time that officers are engaged in activities that are not directly related to attending incidents. For example, time to load up and get the patrol car ready for patrol, time to go to the toilet, time to get a drink, time to answer emails and a myriad of other necessary human activities.  The end result was that the formula indicated that nearly double the number of officers were required than were available.  It really couldn’t have come as any surprise to senior management as the force struggled to attend incidents in a timely fashion on a daily basis.  The dilemma though was there was no funding for those additional officers, so the solution, change the formula and obscure and manipulate the data.

With data, it seems, comes power.  It doesn’t matter how good the data is, all that matters is that it can be used pejoratively.  Politicians can hold organisations to account through the use of data.  Managers in organisations can hold their employees to account through the use of data.  And those of us that are being held to account, are either told we are failing or made to feel like we are.  I think a colleague of mine would call this ‘institutional violence’.  How accurate the data is, or what it tells you, or more to the point doesn’t, is irrelevant, it is the power that is derived from the data that matters.  The underlying issues and problems that have a significant contribution to the so called ‘poor performance’ are obscured by manipulation of data and facts.  How else would managers hold you to account without that data?  And whilst you may point to so many other factors that contribute to the data, it is after all just seen as an excuse.  Such is the power of the data that if you are not performing badly, you still feel like you are.

The above account is predominantly about policing because that is my background. I was fortunate that I became far more informed about NPM and the unintended consequences of the performance culture and over reliance on data due to my academic endeavours in the latter part of my policing career.  Academia it seemed to me, had seen through this nonsense and academics were writing about it.  But it seems, somewhat disappointingly, that the very same managerialist ideals and practices pervade academia.  You really would have thought they’d know better. 

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