Transparency International has cited corruption in the banking sector as another reason for its low ranking of Nigeria in its latest report released on Thursday.
The organisation urged the federal government to bar public officers indicted for corruption from contesting elections or holding public offices in future to serve as a deterrent for others who may wish to indulge in corrupt practices.
A Corruption Perception Index for 2008, included in the Report puts Nigeria in the 121st position with 2.7 CPI points, among 180 countries surveyed around the world. Nigeria ties in the same point as Nepal, Sao Tome & Principe, Togo and Vietnam.
Long History of corruption
“Nigeria’s banking sector has a long history of corruption, which was partly responsible for the collapse of many banks in the 1990s and losses to many depositors and stakeholders,” the report said.
“The failures were a result of fraud committed by bank owners and managers, who had granted unsecured loans, resulting in high level of bad debts and a loss of liquidity; failed to maintain a strong capital base; granted unsecured loans to friends and bank owners or managers; and, in some cases, embezzled funds outright.”
Corruption in the banks during this period prompted the Nigerian government to set up the Failed Banks Tribunal in 1994, before it was scrapped in 1999, at the advent of civilian rule. During this period, a total of 2,464 cases were pending before the Failed Banks Tribunal comprising 2,332 civil and 132 criminal cases. A total of 716 cases were disposed off comprising 672 civil and 44 criminal cases.
The sum of N4.3 billion were recovered through the machinery of the Failed Banks Tribunal, out of which the sum of N3.55 billion was in respect of banks in liquidation. The Nigerian Deposit Insurance Corporation as at the time the tribunals were scrapped had refunded the sum of N5.8 billion to depositors of 35 banks which were closed.
Highlighting the link between poverty, failed institutions and graft, the Corruption Percetption Index measures the levels of public-sector corruption in a country, as seen by country analysts and business people. It draws on information from 13 different polls and surveys from 11 independent institutions based on questions covering both the administrative and political aspects of corruption, including topics such as the bribery of public officials, kickbacks in public procurement, the embezzlement of public funds, and the strength and effectiveness of anti-corruption efforts.
Denmark, New Zealand and Sweden lead
The index scores countries on a scale from zero (highly corrupt) to 10 (very clean). Denmark, New Zealand and Sweden were the cleanest in the first position, and scored the highest points with 9.3 CPI each.
Other countries like Singapore 9.2, Finland 9.0, Switzerland 9.0, followed closely in the 4th and 5th positions respectively.
Somalia most corrupt
War-torn African country, Somalia was ranked the most corrupt in the world, occupying the last position among the 180 countries with just 1.0 CPI point, and closely trailed by Iraq and Myanmar with 1.3 CPI points each and Haiti with 1.4 points.
Past ranking
In comparison to the 2007 CPI, significant declines were recorded in the corruption levels in countries like Bulgaria, Burundi, Maldives, Norway and the U.K.
On the other hand, significant improvements were seen in Albania, Cyprus, Georgia, Mauritius, Oman, Qatar, the Republic of Korea, Tonga and Turkey, including Nigeria, where the financial services system, is being overhauled.
Reader Comments (26)
post a comment
* = Required information