1 Malaysia’s 1MDB Scandal: The BRI has been linked to corruption in Malaysia’s 1MDB scandal, where Chinese officials allegedly agreed to bail out the state development fund by inflating the cost of infrastructure projects.
2 Montenegro’s A-1 Highway: The A-1 highway project in Montenegro, funded by China, has faced criticism for corruption and financial mismanagement. The project has left Montenegro heavily indebted and reliant on Chinese state-run industry.
3 Bangladesh Bribery Allegations: A subsidiary of China Communications Construction Co (CCCC) was accused of offering a bribe to a Bangladeshi official in connection with a construction project.
Further, the BRI has been criticised for its lack of transparency. Consequently Chinese companies have been debarred from the World Bank and other multilateral development banks due to fraud and corruption1.
So, when it was discovered that the Cook Islands were in discussions with China, New Zealand should have been paying much closer attention. Particularly as the Cook Islands also has a significant corruption problem2.
A recent report by Transparency International highlighted this. They conducted a survey of locals in 2023 and found that a significant minority of respondents believed that Cook Islands companies frequently used money to secure government contracts, and that the government was often run by a few big interests looking after themselves.
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It seems evident that corruption has been an issue in the Cook Islands for many years. This was recognised by the international community and, under pressure from the United Nations Convention Against Corruption, the Cook Islands’ cabinet agreed to formalise an Anti-Corruption Committee (ACC) in September 2011. The ACC’s job was to promote and strengthen anti-corruption measures by, among other things, proposing policies to Cabinet and following up on matters referred to it3.
It didn’t exactly set the world on fire. Eleven years later, further action was needed, leading to the release of the National Anti-Corruption Strategy (NACS) for public comment in June 2022. The ACC developed this strategy with help from the United Nations Office on Drugs and Crime (UNODC) and financial backing from New Zealand4.
New Zealand’s financial support for the Cook Islands extends far beyond anti-corruption efforts. Over the past three years alone, it has pumped up to $60 million into the tiny Pacific nation led by Prime Minister Mark Brown5. This is the same Mark Brown that in 2021 was accused of corruption6 – charges he eventually beat – but other scandals have plagued his government, including the conviction of Deputy Prime Minister Robert Tapaitau and former officials for corruption and misusing public funds7.
From the start, corruption has been a simmering issue and where there’s smoke there’s usually fire. From the very beginning, when China and the Cook Islands started cozying up, alarm bells in the NZ Dept of Foreign Affairs should have been ringing. The way the Cook Islands suddenly and quietly struck an agreement with China should not have left the NZ coalition Government scratching its head.
To outside observers, this was always a possibility and New Zealand’s Foreign Affairs Department has been ‘played’. There is probably no going back as there will be no ‘negotiating in good faith’ here.
NZ should cut its losses and save some money.
References
1. https://www.csis.org/analysis/corruption-flows-along-chinas-belt-and-road
2. https://www.cookislandsnews.com/uncategorised/internal/national/economy/corruption-in-the-cook-islands
3. https://www.mfem.gov.ck/anti-corruption
4. https://www.cookislandsnews.com/national/economy/new-strategy-aims-to-reduce-corruption-in-cook-islands
5. Peters issues scathing statement, claims Cook Islands failed to consult on China deal | Stuff.co.nz https://www.youtube.com/watch?v=qyus1lVUyIs
6. https://www.rnz.co.nz/international/pacific-news/438479/cook-islands-current-pm-and-former-pm-face-fraud-charges
7. Cook Islands Deputy PM and two former Govt officials found guilty in corruption case https://islandsbusiness.com/news-break/cook-islands-corruption
Dr Michael John Schmidt left NZ after completing postgraduate studies at Otago University (BSc, MSc) in molecular biology, virology, and immunology to work in research on human genetics in Australia. Returning to NZ has worked in business development for biotech and pharmacy retail companies and became a member of the NZ Institute of Directors. This article was first published HERE
1 comment:
This is another example where we can compare Trump's leadership with the limp wristed politicians we have. Panama was doing the same as the Cook Island, with Biden asleep at the wheel. Trump turned that around decisively in a couple of days. Our politicians are as asleep as Biden, while members of the former government, like Mahuta, encourage the Cook Islands cozying up to China. Luxon and Peter's need to get a spine and immediately cut the Cooks loose.
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