The Government is set to begin efforts to repatriate fraudulently earned money deposited in foreign countries this month with the new anti-corruption legislation coming into force next week, the Ministry of Justice said on Monday (4). It is learnt that under the new legislation, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) would be empowered to take action against those who stash ill-gotten wealth overseas. The Government has also managed to get the assistance of the United Nations office on Drug and Crime (UNODC) to help with the process, which is a good move. However, the state must also focus on preventing such fraudulently earned revenue from being parked overseas. Prevention is always better than a cure. Having said that, the fact that the UNODC and CIABOC, collaborating, to make such efforts fruitful in the future, is a small step forward.

Sri Lanka has a long history with corruption and ill-gotten wealth been moved overseas and out of reach of the very ‘short arm of law’, which domestic legislation has equipped the local law enforcement agencies with, thus far. This is not to say that that successive governments couldn’t have done much with the legislation in hand. Political culture and the need to protect ones’ own from prosecution, often led to existing legislation not being put to good use. Over the decades, several generations of Sri Lankan voters have been promised action and results on repatriating such funds and assets. Most of such elections promises are quietly forgotten with such politicians being elected to power, only conveniently forget the promise. Corruption which has taken place over nearly a half a century, is widely believed to be a contributing factor for last year’s economic breakdown. As such, any forward momentum which would help bring justice and repatriate wealth that should be rightfully used for the public’s benefit, should be commended.

The efforts taken by the United Nations, in particular the UNODC in assisting Sri Lanka to upgrade and capacity-build their ageing and ineffective law enforcement apparatus, must also be acknowledged and commended. The UNODC has over the years, helped Sri Lanka upskill and acquire new technologies in the pursuit of justice. Their contribution to Sri Lanka’s counter narcotic trafficking efforts, have yielded good results. 

Over the years, many political parties and movements have criticised fraud and corruption and the lack of legal provisions to enforce proper punishment for culprits involved in such acts. However, the new anti-corruption bill, while far from perfect, has finally offered a new set of tools for local law enforcement and justice mechanisms to bring to book those who are involved in moving ill-gotten assets overseas. What remains to be seen is, if the Government has the political will to enforce the new legislation and let the authorities exercise the new tools introduced to them.

Several foreign countries have also come to Sri Lanka’s aid in improving capacity to combat complex financial crimes. However, one has to question, how can Sri Lanka monitor such fraudulently-earned funds and assets’ movement, without a robust tax monitoring and compliance system in place? Should not tax reform and the restructure of the woefully inadequate and inefficient inland revenue service also become part of this process?  Also, shouldn’t the slow moving reforms process for the Sri Lanka Customs Department also be expedited in parallel to introducing new laws? These are serious issues, which the Government should be focusing on. Yes, the new anti-corruption legislation is coming into effect, but it is no time to take a victory lap. There is much work to be done. And the policy makers can start by setting an example by declaring their assets, and being transparent on campaign finances. Further, the private sector, Industry can also play their part by improving their financial transparency, especially in relation to campaign funding.