So BAE has finally paid out £29.5m for education projects in Tanzania. The payment was agreed two years ago, as part of a settlement with the Serious Fraud Office (SFO) that brought to an end the SFO's investigation into a sale in 2002 of a $40m (£25m) military radar to the Tanzanian government.
BAE admitted a failure to keep proper accounting records, relating in particular to a $12.4m payment to a Tanzanian middleman for "marketing" purposes, but avoided any admission of corruption. The radar case has been closed, with some accountability for BAE and some reparations for Tanzania. But for many Tanzanians it leaves a bitter taste.
First, the settlement undermines the cause of bringing the final recipients of the $12.4m to justice. Second, the payment made by BAE is problematic because it overlooks some of the key lessons about aid effectiveness learned by the aid industry over the past 20 years.
BAE has specified the money be spent on school textbooks and other educational equipment. But the Tanzanian government already had a responsibility to provide these things and had promised to do so. The payment from BAE effectively absolves Tanzania's government of its responsibility to provide a quality education for the country's people, thereby undermining its accountability to its citizens.
A payment for something that the government had already promised opens up the problem of aid fungibility. BAE's payment for textbooks allows Tanzania's government to reassign its textbook budget elsewhere. The amount spent on school equipment remains unchanged, but spending on something else military hardware, perhaps? increases.
The UK gives a lot of aid to Tanzania. Much of this is rightly focused on improving governance and accountability, including anti-corruption work. But the SFO has undermined these efforts in its hasty and ill-considered settlement with BAE.
There is no satisfactory conclusion for the people of Tanzania, where the investigation's premature closure undermines the cause of justice and accountability. As Tanzanian media tycoon Reginald Mengi tweeted (in Swahili): "The radar money has been paid. Nobody has been prosecuted. They say there's no evidence. Is the war on corruption just words?"
Extracted from the Guadian (UK):
BAE payment to Tanzania undermines justice and accountability | Global development | guardian.co.uk