GAN Integrity: Tajikistan country risk report

The country risk profile, published by GAN Integrity on 5 November 2020, assesses corruption as “a serious obstacle” for companies operating or investing in Tajikistan, permeating almost all sectors of the economy. According to the report, networks of patronage and clientelism impede a competitive business environment, bribery and gifts are widespread, and while a legal anti-corruption framework exists, enforcement is poor and selective. The report states that government officials engage in corruption without fear of repercussion provided they remain in favour with the ruling elite. It rates the following sectors as “very high risk”: judicial system, police, public services, land administration, tax administration, customs administration, public procurement, and natural resources. On the judiciary, the report states that corruption is rife, patronage networks and arbitrary law application impede courts, and judicial impartiality is challenged by pressure from the executive. It cites the case of human rights lawyer Shurat Quadratov, who had defended jailed former minister Zaid Saidov and was sentenced to nine years on bribery and fraud charges. On police, it states officers arbitrarily stop drivers to extort bribes. On tax administration, it cites extortion by tax officials as a reason businesses refrain from investing, with nearly one-third of companies expecting to offer gifts when meeting tax officials. On customs, it notes that patronage networks impede foreign companies from trading in products monopolised by members of the presidential family and senior government officials. On public procurement, more than a third of companies expect to give gifts to secure a government contract. The report cites an Ernst & Young audit of the National Bank revealing chief Muradali Alimardon took US$550 million in undeclared loans in 2009, with a further US$120 million since. It notes the president appointed his eldest son to head the country’s anti-corruption agency in 2015. Tajikistan is a signatory to the UN Convention against Corruption but not to the OECD Anti-Bribery Convention. Sources cited: Doing Business 2016, Global Competitiveness Report 2015-2016, Bertelsmann BTI 2016, Freedom House NiT and FotP 2015, US State Department HRR 2015 and ICS 2016, Enterprise Surveys 2013, U4, RFE/RL.