Arab Strategy Forum told of need for greater budget accountability of oil revenues

Al Mulla said that any citizen should have the right to bring a criminal prosecution against a company or country suspected of being involved in corruption or bribery.

Speaking during a panel discussion held at the forum, entitled 'Will Corruption Continue to Eliminate Opportunity, Al Mulla also called on multi-national companies to boycott countries engaged in corrupt practices. "This would send a very powerful message," he said.

Describing rampant corruption in Iraq as "the scandal of the century", Al Mulla urged Middle East governments to enhance transparency in business and governance.

"The more transparent a country is, the less corrupt it is," Al Mulla said. "More should also be done to educate people so that they are less vulnerable to bribery. At the same time they should be taught about the legal tools available to fight corruption."

The panel was told that over US $1,000 billion is paid in bribes globally each year, of which one third is paid within the Arab world.

Obaid Humaid Al Tayer, Chairman of the Dubai Chamber of Commerce and Industry (DCCI) said the Arab world had to face up to the issue of corruption. He said the lack of transparency in the region resulted in a lack of accountability.

He called for an end to the practice of governments establishing large scale businesses and appointing government officials to run them. And he said more needed to be done to strengthen the legislature.

"In many instances we do not have the laws required to fight corruption. And where there are laws they are not implemented. When have you heard of a single case of a corrupt official in the Arab world being prosecuted or even questioned?" he asked.

Moderating the discussion, Nasser Saidi, Chairman of the Regional Institute of Corporate Governance in the United States said corruption was a cancer that is very hard to eradicate.

"Corruption and bribery increases the cost of doing business. It has a negative impact on investment capital in flows, restricts growth, creates mistrust and eats into the fabric of society," he said.

According to Transparency International, more than 3% of the world's GNP is lost through corruption. Peter Eigen, Founder and Chairman of the organization called on Middle East nations to support the OECD protocol on corruption which has forced signatory nations to prosecute multinational companies accused of bribery.

"Prior to 1999, when the OECD initiative on corruption was introduced, many countries allowed their companies to bribe officials in order to win contracts or gain influence. Since, 1999 this shameful and shoddy practice has been illegal and there have been a number of prosecutions," Eigen said. So far, no Middle East country has adopted the OECD code.

Urging oil and gas producing nations to adopt the Extractive Industries Transparency Initiative, Aryeh Neier, President of the Open Society Institute, in the US, said there was a need for greater budget accountability of oil revenues.

"When people pay taxes they expect their government to tell them how the money raised is spent. However, when the revenue comes from natural resources, such as oil and gas, or is the result of international aid, there is less pressure for accountability," he said.

"Whilst the private sector has to abide by international standards of accountancy, governments do not. There needs to be the development of a bigger transparency movement in the Arab world."

The three-day 4th Annual Arab Strategy Forum, held under the patronage of H.H. Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, is being held at the Madinhat Jumeirah. It will conclude on December 6.

The Arab Strategy Forum, which has attracted more than 600 distinguished participants and 115 worldwide speakers, is a vehicle for change and a key driver in the reform and policy shaping of governmental and business organizations throughout the Arab world.

Through a powerful network, facilitated working sessions, state-of-the-art technology, exclusive knowledge and informal platforms, the ASF will provide participants with the resources needed to create opportunities for change in their own environments.

Among those participating in this year's event are influential personalities from the region's business, government and civil society sectors and international renowned politicians and business leaders.

This year's sessions are underpinned by bespoke knowledge and research on the Arab world, providing a unique platform for the continued strategic development of the Middle East and North Africa on the global stage.