Asked by
To ask His Majesty’s Government what assessment they have made of
the United Kingdom’s record in combating corruption.
The Parliamentary Under-Secretary of State, Home Office () (Con)
My Lords, the Government are committed to the fight against
corruption. Corruption and illicit finance undermine national
security and global stability. They impede global prosperity and
erode trust in institutions while harming their victims. Since
2010, the Government have led international efforts to combat
corruption through the delivery of the United Kingdom
Anti-corruption Strategy 2017-2022, and we will continue to build
on this with the new anti- corruption strategy that is currently
under development.
(Lab)
My Lords, in that case, why has the UK slumped to its lowest ever
score in Transparency International’s latest global corruption
index, falling sharply to number 73—a 10-place tumble from eighth
to 18th over the last 10 years in its global rankings? Is it
because of a collapse in government standards, or the recent
scandalous government reversal of their previous admirable
decision to suspend Bain & Company from UK Government
contracts after Bain was found by a judicial commission to have
been up to its neck in state corruption in South Africa? Are
corruption and money laundering not now a real UK problem, and
should not Ministers be utterly ashamed?
(Con)
My Lords, I cannot improve on the words of the Prime Minister
when he was asked about this subject. He pointed out that there
has been
“widespread recognition and support for the UK’s approach to
transparency and tackling corruption. … the most recent report
from the Financial Action Task Force commended the UK for the
steps it had taken”,—[Official Report, Commons, 1/2/23; col.
334.]
and those steps are significant. Obviously, a number of Bills
going through your Lordships’ House and the other place at the
moment deal with some of these issues. As for the specific
question about Bain, I note that Bain has agreed to a period of
rigorous monitoring for a minimum of two years during which its
continuing compliance will be assessed. The UK arm of Bain has
agreed that it will engage further with the Cabinet Office to
provide evidence that its governance, organisation and internal
processes are now working. I could go on, but I think that is
enough.
(LD)
My Lords, would it not be evidence of the seriousness of the
Government in combating corruption if the agencies concerned with
it were adequately staffed? Is not one of the fundamental
problems of the Government’s approach to corruption and economic
crime that the NCA and other agencies concerned with it are
inadequately staffed to deal with this?
(Con)
My Lords, the noble Lord will be aware that this subject has come
up in discussion during the passage of the Economic Crime and
Corporate Transparency Bill. The agencies are adequately
resourced. The funding for the SFO is rising —gradually, but it
is rising—and I know that people are being recruited into these
operations.
(Con)
My Lords, can I remind my noble friend that there are in Hansard
two Written Answers which list over 50 Home Office officials
between 2005 and 2018 who were convicted of misconduct in a
public office? Many of them were sent to prison—several for very
long terms. Is this not a most disturbing figure?
(Con)
It is a most disturbing figure. Public sector integrity is
certainly a feature of the Transparency International downgrade
of the UK, but that is being dealt with, as noble Lords will be
aware.
(Lab)
My Lords, it has been well over a year, as many of us remember,
since the noble Lord, , resigned in this House from
that Dispatch Box. Noble Lords will remember that he did it over
a government decision to write off £4.3 billion in fraudulent
Covid loans. He went on to accuse the Government
“of arrogance, indolence and ignorance”—[Official Report,
24/1/22; col. 21.]
in dealing with fraud. What has improved since then?
(Con)
My Lords, the noble Baroness will be aware that the publication
of the new fraud strategy is imminent. As I referred to in my
earlier Answer, the second iteration of the anti-corruption
strategy is also being worked through at this moment. There will
be a lot more to say on that in the very near future.
(CB)
My Lords, may I push the Minister on resources, as 41% of all
crime against the individual is fraud and 1% of law enforcement
resources are applied to it? Is that really sufficient?
(Con)
When put in numbers like that, no. However, as I have just said,
the fraud strategy is due to be published next week. That is a
multiagency approach to tackling fraud. It will be outlined in
considerable detail.
(Lab)
My Lords, can the Minister answer the question put by my noble
friend ? Why has the UK slumped to its
lowest ever score in Transparency International’s global
corruption index? How has that happened and what are the
Government going to do about it?
(Con)
I think I have already said what the Government are going to do
about it. In terms of analysis, the data indicated that the drop
is likely due to two factors. The first is heightened criticism
on issues of public sector integrity, which I have already dealt
with. The second is criticism of the public procurement processes
during Covid. As the noble Lord will be aware, the Procurement
Bill currently on Report is dealing with many of those issues. I
could go on at significant length about PPE and so on if he
wishes.
(Con)
My Lords, one of the key parts of the Government’s
anti-corruption policy was the register of beneficial ownership.
Could my noble friend give us an update on how it is being
brought in? It seems that it is still possible to hide true
ownership behind companies and third parties.
(Con)
I am unable to answer that question. I will have to write to my
noble friend.
(LD)
Further to the question from the noble Lord, , a key element in fighting
corruption is transparency around offshore companies which own
property in the UK. Could the Minister supply to the House two
figures? What is the number of offshore companies which own
property in the UK, and what is the number of those which have
failed to register their ownership details with Companies House,
as they should have done by the end of January 2023?
(Con)
Again, I am afraid I am going to have to write on this.
