Saturday, February 16, 2008

Overlooked


International Anti-Corruption Day. I suppose it was the house-full of guests over Christmas. I completely missed the anniversary date of 9 December 2007. That was the day I started this blog back in 2006. It commemorates International Anti-corruption Day. This is the day set aside by the United Nations for all of us to look at the state of governance in all our countries. The problem with corruption, and how it permeates the fabric of all our West Indian societies, seems almost intractable. It is easy to see how high-level corruption involves people in power. So many of our leaders at all levels of government get involved in terms of contracts, money laundering, health and education. But, it has often been pointed out that there is another, lower, level. It involves simple expediency. We give in to corrupting influences because it is the easy way out. Too many of us are coerced into submitting to the machinations of corruption. The hurdles that are put in our way have to be crossed. We give in because it is the easiest way to move forward.

Restaurants are the scene and source of significant amounts of corruption in Anguilla. The varieties of corruption involved in running a restaurant in Anguilla are numerous and ingenious. When you are a foreign owner of a restaurant, you have licences and permits to obtain that locals do not. There is the Aliens Landholding Licence to hold the lease. There is the Work Permit for your French chef. There is the Restaurant Licence itself. There are electricity and water mains connections. There are conditions that you have to satisfy to get some of these. Some of the conditions are legal. Others are not. Typically, the foreign restaurant owner is told that he has to have a “local partner”. There is nothing wrong, in theory, with having a local partner. Government’s insistence on it originated with the best of intentions. Partnership encourages Anguillians to get involved in business with international entrepreneurs. Anguillians can learn how to be successful in business from such associations. In return, the Anguillian partner contributes part of the start-up capital, and provides local know-how and contacts, so essential in business.

In practice, local partnership has not worked in such a straightforward way in Anguilla. Much of the time it is the cause of a great deal of corruption. I could tell you a dozen awful stories from the restaurant scene in Anguilla. Often, the “local partner” is purely a front. He puts in no capital, yet gets 10% of the equity and the income. Oh, he gives value all right. He “arranges” exemptions from the work permit regulations. He “arranges” for customs duties to be evaded. On occasion, he even “arranges” to appear on the record as the majority owner of the business, thus converting it into a “local” business for the purpose of evading all Aliens Landholding Licence requirements.

This business of insisting on a “local” partner is one of the most corrupting influences in Anguilla today. This corruption is pervasive and widespread. It makes many of the restaurants in Anguilla smell to high heaven. And, the practice of fronting does not only apply to restaurants. It reaches even up to hotel ownership.

So, it was with a great deal of satisfaction that I heard of one foreign restaurateur who refused to give in to the pressure. He had bought an existing restaurant. He had thought it would be straightforward to do business in Anguilla. The British flag, he was told, is a guarantee of integrity and good governance. Instead, he learned he would not get his licences unless he took a “local partner”. His chef and senior staff were on-island. They were ready to open the restaurant. They were stopped. They could not begin work in the restaurant until all the licences were in place. The licences would not be forthcoming unless he took a “local partner”. Months passed. A year passed. His restaurant remained closed. I am told he was adamant. He simply refused. Fortunately, he could afford to. He refused to enter into any corrupt arrangement. Eventually, good sense prevailed. His licences were forthcoming. The restaurant is now open. Without one of us fronting for him.

I shall enjoy dining there.

Very few of us have the resources to be able to do what he did.

Let us celebrate integrity when we meet it. It is rare enough in Anguilla to be considered of high value. Let us try to make every day in Anguilla an anti-corruption day.

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