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Corruption in Madagascar

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Through Switzerland, Gold and China

Network of corruption

The severity of the high-level corruption in Madagascar has been highlighted by the case of former Prime Minister Jean Ravelonarivo. In 2021, he was found guilty of corruption and was punished with five years imprisonment and a fine of 6 billion ariary or about $1.5 million. The charges involved fraudulent contracts and the embezzlement of funds, which he committed during his term (2015-2016). He did not serve time in prison because he fled to Switzerland after he was convicted. Aside from Ravelonarivo, other officials were also involved and had to leave the country to avoid prosecution. These include Raoul Arizaka Rabekoto, who was a director of the state company during Ravelonarivo’s administration. These cases highlight the level of corruption and public malfeasance in Madagascar. Despite attempts to deal with the problem, it still persists and continues to undermine the development and effective governance of the country.

The systemic nature of corruption in Madagascar can also be demonstrated in the case of the natural resource industry. For example, artisanal gold mining is controlled by traders in collusion with government officials. The process of granting mining licenses is also noted for being arbitrary and discretionary, allowing for corruption to flourish.

Smuggling is also a significant source of public malfeasance in Madagascar, exploiting the country's weak rule of law. Organized smuggling syndicates operate extensive networks, trafficking valuable resources such as rosewood — which is highly sought after in China — and engaging in wildlife trafficking. These illicit activities are deeply intertwined with patronage networks that reach into the highest levels of political power. The substantial profits generated by these criminal enterprises are subsequently laundered through both Madagascar's formal financial system and informal channels.

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