Business Corruption

The US Department of State 2010 identifies public procurement in Mali as very problematic and prone to corrupt practices. A large number of companies report that they have paid bribes to obtain government contracts, and according to the US Department of State 2009, paying government procurement agents a 5-10% commission is common practice.

According to the US Department of State 2010, the government's privatisation program for state enterprises has created opportunities for both domestic and foreign private firms to acquire public enterprises through open international bidding. Nonetheless, the same source reports that, in some cases, the local media have questioned the transparency of the bidding and contracts award process, but have been unable to provide evidence. Companies are strongly recommended to use a specialised due diligence tool on public procurement in order to mitigate corruption risks associated with public procurement in Mali.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

The government is known to award contracts without following the appropriate bidding process. According to the US Commercial Service Doing Business in Mali 2004, the Malian government awarded a contract to private telecommunication operators without launching an open bid. The rival state-owned company, SOTELMA, protested and went on strike and together with the World Bank threatened to freeze assistance to the telecommunications sector. This resulted in a termination of the no-bid award and the initiation of a new competitive bidding process.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the favouritism of government officials when deciding upon policies and contracts a score of 2.5 on a 7-point scale (1 being 'usually favour well-connected companies and individuals' and 7 'are neutral').

- Business executives give the diversion of public funds to companies, individuals or groups due to corruption a score of 2.6 on a 7-point scale (1 being 'is common' and 7 'never occurs').

The World Bank & IFC: Enterprise Surveys 2010:
- 23% of companies expect to pay bribes in order to obtain a government contract.

- The average value of a gift expected to secure a government contract is 2.5% of the value of the contract.

US Department of State: Investment Climate Statement - Mali 2009:
- It is common practice to pay government procurement agents 5-10% commission.