Coal industry and corruption cases are not limited to India..

Nice piece by Marina Lou of Greenpeace International.

She says how coal industry worldwide is rife in corruption:

Juan Pablo Perez Alfonso, one of the founders of OPEC, once compared the world’s fossil-fuel use to “drowning in the devil’s excrement.” There is certainly plenty of evidence supporting his prediction that the fossil-fuel industry, with its powerful corrupting influence, will “bring us ruin.” Indeed, coal-related corruption stories are breaking worldwide, shining a light on the murky space between “illegal” and “improper” where the extractive industries work.

Last year, in the Australian state of New South Wales, the Independent Commission Against Corruption investigated former Labor ministers Eddie Obeid and Ian Macdonald for conspiring to defraud the state over the issuance of multi-million-dollar licenses for coal exploration and mining. Today, the ICAC is conducting an even more far-reaching and complex investigation into a number of figures from the Australian Labor Party and the Liberal/Nationals Coalition, including for favoring the interests of Australian Water Holdings, a major infrastructure company.

Last month, India’s Supreme Court found that all 218 coal-mining licenses allocated by the government in 1993-2009 had been granted in an “illegal and arbitrary” manner, with the committee responsible for the process lacking transparency and rife with corruption. Following the landmark decision, the government has canceled 214 of the coal block allocations – and has fined several companies that have already begun production.

For its part, Indonesia is set to revoke the contracts of 17 coal producers that failed to pay government royalties. And, since the beginning of this year, the country’s corruption commission has been focusing on the extractive industry, including the state officials who facilitate mining companies’ illegal activities.

Likewise, China’s ongoing anti-corruption drive – the largest in its modern history – has begun to focus on the coal industry. Last month, two Communist Party officials from the coal-rich Shanxi province were charged with corruption and abuse of power, signaling that Shanxi may well move to the forefront of President Xi Jinping’s quest to eliminate entrenched corruption in the Party’s ranks. As Gao Qinrong, a former journalist from Shanxi, recently described the province, “It has coal; coal brought money; that brought corruption.”

These stories highlight a simple truth: Where the coal industry operates, bribery and venality are likely to be rampant. But this does not have to be the case. In order to reduce – if not eliminate – such corruption, several fundamental weaknesses in the regulation of how mining contracts are allocated must be addressed.

Then there are obvious ideas on how to limit corruption by increasing transparency. The natural resources if not managed well end up being a curse. I mean if places like Aus cannot manage, it is really difficult for others as well. So what to do? Make corruption legal in such cases?

 

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