CHAPTER THREE: DEMOCRACY AND POLITICAL GOVERNANCE ii. Findings of the CRM 298. The CRM noted that few studies on corruption had been carried out in Algeria and that, as a result, it was particularly difficult to obtain reliable documented data. Statistics on the incidence of corruption reported within the framework of the CSAR relate to one of the few studies called for by an international institution in 2005. The CRM was unable to access results of any systematic studies on the incidence of corruption in the political sphere. 299. However, in the light of meetings held on the ground and from reading the Algerian press, it would seem that the upper echelons of the government are not free from corruption. According to the spokesperson for the Algerian section of Transparency International, “the sum of Algerian capital illegally transferred each year to foreign banks is in the region of 500 million dollars. A large proportion of these sums comes from the misappropriation of funds in public banks, cigarette contraband, drug trafficking, racketeering by armed Islamist groups, and secret commission earned when large public tenders are approved.” 300. In 2005, the corruption index drawn up by Transparency International revealed that Algeria obtained a score of 2.8 out of 10, compared with 2.6 in 2003 and 2.7 in 2004, placing the country among those where corruption is high. It should be noted that the maximum is 4 out of 10 and Algeria therefore ranks 97th out of 159 countries. 301. In its 2006 report, Transparency International states that “corruption remains the principal obstacle to direct foreign investment in Algeria”. It emphasises that, despite the official commitment of the Algerian authorities to eradicate this scourge that is negatively impacting on the national economy, matters are proceeding at a very slow pace. The document essentially reproaches the authorities for the lack of transparency in economic management, but also for withholding information which, in several instances, made investigation by the press impossible. The El Khalifa scandal is cited as an example of official stonewalling in the economic sphere. “According to documents released by the French Court,” the report states, “the group unlawfully transferred 689 million euros abroad. Despite this significant loss to the national economy, the question did not attract the attention of the 2004 presidential candidates.” 302. Transparency International nonetheless highlights “the advances achieved by Algeria in the fight against corruption”. Its report cites the example of the arrest of those responsible for the misappropriation of public funds, such as the Wali of Blida, and the former Wali of Oran, who was forced to resign. 303. The CRM notes that an analysis of the situation in Algeria reveals that both the population and many officials are aware of the seriousness of the problem of corruption. It also reveals the political will to combat the phenomenon by putting in place a rigorous legal mechanism. The recent nature of this mechanism and the equally recent establishment of an institution charged with ensuring its follow-up do not allow assessment of its effectiveness as yet. 100