Executive Summary of cases increased significantly from the previous year, including the number of cases reported by individuals willing to be identified. However, there are doubts about ICAC’s effectiveness, because it fails to prosecute highly placed and well-connected individuals suspected of corruption. There is also no formal institutional arrangement that enables the authorities to act on ICAC’s findings and recommendations. Parliament has failed to follow up on the reports from ICAC energetically. This raises serious questions about its capacity and effectiveness to control the management of public finances. The party that controls the executive also controls Parliament. The APR Panel therefore believes that Parliament’s failure to take effective measures to discuss the ICAC reports reflects the lukewarm commitment of political leaders to fighting corruption. 1.63 The sources of money laundering are drug money, money from gambling and tax evasion. There seems to be little money laundering by people based in Mauritius. Reports of significant money laundering from India seem to be un-founded, although many companies use the offshore financial centre in Mauritius to channel investments to India. 1.64 The Financial Intelligence Unit (FIU) is responsible for fighting money laundering. Its annual report for 2008 shows that the institution is not performing its mandate as well as it should. Nevertheless, the problems in fighting corruption and money laundering lie more in implementing the existing laws and regulations than in the laws themselves. 1.65 1.66 18 The APR Panel believes that the measures that the authorities in Mauritius should take include: (i) strengthening efforts to convince key stakeholders and the public that the government is serious about fighting corruption and that nobody is immune from prosecution; (ii) ensuring that ICAC conducts surveys on corruption more frequently than once every six years; (iii) reconsidering the requirement that ICAC may only prosecute corruption cases with the approval of the director of public prosecutions (DPP); and (iv) establishing a mechanism at the highest level of government and in Parliament to follow up on the implementation of the recommendations contained in ICAC annual reports. Promoting regional integration. Trade volumes between Mauritius and both the SADC and the Common Market for Eastern and Southern Africa (CO-MESA) are low, and trade is concentrated in a few countries. South Africa, Madagascar and the Seychelles are by far Mauritius’s most important trading partners in Africa. Consequently, Executive Summary one major challenge facing Mauritius is how to increase trade with African countries in a balanced and diversified manner. 1.67 Mauritius is very committed to economic cooperation in Africa at both subregional and regional levels. This commitment to economic cooperation with African countries, especially those in southern and eastern Africa, is particularly strong among government officials and officials of the JEC. The council harnesses nine major business groups in the country. It represents the interests of the principal entrepreneurs. This commitment flows from the fundamental characteristics of Mauritius. These are that it is a small island with a population of about 1.3 million and few natural resources. It also has a small domestic market where production is concentrated in a few areas. Mauritius’s strategy of achieving sustainable development by diversifying production into new areas, like financial and consulting services and information technology, therefore means that it must have access to foreign markets, particularly those in neighbouring countries in eastern and southern Africa. Economic interests and calculations are the main drivers of Mauritius’s commitment to close ties with eastern and southern Africa and with Africa in general. 1.68 The population’s level of support for subregional and regional economic co-operation is uncertain. The CRM learnt that many Mauritians consider themselves Asian rather than African because of their historical origins, culture, language and religion. 1.69 Mauritius wants to be a bridge between Asia and Africa. The country has close economic, cultural and historical links with Asian countries, especially India and China. However, it does not see any incompatibility between its openness to Asia and Africa. The reason for this is that the authorities see regional integration as part of a more effective and beneficial integration with the global economy. The authorities, stakeholders and the public will have to start considering seriously how Mauritius will reconcile its membership of several regional organisations with its commitment to regional integration in Africa. 1.70 The APR Panel suggests that the Mauritian authorities and other stakeholders should: (i) increase efforts to promote stronger political, social and cultural ties with Africa by facilitating movement; (ii) strengthen the social and cultural interaction between Mauritius and the rest of Africa; and (iii) actively support efforts at rationalisation among the SADC, COMESA and the East African community. 19