Belize's Corruption: A Country's Dark Underbelly

Belize has been described as a country with institutionalized corruption. The country has a fragile banking system, and its small economy is the smallest in Central America. While the government has continued to advance its debt management program, public debt increased to 66.3% of GDP in 2022.

Belize has been described as having a stable political environment, having held peaceful and transparent democratic elections since gaining independence in 1981. However, there are concerns about corruption, with the prime minister and ministers alleged to be above the law. Political parties are considered the most corrupt institution in Belize, with approximately 64% of respondents in one survey believing that most or all members are involved in corrupt practices.

Belize has a high level of crime in urban areas, with a homicide rate of 19.7 per 100,000 people. The country has also been described as having a negative business environment, with crime, corruption, and excessive regulation serving as impediments to investment and business.

Corruption in Belize: a historical perspective

Belize has long struggled with corruption, which has persisted since its time as a British colony. In the 1970s, the country had various government departments in place to tackle corruption, but civil servants continued to engage in stealing, bribery, extortion, forgery, fraud, and embezzlement. Since gaining independence in 1981, corruption has continued, with civil servants avoiding punishment due to their political affiliations.

In Belize, the prime minister and ministers are considered above the law and are not arrested, charged, or imprisoned for corruption. This is because they appoint the country's most powerful law enforcement officials, including the attorney general, commissioner of police, and director of public prosecutions, who are loyal to them.

The police force, members of the Belize Defence Force, and civil servants across most government departments witness this regularly and are afraid to speak out due to fear of victimization. This can take the form of daily harassment, refusal or delay in processing legitimate documents, no promotions, termination from employment, or other unfavourable actions.

In Belize, the three most powerful law enforcement officials are the attorney general, the commissioner of police, and the director of public prosecutions. They are responsible for enforcing the country's laws, apprehending lawbreakers, and prosecuting accused individuals, respectively.

To address corruption, Belize needs to implement code and ethics laws for the prime minister, ministers, and civil servants, with penalties for infractions. Additionally, the process of appointing attorney generals, directors of public prosecutions, and commissioners of police should be changed.

Perceptions of corruption in Belize have deteriorated over time, particularly in the police force. Political parties are considered the most corrupt institution, with approximately 64% of respondents in a 2022 survey believing that most or all members are involved in corrupt practices.

In recent years, labour unions and business associations have become actively engaged in advocating for stronger measures against corruption. However, the government has not effectively implemented or enforced laws to combat corruption, and there are few non-governmental institutions monitoring government activities or investigating corruption.

Belize has also faced challenges with land fraud and corruption in the Lands and Survey Department, which is responsible for land transactions. This has led to concerns among investors, who are advised to perform due diligence before purchasing property.

Despite these issues, Belize has taken some steps to improve transparency and reduce corruption. In July 2023, the country passed the Civil Asset Recovery and Unexplained Wealth Act, establishing the Financial Intelligence Unit as the authority to investigate and prosecute cases of illegally acquired assets.

Belize has a history of corruption, with a culture of impunity for civil servants and government officials due to political affiliations and a lack of independent investigative bodies. While there have been some efforts to address corruption, such as the establishment of the Financial Intelligence Unit, stronger measures and increased transparency are needed to effectively tackle the issue.

Current levels of corruption in Belize

Belize has been described as a country with institutionalized corruption. The country's laws and tax system have been criticised for making it difficult for businesses and individuals to make an "honest living", thus forcing them to act dishonestly. For example, businesses are required to pay a Business Tax (BT) of 1.75% of sales, which can amount to up to 35% of profits for businesses with lower net profits. Additionally, individuals earning above $25,000 must pay a 25% Personal Income Tax, whereas those earning below this amount are exempt. This has been described as a deception by the government, as it had previously promised to shift from taxes on income towards taxes on consumption.

Belize has also been criticised for its lack of accountability. In a 2022 report by the World Justice Project, only 22% of respondents believed that high-ranking government officials would be held accountable for breaking the law. This was the lowest percentage among its regional peers in Central America. The report also found that 48% of respondents believed that most or all police officers engage in corrupt practices, and 64% believed that most or all members of Belizean political parties are involved in corrupt practices.

In addition, Belize has been described as having a culture of impunity for government officials. A 2020 article by Wellington C. Ramos, an adjunct professor of history and political science, claimed that the prime minister and ministers are "above the law" and that those with the power to arrest and prosecute them are appointed by them and serve at their pleasure.

However, it is important to note that the situation may have improved since 2022, as the US Department of State reported in 2024 that the Civil Asset Recovery and Unexplained Wealth Act was enacted in July 2023. This established the Financial Intelligence Unit (FIU) as the authority to conduct investigations and prosecutions to recover assets acquired through illegal means.

Political parties: the most corrupt institution in Belize

Belize has been facing issues with corruption, with some sources claiming that the problem is “out of control". Political parties are considered the most corrupt institution in Belize, with approximately 64% of respondents to a survey believing that most or all members of Belizean political parties are involved in corrupt practices. This is followed by the National Assembly, with 50% of respondents perceiving them as corrupt, and the police force, with 45% of respondents believing that the police engage in corrupt practices.

Corruption in Belize has been a problem for a long time, with a former Prime Minister, Rt. Hon. Dean Barrow, claiming to have sharpened a "doubled-edged machete to cut out corruption" back in 2004. However, Belize has not been ranked on the Corruption Perception Index (CPI) since 2008 and is considered to be very much behind globally in terms of anti-corruption measures.

The current administration, led by Prime Minister John Briceño, has expressed a commitment to improving transparency and getting the country ranked on the CPI again. They have identified four data sources that can be used to calculate the CPI for Belize and are working towards meeting the requirements for ranking.

Despite some improvements in trust across institutions since 2017, less than half of Belizeans express trust in national and local government officers, with only 35% trusting the police. This indicates that political parties and the institutions they control are perceived as the most corrupt in Belize.

The impact of corruption on foreign investment

Belize is a small economy that is highly vulnerable to external shocks and climate-related disasters. It has the smallest economy in Central America, with a GDP of $3.1 billion in 2023. The country has a history of corruption, with a 2020 report detailing how civil servants commit crimes such as stealing, bribery, corruption, extortion, forgery, fraud, and embezzlement, often going unpunished due to their political affiliations.

Moreover, corruption results in inefficient allocation of resources, with government contracts being awarded to unqualified companies due to bribery or kickbacks. This leads to excessive expenditure and failed projects, deterring foreign investors who seek efficient and transparent allocation of resources.

In addition, corruption often results in an uneven distribution of wealth, with small businesses facing unfair competition from large companies connected to government officials. This discourages foreign investment as investors prefer a level playing field where their investments are protected and have a fair chance of success.

Furthermore, corruption negatively impacts the quality of education and healthcare, leading to a lower standard of living for citizens. This can be a concern for foreign investors who seek a well-educated and healthy workforce, as well as a stable social environment for their investments.

Lastly, corruption can lead to a lack of innovation as there is little confidence in the legal system to protect intellectual property. This discourages foreign investment in knowledge-intensive industries, as investors prefer countries with strong intellectual property protection and a culture of innovation.

Overall, corruption in Belize has a detrimental effect on foreign investment, creating an unfavourable business environment and reducing the country's attractiveness to foreign investors.

Anti-corruption efforts in Belize

Belize has been taking steps to tackle corruption and strengthen the rule of law. Here is an overview of some of the key anti-corruption efforts in the country:

Legislation and Policies

• The Civil Asset Recovery and Unexplained Wealth Act, enacted in July 2023, established the Financial Intelligence Unit (FIU) as the authority responsible for investigating and prosecuting cases of asset recovery and unexplained wealth acquired through illegal means.
• The Money Laundering and Terrorism (Prevention) Act includes "politically exposed persons" such as family members or close associates of politicians.
• Belize has signed the United Nations Convention Against Corruption (UNCAC) and is a member of the Open Government Partnership, committing to promote transparency, empower citizens, fight corruption, and harness new technologies to strengthen governance.
• The Prevention of Corruption in Public Life Act requires public officials to make annual financial disclosures, although compliance and enforcement of this rule have been inadequate.
• The Belize Police Department is subject to the Judges' Rules, a code of conduct governing police interaction with arrested persons. Violations of these rules can lead to cases being dismissed or confessions being deemed invalid.
• The Belizean government is working on campaign financing regulations and policy papers, comparing laws and practices from other Caribbean countries and reviewing proposals from entities like the Belize Chamber of Commerce.
• Belize has labour laws and regulations that generally provide for the right to establish and join independent trade unions, bargain collectively, and conduct legal strikes.
• The country has ratified 50 International Labour Organization (ILO) conventions, including Convention 182 against the worst forms of child labour.
• Belize has laws and policies addressing human trafficking, child labour, and protection of refugees.

Institutions and Bodies

• The Financial Intelligence Unit (FIU) is mandated to investigate and prosecute cases of asset recovery and unexplained wealth.
• The Belize Integrity Commission reviews annual financial disclosure statements from public officials.
• The Office of the Ombudsman investigates complaints of official corruption and abuse of power.
• The Human Rights Commission of Belize (HRCB) inspects detention centres and provides human rights training for police recruits, prison officers, and the Belize Defence Force.
• The Anti-Trafficking in Persons Council addresses issues of human trafficking in the country.
• The Belize Trade and Investment Development Service (BELTRAIDE) promotes foreign direct investment (FDI) and provides advisory services for foreign investors.
• The Belize Companies and Corporate Affairs Registry (BCCAR) provides incorporation, registration, and post-registration services for local and foreign businesses.
• The Belize Bureau of Standards (BBS) is the national body responsible for preparing, promoting, and implementing standards for goods, services, and processes.

Frequently asked questions