South Africa: Money Laundering
Lord Hain Excerpts(6 years, 7 months ago)
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The Minister of State, Department for International Development (Lord Bates) (Con)
My Lords, the Government are committed to tackling corruption in the UK and overseas and preventing the proceeds of corruption from entering the UK’s economy. The recently introduced money laundering regulations set out strict rules that British banks must follow when doing business with those with links to prominent public functions that may expose them to risks of corruption. We are concerned about the allegations in South Africa, and the British high commission is monitoring the issue closely.
Lord Hain (Lab)
May I thank the Chancellor for ensuring that the Financial Conduct Authority, the Serious Fraud Office and the National Crime Agency investigate HSBC, Standard Chartered Bank and Baroda Bank, each of which expert South African whistleblowers have told me must have been conduits for the corrupt proceeds of money stolen from their taxpayers and laundered through Dubai and Hong Kong? In my letter of 25 September to the Chancellor, I supplied for investigation 27 names and personal identification numbers, including President Jacob Zuma, 11 members of his family, 11 members of his close friends, the Gupta family, and their five associates, together with 14 entities linked to the Guptas and suspected to have been set up for the purposes of transnationally laundering an estimated £400 million, or 7 billion rand, of their illicit proceeds. Will he ensure that those banks, together with the European banks—about which I have similarly written to Commission President Juncker—track down that laundered money, return it to the South African Treasury and supply evidence to its officials to enable the prosecution of all those connected with such corruption?
Lord Bates
My Lords, we are grateful to the noble Lord for the persistence that he has shown on this issue and in drawing it to the Chancellor’s attention and to international attention. The UK has some of the toughest anti-money laundering laws in the world. We have been at the forefront of introducing them—whether it is the Criminal Finances Act this year or the fourth anti-money laundering directive. We realise that London, as the largest financial centre, is a target which can be used for this purpose, but we are determined to root it out. That is why, when we are provided with information—as when the noble Lord, correctly, wrote to the Chancellor setting out that detail—immediate action is taken to refer it to the relevant authorities to ensure that they can pursue the matter and that justice is done, and is seen to be done.
Syria
Lord Hain Excerpts(8 years, 3 months ago)
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Baroness Verma
My noble friend highlights the complexity and difficulty of what we are having to deal with, and what the international community has to deal with. It is really important to understand that our goal has to be to defeat Daesh so that it no longer presents a threat to UK or international stability, which means focusing on Daesh’s core in Syria and Iraq and working with our allies to support those countries where Daesh is becoming a threat to help them prevent its spread.
Lord Hain (Lab)
My Lords, in welcoming the Minister’s insistence that only political negotiations will end this disaster of almost biblical proportions, I ask for some recognition that western foreign policy has in large part been responsible for this disaster. Why? Because we insisted at the very beginning on imposing a precondition that Assad must go when he was never going to; then we tried to arm the rebel groups, when parliamentary support was not present for that; then an ill-fated decision to try to bounce Parliament into military strikes was attempted by the Prime Minister; and now we are still setting preconditions by saying that Assad must go within six months. You cannot get negotiations off the ground or deal with Russian malevolence—a fact my noble friend has drawn the House’s attention to—unless you learn the lessons from Northern Ireland, which are that you do not impose preconditions and you try to get a political settlement in the context of everybody co-operating and finding out where the different interests can be reconciled. I urge some sense of humility on the Government, who have acted with far too much bombast and blunder for years now and therefore bear a share of responsibility.
Baroness Verma
My Lords, it would be much more constructive for us to work with international partners to ensure that the voices coming from all of us are about supporting the people of Syria. While I understand the main thrust of the noble Lord’s points, it needs to be very carefully worded so that we give a very clear message that what Assad is doing to the people in Syria is not acceptable. Across Syria, Assad and other parties to the conflict are wilfully preventing and impeding humanitarian access on a day-by-day basis. That is why we need to be incredibly careful with our words and to continue with our ongoing support to the UN and international NGOs which risk life and limb every single day to help the people of Syria.
Oral Answers to Questions
Lord Hain Excerpts(9 years, 8 months ago)
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The Prime Minister
My hon. Friend makes a good point. Those of us who believe in the United Kingdom can answer all of those questions. We can answer on what the United Kingdom will look like in the future, but those arguing for separation have not answered those questions. Their most recent effort to say that somehow Scotland would go on using sterling but not be part of a monetary union got a rebuff yesterday from the European Commissioner, who said that on that basis they would not be able to be members of the European Union. Yet again, another piece of the puzzle completely falls away.
Mr Peter Hain (Neath) (Lab)
Is not the truth that ISIL will not be beaten without air strikes in Syria as well, and that means engaging with the Assad regime and Iran—however unpalatable—as well as with the Saudis? Perhaps that is also a route to resolving the bitter and dangerous Shi’a-Sunni conflicts in the region, because ultimately ISIS poses a bigger threat to nations in the region than it does to us.
The Prime Minister
I will make two points to the right hon. Gentleman, whose views on this matter I respect. First, I would argue that Assad’s brutality has been one of the things that has helped generate the appalling regime that ISIS represents. Secondly, what we want to see—we are consistent across the piece on this—is democratic Governments that are pluralistic and represent all their people. We want to see that in Iraq, which is why we support Prime Minister al-Abadi in his attempts to build an inclusive Government, and we should support attempts in Syria to have a democratic transition to a regime that can represent everyone in Syria.
Global Health (Research and Development)
Lord Hain Excerpts(9 years, 10 months ago)
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Mr Peter Hain (Neath) (Lab)
Thank you, Mr Streeter—it is a delight to see you in the Chair. Like others, I congratulate the hon. Member for St Ives (Andrew George) on securing the debate and on the work that he, along with others in the room, has done with the all-party group on global tuberculosis, of which I am a member.
As I declared in the Register of Members’ Financial Interests, I visited South Africa in February 2012 with the charity Results UK, which does such important work on one of the most important questions in global health today: how do we move from struggling to control the world’s deadliest diseases to eliminating them? We can control diseases such as TB and HIV, but they continue to represent a terrible burden on individuals, families and communities across the world. In the 90 minutes of this debate, nearly 500 people will lose their lives from just those two diseases.
I am the chair of trustees of a remarkable charitable organisation called the Donald Woods Foundation, in Nelson Mandela’s impoverished homeland of the Transkei, in the Eastern Cape, in South Africa, where it is battling to control the twin epidemics of TB and HIV and to strengthen health services in remote, rural communities. It works closely with the South African Department of Health, and it has screened 150,000 people for TB. It also has nearly 10,000 people on HIV treatment, and it supports outreach to those who would otherwise not be reached. In addition, it has pioneered clinic design for infection control and TB testing.
Despite the huge and highly commendable efforts of the South African Government and of civil society organisations such as the DWF, South Africa continues to battle enormous health challenges, one of the most significant of which is drug-resistant TB. In one small sub-district last year, the DWF reported 49 cases of extensively drug-resistant tuberculosis. XDR-TB has evolved to be resistant to our best drugs, and the few treatments that remain are old, toxic and associated with terrible side effects. Treatment success with XDR-TB and multidrug-resistant TB—MDR-TB—is rare. The drugs involved, taken over years with daily injections, steadily destroy quality of life, often leaving patients with permanent disabilities. The burden of treatment is so heavy that many patients choose to default—to give up—and they discharge themselves from hospital rather than continue with what are, essentially, useless drugs that are causing them pain.
I have met people with XDR and MDR in South Africa, and their examples are tragic. I remember the story of a girl who had been confined in a hospital ward for more than two years. The drugs made her physically sick practically every day, she was losing her hearing because of them and her liver was being destroyed by the disease—TB ruined her life. Before the disease, she was doing well in school, and she had a bright career ahead of her, as well as close friends and a good family, but then the disease struck. Eventually, I am sorry to say, she discharged herself from hospital, knowing that, in doing so, she was most likely surrendering her chances of surviving. She returned to her family home, but it was empty—both her parents had died from the same disease. Soon, she also passed away—pale, sick, deaf and alone.
Sadly, that is not an isolated story. South Africa has the highest rate of TB in the world, and behind the statistics are thousands of tragic, grim stories. The worst cases are in gold mining. The deep gold mines are a source of a tremendously lethal form of TB, with all the consequences that brings.
Progress is being made against TB and HIV, but it is far too slow. The diseases continue to ravage health systems across southern Africa. Only 2% of South Africa’s TB burden is drug resistant, although that number is increasing, but that 2% accounts for fully 32% of the national budget for tackling TB.
Our weapons against these diseases are becoming less effective with every passing day, and I am struck by the similarities between drug-resistant TB and antimicrobial resistance, which was such a topic for conversation last week, with the Prime Minister launching his own special commission. We need new drugs that the TB bacteria have not already encountered, and we need a vaccine that kills or prevents infection so that resistance never gets the chance to develop. We need to remember that we have TB here in the UK and that a small but growing percentage of cases in the UK are drug resistant.
When drugs are developed, they must be affordable. Of course, commercial sector organisations must generate a profit, and developing a new drug can cost hundreds of millions of pounds and take years of sustained effort and research. None the less, while we want to find a way to unlock a new generation of drugs for diseases such as TB, we must not find ourselves in a situation where the poorest people cannot afford treatment or where the cost of buying drugs cripples local health services in poor countries.
What is required, then, is an alternative model—one that separates the requirement to generate a profit from the direction of research and that separates the cost of research from the price of the final product. Such a model, which is often described as de-linked, is the only way we will be able to encourage research and development for diseases for which there are no significant financial markets and to ensure that the products that are developed are accessibly priced. Will the Minister therefore commission a report examining the costs and implications of commercially driven development, as against de-linked development models, and use the findings to make the case to other Governments? Perhaps he could respond to that request in his reply.
We know that the system is not working; we know that the imperative to act and to find solutions to these problems is as strong as ever, and we know that the challenge of correcting market failure will dictate the future of efforts to control humankind’s deadliest infectious killers, yet we are no closer to breaking the deadlock. For the sake of the world’s poorest, our own national health service and, ultimately, our health in this country—these diseases are very infectious—I ask that DFID champion alternative, non-commercial models of development and thus help to develop the new drugs, vaccines and diagnostics that will help us to see the end of TB, HIV and malaria in our lifetimes.
Mr Duncan
There is a lot that is constructive in what the hon. Gentleman has suggested. Whereas the money might not go into long-term research, there can certainly be work with private companies along the partnership lines that we already have, perhaps to extend activity in areas such as these. We are open-minded about the nature of the economic development activity that will emerge from this new approach—this refreshed emphasis—in private sector development, and I am pretty confident it does not rule out proposals such as the hon. Gentleman’s.
Mr Duncan
I do not lead on this topic, but my understanding of the Department’s approach at the moment is that we are not wholly convinced about the solution that simple de-linking would offer for the problems that the right hon. Gentleman has identified. Pharmaceutical markets are much too complicated for us to be able simply to segregate a research budget and the price at which a product is sold. The competitive structure has to be considered. Is a new drug competing with something, directly replacing something or marketing itself into a completely new field? There are many more aspects to the pricing and distribution of drugs than the simple de-linkage proposed by the right hon. Gentleman.
We do not have a closed mind on anything of this sort. The least we can say to the right hon. Gentleman is that we will get our very clever people working on it, although I do not think we will commission a great report at this stage. However, we are happy to engage with him in further detail, if he thinks that we are missing something.
Mr Duncan
We will, of course, write to the right hon. Gentleman, as requested, with our thoughts and views on his proposal. I have no doubt that officials will be happy to discuss with him, in person, what he thinks should be done, should he so wish it.
DFID is also utilising research and development techniques to understand better the environment in which we operate and it is working out how we can anticipate future trends. One example is in antimicrobial resistance, which has been mentioned today—a future threat on which the UK Government are taking a leadership role globally. DFID is supporting an initiative to track drug resistance to malaria in south-east Asia as it potentially spreads through the region and, critically, towards Africa. That will help target new antimalarial drugs, the development of which is also being supported by DFID.
Research alone will not alleviate poverty, which is why DFID also invests heavily into putting research into practice. Our programme, Research into Results, which is designed to convert theory into practice, is a perfect example of that. In my recent visit to Edinburgh university, I saw the good work being done in setting up small-scale businesses able to take the best research ideas coming out of universities and get them into widespread use. So many of the development challenges we face today rely on solutions from research, and solving many of the challenges we will face tomorrow will rely on the research and development investments that we make today.
Tuberculosis
Lord Hain Excerpts(10 years, 5 months ago)
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Nic Dakin
Thank you, Mr Dobbin, and I thank the hon. Gentleman for his contribution. I am sure that the Minister will reflect on his point when he responds to the debate. It reinforces the point that I made earlier about the importance of the Government taking the opportunity to co-ordinate their efforts in relation to both HIV and TB, and the Minister will have heard those points.
Mr Peter Hain (Neath) (Lab)
Is my hon. Friend aware that 750,000 TB cases—the most lethal ones—come from South Africa’s gold mines, and contribute 9% of the global total of TB cases, which are often linked to HIV? If so, does he agree that it is vital for the British Government to talk to British-owned companies that are mining gold in South Africa to try to resolve that terrible epidemic?
Nic Dakin
I thank my right hon. Friend for that intervention. He is absolutely right that the Government have a leadership role to play both globally and in relation to British companies involved in South Africa and elsewhere. I am sure that the Minister will also pick up on that point when he responds to the debate.
Dr Raviglione said that it would take more than a century to get rid of TB. Waiting a hundred years to get rid of this disease is just not good enough. Dr Raviglione also drew attention to the shameful fact that one in every three TB cases on the planet is not properly diagnosed or treated, which equates to 3 million people every year going undiagnosed, the majority of whom will have infectious pulmonary TB. Many of them are estimated to have drug-resistant strains. That is 3 million people a year going undiagnosed for the past six years—that is not good enough, either. Until everyone in the world with TB is diagnosed and correctly treated, we will never succeed in bringing the global TB epidemic under control and it will continue to blight our world, ruining millions of lives every year.
TB has killed more people than every other pandemic in history combined, by a margin of several hundred million. It is a global disease of the here and now. It affects every country, and every country must have a role to play in tackling it. It requires global leadership from our Government and every other Government. Tackling it requires support and investment through multilateral organisations such as the global health fund, as well as through targeted interventions. We need important technical and co-ordinating agencies, such as the WHO’s global TB programme and the Stop TB Partnership, to work together to enhance co-operation and cohesion across the world’s responses to TB. We need the brightest and the best of the scientific and business communities to work with high-burden countries, in order to step up the fight against this disease and save as many lives as possible.
Consumption, or TB, is a disease of the present. It is a scourge on our humanity and deserves the full force of all our efforts. Although new tools to tackle HIV and TB are badly needed, if we scale up the use of the tools that are already available we have the opportunity to save an additional million lives in the next few years.
I hope that the Minister, when he responds to the debate, will take the opportunity to reaffirm the Government’s commitment to ensuring full replenishment of the global health fund; to continuing to fund TB REACH to a level that allows it to carry on supporting new and innovative projects to find “the missing 3 million”; and to continuing to push for the development and uptake of better diagnosis, treatment and prevention treatments for TB, in a way that can be sustainable.
Finally, let us recognise the work done by all those people across the globe on the front line of the fight against this terrible disease. Their effort is a call to arms for us and a call for us, as policy makers, to step up to the mark and provide them with the tools and the wherewithal to eradicate TB and place it firmly in the past.