A journalist friend of mine once wrote a magazine article about Panama entitled “Dustbin for Dictators.” This was a decade ago, and at the time the description was apt.
Living in Panama City then were ousted Guatemalan strongman Jorge Serrano, and toppled Haitian army chief Raoul Cedras. Ousted Ecuadorean President Abdala Bucaram was spending his time (and the taxpayer money of Ecuadoreans) in the casinos of Panama City.The shah of Iran passed through Panama looking for a place to hang his hat. So did Vladimir Montesinos, a sinister former spy chief from Peru.Is Hong Kong now vying for the title that Panama City once held? After all, both places are international entrepots with an anything-goes mentality.
What brings this to mind is a story today about Robert and Grace Mugabe, the authoritarian leader of Zimbabwe and his wife, who appear to be setting up Hong Kong as an alternative base.
On Sunday, Hong Kong announced that Grace Mugabe would not be prosecuted for allegedly lacerating the face of a photographer on assignment for the Sunday Times of London with her diamond-encrusted ring. The photographer was shooting pictures of Madame Mugabe Jan. 15 as she was shopping in a ritzy Hong Kong area. Hong Kong’s Department of Justice said Grace Mugabe would enjoy diplomatic immunity for any actions in Hong Kong.
Turns out that the Mugabes’ daughter, Bona, is studying at a university in Hong Kong. The Sunday Times also reported that the Mugabes may have recently bought a $5.5 million dwelling in Hong Kong. In cash.
Hong Kong is also one of the favored destinations of ousted Thai strongman Thaksin Shinawatra. Thaksin, a fugitive who recently was sentenced to two years in jail in Thailand for abuse of power, bought a home for about $6 million for his daughter Paetongtarn last November, the South China Morning Post has reported.
Is any of this illegal? Perhaps not. But if Hong Kong offers refuge to many more people of this sort, its reputation may take a beating.
Canada has been a haven of Chinese criminals, smugglers, and corrupt officials. Has its reputation taken a beating?
Posted by: Finger Synching @ Obama's Inauguration | March 22, 2009 at 01:44 PM
Finger synching, what you said is priceless.
Posted by: Pffefer | March 22, 2009 at 02:59 PM
Tim,
I enjoy reading your blog wanted to see if you were interested in having mutual links.
My blog is: www.chinafirstcapital.com/blog and it focuses on private equity, venture capital, M&A in China.
Peter
PETER FUHRMAN
Posted by: Peter Fuhrman | March 22, 2009 at 05:28 PM
Oh, come on, even if the HK Department of Justice wanted to prosecute, the Chinese government would hardly let them, considering China's wish to woo the African nations.
Posted by: little Alex | March 22, 2009 at 05:32 PM
little Alex has a point. China is courting African elites in return for access to resources. If it started alienating them the competition especially from India, South American, and South Asia will jump in and the Beijing will have lost the battle. I don't see why Beijing would even consider risking alienation. It's like the Saudi Arabia dilemma after 9/11; Bush had to protect the Bin Ladens so he flew them out of the US so he can maintain good relations with the Saudi Royal family.
Posted by: meh | March 22, 2009 at 05:52 PM
The Hong Kong authorities have already stated that under the "One Country, Two Systems" construct, foreign policy is left up to the PRC central government. It's up to the Beijing Ministry of Foreign Affairs to determine who and what foreign dignitaries are allowed entry into Hong Kong.
Posted by: Pan | March 23, 2009 at 08:45 AM
You are right Tim. Hong Kong probably would harbor their families but not those people themselves.
In the Mugabe case, Grace Mugabe would not receive asylum either.
NOTE this "Department of Justice said Grace Mugabe would enjoy diplomatic immunity for any actions in Hong Kong." Basically, this sets the tone of how these people are regarded. They are still government level officials (in-exile). They can only temporarily stay in Hong Kong, perhaps not even in China mainland, and they must leave.
Posted by: Sparkle | March 23, 2009 at 02:57 PM
Switzland has been a haven of US tax cheaters. Has its reputation taken a beating?
Posted by: qunhuaa | March 24, 2009 at 03:33 PM
Qunhuaa, you do, of course, realize the difference between Marc Rich and the Mugabe family, right? The Mugabes have driven the Zimbabwe economy into the ground, leading to outbreaks of cholera that have killed hundreds of people. Where is the equivalence with what Rich has done?
Posted by: Tim J | March 24, 2009 at 10:59 PM
To Tim J
I don't think this is a matter of whose's crime is greater whose.
Posted by: bw | March 26, 2009 at 10:30 AM