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Pervasive corruption: Time to introspect Dr. Iftikhar-ul-Awwal Professor and Chairman of the Department of History University of Dhaka This article was published in The Daily Star (Bangladesh), August 22, 2001 On June 29, 2001, TI presented its annual report for the calendar year 2000 wherein Bangladesh was perceived as the most corrupt country in the world in TI's Corruption Perceptions Index (CPI). It may be mentioned the position of Bangladesh in this respect in 1996, when the country's CPI was prepared for the first time, was fourth from the top. The publication of the report at once brought a barrage of criticism from the AL government and its front organizations. They alleged that the report had tarnished the image of Bangladesh and that TI had hatched a conspiracy "to malign the Bangalee nation and Bangladesh". Mr. AMS Kibria, the former Finance Minister expressed his disbelief and disillusionment at the TI report. He felt that the report was prepared "to undermine the self-esteem of the nation, sense of respect and harm the nation in the process". The government thus decided to send a formal note of protest to the TI, and also to sue its Bangladesh chapter in appropriate court. One of the main allegations of erstwhile AL government against TI is that the report on corruption was 'erroneous and baseless', 'unfounded' and 'totally false'. That it was not formulated on the basis of facts or of 'actual situation' and it was indeed a document prepared 'without proper investigation and scrutiny'. However, the above allegation of the erstwhile government against the TI appears to be illogical and inaccurate. The report as alleged is not based upon peripheral accounts published in newspapers or on the basis of gossips on corruption in Bangladesh. Nor has the index been prepared by three nameless European NGOs’ or even by the local chapter of TI. On the contrary, it has been based on three authentic surveys conducted by independent agencies of repute. Those were the Business Environment Survey 2001 conducted by World Bank, Global Competitiveness Report 2001 of World Economic Forum, and Economist Intelligence Unit 2001. The expatriate business executives of national and international companies and top businessmen of the country were the respondents in the surveys. The argument of the critics of the report point to the fact that only 91 countries out of 189 have been taken into account, and that itself diminishes the merit of the report. However, the central TI has made it abundantly clear that for inclusion of any country in

Iftikhar-ul-Awwal (2001) 'Pervasive corruption: Time to introspect', published in The Daily Star (Bangladesh), August 22, 2001

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Page 1: Iftikhar-ul-Awwal (2001) 'Pervasive corruption: Time to introspect', published in The Daily Star (Bangladesh), August 22, 2001

Pervasive corruption: Time to introspect

Dr. Iftikhar-ul-Awwal

Professor and Chairman of the Department of History

University of Dhaka

This article was published in The Daily Star (Bangladesh), August 22, 2001

On June 29, 2001, TI presented its annual report for the calendar year 2000 wherein

Bangladesh was perceived as the most corrupt country in the world in TI's Corruption

Perceptions Index (CPI). It may be mentioned the position of Bangladesh in this respect

in 1996, when the country's CPI was prepared for the first time, was fourth from the

top.

The publication of the report at once brought a barrage of criticism from the AL

government and its front organizations. They alleged that the report had tarnished the

image of Bangladesh and that TI had hatched a conspiracy "to malign the Bangalee

nation and Bangladesh". Mr. AMS Kibria, the former Finance Minister expressed his

disbelief and disillusionment at the TI report. He felt that the report was prepared "to

undermine the self-esteem of the nation, sense of respect and harm the nation in the

process". The government thus decided to send a formal note of protest to the TI, and

also to sue its Bangladesh chapter in appropriate court.

One of the main allegations of erstwhile AL government against TI is that the report on

corruption was 'erroneous and baseless', 'unfounded' and 'totally false'. That it was not

formulated on the basis of facts or of 'actual situation' and it was indeed a document

prepared 'without proper investigation and scrutiny'. However, the above allegation of

the erstwhile government against the TI appears to be illogical and inaccurate.

The report as alleged is not based upon peripheral accounts published in newspapers or

on the basis of gossips on corruption in Bangladesh. Nor has the index been prepared by

three nameless European NGOs’ or even by the local chapter of TI. On the contrary, it

has been based on three authentic surveys conducted by independent agencies of

repute. Those were the Business Environment Survey 2001 conducted by World Bank,

Global Competitiveness Report 2001 of World Economic Forum, and Economist

Intelligence Unit 2001. The expatriate business executives of national and international

companies and top businessmen of the country were the respondents in the surveys.

The argument of the critics of the report point to the fact that only 91 countries out of

189 have been taken into account, and that itself diminishes the merit of the report.

However, the central TI has made it abundantly clear that for inclusion of any country in

Page 2: Iftikhar-ul-Awwal (2001) 'Pervasive corruption: Time to introspect', published in The Daily Star (Bangladesh), August 22, 2001

their report at least three reliable surveys are required. It is indeed due to lack of

authentic surveys that Bangladesh's CPI was not prepared from 1997 to 1999.

Moreover, the TI has also frankly admitted that the most corrupt country might exist

among the other countries not so ranked in their list. And also that, the CPI was based

on polls, which were snapshots in time and solely reflected opinions. Yet Kibria and

others kept on assailing the TI while restraining themselves from providing any data,

quantitative or qualitative, to the contrary. Nor did the AL government ever counter

allegations of corruption when brought forth against public and political personalities

and business organizations in seminars, symposiums, and conferences and in the press.

It would not, therefore, be impertinent to glimpse through some reports of corruption

published in daily newspapers in the last two and half years. These include:

• 70 per cent of the government grant for village infra-structural development (for the

year 2000-01) amounting to about 331 crore taka worth of wheat remains

unaccountable. (Janakantha, 30-7-01)

• Financial irregularity, corruption and plunder of about 900 crore taka in 28 projects

of public Health Engineering Directorate under the Ministry of Local government.

(Janakantha, 30-6-01)

• Cabinet discussed ways and means to check corruption which cost the country Tk,

12,000 crore annually. GDP growth rate would have increased by 4 per cent had this

money been used in development work. (Janakantha, 23-6-01)

• Government grants meant for teachers and staffs of educational institutions are

misappropriated to the tune of nearly 35 per cent by management of these institutions.

(The New Nation, 22-6-01)

• Government revenue amounting to Tk, 6,718 crore misappropriated by fraudulent

groups through deception. (Janakantha, 1-6-01) Corruption cost the country Tk. 17, 191

crore in the year 2000. (Janakantha, 18-5-01)

• Fifty customs officers own property worth Tk. 200 crore. (Janakantha, 16-1-01)

• The issue of distribution of government plots termed a black chapter of AL regime.

(Janakantha, 22-12-2000)

• It was reported that the country has 7 lakh people having TIN, when Dhaka city itself

has over 10 lakh taxable individuals. (The Independent, 3-9-99)

• An investigation on the unspecified sources of income of policemen conducted by the

Bangladesh Society for the Enforcement of Human Rights found 80 cases in which

Page 3: Iftikhar-ul-Awwal (2001) 'Pervasive corruption: Time to introspect', published in The Daily Star (Bangladesh), August 22, 2001

offices had became millionaires during their periods of service.(The Independent, 17-4-

99)

• Hundred police officers own property worth Tk. 300 crore. (Janakantha, 16-4-99)

In the absence of government White Paper on corruption, the above press reports at

least provide us with some idea as to the extent and nature of corruption prevalent in

the country. It will be seen that no sector of our economy is free from this evil practice.

Most public officials in the employment of government and managing the 'mysteries of

the state', private individuals working elsewhere or in self-employment have become

accustomed to living with corruption. The ultimate victim is the state. To replenish

empty coffers, government thus has to borrow from domestic sources, and also from

external sources with humiliating strings attached to it. To a less or degree, individuals

too become victims of corruption and harassment in their daily business of life.

The erstwhile government has also sharply criticized the report terming it a ‘politically

motivated media hype', and a 'conspiracy' hatched against the AL government just

ahead of the general elections. In support of their contention, the former Finance

Minister opined that the trustees of the local chapter of TI being associated with the

opposition political parties must have manipulated the findings of the report. He thus

advised the local trustees of TI to resign immediately. But Mr. Kibria and his colleagues

should have known better that none of the people having direct involvement with

political parties could be in the TIB's governing structure. And, indeed none of them the

Chairman of TIB Professor Khan Sarwar Murshid, trustee Professor Muzaffar Ahmad,

other members of the trustee board (Mr. Taufiq Nawaz, Mr. Aminul Huq, Mr. Samson

Chowdhury, Mr. Mahfuz Anam and Mrs. Ruby Ghaznavi) or the Executive Director

Barrister Manzoor Hasan are involved in national politics. As regards Mr. Kibria's

diatribe that certain political personalities of the opposition camp were behind the

establishment of TIB, the matter is not disputed. Rather than giving credit to those

foresighted individuals, he is now sensing conspiracy on their part. Is it not true that he

himself was one of the 58 persons who Dr. Peter Eigen, TI Chairman, met in Dhaka in

1994 prior to TIB's inception? Is it not also true that even in last February he expressed

his keen desire to be associated with the Bangladesh chapter of the international anti-

corruption organization? Does Mr. Kibria also not know that the local chapters of TI are

not responsible for the preparation of CPI? It is done wholly and solely by the central

body of TI in which dozens of internationally reputed personalities are involved, and of

which Dr. Kamal Hossain is just one. The reality of the matter is that our former Finance

Minister and the AL government found it difficult to digest the truth of the allegation of

wholesale corruption against it, and hence the invective. It is for this reason that he

Page 4: Iftikhar-ul-Awwal (2001) 'Pervasive corruption: Time to introspect', published in The Daily Star (Bangladesh), August 22, 2001

quickly shifted the legacy of corruption on the donor agencies and countries. He also

urged the NBR to verify the transparency of the people involved in the Bangladesh

chapter of TI. Besides threatening to sue the TI, he has quite unnecessarily involved a

good many honest people of the country with the 'transparency issue' as a public

relations stunt.

Time has come when sanity must prevail over rhetoric. Practical measures need to be

evolved, and it is indeed possible to evolve, to significantly reduce the incidence of

corruption from our society. Rather than disputing facts and figures provided to us by

well meaning people, we need introspection. Lessons need to be learnt from our past

failings so that we can do better in the future.