Combating corruption 01 10-2012

Combating Corruption

in Bangladesh:

Role of Civil Servants

The lecture note is prepared for the Mid Level Career Civil Servants of Bangladesh Bangladesh Public Administration Training Centre, Dhaka.

By

Md. Shamsul Arefin Director General

Anti Corruption Commission, Bangladesh.

Wednesday, September 26, 2012 Md. Shamsul Arefin 1

Presentation on

Anti Corruption Commission Bangladesh

04/11/23 Md. Shamsul Arefin 2

Historical Development

• Bureau of Anti- Corruption was formed in 1943 under Anti-Corruption Act 1957.

• Since its inception in 1943 until 1983 the organization functioned as a branch of the Police

• In 1983 a separate employment charter was provided to the Bureau curtailing its dependency on the police for manpower.

• The Anti Corruption Commission (ACC) Bangladesh was created under section 3 of Anti Corruption Commission Act, 2004. The first set of office bearers were appointed on 21 November 2004.


Mission of ACC Bangladesh

• To combat, control and prevent corruption.

• To control corruption by identifying areas of vulnerabilities for prosecution action, prevention, curative treatment and advocacy.


Composition of Commission• The Commission is consist of three

commissioners, one of them appointed as chairman who is the chief executive of the commission;

• Commissioners are appointed by the President on the recommendation of the Selection Committee for a period of four years and are not eligible for re-appointment.

• The commission is independent and work impartially.


Organogram

Chairman

Commissioner Commissioner

Secretary

DGLegal

DGAdmin

DGEnquiry &

Investigation

DGSpl Enq & Inv

DGPrevention

DGInspection &Pending Issues


Power of the Commission

• The ACC allows the Commission to discharge its power under the act independently (section 24) and also allow Financial independence (section 25)

• The commission also has the power to investigate (Section 20), Power of Arrest (Section 21) and conducts Hearing of accused person (Section 22)


Functions of the Commission (Sections 17)

• To enquire into and conduct investigation of offences mentioned in the schedule

• To file cases on the basis of enquiry or investigation and conduct cases • To hold enquiry into allegations of corruption on its own motion or on the

application of aggrieved person or any person on his behalf • To perform any function assigned to Commission by any Act in respect of

corruption • To review any recognized provisions of any law for prevention of

corruption and submit recommendation to the President for their effective implementation

• To undertake research, prepare plan for prevention of corruption and submit to the President, recommendation for action based on the result of such research

• To determine the procedure of enquiry, investigation, filing of cases and also the procedure of according sanction of the Commission for filing case against corruption and

• To perform any other duty as may be considered necessary for prevention of corruption.


Special features of ACC Act

• The Anti Corruption Commission (ACC) Act was promulgated on 23 February 2004 which came into force on 09 May 2004.

• The Anti Corruption Commission (ACC) Act was the Act no 5 of 2004.

• There are 38 Sections in that Act.

• Out of those there are 3 penal sections.

• Penal sections are- Section 19(3), Section 26(2) and

Section 27(1)


Some Important Aspects of the ACC Act

• In order to make recommendation for the appointment

of commissioners, a Selection Committee of five

members shall be constituted (Section 7).

• Section 10(3) - No commissioner shall be removed from

office except on similar grounds and in accordance with

the similar procedures as apply to the removal of a

judge of the Supreme Court.


Definition of Corruption

• Corruption is operationally defined as the misuse of entrusted power for private gain- Transparency International.

• Corruption is the abuse of public office for private gain - World Bank

• Misuse of Power for private gain

Bribery

Extortion

Manipulation of Laws


Legal Definition of Corruption

According to the Section 2(e) of the Anti-Corruption Commission Act-2004 :

‘Corruption’ means the offences set out in the schedule to this law”.


• Offences under Anti-Corruption Act 2004 (Possession of property disproportionate to known source of income).

•Offences punishable under the Prevention of Corruption Act, 1947 (Act 11 of 1947).

•Offences under Money Laundering Prevention Act -2009.

•Offences punishable under sections 161-169, 217, 218, 408, 409 and 477A of the Penal Code, 160 (Act XLV of 1960).

•Offences of abetment, conspiracy and attempts as defined respectively in section 109, 120B and 511 of the Penal Code, 1860 (Act XLV of 1860) in relation to clauses (a) to The Anti-Corruption Act, 2004.

The schedule of ACC


The Dynamics of Corruption

• C =M+D-A-S

• Where, C=Corruption

• M= Monopoly

• D= Discretion

• A= Accountability

• S= Public sector salaries






Some Sources of Corruption1. Over and under-invoicing in Imports & Exports 2. Tendering3. Procurement4. Audit5. Land management6. Law enforcement7. Customs8. Loan from Banks 9. Judiciary 10. Others


• Bribes and kickbacks at public interface

• Loan disbursements

• Bid rigging or collusive agreements

• Use of discretion

• Monopoly service providers

• Theft from local accounts and abuse of public assets

• Fraud/Forgery/Misrepresentation

Anatomy of Corruption Anatomy of Corruption


Corruption – the Key ProblemCorruption – the Key Problem

• Corruption – a global challenge • More than bribery - Abuse of power for private

gain –• Increases poverty and injustice• Prevents development and rule of law• Undermines democracy and governance• Distorts market and economic growth• Breeds crimes, social frustration, discontent and

insecurity• Others



Role of Civil Servants Use minimum or no discretion Create perfect competitions Open Integrity unit Maintain Transparency Ensure Accountability Ensure Rule of law Ensure Good governance Follow a person who is a Role Model to you Try to be a Role Model to others


Which of the following acts do you consider to be acts of corruption:

Stealing money from government (embezzlement)

Threatening individuals with harm if they do not give money (Extortion)

Influencing government contracts in return for financial or other gains

Bribery

Promotion of unqualified individuals for political reasons or other gains

Favouring relatives and friends e.g. appointing them to good positions (nepotism)


Please indicate how much do you agree with the following statements

I would feel comfortable helping my family member get a job in my govt office, provided they were qualified.…even if they were not as qualified as another candidate. I would feel obligated to use my influence as a civil servant to help my friend / relative with a problem if I could. Corruption by low-level employees is more acceptable than corruption by high-level officials.

Corruption – A Global Threat

Cost of corruption exceeds by far the damage

caused by any other single crime

• World Bank – More than 1 trillion US$ is paid in bribes a year

• Asian Development Bank – Cost of corruption = up to 17% of GDP

• The harm exceeds the proceeds – US$ 1 bribes = US$ 1.7 damage



Country Year Score Rank

Bangladesh2011 2.7 120

2010 2.4 134

2009 2.1 139

2008 2.0 147

2007 2.0 162

2006 1.7 156

2005 1.5 -

2004 1.3

2003 1.2

Corruption Perception IndexRank & Score of Bangladesh

Deficiencies

lack of transparency

lack of competition Monopoly weak accountability weak capacity Discretion

IMPLICATIONS OF CORRUPTION

• Graft & CorruptionGraft & Corruption• InefficiencyInefficiency

• Graft & CorruptionGraft & Corruption• InefficiencyInefficiency

• Poor QualityPoor Quality• High CostHigh Cost

• Poor QualityPoor Quality• High CostHigh Cost

POOR SERVICE POOR SERVICE DELIVERYDELIVERY

POOR SERVICE POOR SERVICE DELIVERYDELIVERY04/11/23 Md. Shamsul Arefin 27

Discretion!!!

The exercise of individual judgment, instead of formal rules, in making decisions is discretion.

No list of policies and procedures could possibly guide police officers through all the situations in which they find themselves. Police routinely must use their own discretion.

The issue of police discretion is very controversial, particularly because some officers abuse their discretion.04/11/23 Md. Shamsul Arefin 28

Measuring Corruption

• Transparency International Tools

– Corruption Perceptions Index –

international ranking (score) based on

Survey of Surveys on perceptions of

business, business analysts, investors,

investment analysts and country specialists

on political and administrative corruption.



Country-level Anti-corruption assessment tools

Corruption Transparency/Accountability/Integrity

Diagnostic Assessments

Institutions

Processes

Sectors

Local level

Compliance monitoring

Perception Experience/ victimisation

Public opinion

Experts

Public sector

General population / vulnerable groups

Public sector

Private sector

Mapped by Transparency International

Corruption: Preventing access to education

Corruption in Education: Ratio of Service Receipients Forced to Pay Bribe

54.1

21.8

35.5 32.5

for admission in school to be enlisted forstipend in primary level

to be enlisted forstipend in secondary

level

for actual disbursementof the stipend

Perc

enta

ge

Source TI -201004/11/23 Md. Shamsul Arefin 32

Corruption: Preventing access to health service

Corruption in Health : Ratio of Service Receipients

Forced to Pay Bribe

54.8

29.3

for outdoor treatment for operation/x-ray/pathological test

Perc

enta

ge


Corruption: Preventing law enforcement


Household Income lost to bribery

9.529

7.94

2.384

4.569

0

2

4

6

8

10

12

Low Income (< Tk.72,000 per year)

Middle Income(72000-140,000)

High Income(140,000+)

Total

Perc

enta

ge


32.00%

22%

26.00%97.00%

40.00%

92.00%

26.00%

3.00%

70.00%

Stipend -Primary

Stipend - Secondary Female

Public hospital

Land registration

Getting Khas land

Police station (FIR)

Local arbitration

Relief

Electricity connection

Percentage of paying bribe for getting services

(TIB 2005, Bangladesh )

Anyone can submit a complaint to the Anti-Corruption Commission (district office/division office/head office) or to the Police Station about the happening of a scheduled offences under Rule.4 and 7 of ACC Rules, 2007.


Steps to be taken by Police Station on receiving a complaint

• After submitting to the PS, the complaint will be forwarded to ACC for Enquiry (if not lodged in the form of FIR).

• After submitting to the PS, the complaint will be forwarded to ACC for Investigation (if recorded in the form of FIR).


Using the Right to Information as an Anti-

Corruption Tool • Article 39(2) of the constitution of Bangladesh

states that:

(a)Right to every citizen the freedom of speech and expression is guaranteed;

(b)Freedom of the press is guaranteed.

(c)Right to Information Act-2009 (Public information disclosure related Act).

(d)The Whistleblower Act


Which Countries Are Corrupt?

• The Transparency International 2009 Corruption Perceptions Index shows that the most honest countries are Finland, New Zealand, Iceland, Denmark, and Singapore.

• The most corrupt countries are Haiti, Guinea, Myanmar, Iraq, Bangladesh, Chad, the Democratic Republic of Congo, and Sudan.

• China, Brazil, Ghana, Senegal, Peru, Mexico, Saudi Arabia, India, and Egypt all rank in the middle of the 163 countries ranked.


The Great Exceptions

• Singapore and Hong Kong are exceptions Both have moderately high levels of inequality and at best modest levels of trust. Botswana is another example of a country with moderate corruption and high levels of inequality.

• All three countries once had very high levels of corruption.


TransparencyIntegrityAccountabilityWhistleblower protection

Aware Citizen

Preventive Measures

Enhanced Accounting and Auditing Standards

Reducing Discretionary Authorities

Create Competition

Effective Civil, Administrative or Criminal Penalties



Whistleblower means-

An employee who refuses to engage in and or reports illegal or wrongful activities of his employer or fellow employees.

How to tackle corruption in Bangladesh

1. Developing long-term anti-corruption strategy

2. Creating citizen’s will

3. Effective decentralisation of government agency

4. Create a sense of hate about corruption

5. More transparency and more simplification of

procedures

6. Incentives for good performance

7. Awareness and Motivational programme



Conclusion Corruption is widespread in developing and transition economies, not because their people are different from people elsewhere but because conditions are ripe for it.

First, the motivation to earn income is extremely strong, aggravated by poverty and by low and declining civil service salaries and the absence of risk-spreading Mechanisms.

Second, opportunities to engage in corruption are numerous. Monopoly rents can be very large in highly regulated economies.

The discretion of many public officials is broad in developing and transition economies, and this systemic weakness is exacerbated by poorly defined, ever changing, and poorly disseminated rulesand regulations.


Conclusion Third, accountability is typically weak. Competition are not perfect often restricted.

The watchdog institutions that provide information on which detection and enforcement is based—such as investigators, accountants, and the press—are also weak.

The two parties to a bribe often both benefit, bribery can be extremely difficult to detect. Even if detection is possible, punishments are apt to be mild when corruption is systemic—it is hard to punish one person severely when so many others are likely to be equally guilty.

Finally, certain country-specific factors, such as population size and natural resource, also appear to be positively linked with the prevalence of bribery.



Thank You!

April 11, 2023 Md. Shamsul Arefin 49