| 22 January 2000 | Saturday | 14 Shawwal 1420 |
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Where corruption is a way of life
GENERAL Musharraf has repeatedly vowed to stamp out corruption in Pakistan. Others before him have made the same pledge, and no doubt many will again.
While wishing them all good luck in their crusade, I would advise readers not to hold their breath while waiting for this transformation to take place. The fact is that there are many levels of corruption, and most of it has been institutionalized to such an extent that it has become as pervasive as the polluted air we breathe. Indeed, I doubt if the well-meaning Chief Executive, sheltered as he has been in the barracks all his adult life, has any idea of the extent and dimensions of the corruption that is rife in Pakistan. All I can say to him is "Welcome to real life!"
The more visible form of this practice in Third World countries is the kind carried out by high-profile politicians who, because they are in a hurry, demand an up-front cut in high-value projects that require their approval. The Bofors scandal in India, the Cotecna deal and the sugar export scam in Pakistan are all examples of this kind of corruption where the sitting prime ministers allegedly got commissions for approving multi-million dollar contracts.
This is the type of fiscal malfeasance that makes the headlines and wins us top ranking in the Transparency International corruption sweepstakes. A rung lower, but far more pervasive, is the share of the senior bureaucracy in the processing of proposals and grant of contracts. This is paid by contractors and suppliers of goods and services to ensure the rapid movement of files without any negative remarks. Usually, an amount is given in advance, with the balance being paid after the award of the contract.
The middle-level bureaucracy gets its share out of the implementation of these projects by supervising the work and releasing payments. In the field, the engineering and accounts staff ride a lucrative gravy train by virtue of their stranglehold on development and maintenance funds. A fixed proportion of their cut goes all the way to the top of their departments. Similarly, the police, revenue and irrigation department officials collect and distribute kickbacks on a regular basis. In all these cases, prize posts, i.e., those with the biggest potential earnings, are virtually auctioned. Thus, federal and provincial ministers get involved in the transfers and postings of the lowliest patwari and thanedar.
Excise, customs and income tax officials make hay in the cities. All custom duties and taxes are negotiable. Here, income tax practitioners and clearing agents play the middlemen and broker the deals between the businessman and the officials concerned. Billions of rupees that would otherwise have gone to the state exchequer are divided between the assessed and the assessors. This is one reason why both the business community and the Central Board of Revenue opposed the appointment of SGS and Cotecna to assess and collect customs duties on behalf of the government.
Utility services such as Pak Telecom, KESC and WAPDA are notorious for their inefficiency and corruption. But often those criticizing these companies in their air-conditioned homes contribute to this state of affairs. Half the owners of the biggest houses in Karachi collude with linesmen and meter readers and pay only a fraction of what they should be paying for electricity.
The multiplicity of federal and provincial inspectors from a bewildering array of departments adds to the opportunities for corruption. For instance, provincial governments send electrical inspectors to all industrial and commercial establishments once a year to inspect the wiring and issue a certificate saying that it is up to the required standard. If it isn't, electricity can be disconnected. Needless to say, these inspectors hardly ever enter the premises, and are paid their fixed stipend.
And this is only one inspector. Friends who own factories once counted 14 such agencies, including social security, old-age pension, excise and civil defence. "Say what?" I asked an industrialist friend. "How does civil defence come in, and how can these inspectors hit you for money?" He explained that these worthies come around at regular intervals and threaten to nominate key workers to civil defence courses unless they are paid off. And since under law no establishment can refuse this training for their workers, factory managers cut a deal.
But while businessmen complain about this corruption privately, they never register official complaints against specific inspectors. During my 30-year stint in government service, I spent three years as financial adviser to the old-age pension organization known as EOBI. When friends reported that our inspectors were shaking them down for money, I asked them to give me a written complaint, assuring them that I would see to it that action was taken. They refused, saying that once I was transferred, their lives would be made hell by vengeful colleagues of the punished inspector.Also, they maintained that it was worth their while to pay inspectors off rather than cough up the required amounts as the official levies were far higher than the bribes they paid. And here lies the problem. On the one hand, the absurdly low salaries paid to government officials practically forces them to seek illegal gratification; and on the other, businessmen are required to pay so many different levies to so many agencies that they have an incentive to pay them lower amounts under the table. It should be possible to devise a system that allows a businessman to pay his dues at one go, and this amount can then be divided among the various agencies concerned.
But the gravy train does not stop here. If you want a seat or berth on a train at the last minute, the porter will accommodate you for a consideration. An appropriate cash present will enable you to jump the queue of those waiting for a new electricity or gas connection. A traffic cop who stops you for an infringement will salute you if you slip him a red hundred-rupee note. Indeed, our high denomination bank-notes can get you off the hook for virtually any crime or indiscretion.
These are only a few instances of corruption in Pakistan, but I hope they will suffice to give General Musharraf some idea of the task he has chosen to take on. Indeed, I have not even mentioned the corruption in the armed forces, but then this would be outside the purview of the National Accountability Bureau.
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