Bribery and corruption - Main enemy of the nation

by Sarath Wijesinghe

Bribery, corruption, waste and nepotism are rampant all over the world. It is not possible to eradicate this menace totally. But it has to be controlled, checked and minimised for the benefit and the betterment of the society.

Bribery is perceived but it is difficult to detect. We must have a more effective method to detect this 'cancer' at early stages.

Many Western companies do not dirty their own hands but instead pay local agents who pay the percentage or the "success fee" if a contract goes through and who have access to the needs, access to the necessary "slush funds" to ensure that it does.

Bribery was seen as a normal business practice in many countries including France, Germany and the United Kingdom. No one can say Sri Lanka is less corrupted. In some countries bribes are treated as legitimate business expenses which could be claimed for tax deduction purposes. This is a global phenomenon encouraged by rich countries and multinational companies. The victims are mostly in developing nations.

There is international, large scale and small scale bribery and corruption taking place every second everywhere.

It is a cancer spread in the society like breath. Mahinda Rajapaksa administration has taken positive measures to fight against this menace by strengthening the Commission to Investigate Allegations of Bribery or Corruption and closing the doors for large and small scale corruptions.

Forwarding the "COPE" reports to the Bribery Commission is a very brave step. Changes in the new Companies Act too has given more responsibilities to the directors who will be personally responsible in future. There will be less politicos running after Ministers for posts of heads of corporations, in time to come.

It is illegal to offer, silicit, or accept any gratification in contravention of the Bribery Act, which has defined "gratification" as acceptance of money or any gift, loan, fee, reward, commission, valuable security or other property or interest in property of any description whether movable or immovable, any office employment or contract, any payment, release discharge or liquidation of any loan obligation, or other liability whatsover, any other service, excercise of any official power or duty, any offer undertaking or promise.

Large and small scale

Let us now face facts and reality. His Excellency has tightened the screw to curb bribery and corruption and has set an example being exemplary ruler in a developing nation.

This has to be trickled down to the bottom as corruption is both a major cause and as a result of poverty around the world. It occurs all levels of society, from governments, civil society, judiciary functions, military and other services. The impact of corruption in poor countries on poorer members of those societies is even tragic.

There are large scale and small scale of bribery and corruption. It is a legacy inherited by Mahinda Rajapaksa government from the predecessors who has mismanaged the political fabric and the economy of the country.

Nation has no doubt about the honesty and integrity of His Excellency and his political conduct. But the irony is that has is compelled to manage the affairs with available resources and raw materials.

The political structure is geared in such a way that he has to be careful in moving a limb in order to maintain stability and equilibrium of the political structure and the continuity of the government which is entrusted to him by the people in the capacity of their "Trustee".

It is salutary to note that long and short term steps are being taken by the Government to control and minimise this dangerous practice and trend. There is a whispering campaign about port, tax, transport, RMV, and many other government and statuary bodies.

Government and the Bribery Commission will not be able to fight this monster alone! People must be organised and the civil society and organisations should lead them to bring the anti social culprits to books.

Corruption scandals always make headline news in the Western media and can often be worsened in developing countries. This is specially the case when it is multi national companies going into poorer countries to do business.

The international business environment encouraged by a former globalisation that is heavily influenced by wealthier and more powerful countries in the world which makes it easier for multi nationals to make profit and even for a few countries to benefit.

However, some policies behind globalisation happen to encourage and exacerbate corruption as accountability of governments and companies have been reduced the longer way.

For multi nationals, bribery enables companies to gain contracts (particularly for public works and military equipment) or concessions which they would not otherwise have won, or to do so on more favourable terms.

Every year, Western businesses pay huge amounts of money in bribes to win friends, influence and contracts. These bribes are conservatively estimated to run to US$ 80 billion a year - roughly the amount that the UN believes is needed to eradicate global poverty.

There is an apparent tendency for bribary, which is intense in the business of seeking resource concessions and selling arms, drugs to become secret habits of Western firms and politicians that infect their domestic political behaviours.

Of this there has been considerable evidence in scandals that have occurred recently in Britain, France and Germany. In the past Sri Lanka defense has been a corrupted subject. Fortunately it is not the case now.

The incumbent Defense Secretary has brought about transparency and discipline to the forces and arms deals with his honesty and integrity. The nation has full confidence and trust on his honesty, integrity and competence which he has proved by action and deeds. Today the nation possesses a Defense Secretary who can not be influenced by external forces or arms deal "Mafia".

Provincial Councils

The Asian Development Bank recently estimated that corruption costs many governments in the Asian region as much as 50 percent of their tax revenues - money that could be used to build roads, improve literacy or provide basic healthcare.

Inefficient and waste amounts to corruption. Expenditure and duplication of work has made provincial councils the main white elephant of the society. Other white elephant is waste of national wealth and labour. If these two areas are controlled, we may be able to manage the economy without being a burden to the ordinary citizen who is always taxed and penalised.

Corruption in government contracting leads to further waste of scarce resources. Contracts won through bribes are offers never fulfilled or public works never built. Corrupt contracts leave governments with outdated drugs, equipment that does not work, or inferior, high-cost supplies.

Such transactions can cost lives as well as money. The tragic aftermath of the recent earthquake in Turkey showed how corruption - in this case of building inspectors - can interfere lethally with public safety and the functions of government.

Corruption by NGOs stationed in Sri Lanka is unprecedented. One head who is an NGO in Sri Lanka draws a salary and perks over one million of rupees. They still enjoy the tsunami windfall and busy in the North and Easy and the five star hotels!

In short, corruption has become a problem that we cannot ignore. Increasingly, around the world, people and governments are taking action. Transparency International, founded to combat bribery, now have over 70 national chapters.

On the government side, with the support of many business groups, this organisation has taken the most important initial step in completing a Bribery Convention. It is time for Sri Lankan civil Society to work hand in hand with such groups.

The United States was at least twenty years ahead of the rest of the world in acting aggressively against global corruption. In 1977, following rising public concern about the behaviuor abroad of U.S. firms Congress passed the Foreign Corrupt Practices Act.

That law established civil and criminal penalties for U.S. national who bribed foreign officials. But the extent of their genuineness is doubtful. There is a thing called "Corruption Tax" to counteract heavy expanses incurred- a practice prevalent in USA and the West. This corrupt practice has corrupted the poorer nations in the family of states. There.

As Western governments and the World Bank and IMF shout ever more loudly about corruption, their own policies are making it worse in both North and South. Particularly at fault are deregulation, privatisation, and structural adjustment policies requiring civil service reform and economic liberalisation.

In 1977, the World Bank asserted that: "Any reform that increases the competitiveness of the economy will reduce incentives for corrupt behavior. Thus policies that lower controls on foreign trade, remove entry barriers to private industry, and privatize state firms in a way that ensure competition will all support the fight."

Rich country politicians and bank officials argue that because dictators like Marcos, Suharto, and Mobutu were kept in power with Western arms and were given loans to squander on ill-judged and repressive schemes, that the people of those countries - who often fought valiantly against those dictators - cannot be trusted not to waste the money released by debt cancellation.

This may seem confusing to people not familiar with the logic of the IMF and World Bank.

Bribery defined by the International Convention as the offering, promising or giving of something in order to influence a public official in the execution of his/her official duties.

Bribes can take the form of money, other pecuniary advantages, such as a membership in an exclusive club or a promise of a scholarship for a child, or non-pecuniary advantages, such as favorable publicity. Similar definitions concerning bribery of corporate employees are used in private sector codes of conduct.

The situation in Sri Lanka is somewhat similar. Bribery was an offence punishable under the Penal Code as far back as 1883. It was during the British rule that bribery was introduced as a criminal offence into the Statute Book. In 1954 the Bribery Act was enacted to contain bribery in the Public Service.

In 1958 the Bribery Commissioner's Department was established by the Act No 40, under the Ministry of Justice. In 1994 the Act No 19 created the Commission to Investigate Allegations of Bribery or Corruption. The first Commission commenced activities on 15th December, 1994.

It is time for the civil society and the citizens as a whole to rise up against Bribery, corruption, nepotism and inefficiently as the main enemy of the nation.

(The writer is Solicitor/ Attorney-at-Law, Chairman, Consumer Affairs Authority and Convener, Committee for International Law and International Relations. - email [email protected] or [email protected])