Strive Against Corruption Part-2

And do not consume your money between you unjustly by bribing the decision makers so that you may consume a part of the other people’s money sinfully while you know. [Quran:2:188] 

Do not confound the truth with falsehood, don’t conceal the truth, knowingly. [Quran’2:42]

Enjoin  which is just, and forbid which is evil [Quran;3:104]

Introduction

Corruption is a form of dishonesty or criminal offense undertaken by a person or organization entrusted with a position of authority, to acquire illicit benefit or abuse power for one’s private gain, according to Wikipedia. Corruption may include many activities including bribery and embezzlement, though it may also involve practices that are legal in many countries. Political corruption occurs when an office-holder or other governmental employee acts in an official capacity for personal gain. Corruption is most commonplace in kleptocracies, oligarchies, narco-states and mafia states.

Corruption in Pakistan is widespread and extends to every sector from government to judiciary, police, health services and education. The problems are long-standing, and despite ongoing calls for reform, and many attempts to improve the situation, there is little evidence of progress. Anti corruption efforts are cosmetic in nature and not result oriented.

There is dire need for the patriotic, concerned citizens to come forward and establish TCP – Truth Commission of Pakistan (No reconciliation). To cater for the time in establishment of such a set up, virtual TCP is a good option, which has been undertaken. Initially TCP is ICT (Information and Communication Technologies) based. ICT is a broader term for Information Technology (IT) which refers to all communication technologies, including the internet, wireless networks, cell phones, computers, software, middleware, video-conferencing, social networking, and other media applications and services. TCP will use ICT’s as a main tool to achieve its objectives. In this Part-2 corruption in various sectors in Pakistan is being touched upon:

Corruption By Sector In Pakistan

No sector can be called totally corruption free, however some of the main sectors deeply affected by corruption are enumerated:

o Electricity/ Power Sector Scam in Pakistan

The power sector’s circular debt went past Rs 2.306 trillion which is double the defence budget. The enemies need not to wage war, the economic collapse like ex-USSR with a huge army and stockpile of nuclear weapons could not survive economic collapse. It is a security issue now.

Here is list of persons responsible for this one of  biggest scams of Pakistan’s history

o Benazir Bhutto PM [9 October 1993- 5 November 1996]

1. In 1994, the Government of Pakistan announced an investor-friendly policy to develop IPPs based on oil, coal and gas. Following the policy, 16 IPPs were established. 
2. The next year,(1995) a hydro power policy was announced, which resulted in the development of the country’s first Hydro IPP.

o Pervez Musharraf [CE/President [1999-2008]

o Mir Zafarullah Khan Jamali, PM [23 November 2002-26 June 2004]

In 2002, the new government adopted a new policy, under which another 12 IPPs began operations.

o Chaudhry Shujaat Hussain, PM [30 June 2004-26 August 2004]

o Shaukat Aziz [28 August 2004-15 November 2007]

o PPP Government

1. Yousaf Raza Gillani 25 March 2008 19 June 2012

2. Raja Pervaiz Ashraf 22 June 2012 24 March 2013

o Nawaz Sharif, PM  [5 June 2013-28 July 2017]

In 2015, Pakistan adopted a new power policy by which another 13 IPPs were established, mostly Chinese companies. A transmission policy for development of transmission line in the private sector was also announced.

o Shahid Khaqan Abbasi, PM [1 August 2017-31 May 2018]

More than 40 IPPs were operating in Pakistan as of 2018.

Electricity Generation

Electricity in Pakistan is generated, transmitted, distributed, and retail supplied by two vertically integrated public sector companies, Water and Power Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric (K-Electric) for the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan. As of 2016, more than 99% of its population on average has access to electricity.^[1]

Circular debt is one of the biggest challenges Pakistan’s energy sector is facing since 2008-09. As a matter of fact, circular debt is quite natural phenomenon in the energy sector, which ideally occurs due to timing difference between receipts and payments of various companies within the ecosystem. Since long, circular debt is being associated with high cost of generation and that too with the high return on equity (ROE) of investors thus entire focus is on the reduction in profits of the investors that is actually just one component of the circular debt while some of other components are high cost of fuel, transmission and gas pipeline losses, short or no recovery at all from the end consumers and inefficient DISCOs, writes the Pakistan & Gulf Economist

Recently, Government of Pakistan (GoP) has signed a number of MOUs with almost all the Independent Power Producers (IPPs) except with public sector IPPs and IPPs under CPEC (China Pakistan Economic Corridor), those will be signed in coming months, as per market news. IPPs are one of the contributors to  the mounting circular debt therefore, it is important to understand the role of IPPs in this whole vicious cycle.

Many analysts and retired government officials question the rationale for making capacity payments to the IPPs even when electricity is not being procured from them and count it as a source of circular debt. The reason is very simple an IPP signs a long term PPA with CPPA-G, a state owned entity whereas it is not allowed to sell power to any other party even if the plant is shut down on the request of NPCC, another state owned entity. If the revenue stream is not clear then which bank will fund such a multimillion dollar infrastructure project? An IPP is not like a steel mill or a car manufacturing unit or an oil refinery where it would be free to sell its output in the open market. Allowing an IPP to sell to anyone in the market can only help remove the fixed capacity payments. Take-and-pay arrangements with CPPA-G as an off-taker and without the must-run option is a non-starter because of uncertain cash flows. No investor can invest, no bank can finance and no infrastructure project can sustain on these terms.

Future Plans to Resolve Debt Crisis

According to Arooj Asghar (a consultant): Various plans are currently under consideration e.g. IGCEP, CTBCM, and DISCOs long stop date; but it seems that all are not synchronized, which is evident from the below:

If this government is serious about fixing this sector, and reversing the rot that has set in, it needs to demolish the biggest myth which previous governments have been peddling. This myth suggests that the energy crisis is essentially a product of user subsidies, stealing of electricity and distribution losses. The World Bank, IMF and many advisers to the government have been at the forefront of creating this myth. The reality is that rather than users, it is the producers who are being generously subsidised and that is where the government will have to intervene if they wish to ever reverse the rot.

While many measures can be taken, the biggest issue is to identify those responsible for such deals to suffocate Pakistan economically. There should be no mercy for plunderers. But with the power of ill-gotten wealth they remain in power by changing their loyalties and using their agents in the corridors of power. 

Judiciary

A strong judicial system is an effective safeguard against corruption. Judicial corruption refers to corruption-related misconduct of judges, through receiving or giving bribes, improper sentencing of convicted criminals, bias in the hearing and judgement of arguments and other such misconduct. Judicial corruption can also be conducted by prosecutors and defense attorneys. An example of prosecutorial misconduct would be a politician or a crime boss bribing a prosecutor to open investigations and file charges against an opposing politician or a rival crime boss, in order to hurt the competition. An example of attorney misconduct, would be a defense attorney refusing to represent a client for political or professional motives.

Governmental corruption of the judiciary is broadly known in many transitional and developing countries because the budget is almost completely controlled by the executive. The latter undermines the separation of powers, as it creates a critical financial dependence of the judiciary. The proper national wealth distribution including the government spending on the judiciary is subject to constitutional economics.

It is important to distinguish between the two methods of corruption of the judiciary: the government (through budget planning and various privileges), and the private Judicial corruption can be difficult to completely eradicate, even in developed countries. Corruption in judiciary also involves the government in power using the judicial arm of government to oppress the opposition parties to the detriments of the state.

In 2002, in a report titled “Nature and Extent of Corruption in the Public Sector”, Transparency International (TI) Pakistan reported that the highest amounts of bribery were spent on people affiliated with the judiciary. Later in 2010, TI Pakistan presented a breakdown of the various actors in the judicial system involved in corruption. A majority of the participants reported that they, or someone in their household, was subjected to an act of corruption while interacting with someone from the judiciary. When asked of the actors involved, 33.62% people said court employees, 23.73% said public prosecutors, 14.12% said witnesses, 12.43% said judges, 8.19% said opponent lawyer, 4.52% said magistrates while 3.39% mentioned others.

In a 2011 survey, TI Pakistan identified the judiciary as the most corrupt institution in Pakistan alongside the Police. Nevertheless, with the proceedings of some high-impact corruption cases against government officials, including the prime minister, the Supreme Court demonstrated its positive role in tackling corruption. Where the apex court was being hailed for its anti-corruption efforts in 2013, Mehmoodul Hassan, a member of the Sindh Bar Council, alleged that nepotism and corruption were still “rampant” in the lower judiciary, particularly in the high courts and the lower courts, where people were unlawfully promoted within the judiciary.

Corruption in Education system

Corruption in education is a worldwide phenomenon. Corruption in admissions to universities is traditionally considered as one of the most corrupt areas of the education sector. Recent attempts in some countries, such as Russia and Ukraine, to curb corruption in admissions through the abolition of university entrance examinations and introduction of standardized computer-graded tests have met backlash from part of society, while others appreciate changes. Vouchers for university entrants have never materialized. The cost of corruption is in that it impedes sustainable economic growth. Doctoral education is no exception, with dissertations and doctoral degrees available for sale, including for politicians. The willingness to engage in corruption such as accepting bribe money in exchange for grades decreases if individuals perceive such behavior as very objectionable, i.e. a violation of social norms and if they fear sanctions regarding the severity and probability of sanctions.

In 2010, TI Pakistan reported that about 23.7% of those surveyed received admission in educational institutions through non-normal and alternate procedures. One of the biggest problems identified in the country is the presence of a non-uniform educational system. The private sector actively encourages western educational models such as the General Certificate of Secondary Education using this to justify unaffordable fees they charge ordinary citizens. Finding gain in such enterprises, the elite class amongst politicians, technocrats, bureaucrats and businessmen usually capitalise in this venture. These attitudes can also explain the deteriorating standards in the public sector educational institutes. On the other hand, state-owned public schools face several challenges including poor management and governance, and incompetence of consecutive governments in the education sector. Further factors for failing standards in state-run institutions include lack of funding, non-utilisation by elite classes, appointments of under-qualified faculty.

For a brief time during the regime of Pervez Musharraf, Pakistan received unprecedented investments in its higher-education sector this funding faltered with the arrival of Zardari’s government after 2008. In 2011, Dr Syed Abdul Aziz, director of Hamdard Institute of Education and Social Sciences declared education as one of the most corrupt sectors in Pakistan. According to 2013 findings by Transparency International, factor that contribute to this corrupt culture in the sector include embezzlement of development funds allocated by the government, thousands of ghost schools that appear only on paper, bribes taken to sell confidential material to candidates, poor or under-utilisation of funds and an inertia to change on the behalf of the education ministry.

Health Care

In 2010, 42% of surveyed individuals reported gaining access to hospital services by a method other than standard admission, and 48% reported either having to pay additional costs for essential services or being forced to utilize the services of a designated affiliate. Of the respondents who were asked to identify which parties orchestrated the corrupt acts, 61% reported hospital staff, 25% reported doctors, and 13% reported nurses.

Police and Law Enforcement

Corruption is found to be commonplace in the lower levels of police. Police was observed as the most corrupt sector in a 2013 survey by Transparency International (TI) This situation has persisted since the graft watchdog’s July 2010 survey, in which it was noted that the major cause for corruption in this sector was due to a lack of accountability and merit, and low salaries. Payment of bribes in order to escape and avoid charges was also commonplace; 31% of 4,224 respondents reported paying bribes to the police. Citizen journalists upload instances of police officials taking bribes on social networking and video sharing websites like YouTube.

Ordinary citizens face challenges in reporting instances of corruption they encounter with the police. In 2005, Prime Minister Shaukat Aziz ordered an investigation into claims by a 23-year-old woman who alleged that, in retaliation for attempting to reveal police corruption, police falsely detained her for fifteen days and raped her

Public Utilities

As of 2002, 96% of surveyed individuals reported corruption issues with electrical utility officials during the past year.^[66] The most common types of corruption were billing related. Some consumers admitted to illegally reducing their utility bills, while others reported being harassed with inflated bills intended to solicit bribes. Out of the pool of corruption-affirmative respondents, 71% reported that money was “demanded directly by the actor”

Sports Corruption

In August 2010, reporters from News of the World orchestrated a sting operation which was able to identify three Pakistani cricket players Salman Butt, Mohammad Asif and Mohammad Amir and a bookmaker Mazhar Majeed of being complicit in a row over spot-fixing in the fourth England-Pakistan test match at Lord’s. The cricketers each received 30 months, one year and six months jail term respectively while the bookmaker received two years and eight months jail term in a verdict issued by the Southwark Crown Court on November 3, 2011. Following these events, on 15 November 2011, the chairman of the Pakistan Cricket Board, Zaka Ashraf established an anti-corruption unit to prevent players from becoming involved in illegal betting practices.

Taxation

Corruption and incompetence of the Federal Board of Revenue (FBR) cost around Rs 1000 billion in the revenue loss to the national exchequer, in Pakistan.

Developing countries face a number of institutional problems in the process of revenue generation. The second main problem of low revenue generation is the low quality of governance. A study analysed the effect of institutional and structural variables (corruption and governance) on tax revenues using a panel data set for 25 developing countries over the period 1990-2005. The GMM regression results show that corruption has an adverse effect on tax collection, while good governance contributes to better performance in tax collection. It is further observed that institutional variables have a significant effect on tax revenues.

According to the 2002 study, 99% of 256 respondents reported facing corruption of taxation. Furthermore, 32% of respondents reported paying bribes to have their tax assessment lowered, and nearly 14% reported receiving fictitious tax assessments until a bribe was paid. 

More Scandals

Corruption – Global Phenomena 

Corruption and crime are endemic sociological occurrences which appear with regular frequency in virtually all countries on a global scale in varying degree and proportion. Individual nations each allocate domestic resources for the control and regulation of corruption and crime. Strategies to counter corruption are often summarized under the umbrella term anti-corruption. Additionally, global initiatives like the United Nations Sustainable Development Goal also have a target to substantially reduce corruption of all forms. 

Corruption in Muslim Countries:

There is food for thought to have a close look at the Madaris System which despite doing a good job, are not less prone to corruption than any other institution, but because of their nuisance value no one dares to touch them. 

Corruption in Muslim Countries should not exist if we look at the teachings of Quran but because Quran has been undermined by other books so people feel that they do whatever, their sins will be washed away and paradise is waiting for them. Faith and good deeds, both are required for salvation. Intercession is conditional and it’s up to God to grant permission for intercession. False dogmas have corrupted the Islamic thought.

The emphasis of HRCP, “Human Rights Commission of Pakistan” ( ماموریہ برائے انسانی حقوق پاکستان‎) (HRCP) is not much on corruption, though it is a human right issue. HRCP is an independent, democratic non-profit organisation. HRCP, committed to monitoring, protecting and promoting human rights in Pakistan. It is not associated with the government or with any political party.

Measures for Prevention of Corruption

Pakistan’s National Anti-Corruption Strategy (NACS) is no different and encompasses several approaches. According to the amended Klitgaard equation, limitation of monopoly and regulator discretion of individuals and a high degree of transparency through independent oversight by non-governmental organisations (NGOs) and the media plus public access to reliable information could reduce the problem. 

Djankov and other researchers have independently addressed the role information plays in fighting corruption with evidence from both developing and developed countries. Disclosing financial information of government officials to the public is associated with improving institutional accountability and eliminating misbehavior such as vote buying. The effect is specifically remarkable when the disclosures concern politicians’ income sources, liabilities and asset level instead of just income level. Any extrinsic aspects that might reduce morality should be eliminated. Additionally, a country should establish a culture of ethical conduct in society with the government setting the good example in order to enhance the intrinsic morality.

In 1969,Christian anarchist Dorothy Day argued that God will resolve economic abuses such as corruption. She wrote,

Fortunately, the Papal States were wrested from the Church in the last century, but there is still the problem of investment of papal funds. It is always a cheering thought to me that if we have goodwill and are still unable to find remedies for the economic abuses of our time, in our family, our parish, and the mighty church as a whole, God will take matters in hand and do the job for us.

Enhancing Civil Society Participation

Creating bottom-up mechanisms, promoting citizens participation, and encouraging the values of integrity, accountability, and transparency are crucial components of fighting corruption. As of 2012, the implementation of the “Advocacy and Legal Advice Centres (ALACs)” in Europe had led to a significant increase in the number of citizen complaints against acts of corruption received and documented and also to the development of strategies for good governance by involving citizens willing to fight against corruption.

Transparency International – TI

One global movement sharing one vision: A world in which government, business, civil society and the daily lives of people are free of corruption. In 1993, a few individuals decided to take a stance against corruption and created Transparency International. Now present in more than 100 countries, the movement works relentlessly to stir the world’s collective conscience and bring about change. Much remains to be done to stop corruption, but much has also been achieved, including:

About TI-Pakistan

Transparency International (TI) today is the largest anti-corruption network acting globally. TI is an International, Non-Political, Non-Partisan, Non-Profit, Non-Governmental Organization which is headquartered in Berlin, Germany. It has over 90 National Chapters (NCs) working around the globe. TI-Pakistan is one of the National Chapter of Transparency International, based in Karachi.

Bad Governance

Bad governance is the relationship between those who govern and those who are governed as a consequence of decision-making. This unfavourable relationship is created as a consequence of external factors or decisions such as violation of central or acceptable norms, such as those of liberal democracy, and bad economic policy: Bad governance collectively encompasses governance in government and corporate settings. It is the opposite of good governance. Bad governance addresses governance in a government setting but bad governance and bad government are different concepts. Bad governance encompasses a variety of situations from corruption, deceit and to passing of unfair policy. From this, it can be noted that different manifestations of bad governance can vary in severity and the potential impact in their respective setting.^[1] The World Bank has identified key indicators of governance which are used as a method to measure bad governance.

Bad governance is centralised around the idea of not only corruption within a system but a lack of transparency and accountability, arbitrary policy making and the cheating of those who are governed.

TCP – Truth Commission of Pakistan:

In the presence of so many anti Corruption departments and agencies at government level and TI-Pakistan

o Why is there a need for TCP? 

In fact these government and non-government organizations lack commitment and zeal to deal with the menace of corruption. The corrupt mafia has penetrated their ranks and made them another ineffective tool. 

The HRCP, TI, etc. are mostly secular-based organizations managed by liberals. They also get support from their sponsors abroad and their policies and approach does not involve religion which is considered as a private matter of any individual. Pakistan is based upon religious ideology, the majority may not be very pious practicing Muslims but they do respond to calls on faith-based appeals. Hence TCP can fill this void, we do not want to confront anyone but continue to support to achieve corruption-free Pakistan.

TCP – Truth Commission of Pakistan has been established as a voluntary moral, independent, non-profit, non-governmental initiative.

o TCP, Based upon Commands from Quran:

It is an endeavor based upon the Commands of Allah:

وَلۡتَكُنۡ مِّنۡكُمۡ اُمَّةٌ يَّدۡعُوۡنَ اِلَى الۡخَيۡرِ وَيَاۡمُرُوۡنَ بِالۡمَعۡرُوۡفِ وَيَنۡهَوۡنَ عَنِ الۡمُنۡكَرِ‌ؕ وَاُولٰٓئِكَ هُمُ الۡمُفۡلِحُوۡنَ‏ ۞ 

1. And from among you there must be a party who invite people to all that is good and enjoin the doing of all that is right and forbid the doing of all that is wrong. It is they who will attain true success. (Quran; 3:104)

2. And do not consume your money between you unjustly by bribing the decision makers so that you may consume a part of the other people’s money sinfully while you know. Quran:2:188] 

3. Seek your provision only by fair endeavour.  [Quran:29:17] , 

4. Indeed, Allah commands you to render trusts to whom they are due, and when you judge between people to judge with justice. Excellent is that which Allah instructs you. Indeed, Allah is ever Hearing and Seeing. (Quran; 4:58)

5. Do not confound truth with falsehood. [Quran:2:42]

6. When you voice an opinion, be just, even if it is against a relative. [Quran:6:152]

7. If you do not have complete knowledge about anything, better keep your mouth shut. You might think that speaking about something without full knowledge is a trivial matter. But it might have grave consequences. [Quran:24:15] , [Quran:24:!6]

8. When you hear something malicious about someone, keep a favourable view about him/ her until you attain full knowledge about the matter. Consider others innocent until they are proven guilty with solid and truthful evidence. [Quran:24:12], Quran:24:13]

9. Ascertain the truth of any news, lest you smite someone in ignorance and afterward repent of what you did.  [Quran:49:6]

10. Do not blindly follow any information of which you have no direct knowledge. (Using your faculties of perception and conception) you must verify it for yourself. In the Court of your Lord, you will be held accountable for your hearing, sight, and the faculty of reasoning. [Quran:17:36]

11. Do not make a mockery of others or ridicule others. [Quran:49:11]

12. Do not defame others. [Quran:49:11]

o Pubic Support

TCP – Truth Commission of Pakistan will also derive moral strength from public support via an Online Support Counter. The Counter will display public strength. Financial support is not required, own resources, time and effort will be utilised to keep it free from the influence of vested interests.

o Composition

TCP – Truth Commission of Pakistan  should comprise honest volunteers of high integrity from major segments of  the society without any political bias or other interests. 

o Working

1. The detailed working procedure will be formulated to take on the major corruption, mismanagement and other issues of national interest to arrive at reasonable details to ascertain the degree of “Responsibility” or provide enough information to the public/ reader to make up his mind.
2. Presently anyone may choose mega corruption scandals from the past 30 years, which are having a direct bearing on the public, study and analyze to share data/ information, which will be made available at TCP website. We cannot start from 1947, which will be taken later in reverse order.
3. This would be a moral information based commission, operating peacefully within the bounds of law of Pakistan.
4. It will build pressure at the official & unofficial levels for accountability and reforms to reduce corruption.
5. Suggestions for improvement in the proposal are welcomed. 
6. We must do something rather than cursing all the time. The Sword of pen (keyboard) is the weapon of the 21st century which can change the mind.

Virtual TCP 

The TCP has been launched at the Web, gradually it will developed, In-Sha-Allah.  

Conclusion

Corruption cannot be eradicated completely, but it can be reduced to be within manageable limits. Religion provides basic ethics and morality which combined with other measures like a strict system of rewards and punishment through effective legal and law enforcement agencies can bear fruits. The political system is to be reformed to make it easy for normal people to come forward to take leadership roles. How the political parties which do not have democracy within can eradicate corruption? Money is their strength to buy votes and loyalties to remain in power. Social media can be a powerful tool with the people to play their role in the struggle against corruption, TCP (Truth Commission of Pakistan) is one such endeavor, we need many more at each town level to keep watch and expose corruption.