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
01/20/13 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

DG
DG DG Enquiry &
DG DG DG
Inspection &
Legal Admin Investigation Spl Enq & Inv Prevention 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”.


The schedule of ACC
• 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. Shamsul Arefin
01/20/13 Md. 13

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 Corruption
1. Over and under-invoicing in Imports & Exports
2. Tendering
3. Procurement
4. Audit
5. Land management
6. Law enforcement
7. Customs
8. Loan from Banks
9. Judiciary
10. Others

Anatomy of Corruption

• 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


Corruption – 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
• 01/20/13
Others Md. Shamsul Arefin 21

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

Corruption Perception Index
Rank & Score of Bangladesh
Country Year Score Rank

2011 2.7 120
Bangladesh 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


I MPLI CATI ONS OF
CORRUPTI ON
Deficiencies •• Graft & Corruption
Graft & Corruption
 lack of •• Inefficiency
Inefficiency
transparency
 lack of competition
 Monopoly
 weak accountability ••Poor Quality
Poor Quality
 weak capacity ••High Cost
High Cost
 Discretion

POOR SERVICE
POOR SERVICE
01/20/13 Md. Shamsul Arefin
DELIVERY
DELIVERY 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.

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

Perception Experience/ Diagnostic Compliance
victimisation Assessments monitoring

Public opinion
General Institutions
population /
vulnerable groups
Experts Processes

Public Public sector Sectors
sector
Mapped by
Local level Transparency
Private sector International

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

54.1

35.5 32.5
Percentage

21.8

for admission in school to be enlisted for to be enlisted for for actual disbursement
stipend in primary level stipend in secondary of the stipend
level

Source TI -2010

Corruption: Preventing access to health service

C orr upt ion in He a lth : R a tio of S e rv ic e R e c e ipie nts
Fo r c e d t o P a y B r i b e

54.8
Percentage

29.3

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

Source TI -2010

Corruption: Preventing law enforcement

Source TI -2010

Household Income lost to bribery

12
9.529
10
7.94
8
Percentage

6 4.569

4
2.384
2

0
Low Income (< Tk. Middle Income High Income Total
72,000 per year) (72000-140,000) (140,000+)

Source TI -2010

Percentage of paying bribe for getting services

70.00%
Electricity connection
Relief 3.00%

26.00%
Local arbitration
Police station (FIR) 92.00%

Getting Khas land 40.00%

Land registration
97.00%
Public hospital 26.00%

Stipend - Secondary Female 22%

32.00%
Stipend -Primary

(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.


Preventive Measures
Enhanced Accounting Effective Civil, Administrative or
and Auditing Standards Criminal Penalties

Aware Citizen
Transparency
Integrity
Accountability
Whistleblower protection

Reducing Discretionary
Create Competition
Authorities

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 rules
and 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!
January 20, 2013 Md. Shamsul Arefin 49

Combating corruption 01 10-2012

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