Anti Corruption Drive First Draft

8/3/2019 Anti Corruption Drive First Draft

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National Institute of Management Quetta

Individual Research Paper (IRP)

by

Tariq Qamar Baloch

Chief of Section, P&DD, GOB

Anti-corruption drive: in global perspective

with special reference to Pakistan

Advisor: Hamid Ghani Anjum, Chief Instructor NIM, Quetta

Mid Career Management Course 4

December 2008


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Acknowledgement

I acknowledge the valuable support from Hamid Ghani Anjum (Chief Instructor) who was kindenough to share his experience and provided guidance for successfully completing this study. I

would also like to thank all other faculty staff and officials of National Institute Management

(NIM), Quetta who helped us at every stage during my stay at this academy.

I also acknowledge Government of Balochistan, who funded for me in doing this mandatory

course and confident that when I will be back to my service I will do my level best to apply

knowledge and experience that I have learned during the course at NIM for the benefit of the

Government and the public.

I am really grateful to my parents who always prayed for my career and always pushing me

financially and morally to achieve the targets successfully. I obliged the support of my

colleagues / participants of this course who guided and helped me on various subjects and at

various levels of this study and the course.

Tariq Qamar Baloch 2008, NIM Quetta I


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Abstract

Rampant prevailing corruption in a Pakistani society has generated many troubles in the state

functioning such as economic crises, trust deficit, injustice and decline of social norms & values.

The aim of this research is to identify the initiatives that have been taken by the Government of

Pakistan against corruption, to look into the barriers in accomplishing the objectives of the

initiatives and how these can be improved?

The study was explanatory as well as exploratory. Singapore model against corruption was taken

as a case study due to its performance in global perspective. The data collection technique was

qualitative. A structured self completion survey was carried out in which the response rate was

100%.

Bribery, Cronyism, Nepotism, Patronage and embezzlement are the major types of corruption

and it takes place because of arrogance, personal interests, misuse of authority, job insecurity,

less salaries, lack of justice, poor governance, institutionalized corruption, poverty, degradation

of religious and social beliefs, drug money and mismanagement.

Government has introduced number of initiatives such as enactment of new laws (NAB

Ordinance 1999, Removal from Service Ordinance 2000, Freedom of Information Ordinance

2002 and National Anti Corruption Strategy 2002. Reforms in the establishments of Auditor

General of Pakistan, Ombudsman have also been carried out. Establishment of Public

Procurement Regulatory Authority, Public Accounts Committees, National Accountability

Bureau, Public Safety Commissions, Civil Society Organizations and the involvement of NGOs.

61% of the survey respondents believe that bribery is the major type of corruption. 79% says that

low salaries are the major cause of corruption in public sector and the major impact of corruption

is collapse of institutions (70%). It is a national problem (90%) and contribution of UN in

combating corruption globally is 0%. 70% agreed that the best solution to fight corruption is the

rule of law. Whereas Singapore model shows that the political will, fair accountability and

market based salary packages for the public officers are the primary measures for corruption

elimination.

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The research concludes that: fair and an independent judicial system, media and anti corruption

agency; effective and honest law enforcement agencies and strong public service specially the

market based salaries are the key sectors which play significant role in the corruption abolition

from a Pakistani society.

Key words: Corruption, bribery, accountability, rule of law, political will

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Glossary of terms

ACE Anti Corruption Establishment

AGP Auditor General of Pakistan

AJP Access to Justice Programme

BACP Business Anti Corruption Portal

BOI Board of Investment

CPDI Centre for Peace and Development Initiations Pakistan

CPI Corruption Perceptions Index

CPIB Corrupt Practices Investigation Bureau, Singapore

CSO Civil Society Organizations

EU European UnionFIA Federal Investigation Agency

FIO Freedom of Information Ordinance 2002

GI Global Integrity

GOB Government of Balochistan

NAB National Accountability Bureau, Pakistan

NABO National Accountability Bureau Ordinance 1999

NACS National Anti-Corruption Strategy

NIS National Integrity System

NRO National Reconciliation Ordinance

PACs Public Accounts Committees

PPRA Public Procurement Regulatory Authority

PSC Public Safety Commission

Resp. Respondent

S&GAD Services & General Administration Department

TI Transparency International

TIP Transparency International Pakistan

UN United Nations

UNCAC United Nations Convention against Corruption

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Contents

ACKNOWLEDGEMENT.........................................................................................I

ABSTRACT........................................................................................................II

GLOSSARY OF TERMS.......................................................................................IV

CONTENTS........................................................................................................V

1 INTRODUCTION ............................................................................................... 1

1.1 DEFINITION..........................................................................................................................1

1.2 BACKGROUND ......................................................................................................................1

1.3 PURPOSEANDSCOPEOFSTUDY...................................................................................................2

1.4 AIMS.................................................................................................................................3

1.5 OBJECTIVES ........................................................................................................................3

1.6 RESEARCH PROBLEM...............................................................................................................3

1.7 OUTLINE.............................................................................................................................3

2 RESEARCH METHODOLOGY .............................................................................. 5

2.1 RESEARCHDESIGN..................................................................................................................5

3 GLOBAL SCENARIO .......................................................................................... 7

3.1 GLOBALSTANDPOINT...............................................................................................................7

3.2 MAJORCASESOFCORRUPTIONINTHEWORLD...................................................................................8

3.3 CASE STUDY SINGAPORE.......................................................................................................9

3.3.1 Least Corrupt Country .............................................................................................9

3.3.2 CPIB and Legislation ...............................................................................................9

3.3.3 Public sector reforms .............................................................................................10

3.3.4 Principles of governance .......................................................................................103.3.5 Example of leadership ...........................................................................................11

4 ANTI-CORRUPTION DRIVE IN PAKISTAN .......................................................... 12

4.1 WAYSANDMEANSOFCORRUPTION.............................................................................................12

4.2 WHYCORRUPTIONTAKESPLACE (ROOT CAUSES) ............................................................................13

4.3 ANTI-CORRUPTION FRAMEWORKAND INITIATIVESTOCOMBATCORRUPTION..................................................15

4.3.1 Legislation .............................................................................................................15

4.3.2 Governments Strategies .......................................................................................15

4.3.3 National Accountability Bureau (NAB) ...................................................................16

4.3.4 The Federal Investigation Agency (FIA) .................................................................16

4.3.5 Anti-Corruption Establishments (ACEs) ..................................................................16

4.3.6 The Auditor General of Pakistan ............................................................................17

4.3.7 Ombudsman ..........................................................................................................17

4.3.8 E-governance ........................................................................................................17

4.3.9 Public procurement ...............................................................................................17

4.3.10 Public Accounts Committees (PACs) ....................................................................18

4.3.11 Special Powers from Removal of Service Ordinance, 2000 ..................................18

4.3.12 Public Safety Commission (PSC) ..........................................................................18

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4.3.13 Media ..................................................................................................................18

4.3.14 Civil society of Pakistan .......................................................................................18

4.3.15 Transparency International Pakistan (TIP) ...........................................................18

4.3.16 The centre for peace and development Initiatives (CPDI-Pakistan) .....................19

5 RESEARCH ANALYSIS AND FINDINGS .............................................................. 20

5.1 ANALYSISOFSURVEYRESULTS..................................................................................................20

5.2 RESEARCH FINDINGS.............................................................................................................22

6 CONCLUSIONS ............................................................................................... 25

6.1 RECOMMENDATIONS..............................................................................................................25

6.2 CONCLUSION.....................................................................................................................29

APPENDICES...................................................................................................30

APPENDIX A: QUESTIONNAIREON CORRUPTIONIN PAKISTAN.....................................................................30

APPENDIX B: ORGANIZATIONAL CHARTOF CORRUPT PRACTICES INVESTIGATION BUREAU (CPIB), SINGAPORE (CPIB

2007).................................................................................................................................32

APPENDIX

C: METHODOLOGY

FOR

CALCULATION

OF

CPI 2008 (TI 2008B

)................................................33APPENDIX D: CORRUPTION PERCEPTIONS INDEX 2008 (TI 2008A).........................................................34

APPENDIX E: RESPONSESONWORDCORRUPTIONONTHISRESEARCHQUESTIONNAIRE.........................................37

REFERENCES...................................................................................................38

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1 Introduction

1.1 Definition

Corruption means dishonesty for personal gains (Encarta 2008). Corruption can be definedas Improper and usually unlawful conduct intended to secure a benefit for oneself or

another. Its forms include bribery, extortion, and the misuse of inside information

(Britannica Concise Encyclopedia 2008).

"Corruption is worse than prostitution. The latter might endanger the morals of an

individual; the former invariably endangers the morals of the entire country." (Karl Kraus).

Corruption can be classified into many ways such as institutional corruption, political

corruption, data corruption, linguistic corruption, bribery, extortion, cronyism, nepotism,

patronage, graft and embezzlement (Wikipedia 2008).

1.2 Background

One of the biggest curses from which India is sufferingis bribery and corruption. That

really is a poison. We must put that down with an iron hand and I hope that you will take

adequate measures as soon as it is possible for this Assembly to do so. Address of

Mohammad Ali Jinnah to the Constituent Assembly of Pakistan on his election as President

(11th August 1947)

Origin of Corruption in Pakistan: Soon after the Second World War 1945, the entire scenario

of the globe has changed and struggle to power and wealth started. In this struggle so many

countries emerged on the world Map. Pakistan came into being on 14th August 1947 while

struggling and combating with the Hindus and British. Impetus to corruption - Might is

right, injustices, wealth accumulation, political power, Martial Laws, Judiciary exploitation,

civil and military bureaucratic hegemony etc., was the law of the land in the initial decades

of the new country.

Pakistan with a huge 164 Million Population divided into four provinces Punjab, Sindh,

NWFP and Balochistan, is steeped into the menace of Corruption. A culture of corruption

permeated at every facet of life. Public, Political and Business sectors are stuffed with this

illegal and abhorred threat. It is quite obvious that if this situation continues than soon this

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country will perish and indulged into the state of Anarchy. The Government of Pakistan has

been taking solid measures to overcome this alarming situation by introducing and

reforming the governmental institutions such as Federal Investigation Agency (FIA), Anti

Corruption Establishment (ACE), National Accountability Bureau (NAB), Access to Justice

Program (ACJ), Public Safety Commissions (PSC) etc.,

Philosophy of religion (2008) - a Christian school of thought organization depicts Inherited

corruption as the Accounts of original sin in terms of inherited corruption hold that

although we cannot be held guilty for Adams sin, we nevertheless suffer the consequences

of it. Adams sin led to our corruption and this is the sense in which we inherit his sin. On

the other hand Islam forbids all types of corruption and cannot be blamed on someone else.

It is the sole act of a person who commits corruption. And do not eat up your property

among yourselves for vanities, nor use it as a bait for the judges with intent that you may eat

up wrongfully and knowingly a little of other peoples property (The Noble Quran 2:188).

One prophet said that taking bribes is like eating the flesh of swine and at another point He

said the curse of Allah is on the giver and taker of bribes.

1.3 Purpose and scope of study

The purpose of this study is to understand the various dynamics of corruption taking place in

our society and to find out the appropriate solutions which may help us to fight against

corruption for a sustainable development of our society in all walks of life. This study is an

exercise to know the research process and build a foundation for further studies in future.

The scope of this study is very significant because this country now a day is under serious

crises such as economic, food & energy and governance and one of the major contributor in

present crises is the rampant corruption. Pakistan is at 134th position out of 180 countries of

the world with a CPI (Corruption Perceptions Index) score of 2.5 (see Appendix D). The

most corrupt one is Somalia with 1.0 CPI and the least corrupt country is Denmark with 9.3

CPI (TI 2008a). Despite all efforts done by the governments previously in the way of

curbing corruption in Pakistan the issue has not been resolved or even minimized. The

United Nation (UN) has also agreed upon that the corruption is ruining the societies in terms



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of economy and sustainable development and the resolution, first time in history, resolution

was passed in 2003 (UN 2004).

1.4 Aims

The aim of this research is to identify the initiatives taken against corruption, to look into the

hurdles in accomplishing the objectives of those initiatives and how these can be improved?

1.5 Objectives

In order to achieve the aims of this study the following objectives were framed:

To understand the corruption

To identify the best practices of anti corruption drives that have successfully combatthe corruption at global level for example Singapores case study

To find the ways, means and causes of corruption in Pakistani society

To identify the legal framework and initiatives so far have made and taken,respectively by the Government of Pakistan against curbing corruption in a society

To appraise the stakeholders opinion in order to develop the major concerns ofcorruption

To analyze the survey results, reports and legal framework; and reach on the policyrecommendations

1.6 Research Problem

Pakistan has taken a number of initiatives by introducing new laws and established the Anti

Corruption Agencies, time and again, since the inception of Pakistan such as ACEs, FIA and

NAB but the objective of curbing the corruption has not been achieved so far. There may be

the number of factors due to which still Pakistan is facing wide and rampant corruption. This

study will try to find out those initiatives, causes of failures and appropriate

recommendations for reducing or eliminating the menace of corruption in our society.

1.7 Outline

The first chapter Introduction covers the definition of corruption, background, scope,

research problems and sets out the aims and objectives. The second chapter elaborates the

research methodology and the third chapter represents the global scenario of corruption with

a case study of Singapore. Anti Corruption drive / initiatives taken to combat corruption



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including ways and causes are discussed in chapter four. The research analysis and findings

chapter presents the analysis of the primary and secondary data. The chapter 6 suggests the

policy recommendations.



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2 Research Methodology

The foundation of this study is based on literature review and real world research. Robson

(2002) coined the term a real world research in which peoples opinion is deemed

necessary for a qualitative analysis. This approach cannot be compared against that for

experimental laboratory work. Public servants (NIM staff and course participants) were

targeted in order to achieve the objectives of this project.

2.1 Research design

The main purpose of research design is to answer the research questions appropriately

(Robson 2002). He added that research design is a plan which can be adopted to find the

answers of the research questions validly, objectively, accurately and economically. Below

Table 1 shows the skeleton of research design where the type, strategy, data collection, unit

of analysis, technique, analysis and recommendations has been adopted by taking the

concepts of Robson (2002).

Table 2.1: Research Model

Type ofResearch

Exploratory and explanatory

StrategyLiterature review, research problem and questions andcase study of Singapore model

DataCollection

Qualitative

Unit ofAnalysis

24 Officers from public sector

TechniqueSelf completion questionnaire and evaluation ofliterature review (existing legal framework, functions

of Agencies and various policies and reports)

AnalysisDeveloping themes from primary and secondary datacollected obtained through questionnaire andliterature available, respectively



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Recommendations

Evaluation of overall data and extracting the findingsof the research for suitable recommendations

The initial questions which were raised that why this study is being done and what is to be

found? And to answer to the questions exploratory and explanatory type of research was

adopted. There are many strategies which can be adopted such as survey, experimental,

historical, archival analysis and case studies and the first strategy of conducting the survey

was adopted in which many questions were raised in the self completion questionnaire. The

main research questions and survey responses are detailed at Appendix A. Because of less

span of time and busy schedule of the course the focus was prescribed to the public officers

(participants of the course and staff of NIM).

Data collection is of two types qualitative and quantitative. Qualitative is descriptive in

words and quantitative data is in a numerical format. This study primarily focused on

qualitative data which is appropriate for collecting and analyzing the laws, reports, studies

and opinions of the stakeholders in the field of anti corruption drive in Pakistan. Again due

to less availability of time a self completion questionnaire was adopted for primary data

collection. The questions were some fixed and open-ended choices. This technique is easy to

communicate with the people and request them to fill it and flexible in a sense that

respondent is not bound to reply promptly, he can take time and give his opinion. There is

also a fear of wrong interpretation of questionnaire by the respondent because it is difficult

to produce good questions.

Data collected in raw shape has to be organized and analyzed to develop findings (Robson

2002). There is a system of coding and clustering / themes for data analysis. This is a time

bounded and short study that is why coding and clustering was not adopted rather some

themes were developed to analyze the data. Primary and secondary data were analyzed with

both techniques in descriptive as well as graphic / bar charts for better and quick

understanding and on these analysis and findings from literature and survey many

appropriate recommendations have been suggested.



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3 Global scenario

This chapter deals with literature review component of the study. Global standpoint with

major cases of corruption has been included and the case study of Singapores initiatives

against corruption is also highlighted.

3.1 Global standpoint

World is steeply indulged into a corrupt practices not only at national or regional level but

has taken a strong roots at international level where the great games are being carried out

under the umbrella of corrupt incentives. 1Kofi Annan (2003) raised this issue at

international level and defined corruption as:

Corruption hurts the poor disproportionately by diverting funds intended for development,

undermining a governments ability to provide basic services, feeding inequality and

injustice, and discouraging foreign investment and aid

Anti corruption drive Transparency International (TI), a Berlin based NGO has contributed a

lot in the awareness and education regarding the corruption and corrupt practices that

ultimately causes serious implications on the national economies and their vision is to fight

corruption for a sustainable development (TI 2008b). They published the report / list of all

countries of the world as per CPI standards and which is well renounced for example CPI

list of 2008 can be seen at Appendix D.

Corruption was never considered or highlighted at international level before 1995 but later

on it has been realized that corruption is not only a local subject rather it is a global and

transnational issue and that has to be taken care of. In this connection the following series of

conventions have been adopted fighting against corruption, globally.

Table 3.2: International Conventions on Corruption (UN 2004)# Convention Adopted by

1 Inter-American Convention against corruption, 1996 Organization of American States

2 Convention on the fight against Corruption involving Officials ofthe European Communities or Officials of Member States ofEuropean Union (EU), 1997

Council of the EU

3 Convention on Combating Bribery of Foreign Public Officials in Organization for Economic

1 Kofi Annan. Ex Secretary General of the United Nations



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International Business Transactions, 1997 Cooperation and Development

4 The Criminal Law Convention on Corruption, 1999 The Committee of Ministers of the Council of Europe

5 The Civil Law Convention on Corruption 1999 The Committee of Ministers of the Council of Europe

6 The African Union Convention on Preventing and Combating

Corruption, 2003

The Heads of State and

Government of the African Union7 United Nations Convention against Corruption (UNCAC)

2003

United Nations

On the guidelines of the above conventions especially by UNCAC the steps to control

corruption have been taken at the international level as well as the country / individual levels

but the fair accountability process is a question mark. According to the UNDP report on

institutional anti corruption arrangements has been noted in which several countries have

opted for or are currently considering creating an independent commission or agency

charged with overall responsibility of combating corruption. However, the creation of suchan institution is not a panacea to the scourge of corruption. There are actually very few

examples of successful independent anti-corruption commissions / agencies (UNDP 2005).

3.2 Major cases of corruption in the world

1. According to a joint Asian Development Bank (ADB) and Commonwealth

Secretariat report (2005), on the pacific region of globe, estimated that the Solomon

Islands, Paupua New Guinea, Fiji and Nauru lost a total of US$75 billion over the

last 3 decades as a result of poor governance, mainly by way of corruption 2(Brown

2007).

2. It is estimated by the African Development Bank that in 2003 governments in Africa

lose up to 50% of their tax revenue only because of corruption. In some cases, this

amounts to more than the countrys foreign debt (Brown 2007).

3. TV channels in India in 2001 displayed a video of Bangaru Lakshman, BJP political

figure, taking money, which is placed inside his briefcase. Due to this wide publicitythe than Defense Minister, George Fernandes resigned from the ministry because he

was considered as close ally of Bangaru (Noorani 2008). Since then media has

playing a pivotal role in the anti corruption drive in India and because of mass

2Deryck R. Brown, Advisor, Governance & Development Governance and Institutional Development DivisionCommonwealth Secretariat, London



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awareness the CPI ranking of India among all other countries of the world has been

increased. The country which was in the top corrupt countries in the world just few

years back but now they have been successful in combating the corruption.

3.3 Case Study Singapore

3.3.1 Least Corrupt Country

Singapore is one of the very few countries in the entire world where corruption is negligible.

According to the TI, Singapore is rated 4th least corrupt county in the world in 2008 (see

Appendix D). They claim that this achievement is because of strong political will; solid

actions taken against the corrupt people on the principal of Chinese proverb that to kill the

one and frighten the hundred in spite of their status and the public is also well aware and

not indulge into the corruption (CPIB 2007).

3.3.2 CPIB and Legislation

Corrupt Practices Investigation Bureau (CPIB) is functioning directly under the command of

the Prime Ministers Office. The organizational chart of CPIB is at Appendix B. As an

organization CPIB has two divisions one is the Operations Division and the second one is

the Admin & Specialist Support Division (CPIB 2007).

Just 5 years before independence (9 August 1965) in 1960, the Prevention of Corruption Actwas introduced in which additional powers of investigation were given to CPIB and the

punishment was also increased. After 29 years in 1989, another, legislation the corruption

(Confiscation of Benefits) Act was made, which gives powers to the Court to attach

properties and assets obtained through corrupt practices by the offenders. And in 1999 the

Act of 1989 was replaced with the new legislation the Corruption Drug Trafficking and

Other Serious Crimes (Confiscation of Benefits) Act. Under this legislation money

laundering offences were also introduced with the same powers to the courts regarding the

confiscation. Both the public and private sectors are accountable under the above laws. The

below reforms have been abstracted and formatted from Singapores Government

Instruction Manual, CPIB 2008 and Zaman 2008.



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3.3.3 Public sector reforms

1. The special attention has been given into the Public Sector. The Government is

paying salaries to the Civil and Government Officers and Officials on the market

based and special salaries / honorarium which are the highest one are being paid to

the Parliamentarians and Ministers (Shian 2007). Because of this structure of salaries

people avoid corruption and they have made the following observable procedures

under the above laws for combating corruption.

2. A public officer cannot borrow money from, or in any way put himself under a

financial obligation to any person who is in any way under his official authority or

has official dealings with him.

3. A public officer cannot use any official information to further his private interest.

4. A public officer is required to declare his assets at first appointment and

subsequently annually.

5. A public officer cannot engage in business or trade or undertake any part-time

employment without prior permission.

6. A public officer cannot receive entertainment from a member of the public.

7. A public officer cannot accept any shares issued by a company offered to him

privately without the approval of higher authorities.

In general by law both the bribe giver and receiver are guilty of corruption and the

punishment is also same for each one. The punishment for a person who may found guilty

will have to face the fine which is up to S$100,000/- or five years imprisonment or both. It is

also applicable for the parliamentarians as well and the punishment is higher for them in

which the imprisonment is up to seven years (CPIB 2008 and Zaman 2008)

3.3.4 Principles of governance

Singapore through experience has learnt that there are main four following principles of

governance that contribute fight against corruption (Shian 2007)

1. Leadership is the key



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2. Anticipate change and stay relevant

3. Reward for work and work for reward

4. A stake for everyone, and opportunities for all

The leadership is Singapore has brought the change in the attitude and behavior of the public

and the public is also well aware about the consequence and challenges of corruption, may

be one of the reasons that the literacy rate is above 90%.

3.3.5 Example of leadership

The leadership has set the examples in this regard for example in 1987 The Cheng Wan

(Minister for National Development) was alleged in a corruption case that he build a garage

in his house by the Government Contractor. He was a close ally of Mr. Lee Kuan Yew who

was the Prime Minister at that time but even though Mr. Cheng Wan was trialed. Realizing

the issue and feared that he will soon be convicted by the Court He committed suicide and

set an exemplary role for the coming generations. The letter Lee Kuan Yew wrote to the

Prime Minister is quoted below:

I have been feeling very sad and depressed for the last two weeks. I feel responsible for the

occurrence of this unfortunate incident and I feel I should accept full responsibility. As an

honourable oriental gentleman, I feel it only right that, I should pay the highest penalty for

my mistake (Lee Kuan Yew 1987).



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4 Anti-Corruption drive in Pakistan

This chapter discusses the various means of corruption and its causes. It also explains in

detail the anti corruption framework and drive / initiatives taken against corruption by the

Government of Pakistan.

4.1 Ways and means of corruption

There are various ways and means of corruption especially in Pakistan who is one of the

most corrupt countries in the world (for details of CPI see Appendix B). Most popular form

of corruption is the political corruption where the political institutions (political parties,

elections and democratic processes) are not properly functioning and most of the time in the

history of Pakistan Military intervene into the political system of the country and run the

governmental affairs.

The government officials, politicians and other employees seek personal gains by various

means such as bribery, cronyism, extortion, nepotism, patronage, graft, embezzlement and

ignorance from duty. These ways and means of corruption may be explained as below:

Bribery: A bribe can consist of immediate cash or of personal favors, a promise of later

payment, or anything else the recipient views as valuable. The offering, giving, receiving,

or soliciting of something of value for the purpose of influencing the action of an official inthe discharge of his or her public or legal duties (Law Encyclopedia 2008)

Cronyism: It means, favoritism shown to friends and associates as by appointing them to

positions without regard for their qualifications (WordNet 2008).

Extortion: The Hobbs Act defines "extortion" as "the obtaining of property from another,

with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or

under color of official right"(LLL 2008)

Nepotism: Undue attachment to relations; favoritism shown to members of one's family;

bestowal of patronage in consideration of relationship, rather than of merit or of legal

claim (Webster 2006).

Patronage:The power of a government official or leader to make appointments and offer

favors. Once in office, a politician can use patronage to build a loyal following. Though



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practiced at all levels of government, patronage is most often associated with the machine

politics of big cities (American Heritage 2005)

Graft: Fraudulent obtaining of public money by the corruption of public officials; money

used fraudulently as a payoff; dishonest advantage that one person by reason of hisposition, influence, or trust acquires from another (Business Dictionary 2008)

Embezzlement: Embezzle means to secretly take money that is in your care or that

belongs to an organization or business you work for (Cambridge 2008). Moreover, the

private practitioners like Lawyers and Doctors charge for their services and do not declare

those charges, which also come under the purview of embezzlement.

These types of corruption prevail at every level in our society in various forms for example

(BACP 2008):

1. Individual Corruption: Corruption that takes place primarily in relations between

individual citizens and public officials and authorities.

2. Business Corruption: Corruption that takes place primarily in relations between

enterprises/companies and public officials and authorities.

3. Political Corruption: Corruption that takes place in the higher echelons of public

administration and on a political level.

In this regard various institutions of Pakistan such as Judicial system, Police, Land

Administration, Tax Administration, Public Procurement and Contracting have been

selected under the study of Pakistan Country Profile particularly on corrupt practices. This is

being reflected by the Business Anti Corruption Portal (2008) on their website (for details

please visit http://www.business-anti-corruption.com/normal.asp?pageid=464)

4.2 Why corruption takes place (Root Causes)

Arrogance in a persons character often leads to corruption in its wider sense, and

humility is a check that helps to steer one on to the straight path (Khan 2005).

There are many ways of corruption by which corruption erupts, some of them are explained

below:

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1. Bribe one of the most popular form of corruption prevails in the society and people

take or offer bribes due to their personal interests such as to not pay the taxes, to get

a job or promotion, to get a contract and to escape of any fine or penalty (WB 2008).

2. Politicians, Sardars, Nawabs and Chaudharies look for money and grab that in orderto keep their patronage. By patronage they create their dominancy and claim to be

the helpful and resourceful on their own people.

3. The sense of job insecurity for public officials as well as for the politicians who think

that they have got a chance in the government and not sure whether they will be

elected again or not do corruption in order to insure their benefits.

4. The less salaries and rapid increase of inflation in the market enforce the public

officials to do corruption in case their salaries have not been increased to that

change. This is because to sustain their living standards

5. Public officials trap in the corrupt practices because of easiness, lack of justice, poor

governance and corrupt environment.

6. The institutionalized corruption like commission and kickbacks in any department

compels every employee to do corruption. There may be the percentage share of

every employee in the hierarchy and nobody wants to lose his share.

7. The lack of accountability and transparency in the government structure facilitate the

officials and politicians to bribe and to get rich in one night.

8. Poverty may be the cause of corruption. Pakistan is a developing country and where,

according to the economic survey reports, 23% of people are living below poverty

line. This poverty is itself a curse and people do involve in corruption to increase

their living standards.

9. Religious and Social values have been deteriorated in our society and people dont

feel that they are accountable as well to their creator and commits corruption so say

to catch the pace of growth and competition in a society.

10. Mishandling of foreign loans and aids for development or non development purposes

or even for the wars in Afghanistan and so on and so forth. Especially when the

money is not audited or discussed in the legislature.



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11. Drug money, black economy or black marketing create a corrupt environment

12. Misuse of public sector money

13. Attacks on Judiciary, delay in the legal proceedings and growing distrust in the

administration of justice. And last but not the least.

14. When accountability not used in a true sense rather used as a political revenge as

seen in the political history of Pakistan for example (National Accountability

Bureau) NAB was established mainly to trial the politicians and influential public

officials and with introduction of National reconciliation Ordinance (NRO) 2007, the

same politicians got relief and exempted from any trial on corruption charges. This

approach certainly leads towards more corruption.

4.3 Anti-corruption Framework and Initiatives to combat

corruption

4.3.1 Legislation

Pakistan's anti-corruption laws include the Pakistan Penal Code 1860, the Prevention of

Corruption Act 1947, were the first specialized anti-corruption laws of the country, and the

National Accountability Bureau Ordinance 1999 (NABO) is the recent one. The popular

provision in NABO contains that the assets which are not explained or justified are

perceived as a corruption and the accused has to justify those assets before the Court of law.

Moreover the laws of corruption explained that corruption in form of extortion, active and

passive bribery, bribing a foreign official, abuse of office, and money laundering are illegal.

The Constitution of Pakistan has also established transparency by separating the powers of

Legislature, Executive and Judiciary and it also contains Sections concerning declaration of

assets. President Musharraf in October 2007 passed the National Reconciliation Ordinance

(NRO) that later on amended. The NRO has conferred the exemption of protection for past

corrupt practices and by which many cases of corruption have been withdrawn againstPublic Officials, Ministers and Parliamentarians.

4.3.2 Governments Strategies

The National Accountability Bureau (NAB introduced a project with the name of National

Anti-Corruption Strategy (NACS) in 2002. The NACS is primarily based on the principles



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of National Integrity System (NIS). NIS includes Legislature, Civil Society, Judiciary,

Media, Executive, Public Accountability Bodies, Private Sector and Anti Corruption

Agencies. This concept was taken from the Transparency International. This initiative was

taken to strengthen the structure of anti corruption drive and the strategy was published for

further guideline and implementation.

4.3.3 National Accountability Bureau (NAB)

NAB is the Pakistan's biggest anti-corruption agency, which was established under the

National Accountability Bureau Ordinance, 1999. The main objectives of the NAB are to

prevent corruption, raise public awareness and enforce anti corruption measures. It is

empowered to handle arrests, investigations and prosecutions against corrupt practices.

Many governmental employees, politicians and senior military officials have been

prosecuted and sentenced to prison during the last decade. Another important and powerful

group that is informally exempt from NAB oversight is judges and military. The conviction

rate is about 68% of all processed cases. The NAB has informed that not only Pak Rs.200

billion of financial resources are being wasted through corrupt practices at higher

government levels but also Rs.67 billion have trickled down to lower level corruption each

year (NAB 2008). Accountability Courts were established in accordance with the NAB

Ordinance 1999. The Court deals with the corruption cases such as abuse of power,

misappropriation of property and kickbacks.

4.3.4 The Federal Investigation Agency (FIA)

The FIA is another national investigative agency which deals in anti-terrorism, anti-

corruption, human smuggling and copyright infringement policing. The FIA was established

in 1975 under the FIA Act 1974. They are also suppose to handle the immigrants and have

to check the moving of the all people (Pakistani or foreigners) at Airports, Sea Ports and

borders as well.

4.3.5 Anti-Corruption Establishments (ACEs)

There are several provincial ACEs and anti-corruption laws in Pakistan, such as in

Balochistan this establishment is working under the Secretary to the GOB, 3Services and

General Administration Department (S&GAD). Provincial laws are generally less severe in

3 I have served in the S&GAD



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rewarding punishments on those convicted of corruption than the National Accountability

Ordinance. These establishments are not and independent organizations and have not shown

their effective performance.

4.3.6 The Auditor General of PakistanThe Office of the Auditor General of Pakistan is working in the direction of transparency

and is now publishing its annual reports and placing them on its website (AGP 2008). The

auditing of government expenditures is facilitated by a Public Accounts Committee of the

National Assembly. The Auditor General of Pakistan is appointed by the President under the

Constitution.

4.3.7 Ombudsman

The Offices of Ombudsman (Wafaqi Mohtasib) have been established at National,

Provinical and even at District levels. The main aim of this office is to enforce an

administrative accountability. The Ombudsman is appointed by the President for a five-year

period and has significant powers such as to investigate complaints and rectify injustices

committed against a citizen through poor administration. He is responsible to investigate,

redress and rectify any injustice done to a person through maladministration on the part of a

federal agency or a federal government official (Ombudsman 2008).

4.3.8 E-governance

Pakistan has initiated an e-governance so as to augment transparency and fight corruption.

The World Bank and the Asian Development Bank are playing key role in establishing the

system steadily. For example The Board of Investment (BOI) is publishing tender

invitations, and many government departments are setting up websites in order to become

more transparent (BOI 2008).

4.3.9 Public procurement

Pakistan has also initiated the Public Procurement Regulatory Authority (PPRA) in order to

combat corruption in public procurement sector by introducing the international principles

of competitive bidding. The authority has ensured that all the public procurement agencies

should implement the Public Procurement Rules, 2004. All the tenders at national level are

being published on the PPRA website (PPRA 2008).



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4.3.10Public Accounts Committees (PACs)

The PACs have been formed at national and provincial levels. The Committees have been

reviewing the audit reports regularly. The committees are empowered to examine the audit

reports and can suggest the action against any complaint or corruption element (BACP

2008).

4.3.11 Special Powers from Removal of Service Ordinance, 2000

The ordinance provides ample powers to the competent authority to take departmental

disciplinary and enquiry proceedings against the public servant. The officer, who is

inefficient, guilty of misconduct and corrupt, can be proceeded against. The competent

authority can exercise oppressive powers and remove the public officer even on the minor

charges by giving just one show cause notice.

4.3.12 Public Safety Commission (PSC)

Public Safety Commissions are being established at district levels under the Local

Government Ordinance 2001. The commission is empowered to take notice against the

officers especially the officers or officials belong to the police department on the complaints

of the public and recommend the cases to the proper forum for action.

4.3.13 Media

Article 19 of the Constitution of Pakistan confers rights of freedom of press and speech

(except blasphemy laws). The Freedom of Information Ordinance (FIO) promulgated in

2002 provides sufficient access of public to government records.

4.3.14Civil society of Pakistan

Pakistan's civil society is distinguished by a multitude of Non-Governmental Organisations.

There are over 70,000 Civil Society Organisations (CSOs) operating in Pakistan and these

CSOs are considered to be very strong. These organizations have been tried to interfere and

inquire the things in the public organizations and this makes somehow check on them (GI

2007).

4.3.15 Transparency International Pakistan (TIP)

TIP is also operational under the principals of Transparency International. It is an effective

and an active organization in building the political and public awareness about the impacts



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of corruption in a society and how corruption is obstructing development and keeping

people locked in poverty? They have been successful in engaging the government in anti

corruption drive and also convinced the government to adopt the TI Integrity Pact in public

procurement organizations (TIP 2008).

4.3.16 The centre for peace and development Initiatives (CPDI-Pakistan)

CPDI-Pakistan is also looking into the various issues of transparency like rule of law and

freedom of information. It also develops awareness among the people regarding the public

participation for improving the accountability and transparency. It also monitors the budget

making processes and legislative processes too. This organization also helps in preparing the

fair public policy making (CPDI-Pakistan 2008).



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5 Research Analysis and findings

The Chapter 5 is the analysis of the results taken by the sample survey and shows the

findings of the survey and literature review as well.

5.1 Analysis of survey results

The survey was carried out through self completion structured questionnaire. The

respondents were the public servants and officials of the government of Pakistan and

Balochistan, serving in the various organizations. Total number of responses was 24. There

were only 9 questions on which the respondents presents their humble opinions. Question 9

is about general views and comments where majority of the respondents didnt reply and

hence is not discussed in this study.

The first question was about the meaning of corruption and only 19 responded. Majority of

the respondents (Resp1,2,4,5,7,8,9,10,13,14,15,16,18&19) replied that corruption is illegal

accumulation of wealth earned by unfair means (Resp.1) in other words undue advantage

someone gets for his personal benefits using or violating or misusing his powers and

authority. Resp.3 & 17 suggested that it is an illegal, immoral and unethical activity. Resp.6

is of the opinion that it is an evil including misappropriation and nepotism, whereas

Resp.11 defines corruption as Deliberately not fulfilling one's obligations as per law it

may be the intentional or non-intentional ignorance from duty. According to the Resp.12, It

means bribery, embezzlement and other practices which are not lawful. (For details of

responses see Appendix E)

Analysis of responses on questions 2 to 8 are displayed in bar charts (see below Figure 1). In

these questions almost all the respondents gave their views and can be visualized and

understand easily.



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Figure 5.1: Analysis of Responses on a survey carried out under this research

5.2 Research Findings

From above discussion and survey a corruption can simply be defined as the misuseof authority for personal gains and ignorance of moral values.

62% of the respondents, in a survey carried out under this study, belief that bribery is

the most popular type of corruption (Figure 5.2) and literature review also reveals the

same. Whereas nepotism and commission / kickbacks are the second most ways and

means of the corruption in Pakistan (Figure 5.1).



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Majority 45% shows their consent that lack of rule of law is the major cause of

corruption (Figure 5.2). Poor governance and poverty are the two other major causes

(Figure 5.1). Literature review also highlighted many causes but these three may be

the primary accelerators of corruption.

According to the survey 79% of respondents of the opinion that low salary structureis the major cause of corruption in public sector organizations and the literature

review also support it (Figure 5.2).

Major impact of corruption is the collapse of institutions (70% respondents) (Figure

5.2). The other area which is affected by the corruption is the degradation of social &

moral beliefs.

Figure 5.2: Deduction of the analysis of the survey on corruption

UNCAC is the world recognition of corruption is not an issue at national and local

levels but also a global problem but in survey about 90% beliefs that it is a national

issue (Figure 5.2). Both literature review and survey rectified it as a problem which

affects every business of life.

Majority of the respondents says that UN has achieved zero percent targets which

were prescribed in UNCAC 2003.



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The best solution to fight against corruption is the rule of law in the whole country

(70% respondents) (Figure 5.2). The second best solutions recommended by the

respondents are political will and fair accountability.

The case study of Singapore shows that the political will and fair accountability in atrue sense are the prime solution and salaries of the public officers and officials are at

par with the market and corporate sectors.

Various organizations are presently working against corruption like FIA, NAB,

ACEs, Ombudsman, Departmental proceedings under various laws such as FIA Act

1972, NAB Ordinance 1999, E&D Rules 1973 and Special powers Removal from

Service Ordinance 2000. There is a lack of coordination among the organizations and

need of synthesis among these organizations.

Degradation of moral, social and religious beliefs has accelerated the corruption

culture in a society



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6 Conclusions

6.1 Recommendations

Fair and an independent judicial system

An independent, neutral and educated judiciary play a key role in the state structure and can

have a proper check on the functioning of the government at all levels because judiciary has

its own tier from top to bottom means from federal government to district government. It

should be separated from executive and legislature and should be the custodian of the

Constitution of the land. Procedure of appointment of the judges of Supreme Court should

be revived and it should not be the will of any one person either President or the Prime

Minister rather they should be appointed by the Senate and the Senate should also have the

powers to trail against complaints against the Judges.

Strengthening of democracy

Fair elections and continuation of democracy is a true process of accountability where

politicians are accountable and answerable to the people. Strong measures have to be taken

for intervention of military and other forces in the political affairs of the state.

Improvement in the local government system

Though the present local government system under devolution of powers considered as the

devolution of corruption at grass root levels along with the democracy but to do away with

this system is not the appropriate solution. Two possibly very interesting instruments Citizen

Community Boards and the Public Safety Commissions need to be activated / functional,

which are still dysfunctional, in a proper way with awareness and role to fight against

corruption at lower level.

Independent and free media

Like Judiciary the media should also be independent and free as per laws of the land. This

fourth pillar of state is effective for good governance and watch on the corrupt practices.

The government should not manipulate or influence the media for their own benefits and

projection by all means.

Supreme audit and other unnoticed organizations



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The development of separation of the offices of the Auditor General and Accountant

General, in recent past, is creditable. The Auditor General should be empowered to audit

fairly in addition to government accounts also the accounts of all public corporations. The

Auditor Generals Office should be accountable to the Parliament only. The Auditor General

Office may also be independent and should not seek any influence from any part.

Public Accounts Committee and the Ombudsman offices need to be activated and functional

in a dignified manner with finance and human resources.

Independent anti corruption agency

Fully independent anti corruption agency like the Independent CPIB in Singapore and

Independent Commission Against Corruption (ICAC) in Hong Kong have proven their

worth, and it is to be hoped that soon GOP would decide to establish such an independentbody, with judicial powers and the involvement of Civil Society, and with a clear mandate.

Effective and honest law enforcement agencies

The police considered as one of the most corrupt agencies of the country. Police reforms,

including the establishment of Public Safety Commissions, Criminal Justice Coordination

Committees and an independent complaints handling authority. The separation of

investigation and prosecution functions should enhance the due process of law. Moreover,

the police must be shielded from politics like Nazims at District levels should not be the

responsible for law and order. The experience of motorway police and Capital (Islamabad)

Police can be replicated in police department with sufficient pay, a well-structured job,

effective monitoring and the sense of pride in the job can work superb.

A strong public service for effective service delivery

Civil service reforms at federal level have been carried out such merit adherence in

recruitment & promotions, the pay and pension system like in FBR and Customs. These

kinds of measures may also be adopted by the Provinces to the Provincial services as well.

According to the Transparency International surveys the pay structure has to be revised.

Like Singapore did an exercise by increasing the pay of public officials up to the levels of

market and corporate sectors, and corruption factor went down drastically in public sector.

The size of gap between the actual and a living wage is four- to fivefold increase. This



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area has to be focused in order to reduce the corruption in public sector and this will not

only increase the efficiency in the delivery but also money would be saved too.

Like Singapores structure of public service, other important features of a non-corrupt,

professional civil service are the adoption, and acceptance by each civil servant, of a goodCode of Conduct with clear rules i.e. on the acceptance of gifts and entertainment, conflict

of interest and nepotism, systematic monitoring and enforcement of the rules, and a serious

disclosure of assets program for senior officials (under which the disclosure forms are

actually checked, verified, made publicly accessible, and action is taken, if suspicion of

wrongdoing emerges).

There needs to be an accessible and well-functioning complaints mechanism, by which

clients/citizens can question the delivery of service to them, citizens or citizens

organizations can report on wrongdoing they have noticed same as the citizen card system,

which has been introduced in India and proved result oriented.

Lastly, Removal from Service (Special Powers) Ordinance, 2000 has to be revised where

the officer / official should be given right to be heard in writing and in person by fulfilling

the standards of justice.

Procurement

The World Banks Country Procurement Assessment Report of June 2000 presents many

suggestions for improvement, which are seems to be practicable in order to achieve

transparency, predictability, accountability and quality of procurement. The semi-official,

double role of the Pakistan Engineering Council (PEC) is particularly difficult to accept, and

the PEC should be limited to its private sector responsibilities so as to remove the obvious

conflict of interest that exists under the present arrangement. The TI suggests the need for

full transparency of the bid evaluation process, the need to apply particularly strict and

transparent procedures to the selection of consultants, and the desirability of using the TI-developed concept of the Integrity Pact to a few selected major investment projects. The

Integrity Pact concept has recently been applied to the selection of consultants for the

Karachi Water and Sewerage Board K2 Project and has brought highly satisfactory results

for KWSB, in terms of significantly lower consultant cost than had been predicted on the

basis of past experience.



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Bribery of Pakistani politicians and officials by external companies (whether done from

abroad or through subsidiaries in Pakistan is now a criminal act in all 35 countries which

have ratified the OECD Convention on Combating Bribery of Foreign Public Officials in

International Business Transactions and UNCAC. This trend should be checked and stopped

immediately by involving the foreign countries under the provisions of conventions.

The role of the private business sector

The private business sector should be reminded of its very special responsibility in the

countrys renewal efforts. Active bribery and corruption are criminal acts, in Pakistan as

elsewhere. Behaviour suggesting that the Government can be held to ransom should not be

tolerated. The law offers sanctions, and those sanctions should be applied systematically, so

as to achieve a maximum deterrent effect.

Freedom of information

A courageous Freedom of Information (FOI) related laws which gives citizens the right of

full, easy and free access to most information of government. A few sensitive areas like

defense-related matters and personal data can be protected and excluded, but the bulk of all

information should be accessible.

Role of education

The elimination of corruption from a society is a long term process and efforts are required

to educate the people starting with schoolchildren, the formal education system and

general media efforts.

Role of civil society

There are number of Civil Society organizations which are ready to play their role of

contributing to public activities, and at the same time to monitor public institutions and hold

their officials to account. Transparency International being an active part of Civil Society,

taking in any country a non-confrontational approach and instead seeking to build coalitions

between government, the international donor community, the business community and civil

society, hopes that the GOP will seriously consider inviting the Civil Society of Pakistan to

take on a larger role to benefit both of the Government and all the people in the country.



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6.2 Conclusion

Although steps towards establishing a more efficient business environment have been made,

operating a business can be a cumbersome and slow affair in Pakistan. Although Pakistan's

legal framework and economic strategy do not discriminate against foreign investment,

protection of property rights and contract enforcement is perceived to be problematic

because of the irregularities and corruption in the judicial system.

Although former government publicly stated that eliminating corruption was a priority, the

National Anti corruption Strategy (NACS) primarily focuses on politicians, civil servants,

and businesspeople, while virtually ignoring the military and security personnel. The

military's presence in the civil service and anti-corruption institutions expanded during

previous regime time in office to become widespread. Although the new government has

returned serving military personnel to their original assignments, this has left vacuum in the

civil service and anti-corruption institutions which still has to be filled. The implementation

of the NACS has apparently been constrained by the lack of consistent political will.

Whether the new administration will show commitment to implement and further develop

the strategy remains to be seen. However, there has been significant backsliding as of late in

relation to the National Reconciliation Ordinance and other issues have been prioritized.

The most important recommendations that are still to be carried out are: fair and

independent judicial system, media and anti corruption agency, fair elections and reforms in

the public sector.



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Appendices

Appendix A: Questionnaire on Corruption in Pakistan

Q1. What do you understand by the word Corruption? (Please comment)

Q2. What are the ways and means of Corruption? (Please select any two)

a) Bribery b) Nepotism / favoritism

b) Extortion d) Kickbacks / commission

e) Patronage f) Cronyismg) Institutional corruption h) Embezzlement

i) Any other please specify:

Q3. What do you think that why corruption takes place in our society? (Please select

any two)

a

)

Poverty b) Injustice

c) Trust deficit d) Immorality

e) Psychic disease f) Illiteracyg

)

Poor governance h) No rule of law

i) Any other please specify:

Q4. Why people, especially in public sector, do corruption? (Please select any two)

a) Low salaries b) Status conscious

c) Insecurity d) Greediness

e) Any other please specify:

Q5. What are the major impacts of corruption in our society? (Please select any two)

a) National economic crises b) National Integration

c) Moral and social beliefsdegradation

d) Collapse of institutions

e) Unsustainable development f) Generate gap between have and have not

g) Any other please specify:



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Q6. Do you think corruption is an issue of? (Please select any two)

a) Global b) National

c) Local d) Dont know

e) Any other please specify:

Q7. United Nations Convention against corruption (General Assembly resolution 58/4

of 31-10-1003 first time in history convinced that corruption is no longer a local

matter but a transnational phenomenon that affects all societies. In this regard UN

has taken measures to combat it. How far do you think the UN has achieved its

targets?

a) 0% b) 5%

c) 10% d) 20%

e) 50% f) 100%

Q8. What should be the measures and methods to prevent and eradicate corruption in

our society? (Please select any three)

a) Political will b) Rule of law

c) Building institutions d) Good governance

e) Fair Accountability f) Reframing existing laws of Anti corruption

g) Promote integrity &Patriotism

h) Education

i) Poverty reduction j) One effective Agency in spite of many

(FIA, NAB, Anti corruption dept etc.)k) Any other please specify

Q9. Any other comments and views please specify

Thanks for your valuable input and precious time



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Appendix B: Organizational Chart of Corrupt Practices Investigation Bureau

(CPIB), Singapore (CPIB 2007)

Tariq Qamar Baloch 2008, NIM Quetta

CPIB

Operations DivisionAdmin & Specialist

Support Division

Operations Operations Support

Special

Investigation

Team

Unit I

Unit II Unit III

Intelligence

Unit

Administration Plans and Projects Units

Prevention and

Review Unit

FinanceRecords &

Screening

PersonnelComputer Info.

System Unit

32


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Appendix C: Methodology for calculation of CPI 2008 (TI 2008b)

Transparency International Corruption Perceptions Index (CPI) 2008

1. The CPI gathers data from sources that span the last two years. For the CPI 2008, this includes

surveys from 2008 and 2007.2. The CPI 2008 is calculated using data from 13 sources originated from 11 independent institutions.

All sources measure the overall extent of corruption (frequency and/or size of bribes) in the publicand political sectors and all sources provide a ranking of countries, i.e., include an assessment ofmultiple countries.

3. For CPI sources that are surveys, and where multiple years of the same survey are available, data forthe last two years are included to provide a smoothing effect.

4. For sources that are scores provided by experts (risk agencies/country analysts), only the most recentiteration of the assessment is included, as these scores are generally peer reviewed and change verylittle from year to year.

5. Evaluation of the extent of corruption in countries is done by country experts, non-resident andresidents. In the CPI 2008, this consists of the following sources: Asian Development Bank, AfricanDevelopment Bank, Bertelsmann Transformation Index, Country Policy and Institutional Assessment,

Economist Intelligence Unit, Freedom House, Global Insight and Merchant International Group.Additional sources are resident business leaders evaluating their own country; in the CPI 2008, thisconsists of the following sources: IMD, Political and Economic Risk Consultancy, and the WorldEconomic Forum.

6. To determine the mean value for a country, standardization is carried out via a matching percentilestechnique. This uses the ranks of countries reported by each individual source. This method is usefulfor combining sources that have a different distribution. While there is some information loss in thistechnique, it allows all reported scores to remain within the bounds of the CPI, that is to say, toremain between 0 and 10.

7. A beta-transformation is then performed on scores. This increases the standard deviation among allcountries included in the CPI and avoids the process by which the matching percentiles techniqueresults in a smaller standard deviation from year to year.

8. All of the standardised values for a country are then averaged, to determine a country's score.

9. The CPI score and rank are accompanied by the number of sources, high-low range, standarddeviation and confidence range for each country.

10. The confidence range is determined by a bootstrap (non-parametric) methodology, which allowsinferences to be drawn on the underlying precision of the results. A 90 per cent confidence range isthen established, where there is 5 per cent probability that the value is below and 5 per centprobability that the value is above this confidence range.

11. Research shows that the unbiased coverage probability for the confidence range is lower than itsnominal value of 90 per cent. The accuracy of the confidence interval estimates increases with agrowing number of sources: for three sources, 65.3 per cent; for four sources, 73.6 per cent; for fivesources, 78.4 per cent; for six sources, 80.2 per cent; and for seven sources, 81.8 per cent.

12. The overall reliability of data is demonstrated in the high correlation between sources. In this regard,Pearson's and Kendall's rank correlations have been performed, which provided average results of .78and .63 respectively.



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Appendix D: Corruption Perceptions Index 2008 (TI 2008a)

This Excel-sheet provides the 2008 Corruption Perceptions Index and additional background data. For information on data

and methodology please consult the press release and the methodology paper at www.transparency.org or www.ICGG.org

Country

Rank

Country / Territory 2008 CPIScore

SurveysUsed

StandardDeviation

High-LowRange

Confidencerange

1 Denmark 9.3 6 0.2 8.9 - 9.6 9.1 - 9.41 New Zealand 9.3 6 0.2 8.9 - 9.6 9.2 - 9.51 Sweden 9.3 6 0.1 9.1 - 9.4 9.2 - 9.44 Singapore 9.2 9 0.3 8.4 - 9.6 9.0 - 9.35 Finland 9.0 6 0.8 7.5 - 9.4 8.4 - 9.45 Switzerland 9.0 6 0.4 8.5 - 9.4 8.7 - 9.27 Iceland 8.9 5 0.9 7.3 - 9.5 8.1 - 9.47 Netherlands 8.9 6 0.5 8.0 - 9.4 8.5 - 9.19 Australia 8.7 8 0.7 7.2 - 9.4 8.2 - 9.19 Canada 8.7 6 0.5 8.0 - 9.4 8.4 - 9.1

11 Luxembourg 8.3 6 0.8 7.3 - 9.2 7.8 - 8.8

12 Austria 8.1 6 0.8 7.3 - 8.9 7.6 - 8.612 Hong Kong 8.1 8 1.0 6.3 - 9.3 7.5 - 8.614 Germany 7.9 6 0.6 7.3 - 8.5 7.5 - 8.214 Norway 7.9 6 0.6 7.3 - 8.9 7.5 - 8.316 Ireland 7.7 6 0.3 7.3 - 8.0 7.5 - 7.916 United Kingdom 7.7 6 0.7 6.6 - 8.4 7.2 - 8.118 Belgium 7.3 6 0.2 7.1 - 7.6 7.2 - 7.418 Japan 7.3 8 0.5 6.3 - 8.1 7.0 - 7.618 USA 7.3 8 0.9 5.3 - 8.2 6.7 - 7.721 Saint Lucia 7.1 3 0.4 6.6 - 7.5 6.6 - 7.322 Barbados 7.0 4 0.5 6.3 - 7.5 6.5 - 7.323 Chile 6.9 7 0.5 5.9 - 7.6 6.5 - 7.223 France 6.9 6 0.7 5.9 - 7.7 6.5 - 7.323 Uruguay 6.9 5 0.5 6.4 - 7.5 6.5 - 7.226 Slovenia 6.7 8 0.5 6.1 - 7.5 6.5 - 7.027 Estonia 6.6 8 0.7 5.3 - 7.2 6.2 - 6.928 Qatar 6.5 4 0.9 5.3 - 7.5 5.6 - 7.0

28 Saint Vincent and the Grenadines 6.5 3 1.5 4.7 - 7.5 4.7 - 7.328 Spain 6.5 6 1.0 4.6 - 7.3 5.7 - 6.931 Cyprus 6.4 3 0.8 5.9 - 7.3 5.9 - 6.832 Portugal 6.1 6 0.9 5.2 - 7.3 5.6 - 6.733 Dominica 6.0 3 1.3 4.7 - 7.3 4.7 - 6.833 Israel 6.0 6 0.6 5.3 - 6.7 5.6 - 6.335 United Arab Emirates 5.9 5 1.4 3.9 - 7.5 4.8 - 6.836 Botswana 5.8 6 1.0 4.6 - 7.3 5.2 - 6.436 Malta 5.8 4 0.6 5.3 - 6.6 5.3 - 6.336 Puerto Rico 5.8 4 1.1 4.8 - 7.3 5.0 - 6.639 Taiwan 5.7 9 0.5 4.9 - 6.4 5.4 - 6.040 South Korea 5.6 9 1.1 3.8 - 8.0 5.1 - 6.341 Mauritius 5.5 5 1.1 4.6 - 7.3 4.9 - 6.441 Oman 5.5 5 1.4 3.5 - 7.5 4.5 - 6.443 Bahrain 5.4 5 1.1 3.5 - 6.3 4.3 - 5.943 Macao 5.4 4 1.4 3.4 - 6.6 3.9 - 6.245 Bhutan 5.2 5 1.1 3.9 - 6.6 4.5 - 5.945 Czech Republic 5.2 8 1.0 4.3 - 7.5 4.8 - 5.947 Cape Verde 5.1 3 1.6 3.4 - 6.6 3.4 - 5.647 Costa Rica 5.1 5 0.4 4.6 - 5.6 4.8 - 5.347 Hungary 5.1 8 0.6 4.2 - 5.9 4.8 - 5.447 Jordan 5.1 7 1.9 2.9 - 7.6 4.0 - 6.247 Malaysia 5.1 9 1.1 3.3 - 6.8 4.5 - 5.752 Latvia 5.0 6 0.3 4.6 - 5.4 4.8 - 5.252 Slovakia 5.0 8 0.7 3.5 - 5.9 4.5 - 5.354 South Africa 4.9 8 0.5 3.8 - 5.3 4.5 - 5.155 Italy 4.8 6 1.2 3.3 - 6.3 4.0 - 5.555 Seychelles 4.8 4 1.7 3.2 - 7.3 3.7 - 5.9



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57 Greece 4.7 6 0.6 3.5 - 5.3 4.2 - 5.058 Lithuania 4.6 8 1.0 3.2 - 6.2 4.1 - 5.258 Poland 4.6 8 1.0 3.3 - 5.9 4.0 - 5.258 Turkey 4.6 7 0.9 3.3 - 5.9 4.1 - 5.161 Namibia 4.5 6 1.1 3.2 - 5.9 3.8 - 5.162 Croatia 4.4 8 0.7 3.5 - 5.3 4.0 - 4.862 Samoa 4.4 3 0.8 3.4 - 4.9 3.4 - 4.862 Tunisia 4.4 6 1.6 3.2 - 7.1 3.5 - 5.5

65 Cuba 4.3 4 0.9 3.2 - 5.3 3.6 - 4.865 Kuwait 4.3 5 1.4 2.5 - 5.9 3.3 - 5.267 El Salvador 3.9 5 1.0 2.7 - 4.9 3.2 - 4.567 Georgia 3.9 7 1.2 2.7 - 5.6 3.2 - 4.667 Ghana 3.9 6 0.8 3.3 - 5.1 3.4 - 4.570 Colombia 3.8 7 1.0 2.7 - 5.2 3.3 - 4.570 Romania 3.8 8 0.8 2.7 - 4.9 3.4 - 4.272 Bulgaria 3.6 8 1.1 2.4 - 5.6 3.0 - 4.372 China 3.6 9 1.1 2.5 - 6.2 3.1 - 4.372 Macedonia 3.6 6 1.1 1.8 - 5.1 2.9 - 4.372 Mexico 3.6 7 0.4 3.2 - 4.5 3.4 - 3.972 Peru 3.6 6 0.6 3.3 - 4.8 3.4 - 4.172 Suriname 3.6 4 0.6 3.2 - 4.6 3.3 - 4.072 Swaziland 3.6 4 1.1 2.7 - 5.3 2.9 - 4.372 Trinidad and Tobago 3.6 4 0.7 3.0 - 4.6 3.1 - 4.080 Brazil 3.5 7 0.6 3.0 - 4.9 3.2 - 4.080 Burkina Faso 3.5 7 1.0 2.5 - 5.3 2.9 - 4.2

80 Morocco 3.5 6 0.8 2.5 - 4.6 3.0 - 4.080 Saudi Arabia 3.5 5 0.7 2.5 - 4.6 3.0 - 3.980 Thailand 3.5 9 0.8 2.4 - 4.5 3.0 - 3.985 Albania 3.4 5 0.1 3.2 - 3.5 3.3 - 3.485 India 3.4 10 0.3 2.7 - 3.9 3.2 - 3.685 Madagascar 3.4 7 1.1 1.8 - 4.9 2.8 - 4.085 Montenegro 3.4 5 1.0 1.8 - 4.6 2.5 - 4.085 Panama 3.4 5 0.6 2.5 - 4.3 2.8 - 3.785 Senegal 3.4 7 0.9 2.7 - 5.3 2.9 - 4.085 Serbia 3.4 6 0.8 2.7 - 4.9 3.0 - 4.092 Algeria 3.2 6 0.3 2.7 - 3.5 2.9 - 3.492 Bosnia and Herzegovina 3.2 7 0.6 2.6 - 3.9 2.9 - 3.592 Lesotho 3.2 5 1.0 1.6 - 4.6 2.3 - 3.892 Sri Lanka 3.2 7 0.5 2.5 - 3.9 2.9 - 3.596 Benin 3.1 6 0.5 2.7 - 3.9 2.8 - 3.496 Gabon 3.1 4 0.3 2.7 - 3.4 2.8 - 3.396

Guatemala 3.1 5 1.2 1.8 - 5.1 2.3 - 4.096 Jamaica 3.1 5 0.3 2.7 - 3.4 2.8 - 3.396 Kiribati 3.1 3 0.5 2.5 - 3.4 2.5 - 3.496 Mali 3.1 6 0.4 2.6 - 3.4 2.8 - 3.3

102 Bolivia 3.0 6 0.3 2.7 - 3.3 2.8 - 3.2102 Djibouti 3.0 4 0.7 1.9 - 3.4 2.2 - 3.3102 Dominican Republic 3.0 5 0.4 2.6 - 3.4 2.7 - 3.2102 Lebanon 3.0 4 1.0 1.8 - 4.2 2.2 - 3.6102 Mongolia 3.0 7 0.5 2.0 - 3.4 2.6 - 3.3102 Rwanda 3.0 5 0.4 2.5 - 3.3 2.7 - 3.2102 Tanzania 3.0 7 0.6 1.8 - 3.4 2.5 - 3.3109 Argentina 2.9 7 0.7 1.8 - 3.5 2.5 - 3.3109 Armenia 2.9 7 0.4 2.3 - 3.4 2.6 - 3.1109 Belize 2.9 3 1.2 1.8 - 4.2 1.8 - 3.7109 Moldova 2.9 7 1.1 1.8 - 5.3 2.4 - 3.7109 Solomon Islands 2.9 3 0.5 2.5 - 3.4 2.5 - 3.2109 Vanuatu 2.9 3 0.5 2.5 - 3.4 2.5 - 3.2

115 Egypt 2.8 6 0.7 2.0 - 3.5 2.4 - 3.2115 Malawi 2.8 6 0.6 1.8 - 3.3 2.4 - 3.1115 Maldives 2.8 4 1.7 1.5 - 5.3 1.7 - 4.3115 Mauritania 2.8 7 1.2 1.8 - 5.3 2.2 - 3.7115 Niger 2.8 6 0.5 1.9 - 3.3 2.4 - 3.0115 Zambia 2.8 7 0.4 2.1 - 3.3 2.5 - 3.0121 Nepal 2.7 6 0.5 1.8 - 3.4 2.4 - 3.0121 Nigeria 2.7 7 0.5 1.9 - 3.3 2.3 - 3.0121 Sao Tome and Principe 2.7 3 0.6 2.1 - 3.3 2.1 - 3.1121 Togo 2.7 6 1.4 1.5 - 5.3 1.9 - 3.7121 Viet Nam 2.7 9 0.7 1.8 - 3.9 2.4 - 3.1126 Eritrea 2.6 5 1.3 1.4 - 4.6 1.7 - 3.6



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126 Ethiopia 2.6 7 0.6 1.9 - 3.3 2.2 - 2.9126 Guyana 2.6 4 0.2 2.3 - 2.7 2.4 - 2.7126 Honduras 2.6 6 0.5 1.8 - 3.5 2.3 - 2.9126 Indonesia 2.6 10 0.6 1.8 - 3.6 2.3 - 2.9126 Libya 2.6 5 0.6 1.8 - 3.4 2.2 - 3.0126 Mozambique 2.6 7 0.4 2.1 - 3.3 2.4 - 2.9126 Uganda 2.6 7 0.7 1.8 - 3.5 2.2 - 3.0134 Comoros 2.5 3 0.8 1.9 - 3.4 1.9 - 3.0

134 Nicaragua 2.5 6 0.4 1.8 - 2.9 2.2 - 2.7134 Pakistan 2.5 7 0.7 1.3 - 3.3 2.0 - 2.8134 Ukraine 2.5 8 0.5 1.8 - 3.2 2.2 - 2.8138 Liberia 2.4 4 0.7 1.8 - 3.2 1.8 - 2.8138 Paraguay 2.4 5 0.5 1.8 - 2.9 2.0 - 2.7138 Tonga 2.4 3 0.4 1.9 - 2.7 1.9 - 2.6141 Cameroon 2.3 7 0.7 1.8 - 3.3 2.0 - 2.7141 Iran 2.3 4 0.5 1.8 - 2.7 1.9 - 2.5141 Philippines 2.3 9 0.4 1.8 - 2.7 2.1 - 2.5141 Yemen 2.3 5 0.7 1.8 - 3.4 1.9 - 2.8145 Kazakhstan 2.2 6 0.7 1.7 - 3.4 1.8 - 2.7145 Timor-Leste 2.2 4 0.4 1.8 - 2.7 1.8 - 2.5147 Bangladesh 2.1 7 0.5 1.4 - 2.7 1.7 - 2.4147 Kenya 2.1 7 0.4 1.8 - 2.7 1.9 - 2.4147 Russia 2.1 8 0.6 1.6 - 3.4 1.9 - 2.5147 Syria 2.1 5 0.6 1.3 - 2.7 1.6 - 2.4151 Belarus 2.0 5 0.7 1.3 - 3.2 1.6 - 2.5

151 Central African Republic 2.0 5 0.3 1.8 - 2.5 1.9 - 2.2151 Cte dIvoire 2.0 6 0.7 1.5 - 3.3 1.7 - 2.5151 Ecuador 2.0 5 0.3 1.8 - 2.5 1.8 - 2.2151 Laos 2.0 6 0.5 1.5 - 2.7 1.6 - 2.3151 Papua New Guinea 2.0 6 0.6 1.0 - 2.7 1.6 - 2.3151 Tajikistan 2.0 8 0.5 1.5 - 2.9 1.7 - 2.3158 Angola 1.9 6 0.5 1.0 - 2.7 1.5 - 2.2158 Azerbaijan 1.9 8 0.4 1.3 - 2.5 1.7 - 2.1158 Burundi 1.9 6 0.7 1.0 - 2.9 1.5 - 2.3158 Congo, Republic 1.9 6 0.1 1.8 - 2.1 1.8 - 2.0158 Gambia 1.9 5 0.6 1.4 - 3.0 1.5 - 2.4158 Guinea-Bissau 1.9 3 0.2 1.8 - 2.1 1.8 - 2.0158 Sierra Leone 1.9 5 0.1 1.8 - 2.1 1.8 - 2.0158 Venezuela 1.9 7 0.1 1.8 - 2.1 1.8 - 2.0166 Cambodia 1.8 7 0.2 1.5 - 1.9 1.7 - 1.9166 Kyrgyzstan 1.8 7 0.2 1.5 - 2.0 1.7 - 1.9166

Turkmenistan 1.8 5 0.5 1.1 - 2.7 1.5 - 2.2166 Uzbekistan 1.8 8 0.7 1.1 - 3.2 1.5 - 2.2166 Zimbabwe 1.8 7 0.5 0.9 - 2.7 1.5 - 2.1171 Congo, Democratic Republic 1.7 6 0.2 1.5 - 2.1 1.6 - 1.9171 Equatorial Guinea 1.7 4 0.2 1.4 - 1.9 1.5 - 1.8173 Chad 1.6 6 0.2 1.4 - 1.9 1.5 - 1.7173 Guinea 1.6 6 0.4 1.0 - 2.1 1.3 - 1.9173 Sudan 1.6 6 0.2 1.3 - 1.9 1.5 - 1.7176 Afghanistan 1.5 4 0.3 1.0 - 1.8 1.1 - 1.6177 Haiti 1.4 4 0.4 1.0 - 2.0 1.1 - 1.7178 Iraq 1.3 4 0.3 1.0 - 1.8 1.1 - 1.6178 Myanmar 1.3 4 0.4 1.0 - 1.8 1.0 - 1.5180 Somalia 1.0 4 0.6 0.3 - 1.8 0.5 - 1.4



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Appendix E: Responses on word corruption on this research questionnaire

Respondents Views

1. Corruption is illegal accumulation of wealth earned by unfair means. it also refers tothe undue advantage someone gets using or violating his powers etc

2. A person holding or public position gives undue favour to someone by taking illegalgratification

3. Illegal immoral activity is corruption

4. menting of money, favour and social advantage illegally or using your social positionas a public employee or representative

5. Corruption means use of authority without accountability

6. A menace that has crippled societies in general and developing countries in particular. Corruption is a vast term and comprises many evils includingmisappropriation, nepotism etc.

7. Unlawful and use of ways other than your efforts and services8. The illegal practice of your powers, non consideration of merit, exploitation of

resources dishonestly9. Misuse of govt. resources (employer's resources) and abuse of authority entrusted by

the employer for seeking monetary, economic and other benefits10. Corruption is a way of accept gratification for duty that has to be done / not done by

the office whether legal or illegal11. Deliberately not fulfilling one's obligations as per law. Distortions may be in terms

of monetary or inefficiency.12. It means bribery, embezzlement and other practices which are not lawful.13. Unfair use of official authority to generate money or other benefits14. Misuse of authority for personal benefits15. Any think which is beyond to rule of law is corruption16. A person adopting unfair menus to live life. it can at Micro or Macro level depending

upon the status of an individual. it could be social, economic, political etc.17. Corruption can be defined as imbalanced and unethical approach towards fulfillment

of one's desires or needs.18. Doing beyond the limitations.19. Corruption is any think which comes to you because of your official stature for want

of wrongful acts / deeds



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References

AGP, 2008.Auditor General of Pakistan. [Online]. Available at: http://www.agp.gov.pk/ [accessed

on 16 November 2008]

American Heritage, 2005. Dictionary.com :The American Heritage New Dictionary of Cultural

Literacy, Third Edition. Source location: Houghton Mifflin Company. Available at:

http://dictionary.reference.com/browse/patronage[accessed 25th November 2008.

BACP (Business Anti Corruptio

Documents

Anti Corruption Drive First Draft