TI report calls for whistleblower protection and effective implementation of anti-corruption reform in Pakistan

Transparency in procurement is a high priority, says TI report, launched alongside new TI Corruption Perceptions Index, showing rampant corruption in 60 countries, including Pakistan

Karachi/Berlin, 20 October 2004 --- "In spite of more vigorous enforcement of anti-corruption laws under the regime of President Pervez Musharraf, Pakistan is still perceived to have an unacceptably high level of corruption,” said Shaukat Omari, Executive Director of Transparency International Pakistan, today. Speaking on the occasion of the launch of a new study into the state of Pakistan’s institutions to combat corruption, praised as an “excellent document” the comprehensive national strategy to tackle corruption, formulated in 2002 by the National Accountability Bureau. He cautioned, however, that “more work is needed to implement the strategy”.

The strategy was drawn up with the participation of a wide spectrum of society. However, according to the National Integrity Systems TI Country Study Report Pakistan 2003, published today, implementation is shown to have been less than wholly effective. “With the commitment to integrity emphasised by the newly formed cabinet, under the able guidance of Prime Minister Shaukat Aziz, Pakistan has another opportunity to speed up implementation,” “This opportunity must not be lost.” TI Pakistan is the national chapter of Transparency International (TI), the leading non-governmental organisation devoted to fighting corruption worldwide.

The TI report points to an urgent need to address civil service reform, to tackle issues such as the “living wage”, a clear code of conduct for civil servants, clear rules on conflict of interest and nepotism, and effective monitoring of implementation, including the removal of corrupt officials. Discretionary powers must be significantly reduced, states the report. An easy complaints mechanism for citizens and colleagues alike, as well as “whistleblower” protection, are also needed.

A complete overhaul of the country’s procurement system, rules and institutions is needed. “The success of TI Pakistan in helping the City of Karachi, among others to save large sums of money on its public procurement shows the value of a transparent, accountable and predictable procurement system which ensures value for money.”

TI Pakistan recommendations include the need for full transparency of the bid evaluation process, the need to apply strict and transparent procedures to the selection of consultants, and the desirability of using the TI-developed no-bribes Integrity Pact to major investment projects. Under an Integrity Pact, all parties to the bidding process make an undertaking not to take bribes or to pay bribes. The breach of this pact results in sanctions, including forfeit of the contract and blacklisting from future bidding.

The Public Procurement Rules announced in June 2004, must be implemented and monitored across the board and in all government organizations and departments.

Speaking in London today at the launch of the TI Corruption Perceptions Index 2004, TI Chairman Peter Eigen said: “Corruption in large-scale public projects is a daunting obstacle to sustainable development, and results in a major loss of public funds needed for education, healthcare and poverty alleviation, both in developed and developing countries.”

In the TI Corruption Perceptions Index 2004, Pakistan scores 2.1 against a clear score of 10, indicating persistent rampant corruption. In the Corruption Perceptions Index, Pakistan has consistently featured among the most corrupt 10 per cent of countries ranked, with scores ranging between 2.1 and 2.7. “This is not a very enviable position," states the National Integrity Systems TI Country Study Report Pakistan 2003.

TI estimates that the amount lost due to bribery in government procurement is at least US$ 400 billion per year worldwide. “If we hope to reach the Millennium Development Goal of halving the number of people living in extreme poverty by 2015, governments need to seriously tackle corruption in public contracting,” said Eigen.

A total of 106 out of 146 countries score less than 5 against a clean score of 10, according to the new index. Sixty countries score less than 3 out of 10, indicating rampant corruption. Corruption is perceived to be most acute in Bangladesh, Haiti, Nigeria, Chad, Myanmar, Azerbaijan and Paraguay, all of which have a score of less than 2.

The National Integrity Systems TI Country Study Report Pakistan 2003 states: "It is a common perception …both in civil society and in…government that corruption at the top levels of government has significantly declined – but at the middle and lower levels … corruption still thrives almost unabated.” The report, which was made possible with the funding of the UK Government's Department for International Development, identifies some priority areas for reform.

Central to government efforts to tackle corruption should be the awareness and implementation of “strong and effective Freedom of Information legislation”, says the report. The role of the media and of civil society is also highlighted by the report, which notes that the media has been relatively independent but that without the implementation of the Freedom of information Ordinance it cannot function effectively.

The police are considered by many in Pakistan to be particularly corrupt, according to the authors of the report, and the Police Reforms Ordinance in 2002 is an attempt to limit the powers of the police. “It has recommended the establishment of Federal and Provincial Public Safety Commissions, Criminal Justice Co-ordination Committees and an independent complaints handling authority. The separation of investigation and prosecution functions should also enhance the due process of law and is welcome. The Police Ordinance 2002 has also tried to insulate the police from political pressure.”

The report continues: “The experience with the newly established motorway police appears to demonstrate that sufficient pay, a well-structured job, effective monitoring and the creation of pride in the job can be effective.”

There is also an urgent need, said the TI-Pakistan spokesman, for a “disclosure of assets” programme under which the disclosure forms are actually checked, verified, made publicly accessible, and action is taken, if suspicion of wrongdoing emerges. The importance of oversight institutions, such as the Auditor-General, the ad hoc Public Accounts Committee and the Ombudsman Office, is also stressed in the TI report.

The National Integrity Systems TI Country Study Report - Pakistan 2003 was prepared by Barrister Naimur Rahman, Mohamed Abdul Rahman and TI-pakistan, under the auspices of a programme developed by the Transparency International Secretariat together with Professor Alan Doig and Stephanie McIvor of the Teesside Business School in the United Kingdom. It is the latest in a series of TI country study reports on national integrity systems.

The National Integrity Systems TI Country Study Report - Pakistan 2003 can be downloaded from this site.