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Query
Please
provide information about the key sectors affected by corruption in Pakistan,
recent initiatives to tackle it, and local institutions and people involved in
anti-corruption work. Please also provide any recent corruption
diagnostic
or survey material available on Pakistan.
Purpose
To prepare for a forthcoming visit to Pakistan
Content
1.
Key sectors affected by corruption in Pakistan and
diagnostic material
2.
Reform initiatives
3.
Further resources
Summary
Author(s): Anna Hakobyan, Transparency International
Reviewed by: U4
Anti-Corruption Resource Centre
Date: 9 June 2004 Number: 43
1 Key sectors affected by corruption in
Pakistan and diagnostic material
To fully respond to the question as to which sectors are
most affected by corruption, both quantitative (through diagnostic material)
and qualitative (through reports and direct questioning of international and
national experts) sources have been consulted. Nevertheless, it is worth
bearing in mind that some of the reasons that particular sectors are
highlighted more often than others are due not only to objective merits but
also to the facts that i) there is more research and survey work done in those
areas and ii) public perception and awareness seem to be more vocal as regards
those areas. Thus, the exercise of highlighting some of the sectors should be
read with the knowledge that corruption in Pakistan seems pervasive across most
sectors. With that in mind, it is safe to say that expert sources indicate that
the following sectors are among those most affected by corruption (the
particular order varies from source to source):
•
Police and law enforcement
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•
Judiciary and legal profession
•
Power sector
•
Tax and customs
•
Health and education
•
Land administration
•
In addition, Public Procurement seems to be a major
concern across most sectors
These sectors seem to be affected by chains of:
•
petty corruption to access public services or to bypass
the law (through the direct interaction of citizens with the respective
authorities and bribe-paying)
•
middle and grand corruption (through corruption in
public contracting and procurement as well as direct misappropriation of public
funds by senior officials).
•
in addition, political patronage, conflicts of
interest, influence peddling and other forms of corrupt behaviour are
commonplace across the sectors.
Diagnostic and survey tools conducted in Pakistan include:
Baseline Survey/Social
Audit of Governance and Service Delivery, by CIET International and NRB
(National Reconstruction Bureau), conducted in 20012002
(published in 2003)
The social audit was commissioned by the NRB and supported
financially by CIDA, UNDP and UNESCO. Set up as a means of monitoring the
effects of the devolution of powers to local government levels on delivery of
public services and governance, this baseline survey (piloted in ten districts
in 2001 and implemented in the rest in 2002) included more than 50,000
household interviews covering all of Pakistan's districts. Respondents gave
their views and experience of health, education, water, judiciary and police
services, local government and others. According to CIET, the results of this
baseline survey (published in October 2003) have been shared widely with policy
makers, service providers and communities and are to be used as benchmarks. The
social audit will be repeated annually, both monitoring the impact of
devolution and allowing policies to be adapted according to evidence of what
works and where.
The
full report can be downloaded as a PDF file at the following address:
http://www.balochistan.org.pk/pdf/Pak2002baseline.pdf
Corruption in South
Asia: Insights and Benchmarks from Citizen Feedback Surveys in Five Countries,
2002
A household survey released by TI in December 2002,
reported high levels of corruption in public institutions in South Asia. Of the
seven major public institutions, the police emerged as the most corrupt in all
five countries surveyed (Bangladesh, India, Nepal, Pakistan and Sri Lanka). The
judiciary was identified as the second most corrupt area in all countries
except Pakistan, where land administration and the tax authorities were
identified as the second and third most corrupt areas respectively. Land
administration figures prominently in the list of the most corrupt sectors in
four out of the five countries. The TI report identifies high levels of
corruption encountered by citizens attempting to access seven basic public
services.
http://www.transparency.org/pressreleases_archive/200
2/2002.12.17.south_asia_survey.html
Pakistan Corruption
Report, 2002 (this report was the basis for the regional one listed above)
The survey was conducted by Marketing and Research
consultants under the auspices of TI Pakistan. The general objective of the
survey was to measure the nature and extent of corruption being faced by
consumers of seven public sector departments (Education, Health, Power, Land
Administration, Taxation, Police, Judiciary). Another objective of the survey
was to gather information about the particular stages where obstacles are
usually being faced, locate the responsible element for creating the obstacles
and the means for overcoming the bottlenecks in the seven sectors under study.
http://www.transparency.org.pk/documents/csr.pdf
2 Reform initiatives
At the heart of Pakistan's recent anti-corruption drive are
country's National Anti-Corruption Strategy (NACS) launched in 2002, the
National Accountability Ordinance of 1999 (amended 2002) and the National
Accountability Bureau - the agency charged with the implementation and overall
coordination of the NACS and the Ordinance. A general discussion on these is
out of the scope of this U4 answer (there is a bulk of information on these
general reform efforts widely available and some good resources are listed in
Part III of this answer).
In this section, reform
initiatives in some of the specific sectors (perceived to be most affected by
corruption) are listed. Namely, efforts in areas of police and law enforcement,
judiciary and legal profession and public procurement are discussed. The second
section of Part
II lists some reform initiatives
in other areas
Reforms in sectors rated to be amongst those most affected by
corruption
Police and law enforcement
Corruption in the police and law enforcement is perceived
to be pervasive - creating a culture of lawlessness and lack of credibility and
trust in authorities. The police and law enforcement appointments are often
politicised and full of conflict of interest. Criminals and rent-seeking and
extortionist authorities are often the sole beneficiaries of the game.
Police reforms were instituted about two and a half years
ago by President Musharraf but, according to certain expert voices, have been
significantly watered down by the elected government, which still sees political
patronage of police officers as important. However, a system of recruitment of
better quality and standards is being implemented with improvements in areas of
professional training, competence development and remuneration. A great deal
remains to be done to implement full police reforms including the establishment
of public safety commissions and an effective independent police complaints
authority.
It is hoped that the
reorganisation outlined by the new Police Order of 2002 and the Police Complaints
department will improve the functions of the police and provide relief to the
citizens. Reportedly, one of the first steps taken in the reorganization has
been the separation of the police force into various branches, divisions,
bureaus and sections. It is intended to help improve the efficiency but in fact
may lead to more corruption and less efficiency due to non-cooperation or lack
of coordination. The Police Order of 2002 has also outlined a format for
setting up district Public Safety
Commissions (PSC). The functions of such commissions will
inter alia include investigations of complaints on excesses and neglect against
police officers and encourage greater police-public participation. The PSCs are
to be set up within the Federal and Provincial Government and the District and
Town Local Governments. There shall also be a National Public Safety
Commission. Further, the Order makes provisions for setting up of federal and
provincial police complaints authorities for enquiring into serious complaints against
the members of Federal Law Enforcement Agencies. Other measures provided for by
the Order include the establishment of the Criminal Justice Coordination
committee, to work on the improvement of the system as a whole and promote good
practices, and of the National Police Management Board, to work on overall
technical and human resource capacity building within the Police.
Judiciary and legal profession
There is widespread lack of public confidence in the
institutional legitimacy of the justice system. Access to justice and the rule
of law are undermined by corruption and are under a threat. Alongside the
corrupt judiciary is the legal profession with low ethics of lawyers and poor
controls of the bodies (such as the Pakistan Bar Council) responsible for
maintaining the high standards that should be required of it.
Reform efforts have included:
a) Access to Justice Programme
The Asian Development Bank (ADB) has in 2001 approved
Access to Justice Programme loans totalling US$ 350 million due for completion
towards the end of 2004 with Pakistan's Ministry of Law, Justice, Human Rights
and Parliamentary Affairs (MOL) as the Executing Agency hosting the programme
management unit (PMU). The Programme is built around five interrelated
governance objectives: (i) providing a legal basis for judicial, policy, and
administrative reforms; (ii) improving the efficiency, timeliness, and
effectiveness in judicial and police services; (iii) supporting greater equity
and accessibility in justice services for the vulnerable poor; (iv) improving
predictability and consistency between fiscal and human resource allocation and
the mandates of reformed judicial and police institutions at the federal,
provincial and local government levels; and (v) ensuring greater transparency
and accountability in the performance of the judiciary, the police and
administrative justice institutions. Further links can be found at:
http://www.pakistan.gov.pk/law-division/policies/ajp.htm
and
http://www.adb.org/Documents/Others/PRM_Suppleme
nt/ADB_PAK_Governance_Reforms.asp?p=prmnews
There are mixed signals about the success of the reforms.
It has been voiced that the efforts are perceived to be lacking tangible
outcomes and that there have been some challenges in terms of the project
implementation itself (sources: NIS country study and an independent expert). b) Supreme Judicial Council
Efforts are underway to activate the Supreme Judicial
Council through international experts working with the Attorney General, the
Chief Justice and the President's
office.
c) Accountability Courts
In 1999, following the coup, Accountability Courts (lapsed
as of 1994) have been once again set up throughout the country to decide cases
under the amended National Accountability Bureau Ordinance. These
Accountability Courts were established for speedy disposal of cases involving
corruption and corrupt practices, misuse, abuse of power, misappropriation of
property, kickbacks, commissions and the matters connected and ancillary or
incidental thereto. The Accountability Courts have so far announced judgments
in several high profile corruption cases. Criticism with regards to selective
accountability and political motives has been voiced in terms of the courts on
a number of occasions, while the NAB and some others have been counter-arguing
in defence of the integrity of the practices.
Public sector procurement and
contracting
There have been major concerns in this area. There is
large-scale corruption in procurement and contracting affecting government and
development aid funded programmes, public works, etc. Some of the systemic
weaknesses have included the lack of a standardised procurement regime (sets of
clear, transparent rules and legislation) along with absence of repository of
procurement expertise in the government. Grounds and opportunities for
corruption are provided at every stage of the procurement process (from
preparation to tender, bid evaluation, negotiations, and contracting).
Some of the reform efforts include:
a) Establishment of a public procurement
regulatory authority
For years, several agencies and groups have been
recommending the establishment of a single regulatory authority for public
procurement, such as the WB in its Country Procurement Assessment report of
1997, as well as TI during its country mission in 2002. In June 2002, the PPRA
was promulgated by the President for regulating procurement of goods, services
and works in the public sector and for matters connected therewith or ancillary
thereto; and extended to the whole of Pakistan. The PPRA, which comprises the
Secretary, Finance Division (chair), and the Secretaries of Ministry of
Industries and Production, Defence Production Division, Ministry of Water and
Power, Ministry of Housing and Works, Ministry of Communications and three
members from private sector nominated by the Federal Government, can take such
measures and exercise such powers as may be necessary for improving governance,
management, transparency, accountability and quality of public procurement of
goods, services and works in the public sector. It may monitor application of
the laws and procedures; recommend revisions in or formulation of new laws,
rules and policies in respect of or related to public procurement; make
regulations and lay down codes of ethics and procedures for public procurement,
inspection or quality of goods, services and works; monitor public procurement
practices and make recommendations to improve governance, transparency,
accountability and quality of public procurement; monitor overall performance
of procuring agencies and make recommendations for improvements in their
institutional set up and other.
Some reports (such as NACS related sources) suggest that
the agency, however, has not been properly staffed and needs capacity building
if it is to perform the intended functions.
b) Resolution related to procurement standards
In 2002, the National Accountability Bureau as a part of
its study in preparing the NACS organised an international workshop, resulting
in the stakeholders adopting a resolution related to ensuring transparency in
Public Procurement in Pakistan. This resolution was incorporated in the NACS
report and was approved by the Ministerial Cabinet and the President of
Pakistan in October 2002. Amongst others, the recommendations provide that:
•
the Standard Procedures for Procurement of Works, Goods
and Consultants should be revised by the Public Procurement Regulatory
Authority. Either the World Bank or PEC bylaws should be uniformly implemented
in all government and semi government departments till such time the PPRA
prepares its own Guidelines;
•
to ensure transparency and public participation, the
Transparency InternationalPakistan tool 'Integrity Pact" should be made an
integral part of all tenders;
•
for every new project, public hearings should be made
mandatory for scrutiny of necessity of the project and for the environmental
assessment, prior to concept clearance approval;
• evaluation
Committees for Pre-qualification and Award of Contracts must include at least
two departmental members, and a minimum of three independent experts, (One each
from the Pakistan Engineering Council,
Institute of Chartered Accountants and FPCCI), and others.
c) Integrity pacts
An important part of the recommendations of the NACS is the
incorporation of the TI Integrity Pacts in all contracts for goods and services
where the estimated cost of the project is over Rupees 5 million for
consultancy and over Rupees 50 million for Construction Contracts. This has
been a major breakthrough in the efforts of TI-Pakistan whereby all major
contracts will not only provide for the "Integrity Pact" but also
include all other recommendations, which have been put out in the NACS Document
(outlined above). An example of the Integrity Pact in use is to be found in the
Greater Karachi Water Supply Scheme (KIII Project) project. An integrity pact,
with a formal no-bribery commitment, was signed by KWSB, consultant bidders and
TI Pakistan. It resulted in a successful bid of Rs 62 million ($1.04m) against
the reserved fees of Rs 249m ($4.2m). The project adopted the least costly
selection method. The bidding process was monitored by Transparency
International- Pakistan to ensure it is clean and transparent. In the event of
a breach of the Integrity Pact, sanctions come into force against the bidders
and officials, including liability for damages, and blacklisting from future
tenders. The procurement process is to be followed by monitoring of the
contract by civil society, specifically TI Pakistan. The Karachi government had
expressed plans to apply the same transparent process to other projects.
Reform initiatives in other areas
While, as mentioned above, detailing all general reform
efforts in Pakistan over the last few years is out of the scope of this U4
answer, below are summaries of reform efforts in some additional sectors and
areas that might be of interest for the purposes of this query. The listing is
by no means exhaustive; there are other general reforms and we thus recommend
to consult the further resources listed in Part III, in addition to this U4
answer.
Public Service
Efforts are under way on the part
of the government to reform the Federal and Provincial Public service
commissions, particularly with regards to capacity and competence building.
Further, the World Bank has approved a US$55 million IDA credit in May 2004 for
Public Sector Capacity Building Projects that will fund the training and
professional development of over 500 public servants, enhancing the capacity in
key ministries/agencies which are in the forefront of designing, implementing
and monitoring policy reform. It will also aim to strengthen some key
regulatory agencies, specifically NEPRA (National Electric Power Regulatory
Authority), OGRA (Oil & Gas Regulatory Authority) and PTA (Pakistan
Telecommunication
Authority).
Public sector financial management
It is suggested that
some of the weaknesses may be addressed by the government's Project to Improve
Financial Reporting and Auditing (PIFRA). The World Bank has carried out a
country Financial Accountability Assessment in December 2003 (the report is available
on WB Pakistan's website at www.worldbank.org.pk or can be emailed by the U4
helpdesk upon request). Further, the ADB has approved a US$ 204 mln loan (part
of a wider sequence) to support the Government of Punjab. Among other
objectives, the programme aims to improve the effectiveness and accountability
of financial management by bringing in transparent and user-friendly budgets
and accounts, and financial and procurement systems
Financial oversight bodies
The Supreme Audit Institution of the country (the Auditor
General's office) is trying to reform itself by following international best
practices, such as those of the International Organisation of Supreme Audit
Institutions (INTOSAI), as part of its reform agenda. It has been noted that
there seems to be some progress in reorganizing the department with a view to
adopting modern techniques of audit and reporting formats. It has initiated a
capacity building program under the project to improve Financial Reporting and
Auditing (PIFRA). Some of the other reform efforts include the design of
diagnostic tools, such as a "Financial Government Rating Index
(FGRI)" and an "Internal Quality Rating (IQR) for its departments,
etc.
Public Accounts Committee: the PAC was for a number of
years operating as an ad-hoc body in need of serious reform efforts. In
December of 2003, a Standing Committee on Public Accounts was finally
established comprising about 18 members including the present Minister for
Finance (ex-officio).
Independent Anti-Corruption Agencies
The Government of Pakistan has undertaken a number of steps
to strengthen the Anti-Corruption Agencies, and has especially concentrated on
the National Accountability Bureau for its reforms. The reforms include the
creation of NAB as the sole Anti Corruption Agency at the Federal level; adding
the functions of prevention through research and monitoring and public awareness and coalition building with civil
society to NAB's mandate; provisions on appointments of ACAs (from the elected
opposition members) and security of tenure of key office bearers of the ACA and
others. Further reforms and restructuring are in the process.
Local Government
The
Devolution programme (forming part of the local government plan built around
decentralization of administrative authority,
de-concentration of management functions, diffusion of
the power-authority nexus, and distribution of resources to the district level)
of handing over local governance to the local levels and the people is deemed
to be progressing satisfactory. The Devolution programme is coordinated by the
National Reconstruction Bureau. Some survey tools (mentioned in Part I of this
U4 answer) have been developed in cooperation with CIET International to
measure progress and the impact of the process on public service delivery at
local levels.
http://www.nrb.gov.pk/
Civil society and public participation: It has been noted
that civil society and non-governmental organisations are being engaged in
government's committees, task forces and other advisory and oversight roles.
So, for example, the local government is now required to establish various
bodies that are to act as "watchdogs" and contribute inter alia towards
the fight against corruption. These are to be set up in each town where
citizens can take part in the direct monitoring of the Police, Judiciary, the
District Government and others. These include the district Public Safety
Commission to prevent unlawful or motivated use of police by the District
Nazim; a Police Complaints Authority which will address serious complaints
against police; Citizens Community Boards (comprising of civil society
representatives) for energizing the community for development and improvement
in service delivery through voluntary and self help initiatives as well as for
carrying out citizen monitoring of the local government; local Ombudsman
schemes and other bodies.
Freedom of Information and Media: Several ordinances have
been promulgated in 2002, including the Freedom of Information Ordinance, the
Press Council of Pakistan Ordinance and others. While this legislation has
scope for major improvements, it is a reasonable first step to build on.
==============
During the course of the research for this query, a number of resources
have been examined at length, including Pakistan's National Anti-corruption
Strategy document, the Draft National Integrity System County Study report, as
well as resources compiled at Pakistan's government's websites and those of
international multilateral agencies. In addition, the following experts have
been consulted: Jeremy Carver, Jeremy Pope, Shahzadi Beg (all three are UK
based experts with experience in certain areas of anticorruption reforms in
Pakistan) and Shaukat Omari (head of TI Pakistan). The answer thus combines
elements endorsed from the consulted resources and experts along with research
and analytical input by the Helpdesk researcher.
3 Further information and contacts of relevant institutions
Further information
The following strategic reports and country studies provide
detailed and comprehensive information about corruption in Pakistan and reform
efforts.
Pakistan's
National Anti-corruption Strategy (NACS), 2002
This
is a very comprehensive country strategy, which contains sections on the
assessment of the weaknesses of relevant institutions and the system as a
whole, proposes the strategic reform agenda and the implementation plan. The
strategy was the product of extensive stakeholder consultations across various
sectors and the public. The process was driven by Pakistan's NAB, with input
from international experts (supported by the DFID, UK).
The
document can be downloaded in full at http://www.nab.gov.pk (please see
"important documents" section on the right hand side)
Pakistan:
DRAFT National Integrity System Country Study report, 2003
This
is another detailed report assessing the pillars of the NIS in Pakistan and
providing an overview of their present state and reform efforts. Parts of the
report text have been borrowed from country's National Strategy (NACS); others
reflect some developments post-2002, after the strategy was drawn.
This
document is in draft form and is not available for public circulation yet. The
enquirer has been circulated a working copy from TI-S.
Web resources
Pakistan
Anti-Corruption Resources
An
OECD website with rather extensive links to Pakistan's corruption related
government resources, legislation as well as links to international
organisations active in anti-corruption and good governance in Pakistan.
http://www1.oecd.org/daf/ASIAcom/countries/pakistan.h tm
Pakistan
Development Forum 2004
The
Development forum (hosted by the Government of Pakistan annually to provide an
opportunity to the donor community to hear the Government's development
priorities and to learn about Pakistan's future strategic directions) was held
in May 2004. The following WB page contains all the background papers and
information, including 2004 speeches and assessments of Pakistan's most sectors
and the development initiatives.
http://web.worldbank.org/WBSITE/EXTERNAL/COUNT RIES/
SOUTHASIAEXT/PAKISTANEXTN/0,,contentMDK:201
88146~pagePK:141137~piPK:217854~theSitePK:2930
52,00.html
Contact information of locally active
international and national institutions
Pakistan authorities and
government institutions:
National Anti-Corruption Bureau -
Islamabad
Attaturk Avenue G-5/2, Islamabad
Tel: 051-9202182
Fax:
051-9214502-03 chairman@nab.gov.pk
http://www.nab.gov.pk
Offices in 5 other cities (contacts details of all offices
are on the website)
Other
government institutions
Web
addresses of most government agencies and websites are listed in Annex 1 of the
NIS draft country study (that has been circulated to the enquirer). A selection
is also available at Pakistan government's central website at
http://www.infopak.gov.pk
Main donors with active project
portfolio in governance and anti-corruption fields:
Asian Development Bank - Islamabad contacts
The
Bank has been in active in governance and anticorruption related projects in
the country, including legal and judicial, public service, public sector
management and other reforms.
Mr. Marshuk Ali Shah, Country
Director
Overseas Pakistanis Foundation
Building,
Sharah-e-Jamhuriyat, G-5/2,
Islamabad, Pakistan
Tel: + 92 51 282 5011 to 16
Fax: + 92 51 282 3324/227 4718
E-mail: adbprm@adb.org
Web Site: http://www.adb.org/PRM/
United Nations Development Programme - Islamabad
contacts
The
UNDP has a number of programmes in the area of good governance. It has also
been particularly active in local government devolution related
initiatives.
Mr. Khurram Masood, External
Affairs/Liasion
Office: 61-A, Jinnah Avenue,
9th, 10th & 13th Floors,
Saudi Pak Tower, Islamabad
Tel: (051) 280.0133-42
Fax: (051) 280.0031,280.0034 Email:
khurram.masood@undp.org
http://www.un.org.pk/undp/
World Bank - Islamabad contacts
The
World Bank has a major portfolio in Pakistan, including areas of public sector
management and governance.
Mr. Shahzad Sharjeel
20-A, Shahrah-e-Jamhuriat
Ramna 5, (G-5/1)
Islamabad
Tel: (051) 279-641
Fax:
(051) 279-648 Email: ssharjeel@worldbank.org
http://www.worldbank.org.pk
Canadian International Development Agency (CIDA)
- HQ contacts
CIDA
has a number of programmes. A substantial part of its governance portfolio
seems to consist of local governance related and Pakistan NGO support and
citizen participation aimed initiatives.
200 Promenade du Portage
Gatineau, Quebec
K1A 0G4
|
Tel: (819) 997-5006 Fax: (819) 953-6088 E-mail: info@acdi-cida.gc.ca
http://www.acdi- cida.gc.ca/CIDAWEB/webcountry.nsf/VLUDocEn/Pakist
an-Overview |
Tel: (92) 51-2270590 Fax: (92) 51-2275436 Email: tafpk@infolink.net.pk |
International non-profits active at
field level:
Transparency International Pakistan
Karachi contacts
(National Chapter in Formation)
TI
has been active in a number of fields, including procurement, service delivery
(report cards), diagnostic work and other fields.
Mr. Shaukat Omari
Managing Director, HI-aqua 83-Q, Khalid Bin Waleed Road,
Block-II P.E.C.H.S.
Karachi
Tel: +92-21 454 4400
Fax: +92-21 455 9152
Email: omari@transparency.org.pk
http://www.transparency.org.pk/
National Democratic Institute for International
Affairs (NDI) –
HQ contacts
NDI has been active in a project on Government
Accountability and Transparency.
NDI
expects to continue to work with the Pakistani parliament on institutional
responses to the problems of corruption and parliamentary instability.
Makram Ouaiss
Senior Program Officer
1717 Massachusetts Avenue, NW
Fifth Floor
Washington, DC 20036
Phone: (1 202) 328-3136
Fax: (1 202) 939-3166
Email: makram@ndi.org
The Asia Foundation - Islamabad contacts
The Asia Foundation has been
programming in
Pakistan
since 1954. Over the past decade, The Asia Foundation has supported good
governance programs in Pakistan.
Julio A. Andrews, Representative
Greg Alling, Assistant
Representative
P.O. Box 1165
Islamabad, Pakistan
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