Corruptions is a Common Enemy of Society

Fr. Damianus Abun, MBA, Ph.D, SVD

Introduction

Writing on corruption and presenting some arguments about why corruption exists and how to solve it is sometimes futile exercise. This kind of feeling might not be felt only by the writer of this article but by common majority out there. These common sentiments are based on the fact that corruption has not been eliminated totally from our society including the developed countries. Despite of many efforts by the government, and by certain non government organizations, corruption is still alive and kicking and it seems that government and all citizens are ignoring it. Take an example Indonesia and Malaysia. Based on the corruption perception index, Indonesia as Southeast Asia’s largest economy was ranked 118th out of 176 countries last 2012 polled, down from 100th out of 183 a year before (2011), and tied with Madagascar, Egypt, Ecuador and the Dominican Republic (Webadmin, 2012). Last 2013 survey, Indonesia was ranked a slightly lower than a year before which was ranked 114 from 177 countries (Indonesia Corruption Perception Index, 2013). Look into the case of Malaysia. Based on Malaysia’s Corruption Perception Index, its rank has been improving, though it is not like Singapore. Last 2011, Malaysia was ranked 60 out of 183 countries surveyed by International Corruption Perception Index and then a year later, Malaysia was ranked 54 out of 176 countries. Last 2013, Malaysia was ranked 53 out of 173 countries (Transparency International Malaysia, 2013). The higher the rank, the more corrupt the country is. Despite of the efforts of the government to run after the corrupt politician and government officials, the corruption is still on the go. It seems that the corrupt officials, politicians have found their way on how to maintain their practices and it has been their culture. Should we allow it to continue and just watch those who are corrupting our tax payment into their hands? We feel that as if we were crippled.     

Those feelings are valid. However, such feeling cannot be used as a reason for us not to talk and not to do anything about it. Seeing the corruption and not doing anything about it mean that we are allowing bad things to flourish in our society. The consequence of such indifference is great. The country continues to stay in poverty because the tax payers’ money is not being spent for economic and social development of the country but for personal gain. On this basis, this writer though is busy with other responsibilities but tries to devote his time to write about the corruption, the reason of corruption and how to solve corruption. I still believe that opinion matters. Hopefully by reading my opinion, many will be convinced that solving corruption is within our reach. The writer believes that solving corruption is not easy as we say it because corruption strikes anywhere. The holes for corruption are everywhere. We cover one hole, another hole will be opened. 

The Reasons for Corruption

There may be hundred of reasons why corruptions have not gone away from our society. Based on my observation, readings and experience, the following are the reasons that I can think of.   

1.       Lack of Moral Values.  This is really the biggest cause of all kind of corruption. One of the moral standards that we appreciate is “not to steal”. This is imperative to all of us. What does it mean? If it is not belonged to you, then you have no right to get it for yourself. Often time, many opportunities whether in the government or in the private sector in which employees or managers are tempted to steal. Resources are abandoned in front of them and often time they are given the authority to spend. This circumstance challenges our moral values whether to steal or not to steal. Lacking of moral values means that we give in to this temptation. We use other’s resources for our own benefit. 

 2.      Lack of control and supervision as a result of over trust. There are practices that are being practiced in many offices that employees or managers are loosely supervised or controlled because of the trust of the employer given to them. They are trusted and believed that they can do or exercise their duties and responsibilities rightly according to their mandate. Unfortunately, people often time abuse the trust. When they feel that they are not supervised or monitored, they can do everything they want.

 

3.      Weak Implementation of Policies and Weak Leadership.

The writer believes that there are many rules prohibiting employees from taking government or corporate properties for personal gain. Nowadays people do not appreciate rules written on a piece of paper but not implemented. Unless they see those laws are implemented strictly and no favoritism, then they will not follow the law or policies. In such situation, employees are encouraged to steal. Countries that are listed as most corrupt are lead by the corrupt presidents (see listed below). In the Philippines, Mrs. Napoles’ case with her P 10 billion pork barrel scam which involved senators and congressman and congress women is a test case if the government or the President would pursue the case and bring those who are guilty to jail. It remains to be seen. If the people see that they are in jail, then the rest will be discouraged to steal again (Lariosa, 2014, Hannah, 2014).

 

4.      Partly Bad incentives, Living Standards and greediness. Many times employees cannot afford to sustain their daily life.  In extreme cases, people do not have an incentive to perform their official duties, but actually pay for their jobs with the understanding they will make money through bribes (World Bank, 2014). I say that it is partly bad incentive as one of the main causes of corruption because the reality is that those who are corrupt are not only poor employees but also the rich bosses or managers, politicians. This is due to their living standards and greediness. Officials need extra money to maintain their standards of living if salaries have not been raised to match inflation, to meet commitments for housing, car, school fees, etc.

Look at the following ranking of most corrupt presidents in history. This is to prove our point that corruption is not only really caused by bad incentives but greediness. They never feel satisfied with what they have.

 

1. Mohammad Soeharto	President of Indonesia (1967-1998)	$15–35 billion
2. Ferdinand Marcos.	President of the Philippines (1972–1986)	5–10 billion
3. Mobutu Sese Seko	President of Zaire (1965–1997)	5     billion
4. Sani Abacha	President of Nigeria (1993–1998)	2–5 billion
5.Slobodan Milosevic	President of Serbia/Yugoslavia (1989–2000)	1 billion
6.Jean Claude Duvalier	President of Haiti (1971–1986)	300–800 million
7.Alberto Fujimori	President of Peru (1990–2000)	600 million
8. Pavlo Lazarenko	Prime Minister of Ukraine (1996–1997)	114–200 million
9. Arnoldo Alemán	President of Nicaragua (1997–2002	100 million
10. Joseph Estrada	President of the Philippines (1998–2001)	78–80 million

             Sources:  Infoplease. http://www.infoplease.com/ipa/A0921295.html. Retrieved, April,  

               29,           2014.   

5.      Culture.  In some places, particularly countries that are listed as most corrupt in which corruption are everywhere; people believe that corruption is part of the culture, part of the game of doing business. They call it SOP or standard operating procedures in which the person gets certain percentage as kickbacks. A kickback is a form of negotiated bribery in which a commission is paid to the bribe-taker as a quid pro quo for services rendered. Generally speaking, the remuneration (money, goods, or services handed over) is negotiated ahead of time. The kickback varies from other kinds of bribes in that there is implied collusion between agents of the two parties, rather than one party extorting the bribe from the other. The purpose of the kickback is usually to encourage the other party to cooperate in the illegal scheme (Kranacher, Riley, and Wells. 2007). The term "kickback" comes from colloquial English language and describes the way a recipient of illegal gain "kicks back" a portion of it to another person for that person’s assistance in obtaining it (Campos, 2007). This is a practice that we cannot find in the policy but it is already in the mind of those who are transacting business. Through consistent practice, such practice becomes part of doing business. Example is the Philippines. Once the person enters into such situation, the person naturally follows the existing practice of their fellow employees or bosses. It is just like swimming. When the water is dirty and a person swim into that dirty water, naturally the person gets dirty also. When they are used to swim into dirty water, they would not know the difference between swimming into clear water and dirty water.    

 

Different Kinds of Corruption

Corruption strikes everywhere and in many forms. In fact, it can be done in all business transactions. There are many holes everywhere where people can use it for their opportunity to steal. Therefore, the lists that we mention here are few examples of forms of corruption. There are many more. But our intention here is not to mention all those lists but focusing on how we are going to solve corruption problems which is society’s job, not only government’s job. The following are different kind of corruptions that are commonly being done in the government office and even in the private organizations.     

 

Bribery

Bribery is living within bureaucracy. A bureaucracy is defined as "a body of non elective government officials" and/or "an administrative policy-making group Merriam Webster).  Historically, bureaucracy referred to governmental administration managed by departments staffed with nonelected officials (The Free Dictionary).  In modern parlance, bureaucracy refers to the administrative system governing any large institution. Since being coined, the word "bureaucracy" has developed negative connotations for some (Raadschelder, 1998).   Bureaucracies are criticized when they become too complex, inefficient, or too inflexible (Johnson & Libecab, 1994).  The dehumanizing effects of excessive bureaucracy were a major theme in the work of Franz Kafka, and were central to his masterpiece The Trial (Luban, Strudler, Wasserman, 1992). The elimination of unnecessary bureaucracy is a key concept in modern managerial theory (Daniel, Arthur, 2009), and has been a central issue in numerous political campaigns (garett, 2006).

Bureaucracy may not be necessarily bad because it has a role in establishing systematic processes. Such systematic processes are needed to avoid favoritism and even nepotism.  Max Weber had been defending such bureaucracy because for him bureaucracy constitutes the most efficient and rational way in which human activity can be organized, and that systematic processes and organized hierarchies were necessary to maintain order, maximize efficiency and eliminate favoritism (Swedberg & Agewel, 2005).  However, excessive bureaucracy becomes a problem in practice. Transactions, decisions have become too long to get the result. There are so many layers and it has to go through several steps and often time, the officials who are in the authority to approve are taking their time to make decisions. The tendency is that people look for short cut which is to bribe the officials who are in the position to make a decision.   

Let us take some examples bribery within the bureaucracy. In the 2008 Public Sector Integrity Survey, the Supreme Court ranked the lowest in integrity in comparison to the other public services in Indonesia (Komisi Pemberantasan Korupsi, Integritas Sektor Publik Indonesia Tahun 2008). The courts were viewed to make decisions unfairly and have high unofficial costs. Evidence of corruption within the civil service comes from surveys conducted within the sector. Some surveys found out that almost half were found to have received bribes. Civil servants themselves admit to corruption.

Next example is India. Bribery is also a major issue that adversely affects its economy (Singh, 2010). A study conducted by Transparency International in year 2005 found that more than 62% of Indians had firsthand experience of paying bribes or influence peddling to get jobs done in public offices successfully (Transparency International). In its study conducted in year 2008, Transparency International reports about 40% of Indians had firsthand experience of paying bribes or using a contact to get a job done in public office (India Corruption Study, 2005).

Nepotism

Nepotism is one our social ills. It is a form of selfishness. People always find ways if there are possibilities in which things or opportunities may not be shared to others but only to our family members or friends. This practice has been rooted in the politics, business and even in the Church. The politicians or managers tend to hire their own children or relative to occupy certain position.  In fact the practice is originated from the Church.   

The term comes from Italian word nepotismo,(Dictionary.com) which is based on Latin root nepos meaning nephew. In the Middle Ages some Catholic popes and bishops, who had taken vows of chastity, and therefore usually had no legitimate offspring of their own, gave their nephews such positions of preference as were often accorded by fathers to son (New Catholic Dictionary). The term has been applied to all sectors of business and politics. However the Church has been banned from such practice since Pope Innocent XII when he issued the bull Romanum decet Pontificem in 1692 in which the papal prohibited popes in all times from bestowing estates, offices on any relatives, with the exception that one qualified relative could be made a cardinal (Anura, 2010).  It is all for personal interest and dynasty.   

The purpose of nepotism is not only for political interest in which the dynasties retain power but also for economic benefits. People do not want to share the benefits to others. For the purpose they need to continue to stay in power and perpetuating their dynasty. Naturally people do not want to let it go and share power to other people. They hold on to the power until the last generation. Evidently politicians train and appoint their own children or member of the clan to any position for them to continue controlling the state, province, districts, and municipalities and up to the barangays.  Nepotism can also occur within organizations, when a person is employed due to their familial ties. It is generally seen as unethical, both on the part of the employer and employee. There may, however, be valid reasons for choosing to employ within the family, such as a greater expectation of loyalty.

 

Embezzlement

Violation of trust always happens, not only in government offices but also in private organizations. People tend to misuse the fund entrusted to their care for their personal advantage. This is the case of those who are entrusted with financial matters. Thus embezzlement is the misappropriation of funds that have been entrusted to one for care or management (http://www.thefreedictionary.com/embezzlement). People take money for one’s own use in violation of a trust which is actually owned by someone else. In the case of the government, people pay their taxes for the purpose of public service but what happen is that the persons in government use the money for their own pocket instead of public service. In the private sector, managers, the financial chief executive are assigned to manage the finance of the organization but they use it for building their mansions. In the case of bank tellers, they collect the money of depositors and deposit it on their own account.  Embezzlement is distinguished from swindling in that swindling involves wrongfully obtaining property by a false pretense, such as a lie or trick, at the time the property is transferred, which induces the victim to transfer to the wrongdoer title to the property.

Embezzlement is performed in a manner that is premeditated, systematic and/or methodical, with the explicit intent to conceal the activities from other individuals, usually because it is being done without the other individuals' knowledge or consent. Often it involves the trusted individual embezzling only a small proportion or fraction of the total of the funds or resources he/she receives or controls; in an attempt to minimize the risk of the detection of the misallocation of the funds or resources. Often times it is done in different ways such as falsification of records, tampering of receipts, or creating a false vendor account, and to supply false bills to the company being embezzled so that the checks that are cut appear completely legitimate. Yet another method is to create phantom employees, who are then paid with payroll checks. When successful, embezzlements continue for years without detection (Wikipedia). These activities are done not only one time but it is usually a practice habitually performed by those who are in the authority and those who are in charge of the funds. They have mastered their way on how to do it. Embezzler knows that taking a big sum at one time can be noticeable immediately. They choose to do it little by little to avoid detection. These activities can only be detected through auditing which is often time done only once a year. Surprise always happen after the audit when it is found out that a lot of money have been stolen by individual persons. The head ache comes in on how to solve or return the money. Often time it is not that easy to take it back, it has to go through the legal procedures and taking another cost to settle the problem.  

Singer (1987) argued that embezzlement is a crime against ownership; that is, the owner's right to control the disposition and use of the property. The conversion element requires a substantial interference with the true owner's property rights. However laws are different in different countries. In some countries, criminalization would depend not on the activity of embezzlement but on the amount he/she has stolen. The law determines how much money is to be considered as a criminal offense. These laws can discourage or encourage people to embezzle.

 

Extortion

Extortion is also called exaction. It is an act of obtaining money, property, or services from a person, entity, or institution, through coercion. Extortion is commonly practiced by organized crime group. The actual obtainment of money or property is not required to commit the offense. Making a threat of violence which refers to a requirement of a payment of money or property to halt future violence is sufficient to commit the offense. Exaction refers not only to extortion or the unlawful demanding and obtaining of something through force but additionally, in its formal definition, means the infliction of something such as pain and suffering or making somebody endure something unpleasant (http://legal-dictionary.thefreedictionary.com/Extortion, retrieved, May 09, 2014).  Extortion is distinguished from robbery. In robbery, whether armed or not, the offender takes property from the victim by the immediate use of force or fear that force will be immediately used (as in the classic line, "Your money or your life."). Extortion, which is not limited to the taking of property, involves the verbal or written instillation of fear that something will happen to the victim if they do not comply with the extortionist's will. Another key distinction is that extortion always involves a verbal or written threat, whereas robbery does not. In blackmail, which always involves extortion, the extortionist threatens to reveal information about a victim or their family members that is potentially embarrassing, socially damaging, or incriminating unless a demand for money, property, or services is met (MSN-Encarta).

However, nowadays, extortion is not necessarily referred to coercion; the term extortion is often used metaphorically to refer to usury. It is also often used loosely to refer to everyday situations where one person feels indebted against their will, to another, in order to receive an essential service or avoid legal consequences.

Neither extortion nor blackmail requires a threat of a criminal act, such as violence, merely a threat used to elicit actions, money, or property from the object of the extortion. Such threats include the filing of reports (true or not) of criminal behavior to the police, or proper authority, or revelation of damaging facts ((http://legal-dictionary.thefreedictionary.com/Extortion, retrieved, May, 09, 2014).

Many times extortions are committed by the Public Officials and individual persons who have the power to damage reputation. The essence of extortion by a public officer is the oppressive use of official position to obtain a fee. For example, a commission on audit that is tasked to audit all expenses of all government offices. Many anomalies are not exposed because the auditors are paid not to reveal the anomalies. Or let us take an example of polices who are assigned to oversee the highway traffic. When the traffic officers caught the drivers who violated the rules of traffic, the police often asked the drivers to choose, either to pay certain amount to them or face the consequences of revoking or confiscating the license and pay certain amount at designated offices. Violators tend to choose to pay certain amount to them rather than license is revoked or confiscated. In this situation many violators are set free. Media is another example. Often time media is not revealing certain anomalies in different offices committed by public officials because they are paid. 

Protection

Corruption is performed in many forms with different scheme. Protection rackets are not the same as extortion rackets. In an extortion racket the racketeers agree not to attack a business. In a protection racket the racketeers agree to defend a business from any attack. However, they may threaten to attack or attack the business if it denies protection (http://en.wikipedia.org/wiki/Protection_money, retrieved, May 14, 2014). Extortion is not necessarily done by criminal or organized crime group but it can be done by the police.  Extortion is usually is defined as extracting some amount from an entity by a criminal, gang leader, or government official to 'protect' the entity from other criminals, trouble makers, or regulatory agencies. Its demand is accompanied by an express or implied threat that its non-payment will bring great harm to the non-payer.
(http://www.businessdictionary.com/definition/protection-money.html#ixzz31OGpPhh7, retrieved, May, 11, 2014).

Protection activities are done in many places. Let us see some places or countries that are mentioned in several news papers to support our claim that protection money is done not only by criminals but also by the police. In southern Italy, the pizzo is protection money paid by a business to the Mafia, usually coerced and constituting extortion. The term is derived from the Sicilian pizzu ('beak'). To wet someone's beak is to pay protection money. The practice is widespread in Southern Italy, not only by the Sicilian Cosa Nostra, but also by the ‘Ndrangheta in calabria and the Camorra in Campania (http://en.wikipedia.org/wiki/Pizzo_(extortion, retrieved, May 14, 2014).  In the Philippines, NPA (New People’s Army) is able to maintain its survival and finance their operation by receiving money from businesses and even from politicians as pointed in the report of Depasupil (2014) in “The Manila Times”. In his report, based on the information given by the military he revealed that the mining companies have been paying protection money to the NPA. (Depasupil, 2014). Last May 1, 2013, PNP Chief, General Alan Purisma advised people not to vote the politicians who are paying protection money to the NPA (GMA News Online,May, 2013) . 

Protection money is not only committed by organized crime like Mafia but even the police. Take several examples: a Chicago police officer pleaded guilty to stealing $5,200 in cash that he thought belonged to a drug dealer. But the money was really part of an undercover sting. Wentworth District tactical unit Officer Kallatt Mohammed also admitted in his plea deal, entered in federal court, that he took protection money from heroin and crack dealers at the Ida B. Wells public housing complex on the South Side in 2007 and 2008. (http://www.infowars.com/chicago-cop-admits-taking-protection-money-from-drug-dealers/ retrieved, May 20, 2014).

In Washington D.C, the club owners have to pay the police for protection as indicated in the report of Rend Smith (2011) in Washington City paper. According to the report, since 2006, various club and bar owners have been hiring "reimbursable details." Some have had no choice. If a place attracts the ire of the Alcoholic Beverage Control Board or the police by, say, having a rowdy crowd or violent patrons, they could be required to hire a detail. The hourly rate is a fat $55.71 per officer, and each detail is made up of at least two cops. The officers are paid overtime wages. Any money left over gets rather mysteriously absorbed into the Metropolitan Police Department (http://www.washingtoncitypaper.com/blogs/citydesk/2011/01/28/club-owners-to-pay-more-protection-money, retrieved, May 16, 2014). 

 

Theft

Corruption is in many forms. Another form is theft. In common usage, theft is the taking of another person's property without that person's permission or consent with the intent to deprive the rightful owner of it (Merriam Webster and Legal-Dictionary). The word is also used as an informal shorthand term for some crimes against property, such as burglary, embezzlement, larceny, looting, robbery, shoplifting, library theft and fraud. In other words, this is another term for stealing. Theft often happens in the offices where employees or public officials use the property of the office not for official business assigned to him/her but for her/his own pocket/interest. Examples: employees use the computer of the office not for business purposes but for writing their own proposals. Or using petty cash fund or budget for the office not for what is intended for but for personal needs which is not related to the office function. Theft may be considered small sometimes but when it is done regularly, becoming a habit, then it will be accumulated. As a result, assets are eroded and results are not delivered and public service is sacrificed. 

 

 

Solving Corruption is the Role of Government and  Society

We have already identified several reasons why corruption exist and these are lack of moral values, lack of control and supervision as a result of over trust, weak implementation of policies and weak leadership, partly bad incentives and living standards, culture. Thus the solution to those problems would be the job of the government and individual citizens.   

 On The part of Government
 

1.      Sound Moral Architecture. In any organization, core values are important. These core values are not just for decorations which are placed on the wall without being implemented. There must be program within the organization to implement and to oversee that those values are being practiced or lived by the member of the organization. A moral compliance officer must be assigned and programs or trainings related to the understanding and implementation of those values must be established.

 

2.      Strong Leadership. Strong leadership means that the leader should not bend the policies to fit his convenience or the convenience of particular individual or group. Implement the policies and punish those who violate the policies. Those who are stealing, see to it that they are investigated and if found guilty, must be jailed. No compromise, no favoritism.

 

3.      Strict internal control in each bureaucracy. In each department, there must be internal control to monitor the whole operation and to check whether the operation is still in the right track. Proper system for check and balance must be established. However, corruption happens not only done inside the office but also outside of the office which is hard to be monitored. 

 

4.      Lifestyle check. Things that cannot be monitored within the organization can be done through life style check. Many officials have an extravagant lifestyle which is beyond the income that they received monthly. Such lifestyle signifies something fishy that there is another source of income. Find out what another source of income is. Included in the lifestyle check are their family members such as children and their relatives.    

 

5.      Individual screening and monitoring. When someone is hired, the executive must require the individual person to submit his assets and liabilities and his net worth. Through such system, the executive monitor the development and the growth of his assets. This is to find out if the growth is equivalent to his monthly income or not. Anything that shows otherwise, it means that something comes in through unusual means and it means that an inquiry must be done.

 

6.      Raise the salaries and incentives. People are finding ways to meet the needs of everyday life. When the salary is not enough, employees will find ways to raise money for their survival. If they have the opportunity inside the office in which they can use their office and their position to make money for themselves, then they will do. This is a crucial job for a manager to monitor the living standards of common people in the locality and to adjust or to raise the salaries and incentive to meet the current living standards.

 

7.      Integrity Agency/Commission. As a sign of strong leadership, moral leadership and political will is to establish Integrity Agency. Such agency is assigned to clean the organization and departments from all kinds/forms of corruption including persecuting those who have violated the law. There must be no favoritism. The agency must be independent which is not attached or supervised by any other agency to ensure its independence and integrity in doing their job as corruption eradicators. Independence means independence from the control of the President and the Supreme Court. They should have their own rules on how to persecute a case.


8. Committed human capital. In my view, whatever, policies, laws written to curb corruption, it will always be dependent on the individual persons. The very crucial point here is committed human capital. The main question is: do we have committed individuals on the lists to do the job to the highest integrity as possible? Thus committed individuals are not only equipped by their skills, commitment but more so, their values, moral values. Therefore, it is very important that screening process or recruitment process must include examination of values and background check if the person deserves to be in certain position.

9. Whistleblower law.  One of the reasons why individual citizen does not come out to reveal the corruption is their safety.  People are afraid of their life being in danger. It is better to stay safe rather than going into unnecessary troubles. Unless the state guarantees their security, they would not come out. Therefore laws for whistleblowers must be made.

10. Whistleblower’s Incentive.  Whistle blowing job is a risky job.  There are a lot of things to sacrifice. The whistle blowers   sacrifice their time, work and their life. Someone who is coming out must be considered a hero. They must be rewarded. Prize money is not only given to the one who is willing to expose the identity of the criminal but also the one who expose the corruption.  

 

On the part of Society

11. Media integrity and Freedom.  Corruption is common enemy for all. Corruption can be eradicated if all citizens are cooperative enough to expose corruption. The job of exposing corruption is not only the job of government but the job of every citizen. In this case, media must play the key role in revealing the corruption to the public eyes. It should maintain its integrity by not compromising the truth as its role to expose the truth and its freedom not to be suppressed by the authorities and by their money.   

 

11.  Civil society Vigilance. Since corruption strikes everywhere, it would be hard to rely on the government to expose corruption activities of government officials. It is the job of every individual citizen to guard their interest that they have surrendered to the government. Since the result of corruption kills everyone, then it is the job of all citizens to guards their interest. In this case individual citizens are empowered to monitor government officials and their lifestyle and report their observations to the integrity Agency/Commission. 

 

 

Conclusion

Corruption is everywhere and it is done in many forms. This is due to many reasons but all reasons are within the control of society. It means that corruption can be solved. Solving corruption is not only the job of the government but society as a whole. However, government and particularly the chief executive must take the lead in solving corruption. Unless the President takes the lead, then corruption down the line will never be solved. So, corruption is not just about ethics. It’s also about how the government is set up and managed.

 

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