CORRUPTION EPIDEMIC!
Wiping out corruption would be a bigger triumph than scaling Mount Everest
In recent weeks, a corruption epidemic has prompted the political leadership to declare an all-out war against graft. But, as ANIL NETTO, points out, the authorities are unlikely to succeed in their crusade unless they use more effective measures to wipe out corruption, which is now so deeply rooted in Malaysian society.
It s not just the mysterious virus in Sarawak, which has killed more than two dozen toddlers so far, that is creating ripples of concern in the country. All of a sudden, it seems as if a corruption epidemic has also struck the nation with a vengeance. . In recent weeks, we have seen middle-ranking politicians hauled up on various graft charges. Now, Acting Prime Minister Anwar Ibrahim says the big fish will not be spared either.
But is graft in Malaysia something new? Of course not. It has been festering for years. But the political will to act decisively to tackle the problem was missing. Until now, most Malaysians looked at corruption as one of those unchangeable facts of life. Oh well, some of us used to say, everyone is doing it. If you can t beat em, join em.
We have all heard anecdotes about how a ten or fifty ringgit note can do wonders to grease the outstretched palms of some sticky bureaucrat or corporate official. Such small-scale bribes are hard enough to wipe out. But it is much harder to tackle high-level corruption in business and politics. And when business and politics mix, when it becomes institutionalised, the result is full-blown graft and money politics.
The tentacles of business and politics first started intertwining in the 1980s. The symptoms were almost immediate. Ugly, gaping wounds erupted in the social fabric starting with the infamous BMF banking scandal - Malaysia s first multibillion ringgit scandal. Since then, there has been no turning back with scandal after scandal exploding with alarming regularity. The latest shock in Brisbane - where former Selangor chief minister Muhammad Muhammad Taib was caught red-handed with RM2.3 billion in undeclared cash as he tried to leave Australia - shook Kuala Lumpur.
Muhammad s subsequent resignation triggered a fresh wave of official concern about the extent of high-level graft and money politics in the country. The alarm bells started clanging in the country s dominant political party. Asked a bewildered Defence Minister Syed Hamid Albar: Our struggle has always been based on noble values. Where did we go wrong?
We have eyes to see, and yet do not see. The political leadership refuses to see the truth, perhaps because the truth is usually painful and often difficult to accept. And what is the truth? Malaysia has often proclaimed political unity through the ruling United Malays National Organisation (UMNO), which is, more or less, a political-cum-business organisation, asserted an editorial in Bangkok s respected The Nation newspaper. The unchallenged rule by which UMNO runs the country, though, has left it open to abuses by those in power.
It s a sharp, detached observation from a neighbouring country, where press freedom has flourished. And it s right on the mark: The centralisation of power and the lack of democratic space in Malaysia - in an environment where business and politics are closely intertwined - has fuelled corruption and abuse of power. And it s not just UMNO. To a lesser extent, the MCA and other ruling political parties are also enmeshed in business.
With the press shackled, with the political opposition crippled, and with the judiciary facing a crisis of confidence, corruption has thrived. Add to that the Official Secrets Act, and the Internal Security Act, both of which deter public-spirited individuals from whistle-blowing, and you have the perfect nest for corruption. Sure enough, more cases of graft and abuse of power have been revealed since the Brisbane debacle. But what has been uncovered so far is probably just the tip of the iceberg.
Efective Measures
The government has tried to curb graft by asking all state assembly members to declare their assets to the state chief ministers. The chief ministers, in turn, have to declare their assets to the prime minister. (But to whom does the prime minister declare his assets?) Last year, they banned campaigning in the run-up to the UMNO party elections.
These half-hearted measures will not be effective. All elected officials - and their spouses and relatives too (for it is not uncommon for them to become rich overnight) - should publicly declare their assets in the state assemblies and in parliament every year. The public must have access to these declarations.
A free press and an independent Anti-Corruption Agency would be able to probe unusually wealthy politicians, shady business tycoons, unethical civil servants, and dishonest company executives.
The repeal of the Official Secrets Act and more transparency in decision-making would allow the public to judge for themselves who really benefits from special share allocations: the politically well-connected or the deserving.
Whenever a company applies for listing, it is always the names of the same two or three groups which are submitted to the Securities Commission for special share allocations. This is the UMNO Youth leader Zahid Hamidi speaking - and he should know. So where is the accountability? Who decides the special share allocations?
All bumiputras who have the financial means and corporate spirit must be given equal opportunity to own shares, added Zahid. But what about the equal opportunity of those without the financial means, the poor? Are special share allocations only meant for the rich? And isn t there a conflict of interest when relatives of cabinet ministers receive large special allocations of shares? Isn t this an abuse of power and a form of corruption too?
Aliran also calls for more transparency in awarding privatisation contracts. Open tenders should be a must for all deals. The shroud of secrecy in awarding contracts in the past has led to certain politically linked companies monopolising privatisation deals. And this has led to ever-increasing tariffs and tolls - often the result of the chosen companies inefficiency or inexperience.
Corporate Graft
Graft in companies and state agencies should also be probed. There have been numerous cases of managers and department heads swindling companies of thousands, sometimes millions, of ringgit. No need to look further than Perwaja Steel, which suffered huge losses and paid large amounts to dubious parties.
Often a company s external auditors are to blame for compromising their professional independence. An external auditors firm that receives most of its total audit fee from a few big firms would be reluctant to risk losing those clients by highlighting corruption involving the clients directors.
Although auditors are expected to maintain strict independence, in reality the partners of an audit firm often develop cosy personal relationships with their clients senior directors.
So, the junior audit staff go through the motions of the audit. But when it comes to large shady transactions, the partners are often tempted to close an eye to avoid jeopardising their future fee income from that client if they take a firm stand. Auditors might even go to the extent of helping their clients to window-dress their accounts using creative accounting .
One way to overcome this conflict of interest is to limit an audit firm s tenure with any client company to say, three years.
Spiritual Reformation
Aliran welcomes Anwar s statement that the axe would fall on anyone caught for corruption, including the big fish . Such stern action, if it does occur, would be long overdue. That would be the easy bit.
If Anwar is really serious about permanently wiping out corruption, then the more difficult task would be to disentangle the complex web of business and politics. Anwar is right when he says a reformation is needed to rid the country of graft. Indeed, there has to be reformation among Malaysians - a reformation of attitudes, of politics, of business - a spiritual reformation that will cleanse society of the evil of corruption.
That reformation has to begin now. The country s political leaders should show the way. If Malaysians believe that their political leadership is clean, then we will have no excuse to be corrupt. This is where we desperately need Leadership by Example.
Rhetoric alone is not enough. We need brave, firm action. If we could wipe out corruption in Malaysia, we would really show the world that Malaysia Boleh. Ultimately, such a heart-warming feat would be a far, far more meaningful accomplishment than planting the Malaysian flag on the icy summit of Mount Everest .
Aus der Monatsszeitschrift ALIRAN monthly, Vol. 17 Nr. 5 (Juli) 1997) S. 2 - 5
