Country Study Report 2003

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Country Study Report 2003 National Integrity Systems 2003 National Integrity Systems Transparency International Country Study Report Pakistan 2003 Lead Consultants Alan Doig and Stephanie McIvor Fraud Management Studies Unit Teesside Business School Middlesbrough TS1 3BA UK National Integrity Systems 2003 Report Author Barrister Naimur Rahman was called to the Bar from the honourable Society of the Inner Temple in 1962 He has been practicing as a barrister in Pakistan for the last 39 years and his expertise includes Constitutional, Environmental and Commercial matters. In 1974 he was appointed an Advocate of the Supreme Court of Pakistan and has served as Deputy Attorney General for three years 1997-2000. He is presently lecturing at the Hamdard University of Law on constitutional law in Pakistan. He is also serving as Legal Advisor to many Multinational Organizations. One of his cherished involvements is working with Civil Society organizations representing Citizens and Non Profit Organizations in Human Rights cases at both the High Court and Supreme Court. Research Coordination Transparency International – Pakistan has been involved in coordinating with Barrister Naimur Rahman in compiling this report. This report is draws upon interviews and meetings with senior public officials and major donor agencies and IFIs carried out in April 2002 during a 10-day visit by a three-member Mission of Transparency International. The Government of Pakistan and the World Bank sponsored the visit. Researcher Mohammad Abdul Rahman, Research Assistant. Acknowledgements Barrister Naimur Rahman and Transparency International – Pakistan would like to extend its appreciation to the following in helping towards the preparation of this and for their contributions to it. Jawaid Siddiqui, review of the report. Syed Adil Gilani, review of the report. Faisal Bin Riaz, typing out the manuscript. Acknowledgement and Thanks Due to the comprehensive Report on the National Anti-Corruption Strategy prepared by the Steering Committee under the Aegis of the National Accountability Bureau, Transparency International – Pakistan has been able to borrow substantial material from it. The Report is commendable in its comprehensiveness and details with respect to the Genesis, Causes and Impact of Corruption in Pakistan. We have also borrowed from Mohammad Wasims compilation of articles in his Electoral System in Pakistan, for which we would like to thank him and the contributors to this compilation. We pray that he and the other contributors forgive us for borrowing from it. The treatise had put forward recommendations, many of which we must acknowledge have become part of the reforms undertaken by the Government of Pervez Musaharraf and the Election Commission of Pakistan prior to the elections of 2002. Pakistan 2 National Integrity Systems 2003 The National Integrity Systems TI Country Study Report Pakistan 2003 was made possible with the funding of the UK Government’s Department for International Development. © 2003 Transparency International Transparency International Secretariat Otto-Suhr-Allee 97-99 10585 Berlin Germany http://www.transparency.org Pakistan 3 National Integrity Systems 2003 Contents List of Tables ........................................................................................................................ 5 Abbreviations ....................................................................................................................... 6 Executive Summary ............................................................................................................. 8 Country Overview............................................................................................................... 13 Genesis of Corruption........................................................................................20 Causes of Corruption in Modern Day Pakistan.......................................................20 Extent of Corruption .........................................................................................25 Prevalence and Costs of Corruption.....................................................................28 Impact of Corruption.........................................................................................30 What is Understood as Corruption: the Legal Context............................................31 The National Integrity System........................................................................................... 35 Constitutional Change .......................................................................................35 Executive ........................................................................................................40 Legislature.......................................................................................................44 Electoral Commission ........................................................................................46 Political Parties.................................................................................................48 Supreme Audit Institutions ................................................................................51 Judiciary..........................................................................................................56 Civil Service.....................................................................................................61 Police and Prosecutors ......................................................................................70 Public Procurement ...........................................................................................73 Ombudsman ....................................................................................................76 Investigative/Watchdog Agencies .......................................................................79 Media..............................................................................................................85 Civil Society.....................................................................................................88 Provincial Government and Local Government......................................................90 Anti-corruption Activities .................................................................................................. 97 National Strategy for Combating Corruption.........................................................97 Overview of Major Donor Anti-corruption Activities. ............................................105 Endnote ............................................................................................................................. 112 References ........................................................................................................................ 113 Officials Interviewed ........................................................................................................ 116 Annex 1: The Pakistan State ........................................................................................... 117 Pakistan 4 National Integrity Systems 2003 List of Tables Table 1 Causes of Corruption ..................................................................................25 Table 2 Average Bribery Expenditure Per Consumer By Sector......................................25 Table 3 Most Corrupt Sectors in the Country .............................................................27 Table 4 Expenditure of Consumer on Bribes by Sector (Cumulative).............................28 Table 5 Cost of Corruption ......................................................................................29 Table 6 Types and Levels of Those Under Investigation for Corruption in 2002 ..............29 Table 7 Strength of Judges and Ministerial Staff.........................................................58 Table 8 Comparison of Corruption Cases by Seniority of Public Servants (above or below Grade 19/20) by the two ACAs ...........................................................................80 Table 9 Summary of Some Other Major Cases Investigated and Prosecuted by the National Accountability Bureau............................................................................85 Table 10 The Press and Electronic Media...................................................................86 Pakistan 5 National Integrity Systems 2003 Abbreviations ACA Anti-Corruption Agency ACE Anti-Corruption Establishment ACO Anti-Corruption Operations ACR Annual Confidential Report ADB Asian Development Bank ADR Alternate Dispute Resolution AG Auditor General AJP Access to Justice Programme BoQ Bill of Quantity CBO Community Based Organization CBR Central Board of Revenue CCB Citizen Community Board CFAA Country Financial Accountability Assessment CGA Controller General of Accounts CPLC Citizen Police Liaison Committee CRI Corruption Rating Index CRR Committee on Restructuring and Rightsizing CSO Civil Society Organization CSS Central Superior Services DFID Department for International Development DMG District Management Group E&D Efficiency and Discipline ECW Economic Crime Wing FACC Federal Anti-Corruption Commission FCA Foreign Currency Account FGR Financial Governance Rating FIA Federal Investigation Agency FMC Fiscal Monitoring Committee FPCCI Federation of Pakistan Chambers of Commerce and Industry FPSC Federal Public Service Commission FY Financial Year GoP Government of Pakistan HRM Human Resource Management ICAC Independent Commission Against Corruption IMF International Monetary Fund INTOSAI International Organization of Supreme Audit
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