Corruption in Bangladesh

• Transparency International (TI) ranked Bangladesh as the most corrupt country in

the world for five consecutive years (2001-2005)
• Though in recent past, the position of Bangladesh slightly improved in respect of
corruption ranking but there is debate about the reduction of magnitude of
corruption and its negative impacts.
• It is estimated that about 2-3 percent of Bangladesh economy, which is around
$1.5 billion annually, is lost to corruption.
Types and Forms of Corruption
• There are three major types of corruption that are commonly found in
developing countries
i) Payment made to a public servant for a specific service which an
individual is entitled to have by law
ii) Payment made to a public servant with a view to have a service
which by law an individual is not entitled to
iii) Payment made to a public servant by an individual to amend a law
or policy in line with his or her own interest(s).
• Corruption in Bangladesh is characterized by various forms: bribe, graft,
extortion, nepotism and cronyism, pilfering, delays in service
provision, embezzlement, kickbacks, misappropriation of funds etc.
Causes of Corruption
• The overall crises of morality of the society, overall growing
poverty of the society, and the lack of the rule of law
• Corruption is mostly influenced by inefficiency of the judiciary
system, bad legislation, the nature of the political and economic
system, poor incentive system for the civil servants etc.
• The flaws of political systems can be noted as the prime
impediment to establish ethical civil service.
• Political parties have to maintain full-time political workers and
Mastan who only be maintained with large scale corruption often
carried out with bureaucratic support and participation.
Causes of Corruption (Cont.)
• Mutual Corruption Pressure which includes both the giving, and the taking of a
bribe.
• Culture of Impunity (unpunished) has developed where many in power do not
expect to be held accountable for their actions
• Complicated and Cumbersome Procedures in Government Offices like the
Customs and Excise, Land Administration, Police, Taxation. Etc. Sometimes
corrupt civil servants make the situation more complex with bad intentions
• Poor Remuneration of the bureaucrats
 Legal framework
• The legal framework is the basis for communicating the minimum
obligatory standards and principles of behavior for every public servant.

• Laws and regulations could state the fundamental values of public

service and provide the framework for guidance, investigation,
disciplinary action and prosecution. Thus, ethical standards and values
are generally reflected in the legal framework of a civil service.
The Key Acts, Rules and Ordinances for Bangladesh
Civil Service
Acts/Rules/ Ordinances Main Focuses

The Government Servants (Conduct) Rules, 1979 Regulate the code of conduct of the civil servants of
Bangladesh.
The Government Servants (Discipline and Appeal) Rules, Describe the grounds, nature and processes to award
1985 punishment.
The Government Servants (Special Provisions) Maintain hierarchic discipline among government
Ordinance, 1979 servants.
The Government Servants (Punctual Attendance) Ensure punctual attendance of the civil servants.
Ordinance, 1982
The Government Servants (Dismissal on Conviction) Dismissal of public servants on conviction of a criminal
Ordinance, 1985 offence.
The Administrative Tribunal’s Act, 1982 Entertain applications made by person in the service of
the republic in respect of terms and conditions of service
including pension rights.
Rules of Business, 1996 Framed for the purpose of allocating as well as
transacting government business.
Secretariat Instructions, 2008 Procedures for the transaction of governmental business
circulated among the state functionaries in an officially
compiled document.
The Right to Information Act, 2009 Gives the citizen the right to ask for information from the
government
Institutional Arrangements for Combating
Corruption

• Ombudsman: Power of investigating the actions taken by a public

authority (Article 77) (Not functional)
• There are some institutional mechanisms to regulate the civil
servants like Audit Department, Anti Corruption Commission etc.
Anti Corruption Commission
The independent Anti Corruption Commission (ACC) Bangladesh was
created through an act promulgated on 23 February 2004 that came into
force on 09 May 2004.

• Vision: To create a strong anti-corruption culture that permeates

throughout the whole society.

• Mission: To relentlessly combat, control, suppress and prevent

corruption.
Strategic objectives of ACC
 Institutional Arrangements for Combating
Corruption
The ACC is responsible for:
• enquiry and investigation into the scheduled offences on any allegation
of corruption on own initiative, or upon an aggrieved person or by any
person on his /her behalf;
• file and conduct cases on the basis of enquiry and investigation;
• promote the values of honesty and integrity in order to prevent
corruption and take measures to build up mass awareness against
corruption; and
• identify the sources of different types of corruption existing in
Bangladesh
But…
• The government has approved an amendment to the ACC Act which
has significantly undermined its independence and hampered its
effectiveness
• The ACC's functional independence has been effectively negated by
requiring it to take prior permission from the executive before
proceeding with corruption charges against government functionaries
and MPs
Big Fishes out of Reach
“Giant corrupt players have money, political power and networks, so they
use these to stay their cases in the Court.”

“Without involvement of high-ups, the lower tier officials or employees

would never take bribes or do unlawful activities. ACC could not do
anything to bring the high-ups into justice till now.”

“You will not find any millionaire businesspeople or bureaucrats or senior

political leaders in the jail. How is it possible? Only the commoners are
the corrupt? It is so easy to answer... the influential people always get
unlawful support from the politicians and cor-rupt system because they
have money, muscle and power.”
Cases:
• The World Bank (WB) suspended its $1.2 billion funding of the $2.9 billion cost for
Padma Multipurpose Bridge Project (PMBP) in September 2011 over allegations
that former Communications Minister and his family-owned company sought to
coerce multiple companies into using his company as a paid "silent agent" in order
to get permission to bid for the contract of the main bridge. In September 2012,
the WB revived the funding to PMBP on four conditions, including a credible and
impartial investigation into the graft allegations by the ACC and the External Panel’s
report where ACC is labelled as “puppet” of the high-level government officials.
(New Age: 4 September 2012)
• In May 2012, a central bank investigation revealed massive irregularities in
sanctioning and disbursing loans worth Tk 35,470 million ($422 million), mostly to
little-known Sonali Bank-Hallmark Loan Scam. In the ACC report or charge sheet
many big fishes were not accused for political interferences. It is alleged that a
powerful quarter pressurized the investigators to not include some political figures.
(Daily Star: 4 April 2012)
Measures to Control Corruption
National Integrity Strategy (NIS)
• Bangladesh’s journey towards establishing a National
Integrity Strategy (NIS) started in 2007 after it
complied with the United Nations Convention
Against Corruption (UNCAC)
• In 2008 a framework for NIS was developed.
• In 2012, after detailed consultation with various
stakeholders, the Government of Bangladesh (GoB)
developed a National Integrity Strategy (NIS).
 Why ‘National Integrity
Strategy (NIS)’?
‘Crisis of Integrity’

• To promote better governance and combat corruption

• To highlight institutional failures to strengthen internal
controls in State institutions
• To induce a culture shift by encouraging the adoption
of citizen-owned accountability mechanisms
• To underscore the need for good governance and
business ethics in the corporate sector through self-
regulation
 Coverage and
Components of the NIS

Coverage of the NIS

• Public service and Administration
• Institutions of accountability (e.g.
Parliament, Judiciary, EC, PSC and ACC
etc.)
• Civil society, media, and the private sector
Components of the NIS
• Mobilize State & Public to identify and formulate
adequate institutional framework to institute
integrity
• Mobilize Citizens Actions & Promote Public
Awareness (citizen owned anti-corruption
accountability mechanisms- citizens participation in
monitoring)
• Engage with the Private Sector and promote self-
regulation (various Chambers of Commerce)
• Mobilize International partners including donors
(Global partnerships)
 Ministry/Agency Good Practices Studied

Ministry of Health and Note to Successor; technical

Family Welfare study circle among officials
Bangladesh Bridges Grievance Redress System
Authority (GRS)

Table: Good Practices Studied

Factors affecting the overall Process

• Environment within which the ministries and

the agencies are operating

• Organizational structure, regulations, standing

operating procedures and formal rules

• The norms and the embedded organizational

culture

• The informal rules that may affect the

behavior and attitude of the agency officials
 Measures to Control Corruption
• Implementation of RTI Act, 2009, Public Procurement Rules 2009
• Nexus between politicians and bureaucracy needs to be broken
• ACC needs to be strong and independent
• Simplification of administrative procedures
• The pay levels are important as an incentive for civil service employees
not to be corrupt or dishonest.