Corruption in Pakistan - Aask24.Com l Assignment l ...aask24.com/wp-content/uploads/2015/11/Corruption-in-Pakistan.pdfCorruption in Pakistan Submitted to: Presented By: - . Presented

Presented by – www.Aask24.com

1

Corruption in Pakistan

Submitted to: www.Aask24.com

Presented By: - www.Aask24.com


2

Acknowledgements

All the praises are for the almighty, Allah who bestowed me with the ability

and potential to complete this Internship. I also pay my gratitude to the

Almighty for enabling me to complete this Internship Report within due

course of time.

Words are very few to express enormous humble obligations to my

affectionate Parents for their prayers and strong determination to enabling

me to achieve this job.

I take this opportunity to record my deep sense of gratitude and appreciation

to my Internship Advisor www.Aask24.com for his constant encouragement

and inspiring guidance with his Wisdom.

I appreciate www.Aask24.com for providing me requisite information and

knowledge for compilation of my complete Internship.

http://www.aask24.com/



3

Dedication

I dedicate this to my Beloved Parents for all their love & attention which

has made it possible for me to make it up to this point and as well as the

www.Aask24.com who bestowed me with the courage, the commitment and

the awareness to follow the best possible route, by his unmatchable style and

by best possible training



4

CONTANTS:

Acknowledgements 03

Dedication 04

Introduction 06

Key Corruption Issues In Pakistan 07

Causes Of Corruption In Pakistan 08

Contribution Of Public Sectors In Corruption 09

History Of ACE 11

Legal Frame Work 12

Procedure For Conducting Enquiries/ Investigation 13

ACE Set-Up 15

Staff Induction Procedure 21

Identified areas of corruption & remedial measures By ACE 22


5

INTRODUCTION:

The United Nations Convention against Corruption has stated that "Corruption is

no longer a local matter but a trans-national phenomenon that affects all societies

and economies. There is requirement of international cooperation to prevent and

control it essentially." The scope of prevention, investigation and prosecution of

corruption and the freezing, seizure, confiscation and return of the proceeds of

offences is set out in Article 3 of UN Convention. The prevention of corruption would

involve the participation of society and reflect the principles of the Rule of Law,

proper management of public affairs and public property, integrity, transparency

and accountability.

A triangular relationship exists between government, the private sector and civil

society. Corruption can take root in all or any of the three parties to the relationship.

It is thus both theoretically and practically impossible for just one of the parties to

address the issues of corruption on its own and in isolation from the other two. It is

impossible to tackle the issue effectively without the participation of all three.

The world wide accepted definition of the corruption is "Abuse of public trust for

personal gain". The definition has the advantage of covering a whole range of issues

ranging from nepotism, manipulation (namely to influence public decision in one's

favor in any area of life) and exhortative corruption (where one is forced to bribe in

order to gain or protect one's rights or needs.)

BACK GROUND OF CORRUPTION IN PAKISTAN

The culture of corruption was promoted by the administration of colonial era

through the award of lands, titles and jobs to a specific group supporting colonial

objectives as part of political bribery. Till the Second World War, corruption was

prevalent in considerable measure amongst Revenue, Police, Excise and Public

Works Department officials, particularly of the lower grades while the higher ranks

were comparatively free from this evil. By the time of Independence in 1947,

increase in corruption by public officials became much noticeable. In Pakistan,

white-collar crime had its roots in the 1950s, starting from settlement of refugee

claims, industrial sanctions, allotment of agricultural lands etc; all used as

mechanics of money making, giving rise to rampant corruption. The role of money in

politics of Pakistan has brought in a new class of wealthy public office holders who

have constantly strived for saving their business interests at the cost of National

economic advantage.

According to Transparency International Corruption Perception's Index 2010,

Pakistan occupies 143 position out of 178.


6

KEY CORRUPTION ISSUES IN PAKISTAN

1) Post independence settlement of refugees and allocation of properties. Evacuee

Property led to the start of corruption seeping into Pakistan society surreptitiously

spreading its tentacles everywhere.

2) The interventionist economic policies and wide discretionary Powers (liquid

petroleum gas quotas & textile quotas) tempted public officials into criminal acts.

3) Inadequate compensation to civil servants and "Demonstration Effect" induced by

the corporate salaries and remittances from Gulf countries is another contributory

factor to corruption.

4) Excessive aid flows over the years and the reluctance of international funding

agencies to tackle corruption in Social sector programs, which are directed at less

visible outputs also became victim of this menace. A large number of projects in the

social sectors have been mere exercises in paper pushing. In the 1980s Pakistan

received a major portion of its aid in the form of grants and these funds served to

line many a pocket.

5) Exorbitant valuation inland acquisition of major projects led to huge increases in

project outlays.

6) Crime-wise analysis reveals, financial scams have severely damaged public trust.

Foremost among these was the Cooperatives Scandal (i.e. Housing and Finance

Corporations), which has shaken the confidence of the small depositors. About

Rs.13-14 billion went into accounts of these Corporations. In a country with low

saving rates such incidents have long-term economic implications.

7) Loan Default resulted in trust breaching crimes. The nationalization policies of

the 1970s gave direct political controls and financial prudence gave way to political

pressure and bribes. Political clout and ability to bribe became the criteria for loan

issuance.

8) The state Bank of Pakistan was unable to prevent disasters because of the weak

regulatory systems. Financial institutions were completely at the mercy of ruling

clique, who did not waste the opportunity to exploit the situation to their advantage.

9) Corruption is invariably a collusive form of activity premised on a nexus of the

elites e.g. politicians, bureaucrats, businessmen (including foreign companies) and

technocrats. Colluding bureaucrats assisted in the politicization of the civil services

thus ushering in the subsequent loss of professionalism.


7

10) Delivery failures of civil institutions to greater extent are attributed to planned

political inductions at lower levels. The result was? Reduced efficiency and increased

corruption?. Some of the daring functionaries accumulated assets worth millions.

11) The sociological factors cannot be ignored as well. Favors were given on the basis

of ethnic, familial, religious and other social considerations. Large numbers of public

office holders have failed to stand up to resultant pressures.

CAUSES OF CORRUPTION IN PAKISTAN

Despite important government reforms in a number of areas of governance, the

underlying conditions for corruption persist. The challenge is to understand why,

when faced with temptation, officials engage in corruption, and why the public often

colludes? At the individual level, corruption results from need or greed combined

with opportunity, when there is low fear of detection or punishment. The need or

greed element of corruption must be understood in its wider context, by which the

system fails to provide a viable alternative to corruption. Key factors include:

i) Economic: Inadequate pay, pensions and public service provisions teetering

under the burden of large families.

ii) Social/ cultural: Conflict between demands of modern bureaucracy and

demands of baradri, family, ethnic and other ties; social pressures for ostentatious

demonstration of wealth, dowry and to provide for one's children.

iii) Developmental: Low rates of literacy, social empowerment and opportunities

for self-improvement: Inequitable distribution of wealth and economic growth.

iv) Political: The feudal power structure, at the rural level; low levels of political

competition: political instability, and intermittent military rule, have weakened

institutions; with poor example set by politicians.

v) Legal and Judicial: Justice is inaccessible, slow and selective, encouraging

contempt for the law and an attitude of everyone for oneself.


8

CONTRIBUTION OF PUBLIC SECTORS IN CORRUPTION

MAJOR AREAS OF CORRUPTION

1) Public Utilities: In terms of the amount of money changing hands, Taxation

Departments, state-owned banks and DFIs, power sector utilities like WAPDA, Sui-

Gas etc., and other public works departments, account for the large scale

institutional corruption.

2) Tax Regime: Pakistan's Taxation system is characterized by widespread tax

evasion, lack of documentation, existence of large untaxed sectors, flip-flop policies

of the Government and weak tax administrative capacity to collect taxes resulting in

as much as 50% of the total urban income going unreported. As per recent estimates,

annual tax evasion stands at Rs.218 billion.

3) Public Sector Banking. Public Sector Banks dominating the financial sector,

since the nationalization of the Banks in the 1970s, have experienced serious

deterioration in their loan portfolios, mainly because of political interference in their

lending and loan recovery decisions. About 90% of the defaulted loans and bad debt

concentrated among a small number of influential people (top hundred defaulters).

Moreover, system protects such defaulters. In many cases, loan amnesties were

granted. Loan recovery efforts by officials of public sector banks were undermined by

fear of politically motivated retribution.

4) Public Sector Expenditures. Due to a non-transparent process and weak

accountability system, public sector expenditures are officially misused, thereby,

kickbacks and pilferage of revenue is in connivance with the public officials.

5) Underground Economy: The burgeoning underground economy and smuggling

at large scale are symptoms of wide spread corruption in Pakistan's economy. This

underground economy has expanded at an annual rate of 20% over the last 23 years

as compared to the average annual growth of 17% under normal GDP.


9

ACE, PUNJAB


10

HISTORY OF ACE

1. Before 1956

There was only a small Anti Corruption Cell, headed by a Superintendent of Police

under the Home Department, Government of West Pakistan.

2. 1956 to 1961

After creation of One Unit, the Directorate of Anti Corruption was established with

Regional Offices at Hyderabad, Lahore and Peshawar.

3. 1961 to 1974

The West Pakistan Anti-Corruption Ordinance 1961 was promulgated on 8th

September, 1961 and the West Pakistan Anti Corruption Establishment was created

under Section 3 of this Ordinance. Rules were framed in 1965 on West Pakistan

basis, which were superseded by Punjab Anti Corruption Establishment Rules,

1974.

4. 1974 to 1985

Under the Rules of 1974, District, Divisional and Provincial Committees were set up

to accord sanction for initiation and decision of enquiries and cases. This system

proved cumbersome and time consuming in respect of seeking sanctions.

5. 1985 to onwards

The Anti Corruption Establishment was reorganized, making it an officer based

organization for decision-making. Anti Corruption Establishment Rules, 1985 were

framed in super session of Anti Corruption Establishment Rules, 1974.

Aims/ Purpose


11

The Special Agency known as Anti Corruption establishment was set up for the

purpose of investigation of offences relating to corruption committed by public

servants and for holding preliminary enquiries against such public servants in the

Province

Objectives

To enquire, investigate, arrest and prosecute corrupt public servants under ACE

rules through Special Anti Corruption Courts. To enhance accountability by

strengthening compliance with existing laws/rules of Anti-Corruption and

minimizing abuse of public Office/authority. To simplify and overhaul the regulatory

and the discretionary maze to bring about dramatic reduction in Corruption.

Legal Frame Work

1. LAWS/RULES GOVERNING ACE.

The Anti Corruption Establishment is governed by the following Laws and Rules for

the purpose of enquiries, investigations and prosecution:-


12

PROCEDURE FOR CONDUCTING ENQUIRIES/

INVESTIGATIONS

The Anti-Corruption Establishment offers services to the general public to hold

those persons accountable who are responsible for corrupt practices and matters

ancillary thereto. The ACE is redressing the grievances of the general public (who

submit their complaints) without any fee so that the Anti-Corruption measures are

put in place more effectively. Anti Corruption Establishment, follows the provisions

of Punjab police Rules, 1934 for investigation of cases and enquiries under ACE

rules.

1. Prevention of corruption

Act 1947

The Act defines criminal misconduct committed by a

public servant regarding, demand, acceptance of illegal

gratification and acquiring of the properties,

disproportionate to his known legal sources of income.

2. Pakistan Criminal Law

Amendment Act, 1958.

The Act provides the procedure of the appointment of

Judges and trial of public servants in the Special Courts.

3. West Pakistan Anti-

Corruption Establishment

Ordinance 1961

This Ordinance created Anti-Corruption Establishment

as an Agency to conduct enquiries, investigation and

prosecution against the corrupt public servants of the

Province ( Punjab).

4. Punjab Anti Corruption

Establishment Rules 1985.

West Pakistan Anti-Corruption ordinance 1961 provided

that the Government may make Rules for carrying out

the purposes of this Ordinance. Such Rules may provide

for the organization of the Establishment and for

prescribing the authorities with whose permission

investigation of any case or class of cases may be

commenced or any person may be arrested. So the Rules

of 1985 were framed accordingly.

These Rules were framed as per provision of section 6 of

the West Pakistan Anti-Corruption Ordinance, 1961 for

prescribing the authority with whose permission

enquiry, investigation and arrest is to be affected. They

also provide the functions and powers of the officers of

Anti-Corruption Establishment, as competent authority

to decide the fate of enquiries, investigations etc.

5. Criminal Procedure

Code, 1898

It is a substantive law, which explains the procedures of

the trial, jurisdiction and powers of the court for the

purpose of trial and also the procedure of investigation of

the case and prosecution. The provisions of this law are

applicable where the same are not inconsistent with the

ACE Laws.

6. Pakistan Penal Code Offences relating to public servants and some other

offences of PPC have been declared as scheduled

offences. Under Sections 161 to 169, 186,188, 189, 201,

217, 218, 332, 353, 379, 382, 406, 409, 411, 467, 468, 471

PPC, public servants are proceeded against.


13

i) Preliminary Enquiry

(Under Rule 6 & 7 of ACE rules, 1985)

Preliminary enquiries and investigation against public servants.

Preliminary enquiries are initiated by the Establishment against public servants on

complaints received from the Government, Heads of Departments or other reliable

sources. A Deputy Director or an officer of or above his rank can initiate preliminary

enquiries in order to ascertain the identity of the complainant or informer and

genuineness of the complaint/information.

ii). Registration Of Case (Rule 8 of ACE Rules, 1985)

a) Criminal cases are registered by the Establishment under the Prevention of

Corruption Act, 1947 and under such sections of the Pakistan Penal Code, as have

been set forth in the Schedule to the Ordinance.

b) Criminal cases shall be registered against accused public servants under the

written orders of officers of Establishment mentioned below:

a) Public Servants in BPS 1-16 Not below a Deputy Director

b) Public Servants in BPS-17 & 18 Not below an Additional Director

c) Public Servants in BPS-19 and

above

Director General

Provided that no case shall however be registered by the Director General against

public servants of the status of D.C.O, Secretary to Provincial Government, Heads of

Attached Departments and other officers of BPS-20 and above, without the prior

permission of the Chief Minister.

Provided further that for those public servants mentioned in the first provision, who

are in BPS-19, such permission shall be accorded by the Chief Secretary. Provided

further that no prior permission shall be required for registration of a case against a

public

servant caught as a result of ?Trap raid? arranged by the Establishment under the

supervision of a Magistrate. In such a case, report shall immediately be made to the

Chief Secretary, Administrative Secretary and immediate superior of the public

servant concerned if he is in BPS ? 16 and above and to the appointing authority and

immediate superior of the public servant is in BPS ? 15 and below.

iii) Arrest (Rule 9 ACE Rules, 1985)

The accused public servant may be arrested if his arrest becomes unavoidable

during investigation, except in the following cases when permission must be

obtained from the authority specified below:


14

Note: No prior permission for arrest shall also be necessary for the arrest of a public

servant caught as a result of a trap raid.

iv) Suo-Moto Examination Of Record (Rule 19 ACE Rules, 1985)

a) The Director General may suo moto or otherwise call for the record of any

case/enquiry, pending investigation with the Establishment, examine it and give

such directions as may be necessary for the speedy, fair and just disposal of the

same.

b) The Director General may suo-moto or otherwise call for the record of any case or

enquiry for the purpose of satisfying himself as to the correctness or propriety of

decision taken by the Additional Director under clause (a) of Sub-rule (2) of rule 15,

and of the ex-officio Additional Director and ex-officio Deputy Director under these

rules, and may pass such order as may be deemed fit in each case.

c) The Chief Secretary may suo-moto call for the record of any case or enquiry, for

the purpose of satisfying himself as to the correctness or propriety of the decision

taken by the Director General under the foregoing sub-rules and under clause (b) of

sub-rule (2) of rule 15, and may pass such order as deemed fit in each case

d) The Chief Minister may suo-moto or otherwise call for the record of any case of

enquiry pending or finalized, for the purpose of satisfying himself as to the

correctness or propriety of the decision taken by any authority under these rules and

may pass such orders as deemed fit in each case.

ACE SET-UP

1. ACE Punjab (HQ)

Anti-Corruption Establishment, Punjab is an attached Department of

S&GAD, Government of the Punjab. At Provincial level, there is a Directorate

i) Officer in BPS ? 18 & 19 Additional Chief Secretary Punjab.

ii) DCOs and Secretaries of

Government, Heads of Attached

Departments and Officers in BPS ?

20 and above

Chief Secretary


15

General of Anti Corruption Establishment with its Headquarters at 2-Farid Kot

House, Lahore; headed by a Director General, (BS-20/21). The Additional Chief

Secretary, Punjab is the Administrative Secretary of the Anti-Corruption

Establishment, Punjab.

Additional Director General, an officer in BS-20, looks after and assists the

Director General in administrative matters as well as examination/ scrutinizing of

final decision on enquiries/cases and other issues. The Directors (Legal), (Technical)

(BS-19) render advice in legal and technical matters respectively, while Director

(RD&T) assists in monitoring/evaluation of performance of ACE and arranges

trainings for the ACE staff. Director (RD&T) is also responsible for supervising the

working of Forensic Science Laboratory (FSL) (in the process of establishment).

There are different wings working at Head Quarters and Regional offices, to

deal with the official affairs of ACE Punjab, which are briefly explained as under:-

1) Investigation Wing at HQ.

Additional Director General heads this wing, who is assisted by Deputy

Director (General), Assistant Directors (Investigation) and Inspector HQ. In

Regional offices, this Wing is headed by Deputy Director (Investigation). This

Wing is the back bone of the Establishment and conducts enquiries,

investigations and submits challans in Anti-Corruption Courts.

2) Technical Wing.

The Director (Technical) heads this wing at Directorate General of ACE HQ,

assisted by Deputy Director (Technical) and Assistant Directors (Technical)

and other technical staff. In Regional offices, Deputy Director (Technical)

heads this wing, supported by an Assistant Director (Technical) and other

technical staff. Functions of this wing are to conduct technical inspections of

the various development projects and to give expert opinion on the execution

of the works in terms of the specifications and standards.

3) Legal Wing.

Director (Legal) at HQ heads the Legal and Prosecution Wings of the

Regions. However, Regional offices are assisted by Deputy Directors and

Assistant Directors (Legal). Functions of legal wing are to examine final


16

reports of enquiries and cases submitted by Investigating Officers.

Additionally, this Wing provides legal opinion to officers of ACE and also

defends the matter before Superior Courts on behalf of ACE by submitting

necessary replies to writ petitions/ vacation of stay orders etc.

4) Prosecution Wing.

All Regional offices have their own Prosecution Wing with Deputy Director

(Prosecution) as its head. He is assisted by Assistant Directors (Prosecution),

attached with each Court of Special Judge, Anti-Corruption in Punjab as

Public Prosecutor. The main function of this wing is to conduct prosecution

in Anti-Corruption Courts.

5) Administration Wing.

Deputy Director (Admn.) deals with the administrative affairs of the

Establishment at HQ. Whereas, in the regional offices, such matters are

dealt with by Assistant Director (Admn.), under the direct supervision of

Directors of concerned Region.

6) Monitoring & Vigilance Wing.

Monitoring & Vigilance Wing has also been created recently to check internal

and external corruption and malpractices. This wing is currently headed by

Deputy Director (Monitoring & Vigilance) at HQ and assisted by Assistant

Directors (Coordination) at the Regional offices.

7) Research Development & Training Wing

This wing is headed by a Director (RD & T) BS-19 and assisted by a Deputy

Director BS-18 and two Assistant Directors BS-17. The main functions of this

wing are to carry out the evaluation of performance of ACE and carry out

inspections of the regions.


17

PROVINCIAL SET UP Director General BS-20/21

Director (RD&T) BS-19/20

Director (Tech) BS-19/20

D.D. (A&M)

BS-18

D.D. (G)

BS-18

AO

BS-17

ADA

BS-17

ADC

BS-17

H.W.E BS-17 AD(I) BS-17

AD(L)

BS-17/18

2 No.

D.D. (T) BS-18

AD (T) BS-17

2 Nos.

Sub Engineer

BS-16.

D.D.

(M & V)

BS-18

Director (Legal)

BS-18/19

CO (HQ) BS-16 SO(D)

BS-17

Regional Directors BS-19/20

AD(M)

BS-17 AD(Coord)

BS-17

D.D. (RD&T)

BS-18

ADs (RD&T)

BS-17 (2 Nos.)

Addl. Director General BS-19/20

2. REGIONAL SET UP


18

There are seven Regional offices working at Lahore, Gujranwala, Rawalpindi,

Faisalabad, Multan, Sargodha and Bahawalpur. These offices are headed by

the Directors, who are officers in BS-19/20, assisted by Deputy Directors

(Investigation, Legal, Prosecution and Technical) and other staff. The

territorial jurisdiction of each Region is as under:

Directorate/Regions Jurisdiction/ Districts included

1. Directorate General All Punjab

2. Lahore Region

1. Lahore

2. Sheikhupura

3. Kasur

4. Okara

5. Sahiwal

6. Pak-Pattan

7. Nankana Sahib.

3. Gujranwala Region

1. Gujranwala

2. Sialkot

3. Narowal

4. Hafizabad

5. Gujrat

6. Mandi Baha-ud-Din

4. Rawalpindi Region:

1. Rawalpindi

2. Attock

3. Jehlum

4. Chakwal

5. Faisalabad Region

1. Faisalabad

2. T.T. Singh

3. Jhang

6. Sargodha Region

1. Sargodha

2. Khushab

3. Mianwali

4. Bhakkar

7. Multan Region

1. Multan

2. Khanewal

3. Vehari

4. D.G. Khan

5. Layyah

6. Muzaffargarh

7. Rajanpur

8. Bahawalpur Region

1. Bahawalpur

2. Bahawalnagar

3. Rahim Yar Khan

4. Lodhran


19

3. DISTRICT SET UP

Previously, one Circle Officer/Inspector Police (BS-16), assisted by 3

Constables only, used to be the In-charge of Police Station of ACE at the District

Level. The performance was to be supervised at District level by the respective

Deputy Commissioners/ex-officio Deputy Directors of ACE in the respective

Districts. After the introduction of new District Government system, District

Coordination Officer was unable to perform this duty as he was overburdened and

overcommitted. So it was important that the people should get their grievances

redressed at district level without fear or compromise. Since the dispensation of

justice was the prime objective of the provincial government, therefore, District Set-

up of ACE was strengthened with the appointment of Deputy Director

(Investigation) an officer of BS-18. Under ACE Rules, the Deputy Director (Inv) of

each district is authorized to receive complaints, initiate enquiry of corrupt public

servants upto BS-18. By the introduction of district set up, Anti-Corruption

Establishment has been converted into well pronounced deterrent mechanism at

district level. The new district set up of ACE now comprises of the following staff:-

Name of Post BPS Sanctioned

Strength

1. Deputy Director (Inv) (BS-18) 18 1

2. Assistant Director(Inv) (BS-17) 17 1

3. Assistant Director (Legal) (BS-17) 17 1

4. Inspector/SHO PS ACE (BS-16) 16 1

5. Assistant Sub Inspector (BS-09) 09 1

6. Stenographer (BS-12) 12 1

7. Senior Clerk (BS-7) 07 1

8. Junior Clerk (BS-5) 05 1

6. Head Constable (BS-7) 07 1

7. Constables (BS-5) 05 9

8. Driver (BS-4) 2

9. Naib Qasid (BS-1) 3

10. Chowkidar 1

11. Sweeper 1

Total:- 25


20

DISTRICT LEVEL SET UP

DEPUTY DIRECTOR BS-18

ASSTT. DIR (INV)

BS-17

ASI BS-9

Head Constable

BS-7 Driver

BS-4 (2 Nos)

Naib Qasid

BS-1 (3 Nos.)

Senior Clerk BS-9

ASSTT. DIR (Legal)

BS-17

Inspector/ CO

BS-17Stenographer

BS-12

constables

BS-5 (9 Nos.)

Chowkidar BS-1

Sweeper BS-1

Junior Clerk BS-7


21

STAFF INDUCTION PROCEDURE

1. Posts of Directors, Deputy Directors and Assistant Directors (Inv) are

filled by the S&GAD by posting officers belonging to DMG, PCS and

Police Service.

2. Technical Officers (Director, Deputy Directors, Assistant Directors,

Sub-Engineers & Draftsmen) are posted by the S&GAD from the

Engineering Departments, Government of Punjab like C & W, PHED,

and I & P Departments.

3. Law Officers i.e. Director HQ, Deputy Directors and Assistant

Directors (Legal & Prosecution) are posted in ACE Punjab by S&GAD,

in consultation with the Law Deptt.

4. Deputy Director (Monitoring & Vigilance) and Assistant Directors

(Coord.) are posted from different government departments having

prescribed qualifications and experience for the posts.

5. The posts of Circle Officers are filled by posting Police Inspectors on

transfer basis from Police Department.

6. Other Police Officials like Sub-Inspectors, Assistant Sub-Inspectors,

Head Constables & Constables, are also taken from Police

Department.


22

II DD EE NN TT II FF II EE DD AA RR EE AA SS OO FF CC OO RR RR UU PP TT II OO NN II NN DD II FF FF EE RR EE NN TT

DD EE PP AA RR TT MM EE NN TT SS && PP RR OO PP OO SS EE DD RR EE MM EE DD II AA LL MM EE AA SS UU RR EE SS

BB YY ACE

Present team of officers in Anti-Corruption Establishment Punjab is making

all out efforts to fight against menace of corruption but responsibility also lies on the

concerned departments, authorities and agencies. Mad rate-race for wealth has

eroded fabric of moral, social and human values. Therefore, coordinated efforts

from all segments of society should rein in corrupt elements and their corrupt

practices. ACE sincerely recommends that all Department Heads should give

personal example of honesty and dignity to curb the corrupt practices in their

spheres.

I. STEPS NEEDED AT THE LEVEL OF GOVERNMENT

The S&GAD may issue necessary instructions to all the Departments,

Authorities, Corporations and agencies on the following points:-

1. Heads of all departments may be held responsible and answerable in

cases of corruption and corrupt practices prevailing in their areas of

jurisdiction.

2. Ex-Officio Additional Directors ACE of the concerned Administrative

Departments may be activated as per Punjab ACE, Rules 1985.

3. A “Vigilance Cell” may be created in every department to keep a vigil

over the performance and reputation of civil servants. This cell may

perform the functions of Accountability within the department.


23

4. When an enquiry is held by ACE, the accused official must associate

himself in the proceedings. If he fails to do so, he may be placed under

suspension till the finalization of proceedings against him.

5. All the departments/authorities/corporations etc must prepare

“compendium” by compiling copies of the laws/ rules/ policies/

instructions/procedures, – as a priced publication, available to

everyone. Each department should update the same once a year by

incorporating amendments and additions/deletions, if any, in relevant

parts.

6. It should be made mandatory for the departments/organizations to

hold proper preliminary enquiries before sending a formal reference to

ACE for initiation of criminal proceedings, which must contain:-

a. Fixation of responsibility.

b. Calculation of loss, if any.

c. List of documents and witnesses.

d. Appointment of a Departmental Representative.

II. AREA OF CORRUPTION VIZ-A-VIZ REMEDIAL MEASURES.

__

The rules and procedures do exist in the departments but their strict

implementation and adherence is not being ensured. ACE has identified certain

areas of corruption, concerning different departments and accordingly certain

remedial measures are also suggested.

1. ENGINEERING DEPARTMENTS (C&W, I&P, PHED)

1.1. INSTITUTIONAL SYSTEM OF COMMISSION.

It is an old practice still in vogue in connection with procurement of

works, goods and services on exagernded values, fake documents and

malafide intentions finally lack of sincere execution of quality work.

This menace can be considerably reduced / controlled by different

checks. However, through constant motivation, Government


24

functionaries can be impressed upon to depend upon ‘RIZKE HALAL’

alongwith substantial increase in emoluments of the functionaries.

1.2 FUDGING.

It is day light dacoity. It means drawing payment without execution of

any works or procurement of goods or services. It should be dealt with

iron hands through prompt action within the departments and also by

accountability institutions. Such accused civil servants must be

proceeded against under RSO 2000 besides action under ACE Rules.

1.3 GRANT OF TIME EXTENSION.

This corruption can be considerably controlled by eliminating

discretionary powers of departmental officers. System should be

evolved where a penalty is automatically imposed on contractors on

expiry of time limit for failing in completing the work within give time

frame. Discretionary powers of enhancement of time limit by

Executive Engineer or Superintending Engineer except in rare

circumstances to be recorded in advance and in detail, must be curbed.

1.4 RENEWAL OR ENLISTMENT OF CONTRACTORS.

Annual renewal of contractors should be automatic purely on merit

without interference of department. If there is no complaint against

the contractor, he should stand automatically renewed for next

financial year.

1.5 APPROVAL OF NON SCHEDULED ITEMS/RATES.

The approval of non-schedule items should be eliminated and power of

Superintending Engineer in this respect should be curtailed. Such

items should be included in the new schedule of rates and all non-


25

schedule rates should be approved through open biding or through a

committee constituted in each department.

1.6 ENHANCEMENT IN QUANTITY OF EARTH WORK.

In case of construction of embankment work, the element of fudge can

be controlled by preparing estimates and working drawings in

advance through Planning & Design Directorates of the Departments

which had been in vogue previously. Detailed cross-section and

drawings for new projects were provided to field staff by the Planning

Directorate to control fudge in embankment which practice can be

reintroduced by strengthening Planning and Design Directorates of all

departments.

1.7 TENDERING.

It is most important item of projects and root cause of favoritism and

corruption in award of procurement contracts which can be controlled

by adopting corrective measures such as:-

a) Tenders may be opened by a Local Committee and not by the

Executive Engineer alone.

b) For works, costing more than 2 million, the tenders should be

opened in a committee participated by senior officers of the

department and local representatives.

c) Recording of the bids in register in the presence of Committee

Members in accordance with the rules should be strictly

followed and immediate preparation and distribution of photo

copies of bids between the committee members be made

mandatory to guard against any tampering of rates.

1.8 ACCEPTANCE OF TENDERS.

Bid evaluations are required to be prepared and the un-balanced rates

identified before the acceptance of tenders. In case of front end loaded


26

bids, additional performance security from scheduled banks should be

obligatory. The practice of award money at the time of acceptance of

tenders has recently erupted in the departments. This is very serious

type of corruption which should be checked by senior officers of the

department. However, if a fair competition in bidding and post bid

evaluation is ensured, the tendency of contractors to offer acceptance

money can be eliminated. Similarly pooling of contracts can be

checked by keeping the process secret.

1.9 MOBILIZATION ADVANCE.

Many officers of Engineering Departments often issue mobilization

advance on fake guarantees. This practice can be discontinued if bank

guarantees are obtained before seeking approval from competent

authorities duly verified from higher Bank Authorities.

1.10 SECURED ADVANCE.

Secured advance on security of material is issued to contractor where

excess payments are made. This can be controlled by taking strict

action against the officers found responsible for extending undue

favour to the contractor on secured advance.

1.11 ENHANCEMENT OF CONTRACTS.

Contracts of fifty thousand are awarded without advertisement in

Newspapers and are enhanced up to millions in some cases. This

practice can be stopped by strict departmental action against all the

officers responsible for such enhancement of agreements. Any officer


27

found responsible for unauthorized splitting and enhancement in an

indiscriminate manner may be proceeded against under RSO 2000.

1.12 QUOTATIONS AND SUPPLY ORDERS.

System of quotations can be eliminated by term contracts for

maintenance works and supply of materials to abolish crony

contractors. Experience of term contracts with strict revised conditions

of contract for unreasonable under bidding can produce fruitful and

encouraging results to eliminate micro corruption at lower level

multiplying into huge amounts.

1.13 QUALITY CONTROL.

For quality control, properly equipped laboratories should be

established at the level of Executive Engineer and S.E. The XENs

should be bound down to submit monthly reports of field results to

Superintending Engineers and accordingly S.Es. to the respective

Chief Engineers. System of frequent inspections and reporting by

senior officers should be made effective.

1.14 WORK CHARGE EMPLOYEES.

A huge corruption is noticed on account of payments to non existing

work charge employees. Payments are made in the name of such

employees without their proper Identity and without justifying their

need for the works. Employment of work charge may be made on

approval from senior officers with specific provisions in the estimates

where necessary. However, work charge employment on original


28

works should be discontinued because such employees are not at all

fruitful and have been an unnecessary financial burden. If at all

essential, they should be recruited through proper advertisement in

press and procedure of lump sum sanction should be abolished

through amendments in rules.

1.15 REFUND OF SECURITY.

Premature securities of works are often found to be released to the

contractors without proper bank guarantees. Premature release of

security should be allowed only on approval of bank guarantee from

the S.E. concerned because this has become a major source of

corruption.

1.16 POSTING OF STAFF.

Postings/Transfers of field staff should be strictly in accordance with

the policy of the department and officers having bad record and

reputation should not be posted on important assignments. Trend of

frequent transfers is also required to be discouraged.

1.17 UTILIZATION OF FUNDS/COMPLETION OF PROJECTS

Often, over payments are made to the contractors at the end of

financial year to show progress on utilization of funds which leads to

bad quality of work and corruption. Proper system is required to be

evolved where allocated funds are utilized on time. Only those projects

should be included in the Annual Development Plans, where full funds


29

are allocated/available. Schemes started with seed money only, have

given rise to numerous problems and corruption in the past.

1.18 CORRUPT MAFIA.

Allocation of funds for discretionary development schemes have

resulted into establishing a corrupt ‘Mafia’ in the Engineering

Departments for execution of works comprising of departmental

functionaries and crony contractors of the sponsors. Discretion for

selection of departments for execution of schemes by the sponsors has

further aggravated situation and encouraged the corrupt ‘Mafia’. This

practice is required to be eliminated for all types of assignments and

for all times to come.

1.19 ENFORCEMENT OF BUILDING REGULATIONS IN

DEVELOPMENT AUTHORITIES AND TMAs IN LAHORE AND

OTHER BIG CITIES. __

It has been observed during investigation of ACE enquiries/ cases that

numerous commercial buildings have been erected and are being

constructed in violation/complete disregard of the approved plans.

This is being done in connivance with Development Authorities and

TMA functionaries, adopting following illegal practices:-

1. Plans are got approved from authorities in accordance with

building regulations but construction is started right away in total

disregard of the limitations of the approved plans. As the

construction work proceeds and comes out of the ground, lac-luster


30

efforts are made by concerned officials by issuing notices on which

the builders invariably approach the civil courts for stay orders

and thus the construction is continued in violation and disregard

of the approved plans under the cover of court orders.

2. Generally the courts are deliberately not properly informed about

the flagrant violations and their consequent financial and

environmental effects and also the un-solicited benefits accruing to

the builders through such stay orders. Proper replies are also not

given and the cases are only pursued in the courts in league with

the builders.

3. The building regulations of LDA also adopted by TMAs have a

provision of compounding @ Rs.226/- per sq.ft. for making

construction against the approved plans in the spaces mandatory

to be left open for overall environmental requirement. Normally

the mandatory spaces are 10 feet wide on sides and back and

30feet in the front. The maximum allowance which LDA can give

to the builders is leaving at least 5 feet mandatory open spaces on

sides and back (provision is for the residential buildings) Charging

the penalty rate of compounding at Rs.226/- per sq.ft. for such

additional covered area, of-course is quite punitive in residential

buildings but is highly lucrative to the builders of commercial

plazas, being on much lesser side as compared to the sale price of

such additional areas being sold by the builders, (market rates

which range of Rs.15,000/- per sq. ft. to Rs.25,000/- per sq. ft. in

Lahore). This is why the builders are always ready to pay penalty


31

for side and back violations. Sometimes, they even cover the entire

area leaving no space on the sides and back which is not

compoundable at any rate.

4. LDA and TMAs are supposed to dismantle such excess

constructions, which is seldom done due to stay orders of courts

obtained and maintained by concealing true facts in connivance

with the public and private high stake-holders. In one such case, it

has been calculated that the benefit accrued to the builder was to

the tune of Rs.30.63 Million for construction on a plot measuring

only 2 Kanals 14 Marlas.

5. Another flagrant violation being done by the builders is providing

inadequate parking areas by converting reserved parking areas for

commercial use and selling away such areas, thus earning huge

unsolicited benefits. Non provision of appropriate parking space of

course creates numerous traffic and environmental problems for

the general public/ metropolitan cities. Yard stick for providing

parking places as per building regulations is violated for getting

undue benefit through selling of such areas in the open market

and getting advantage of saving cost of construction of such areas

in the basements. The volumes of stakes involved can be well

conceived by an example that if only one floor in basement of a

plaza constructed on a plot of 10 Kanal reserved for parking is

sold by the builder in the market, it will fetch him a minimum

amount of Rs.400 Million (Forty crore).


32

In the light of above, following measures are recommended:-

1. Appropriate penalty rates for composition of violations of

buildings regulation for commercial buildings are required to

be separately revised and notified. These rates should be

market based and punitive enough to curb the tendency of

violations.

2. Separate punitive parking contribution penalty rates for

deficient parking areas should be notified which are required to

be more than the market selling rates of such areas and the

construction cost contribution including market price of

requisite land.

3. Need to monitor the progress of court cases at some

appropriate level by the LDA/TMAs so that the cases are

pursued promptly and decision obtained in favour of

Government.

4. LDA/TMAs functionaries should be made accountable for

any lapse on their part with respect to enforcement of building

bye laws.

Corruption in Pakistan - Aask24.Com l Assignment l ...aask24.com/wp-content/uploads/2015/11/Corruption-in-Pakistan.pdfCorruption in Pakistan Submitted to: Presented By: - . Presented

Documents