When corruption is institutionalised

Quest for power, money and fame is not restricted to any particular segment of society or class of persons. It attracts and haunts many. Quest for fame, power and money in itself is not undesirable, but the real problem begins when it becomes lust and corrupt practices are adopted to achieve them. A society ruled by the corrupt, greedy and hypocrite, especially when they hold key positions, is doomed to fail and become subjugated.
The prevalent bizarre situation, that has emerged in the wake of suo muto case of Arsalan Iftikhar, son of Chief Justice of Pakistan, alleged beneficiary of millions of rupees from the real estate tycoon, Malik Riaz Hussain and his allegations in a Press conference on 12 June 2012, testifies to the captivity of the State in the hands of money-power hungry forces.
The elites of Pakistan (ashrafiya)-indomitable military-civil bureaucracy, corrupt politicians and unscrupulous businessmen-keeps on singing the mantra of "patriotism" (sic) but are involved in all kinds of undesirable activities. They indulge with impunity in rent-seeking, power politics, plundering of national wealth and organised crime. They consider it as their inherent right to deprive the poor of their fundamental rights. Lack of accountability and unprecedented tolerance towards corruption has made Pakistan a State controlled and run by ruthless forces representing money power. It is thus no wonder that democracy could never take firm roots here even after 64 years of independence. Democratisation of society is possible only through a credible system of accountability that works across the board-with no sacred cows. These institutions claim to have their own systems of accountability but end up protecting each other rather than punishing offenders. If mighty segments of society-politicians, high-raking state officials, judges and big businessmen-are not accountable, then how can democratic dispensation, transparency and rule of law be established? The public has no access to their tax declarations justifying sources of income through which they and their family members have amassed enormous wealth and assets?
One of the worst consequences of lack of accountability of the powerful is its pernicious effect on the general moral fabric of society. Protection of the powerful and corrupt puts integrity at a discount and places a premium on vulgar and ostentatious display of power and wealth. This shatters the faith of the common man in the dignity of honest labour and virtuous living. Can democracy ever flourish in such a society? Democracy embodies some vital elements that are: fair and just electoral process and responsible governance protecting the rights of people, sovereignty of parliament, separation of powers, independence of judiciary, accountability and rule of law. Our society lacks all these elements and of course the results are before us.
Unfortunately, Pakistan has become a place where rampant and institutionalised corruption has become a way of life. In tandem with this silent conspiracy is the fact that the existing laws against racketeers are not enforced and if at all some action is taken, the penalty is ludicrous (eg case of Admiral Mansoorul Haq (retired) and such others).
In every-day life, there are many glaring examples of how corruption has become institutionalised. Take the business of cars. Even today, when economy is in deep recession, some locally-assembled cars are selling at a premium! Who is making money in this whole game? Why Pakistanis are forced to buy decade old models at exorbitant prices in the name of protecting local manufacturers? Are they not remitting money abroad through the mechanism of transfer pricing?
On impressive highway from Lahore airport, in the unending line of sprawling bungalows, one can see the emergence of a society flushed with money. The dazzling suburbs of Defence Housing societies were non-existent before 1977. The story of their egress even after 35 years is shrouded in mystery. Under the shadow of martial laws, many in uniform and in plain clothes found favour with the men who matter in the land and who were given State lands at throwaway prices-this practice continues till today. Malik Riaz is epitome of this ghastly phenomenon-beneficiaries of his shady empire are no angels though they post to be.
The real issue is not just mentioning a few individuals but to analyse the real causes behind the existing corrupt system. Money from whatever source it comes, is the catchphrase in our society: aid money, drug money, foreign money, American money in exchange for fighting war against terrorism (sic), and 'black' money (which can be 'whitened' by just 'remitting' through normal banking channels or investing in stock exchanges!). One just needs to go to a licensed money exchange company, pay the premium for telegraphic transfer to one's account, which is instantly arranged.
A very simple way of money laundering and no accountability even before the tax administration [section 111(4) of the Income Tax Ordinance 2001 gives full protection to such sham transactions]. Is there any other State in the world that gives such patronage to such criminals?
Answer must be an emphatic "NO" even though the proof of its being spent is available everywhere: in the ostentatious lifestyle of new urban development, in the bright galore of foreign cars on the roads, in the smugglers' markets brimming with latest foreign electronic gadgetry and in the shops crammed with foreign goods. Who says this is a poor country? The government is no doubt poor (sic) but the people are very rich-check out the number of rural people going on overseas trips these days and lavishly spending the good support price for their bumper wheat crop.
The chief preoccupation and addiction of this nation is money. Everybody is yearning for luxurious lives while their fellow countrymen are dying of hunger and diseases in open camps. This mad race for money and lavish living explains why the Pakistanis society as a whole is indifferent to corruption. "How do you make your money"? We asked a young industrialist from Karachi. "Easy," he replied, describing his own success story: "We import everything and with some good contacts, strike a few deals with Customs high-ups, sit back and enjoy the fruit for life."
A dangerous result of all this is that in our society all rights have become privileges and privileges have become rights. The public has a right to services like education, health and transport, but the system behaves as if it is offering a privilege. The public servant is duty-bound to serve the public-instead he behaves as if it is inconvenient to do so. Most people working for the state are no longer interested in performing their job but in finding ways to extract a premium from the hapless citizen. The premium or, more accurately, bribe is now an accepted practice.
Tragically, it has become a free-for-all society and laws that are designed to prevent this just fall by the wayside. The general attitude is of helpless resignation, an acceptance of the defeatist principle that if one is to survive one must become part of the game. It then becomes dangerously akin to the rule of jungle-might is right, the weak are meant to fall out and the predators meant to prey freely.
The bleak side of the picture is that the persons-judges, politicians and bureaucrats-who are capable of checking this distortion, are unlikely to oblige: for it would sever their power base and financial lifelines. If the system is to be saved from sinking into greater chaos and ultimate collapse, corrective actions must be taken forthwith. The starting point should be a clear recognition of the State's role with respect to harmonious working of legislature, judiciary and administration.
The State will have to vehemently devote its entire energies to enforcing laws that protect the public from cheats and racketeers rather than supporting a system which protects and encourages them. This requires a bold and clean leadership, capable of restraining the ballooning State, proclaiming this unpalatable truth and setting standards for the rest of the citizenry. Unless such a leadership emerges and acts fast with the help of masses, no positive results can ever be attained in fighting corruption no matter how many institutions like NAB, FIA exist or suo muto cases like Riaz-Arsalan are taken up by the apex court.
(The writers, tax lawyers and partners in Huzaima and Ikram (Tax and Pakistan), are Adjunct Professors at Lahore University of Management Sciences (LUMS)