Kickbacks and dirty money
Monday, April 06, 2009
Everywhere in Islamabad, and indeed in other places, we hear allegations of corruption and kickbacks. These stories have added significance given that our president has in the past faced many charges of corrupt practices. Whether or not these are true, the fact is that corruption will be a word that in the public mind remains associated with certain figures accused of wrongdoing in the past.
In this context, the allegation from Talal Bugti, the son of the late Nawab Akbar Bugti, stating that he was asked for Rs500 million in kickbacks by a state official, in return for clearing royalty for the Bugti gas fields that had not been paid for six years, is startling. This is especially so as Talal Bugti has given details of how the chain of corruption works, involving officials at various levels. His charges have been denied both by the federal set-up and the Balochistan governor.
But the fact is that they come in an environment where other such accusations also hover. Almost anyone in business circles or those who deal with government can come up with them. It is becoming increasingly difficult to believe all these accounts are fabricated – and this can lead only to the conclusion that the ugly shadow of corruption once again hangs over our democracy and could in time inflict on it the same kind of damage that we have seen in the past.
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Big numbers
Monday, April 06, 2009
You have to be very sick indeed to require a trillion dollars-worth of treatment, but this is the cost of what the world has just prescribed itself to tackle the self-inflicted wounds caused by gross fiscal irresponsibility. It is perhaps worth reflecting on precisely what a trillion is – it is one thousand billion, a number beyond the comprehension of most of us who are not economists or mathematicians. President Obama said that “the patient had stabilized and was in good care”, claiming that the London summit was historic. He added “It was historic because of the size and the scope of the challenge that we face and because of the timeliness and the magnitude of our response.” Gordon Brown, British PM and conference host, said … “This is the day that the world came together, to fight back against the global recession. Not with words, but a plan for global recovery and for reform and with a clear timetable.” Politicians are good at coming up with fine words for occasions such as this and it is to be hoped that the remedy fits the malaise, but what might we in Pakistan expect from this meeting of dollar giants?
Our own poverty as a nation meant that we were not invited to the table, but our neighbour India was, and for good reason. In his closing speech Obama made a comment that had nothing specific to do with money but everything to do with perceptions of wealth and power. He said … “The USA sees India as a global power”. Words like this do not fall glibly from presidential tongues. Obama was speaking for the state of which he is president and with his words indicated that whilst not at the top of the batting order, India was at least in the same team as America. This is a significant shift in how America views our neighbour – and by extension how it views us. India is not a problem for America (well, not much of a problem) but Pakistan is. Obama has now moved on to the NATO summit in Strasbourg – where he will be presented with a report that says that our own instability threatens the entire region.
The money that will – eventually – come to us courtesy of the Kerry-Lugar bill has nothing to do with the G20; that is America investing in its own regional interests. Where we might see a direct benefit is that after years of US opposition the IMF is finally seeing its core funding bolstered to the tune of $500bn, raising its resources to $700bn. The IMF is currently and has been in the past, our port of last resort, as it has been for other impoverished nations. Our neighbors China and Saudi Arabia are putting significant sums into the pot. We may be future beneficiaries of their generosity. For the rest of the G20 outcomes it is not going to have an immediate impact on us directly, but an indirect impact as the global economy recovers. The world has changed with the G20, most significantly in that it is the defining post-Bretton-Woods moment. It was the French President Nicholas Sarkozy who recognized this saying…“Since Bretton Woods, the world has been living on a financial model, the Anglo-Saxon model. It’s not my place to criticize it, it has its advantages (but) clearly today a page has been turned.” He’s right.
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Corruption and the courts
Monday, April 06, 2009
The Supreme Judicial Council has taken suo motu notice of allegations regarding the links of a high court judge with a notorious underworld don who died in a police encounter. The reporter who had broken the startling story in this newspaper has been asked for details as proceedings begin in the case. There is hope that a case of grotesque wrong may be righted.
This of course is an important precedent. Till now, judges have been accountable to no one and have used their powers to protect themselves – in a few cases even to cover up wrong. Chief Justice Iftikhar Muhammad Chaudhry had alluded to the existence of just such corruption and his desire to root it out as he returned to the bench. The real facts in the matter must come to light. According to published accounts, a senior police officer in a letter written to the chief justice of the LHC, had provided details of a confession made by the multiple murderer in which he had also boasted of his connections with the said judge and other figures in key places. This evidence must not be ignored. It is possible the criminal’s allegations are untrue – but the fact that they may be accurate points to the dangerous criminalization of society that has taken place. This can be eradicated only if anyone found involved is acted against under the law. Corrupt courts cannot of course deliver relief to people or win their respect. The SJC’s action is therefore welcome and will help unravel the details of a sordid case that has shocked everyone. We hope the judge will be exonerated. If not, justice must be done so we can all be confident that our judicial system does and can truly function effectively.