In an interview on Friday’s T&T Guardian, the Procurement Regulator, Beverly Khan, stated that it will take some time for public agencies and units to routinely apply the new rules for public tendering and purchases she is overseeing.
Ms Khan also said that the whistleblowing element of the new Office of Procurement Regulation is working, so far attracting over 60 reports related to allegations of bribery, corruption and bid-rigging.
Most of them, she added, were closed, with eight matters currently being actively investigated. It is definitely encouraging to see a more vigorous pursuit of corruption allegations, especially as anecdotal evidence suggests irregularities are commonplace, not only regarding procurement but also with government activities in general.
After all, corruption isn’t just for big contracts; a favour to allow a friend to jump the line or a ‘gift’ (in cash or kind) to get something done or sorted is equally unacceptable and often the first step towards bigger and bolder illegal acts.
The World Bank published a report in 2016 looking at corruption in several countries; although the data is now old, some of the findings are very likely to remain relevant even today and to us.
Amongst other issues, it looked at the impact of bribes in businesses by seeking to find out how many firms experienced corruption when dealing with government matters such as access to utilities, permits, licences and taxes.
In Barbados, for instance, only 1.2 per cent of the firms surveyed stated they had to pay some kind of bribe for every six relevant transactions. Here in Trinidad and Tobago, that number jumped to 10.5 per cent.
Other estimates suggest that corruption may be costing the equivalent of five per cent of the world’s gross domestic product. If we apply that rate to our own GDP, we may be wasting about US$1.5 billion every year through corruption alone. Just for context, that is the equivalent of twice the current Education Ministry total annual budget.
But corruption doesn’t happen in a vacuum; it needs at least two players: the person who demands bribes or a share of the spoils to get things done and the person who is willing to do so or actively seeking to cut corners. There is no doubt it is particularly troublesome in the public sector, as it impacts on everyone’s lives, but corruption is not something that should worry the state alone.
Sadly, it is alive and kicking in the private sector, too. But there is a way forward. Although corruption is something very difficult to eliminate once it takes hold, with some determination and hard work, it can be beaten.
More robust procurement and anti-corruption legislation can help, together with more automation, as computers can’t ask for bribes to get things done (that is one of the reasons many public servants hate digitalisation).
More effective governance and auditing regimes can also play a big part, adding visibility and accountability to transactions across the board, as the more transparent processes are, the harder it is for them to rigged.
But so can effective staff management and an uncompromising attitude towards those caught soliciting or offering bribes, breaking the law, or rigging bids.
And here is where human relations and industrial matters come into play. We all know how poorly managed our public service employees are, often with limited accountability and almost inexistent performance management, not helped by the kind of job security that allows some to get away with shocking behaviours.
This needs to change so that those caught misbehaving face the consequences, including the possibility of criminal proceedings and contract termination, if required. And for this change to take place, those in more senior positions in the public sector must actively manage their direct reports so that they work and behave as expected, with zero tolerance towards rule-breaking.
Naturally, those accused of corruption, in the state or private sectors, must be allowed to defend themselves, following good and well-established legal and industrial relations principles.
But their representatives, including the unions where they are recognised, must also apply good sense and measure their reaction according to the seriousness of the alleged breach and the weight of the evidence, just like lawyers do when representing a client.
That is because defending the indefensible helps no one—the perpetrators, their peers, and society as a whole. Just imagine how honest and hard-working public servants feel when managers and unions let colleagues get away with corruption. They are not only embittered by the poor behaviour but also by the fact that such actions (or inaction) make everyone think all public servants are uninterested in work and dishonest.
That is wrong and not fair. The OPR’s work ought to be supported and backed up by disciplinary and legal action against those involved in the abuse of the procurement system. But both the Government and society as a whole, including businesses, must be relentless in the pursuit of corrupt individuals, wherever they work or do.
And this is not just about stopping people from obtaining money or things they are not entitled to. It is also about helping tackle the worrying levels of violent crime in the country.
After all, one of the organised crime’s best friends is corruption, as it allows them to operate with impunity and gives them a lucrative income, as they are more than happy to help launder illegitimate money, pocketing substantial fees in the process, of course.