Asian CorruptionDo we accept it as a cultural thing?
My ProfileMUHAMAD YOGI,S.Pd,M.Si- Lecture of Civic Education IslamicUnversity of Nusantara- Teacher in Bandung 8 State High School- Teacher in Bandung 15 Sate High School
CorruptionCorruption is akin to cancer growing in ahuman being. It is very hard to stop.Treatment must be severe.
TI Corruption PerceptionsIndexAsian Countries~10 Highly Clean ~0 Highly CorruptJapan 7.1Taiwan 5.6Malaysia 4.9South Korea 4.5Sri Lanka 3.7China 3.5
TI Corruption PerceptionsIndexAsian Countries (cont)~10 Highly Clean ~0 Highly CorruptThailand 3.2India 2.7Pakistan 2.6Philippines 2.6Vietnam 2.4Indonesia 1.9Bangaladesh 1.2
Corruption is Contagious“Is it all that surprising that when they sawthe boss hog sticking his snout in thetrough that they put their snouts inalongside him”Paul Coghlan QC in Crown v Quinn,April 1997
TI Most Corrupt Leaders inthe WorldUS$1 Mohamed Soeharto (Indonesia) 15 - 35 Billion2 Ferdinand Marcos (Philippines) 5 - 10 Billion3 Mobutu Sese Seko (Zaire) 5 Billion4 Sani Abacha (Nigeria) 2 - 5 Billion5 Slobadan Milosevic (Serbia-Yugo) 1 Billion6 Jean Claude Duvalier (Haiti) up to 800 M
TI Most Corrupt Leaders inthe World (cont)US$7 Alberto Fujimori (Peru) up to 600 M8 Pavlo Lazerenko (Ukraine) 114 - 200 M9 Arnaldo Aleman (Nicaragua) 100 M10 Joseph Estrada (Philippines) up to 80 M
Common Elements inCountries of the CorruptLeaders~Majority of people are poor~Rich in mineral resources such as oil andgas, gold and diamonds, iron ore, copper,nickel, tin, bauxite, manganese andnatural resources such as timber, coconutand coffee~Leaders have friends in high places
Peter Elgen - GroupChairmanTransparencyInternational“It was essential that corrupt governmentsdo not steal from their own people. This isnow an urgent priority if lives are to besaved”
Soeharto~Corrupt Years - 1967 - 1988~1959 - Implicated in corruption - Promoted toBrigadier General~1970s - Corruption within national oil producer- Estimate US$10 Billion~1980s - Soeharto’s six children launch businessventures with state money~1997 - Burmese road construction by daughter“Tutut”
~1997 - Cars exported to Burma by companiesowned by sonsSoeharto (cont)~1997 - World Bank report 20-30% Indonesiandevelopment budget embezzled by SoehartoFamily~1997 - Soeharto complains of levels of corruption in Burma affecting hisinvestments!!~1999 - Time Asian Report - Soeharto familyworth around US$15 Billion (cash, shares,real estate, jewelry, fine art)
Soeharto (cont)~2002 - Soeharto’s son Tommy Jailed formurder of a judge conducts business from aluxury apartment within the jail~2000 Soeharto - Investigation for corruptionunder his Presidency - US$571 million ofGovernment donations utilised to financefamily investments
Soeharto (cont)TI Estimates Soeharto Embezzlementbetween $15 - 35 BillionFriends in High Places
Marcos~Corrupt Years: 1965 - 1986~Estimated amount stolen: US$5 - 35Billion~Government loans to favoured privateindividuals~Takeover of private enterprises with littlecompensation
Marcos(cont)~Trips and shoes for Imelda paid byGovernment~Kickbacks and commissions from overseasorganisations~Issuing of Presidential decrees to favourindividuals: Benedicto & Cojuangco
Marcos(cont)~Use of shell and dummy companies toinvest in real estate in New York,California and Hawaii~Skimming of foreign aid to Swiss bankaccounts~Deposits made with pseudonyms, numberedaccounts and codes in overseas accounts
Eduardo “Danzing”Cojuanco~Cojuango was one of Marcos cronies whowas airlifted to Hawaii along with thedictator~Beneficiary of Coconut Levy Marcos -harsh on small coconut growers~Bankrolled Joseph Estrada to victory in1988
Eduardo “Danzing”Cojuanco(cont)~Still being pursued for corruption byPhilippine Commission on GoodGovernment~Majority owner of San Miguel breweries~Property in Mudgee - Private aircrafthanger at Mudgee Airport~Horses trained by Waterhouse & Freedman- very much a “Darling of the RacingFraternity”
Eduardo “Danzing”Cojuanco(cont)~Took over National Foods (Pura Milk,Yoplait, Big M, Farmers Union, KingIsland Cheeses)~Also owns Berri Juices and Tasmanianbrewer - James Boag~Silence from Canberra or watchdogs
Tsunami Aid~8 months after the Boxing Day Tsunamiaccording to Oxfam poorest victims whowere the worst affected have benefited theleast.~In Sri Lanka Oxfam has evidence that aidhas been directed to landowners andbusinesses rather than to the poorest andmarginalised.
Tsunami Aid (cont)~In Aceh there is little evidence ofpermanent accommodation
We must accept it because itis “the cultural thing” isancient history“Gifts are the great pseudonym for bribes”.It is the cultural thing to accept and givegifts (gold Rolex watches).It will be like insulting the person if youdon’t accept gifts (expensive) dinners(lavish) and accommodation (5 star).“That is a load of codswallop”
Singapore Example~After Lee Kuan Yew~Used its power to tighten laws relating tocorruption~Added muscle to official agencies~Campaign vigorously to maintain ethicalstandards~Apply the rules to all - in the public and privatesectors as well as politicians~Clean administration
First Let’s Put Our OwnHouse in Order~After Bond & Skase in the eighties theysaid it wont happen again. We have themechanisms.~After Ansett, One Tel and HIH in the newmillennium they said it wont happenagain. We have stronger mechanisms.~In 2005 it did happen. Part-time comedianand lawyer showed that mechanisms wereweak.
What can we do aboutAsian Corruption?~Do you have a Code of Business Ethics?~Have you looked at the ICAC guide“Developing a statement of business ethics?”~If you have such a Code, what type ofawareness program is in place?
What can we do aboutAsian Corruption? (cont)~How do you transmit the message to yourprivate sector goods and services providersthat we don’t accept gifts, benefits,hospitality, meals, travel andaccommodation
Peter Elgen - GroupChairmanTransparencyInternational“Corruption hits hardest the poor and thevulnerable. Corruption makes it impossiblefor millions of people, especially indeveloping countries, to earn an honestliving”