mssaleem63@gmail.com

1. WHITE COLLAR CORRUPTION:
With Reference to Role of Anti-Corruption Agencies
in Politics
Presenter: Mirza Sultan M. Saleem,ExC-NAB
DIRECTOR INVESTIGATION NAB
1
CURRENT ISSUE PRESENTATION
Dated: 2.9.2015

2. SEQUENCE OF PRESENTATION
2
Currency of Topic.
Statement of Problem
Scope and Justification
White Collar Corruption(WCC)- Jinnah’s View
 White collar corruption and politics –Def
Institution and Laws
Genesis and history of corruption
Whether NAB a political tool?
Why anti corruption efforts not successful-Analysis?
Conclusion
Recommendations

3. White Collar Corruption: Currency
 Punjab CM Shahbaz Sharif in a press Conference grills NAB for
corruption report mentioning Sharif brothers in the list of 150
cases against bigwigs submitted to the Supreme Court;1
3
1. Sajid Zia, “Shahbaz grills NAB for corruption report” The Nation, 9 July 2015; last accessed: 24.08.2015.

4. Intro-White Collar Corruption??
 Is conscious act of reciprocation of undue
benefits in respectable class and has impact on
the governance/politic.
 Plays havocs against public merits, development
and peace process ,devastates credibility
,integration and writ of the State. Its time less
phenomenon, bearing more correlation with the
socio-economic conditions and accountability
mechanism in place in that particular society.
 When anticorruption agencies1 are otherwise,
used as tool against the opponents, political
leadership loses confidence of Public and
credibility of governance .
4
1. 1. Imtiaz Ali, “Federal agencies unnecessarily in Sindh, Qaim tells Nawaz”, Dawn, 20 August 2015;
last accessed: 24.08.2015.

5. Statement of the Problem
Is white collar corruption a dynamic
and persistent factor of politics of
Pakistan and anti corruption agencies
are tool of ruling establishment ?
5

6. Scope And Justification-WCC
 It is global and perennial issue of all societies and
has assumed horrendous proportion in dispensation
of political and governance process.
 Corruption funds - sounds now the backbone of
terroristic activities, challenging the structure and
writ of the state.
 Since Pakistan inherits the corruption pattern from
the governance model of Britons carried forward
from the Mughal’s ;therefore scope of this research
will remain within the domain of these periods
travelling towards the current situation .
6

7. White Collar Corruption
 Jinnah’s view on 06th May, 1945:
“Corruption is a curse in India and amongst
Muslims, especially the so-called educated
intelligentsia. Unfortunately, it is this class
that is selfish and morally and intellectually
corrupt. No doubt this disease is common,
but amongst this particular class of Muslims it
is rampant.”
 Promulgation of Prevention of Corruption Act
on 11th March, 1947
7
1. Zavvar Hussain Zaidi (ed), M.A. Jinnah—Ispahani Corrrespondence, 1936-1948, Forward
Publications Trust, 1976, p.69, d. 6 May 1945.

8. White Collar Corruption:
 Definition:
 Edwin H. Sutherland: “... crime in the upper or
white-collar class, composed of respectable or
at least respected business and professional
men”.1
 FBI: “The term—reportedly coined in 1939—is now
synonymous with the full range of frauds
committed by business and government
professionals.”2
 PCA 1947 & NAO 1999
8
1. 1940, White Collar Criminality, American Sociological Review, 5:1-12, p.1.
2. https://www.fbi.gov/about-us/investigate/white_collar; last accessed
21.08.2015.

9. Prevention of Corruption Act,1947
 Received the assent of Governor-General on
11th March,1947
 Applicable to all citizens of Pakistan and
persons in service of Government.
 Public Servant means “a person falling under
every category of government officer .
 Criminal misconduct categorized in five types
 Punishment of the crime with imprisonment
upto 7 years or with fine or with both.
9

10. National Accountability Ordinance -1999
 Promulgated in 1999 and revised in 2002 for affecting
recoveries of government dues, bank loans, and cases
involving misuse of power, misappropriation of
properties, and public cheating .
 Applicable to all citizens of Pakistan and the public
office holders in both provincial and central government
other than the persons, member of armed forces and
judiciary.
 Corruption defined in 12 categories and concept of
Plea Bargain.
 Punishment up to 14 years(RI), fine, forfeiture of property.
10

11. Politics
 In Pakistan, Like other developing countries politics means and synonyms
to
 Protocol
 Undue Favor to Favorites - Nepotism
 Seeking obedience of enforcement agencies
 Burdening public exchequer with foreign loans on non-public projects
 Punishing opponents
 Targeted Appointments in Public Institutions – non deserving
 Plundering of Public Funds
 Borrowing Competence from non local forums
 Cognizable under PCA 1947 & NAO 1999
11
1. Oxford Online Dictionary, last accessed: 24.08.2015
Definition:
“the activities associated with the governance of a
country or area, especially the debate between parties
having power.”1

12. Institutions and Laws for Anti-
Corruption in Pakistan:
 Police
 State Bank of Pakistan under Anti-Money Laundering Act
2010/FMU
 FIA
 Customs under the 1969 Act
 Provincial Anti-Corruption Establishments
 Intelligence Bureau (IB) and Inter-Services Intelligence (ISI) in
support for gathering intelligence information (low-downs)
 Wafaqi & Provincial Mohtasibs
 Provincial Ehtisaab Commission KPK.
 NAB - both federal and provincial for cheating public at
large and loan recovery
12

13. International View of
Corruption
13

14. Historical Impulse- At Regional Level
 Corruption in public projects – Railway, Irrigation system,
new secretariat construction, new capital New Delhi and
provinces.
 “[The SE at CPWD office -1903]... gave us a map of the
roads to be laid around the temporary Secretariat
building on Alipur Road. No tenders were invited... The
next day my father handed over the estimate to the
overseer with a thousand rupee note. The following day
the overseer came to see us. He had scaled down our
estimates very marginally... My father gave him another
thousand rupee note and a bottle of scotch.” Delhi, A
Novel by Khushwant Singh, p.323.
14

15. History of W.C.C. In British Period
– Clive’s Strategy and personality
 Started career as merchant/writer in the East India Company;
 Entered into power politics through military channels;
 Chased the available political gap;
 Skillfully purchased opponents’ insiders to dominate over
opponents
 Knew the art of obtaining funds for his administration and
himself through bribes;
 Amassed power and wealth through valor;
 Laid foundation of new era (British Empire);
 Removed from power politics but returned back with increased
hunger for corruption;
 Strong and survived administrative model.
15

16. Genesis of White Collar Corruption
 British Period:
 Victory of
Robert Clive as
a result of
corruption deal
of Mir Jafar;
 Robert Clive
faced charges
of corruption on
his return to
England.1
16
Lord Clive meeting with Mir Jafar after the Battle of
Plassey, oil on canvas (Francis Hayman, c. 1762), Source:
https://en.wikipedia.org/wiki/File:Clive.jpg
1. Capital Plight: What Drives Corruption in India, Knowledge @ Wharton, 2 December 2010, last accessed:
21.08.2015
Clive’s Side
Army
Siraj ud Daula’s
Side
Army
2000 (Indian 62,000 (Indian
1,000
(British)
Mir Jaffar
Army Chief
of Nawab
9 (French)

17. History of W.C.C. under East
India Company
 British Period:
 Corruption culture carry forwarded from the Mughal governance
structure;
 Robert Clive faced corruption charges on returning to England.1
 The first Governor General of India — Warren Hastings — faced
impeachment proceedings before the UK House of Commons.2
 Reforms by Lord Cornwallis 1786-1793
17
1. Capital Plight: What Drives Corruption in India, Knowledge @ Wharton, 2 December 2010, last
accessed: 21.08.2015
2. Ibid.

18. History of W.C.C. in Mughal Period
Governance Style of Mughals
Province, Sarkar/district, Mansabdar, Pargnah
“Generals were paid cash according to the size of the
force they commanded. But by fielding a smaller army
than the one they billed for, it was possible to skim off a
sizeable sum every month.”1
“In the Mughal era, if you wanted anything done, your
application would have to be accompanied by a
Nazrana, or gift.”2
18
1. Irfan Hussain, More thoughts on Corruption, Dawn, 8 September 2012.
2. Ibid.
3. A Treatise on the Civil Service of Pakistan by Kiran Khurshid.

19. History of W.C.C. in Mughal Period
 “The invention of bakhshish as a practice of rewarding
government employees even for routine tasks and
favours legitimized corruption in the Mughal era. In the
post-Akbar period, the civil service became highly
corrupt.”1
19
Photo source:
www.tajmahal.gov.in
1. Arora and Goyal, Indian Public Administration: Institution and Issues, New Age International,
1995 p.596.
2. Farhat Hussain, State and Locality in Mughal India, Cambridge UP, 2004, p.116.

20. Corruption in Pakistan-Periods
 1947-1970: Rehabilitation and resettlement;1
 1970-1977: Licensing, permits, and allotment
of plots and land for political favourites;2
 Selective Land Reforms
20
1. Sikandar Aslam, White Collar Crime in Pakistan: Causes and Remedies, 95th National Management
Course, 2011-2012.
2. General (r) Khalid Mahmud Arif, Corruption, Supreme Court website, last accessed: 21.08.2015.

21. Increased Corruption under Zia Regime
(1977-1987)
 Excessive American aid for Afghan war;
 Promotion of jihadi (Kalashnikov) culture, and
investment on non-state actors;
 Increased role of intelligence agencies in jihad
and politics;
 Increased smuggling of arms & drugs
 New political actors introduced to fill political
gaps;
 Writing off loans of politicians, appointments for
favourite politicians, election rigging.
21

22. Corruption Culture in Politics
(1980-1999)
 Emergence of the Mian Sharif family in politics;
 Emergence of structured corruption and horse trading
system for MPA/MNAs in competition with PPP;
 Increased interventions and funds to agencies for
election rigging resulting, inter alia, in creation of IJI in
1990;
 Premature toppling of governments on charges of
corruption, Zardari in jail, 1997 – Ehtisab Commission;
 Benazir in self-exile, and Nawaz Sharif behind the bars,
martial law imposed accusing politician, of corruption,
in 1999.
22

23. Zulfiqar Commission (1989) on Role of
Agencies in Politics
 “Arrogating to themselves the exclusive right to
patriotism, it is understood that they
[intelligence agencies] tried to manipulate the
results [of 1988 general elections] in favour or
against certain political parties by threats and
coercion, persuasion and offers of bribe.
Subsequently, efforts were made to destabilize
the government duly established by law and
these agencies tried to act as virtual king-
makers.”
23
Zulfiqar Commission’s Report, 27 March 1989, quoted in Azhar Suhail, Aijensiyon Ki Hukoomat,
Vanguard Books, 1993, attached as annexure.

24. Role of anti-Corruption Agencies in
Politics – Establishment of NAB
 Musharraf’s first speech 11 Oct 1999, accusing politicians of
corruption;
 Reasons of martial law
 Loan recoveries;
 Recovery of government dues;
 Misuse of authority;
 Nawaz Sharif PM and other leadership in Jail
 Establishment of NAB under NAO on 16 Oct 1999.
24
Source: http://s2.dmcdn.net/HdzAc/1280x720-8v9.jpg; last accessed:
21.08.2015

25. NAB – A Political Tool
Formation of PML-Q and LFO 2002 Validation
 Political re-alignment for substitute leadership:
 Muslim League Q formed out of N-League and
PPP members accused by NAB for corruption;
 Case of politicians under investigation like Faisal
Saleh Hayat, Manzoor Wattoo, Ch. Pervaiz Elahi,
Ch. Shujaat, etc.;
 No new case instituted against Musharraf
Regime;
25
Cont..

26. NAB – A Political Tool
Formation of PML-Q and LFO 2002 Validation
 Mian Sahiban on exile under the agreement;
 Benazir out of scene, Zardari in jail;
 New local government system introduced
 Election 2002, compromised under NAB
influence;
 NRO issued in 2007
 Political Leadership returns home
26

27. 29 Addl. NAB Cases presented to SC
on 27th July 2015
 Nawab Aslam Khan Raeesani Ex-CM Balochistan;
 Aftab Ahmed Khan Sherpao, Ex CM KP, sitting MNA;
 Shah Nawaz Marri, Minister Sports, Balochistan;
 Firdous Ashiq Awan Ex MNA;
 Raja Pervaiz Ashraf, Shahid Rafi, Shaukat Tareen;
 Ch. Shujaat Hussain and Ch. Pervaiz Ellahi;
 Mian Nawaz Sharif, PM and Shahbaz Sharif, CM;
 Hussain Haqqani;
 Asif Ali Zardari;
 Ishaq Dar, Finance Minister.
27
1. NAB website, last accessed: 24.08.2015

28. Status of Corruption in Pakistan
 In December 2012, Chairman NAB Admiral (r) Fasih
Bukhari estimated daily corruption to be around Rs.
10-12 billion;1
28
1. Asim Yasin, Daily Corruption Hovers Around Rs 12 bn: NAB Chie, The News, 14
December 2012

29. Comparator corruption
perception index Pakistan-TIP
Year Rank in CPI Year Rank in CPI
1996 53 2005 144
1997 48 2006 142
1998 71 2007 138
1999 87 2008 134
2000 - 2009 139
2001 79 2010 143
2002 77 2011 134
2003 92 2012 139
2004 129 2013 127
2014 126
29
Source: https://www.transparency.org/country/ Visited on 30th Aug2015

30. Comparator corruption
perception index Pakistan-TIP
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
53 48 71 87 0 79 77 92 129 144 142 138 134 139 143 134 139 127 126
48
71
87
0
79 77
92
129
144 142
138
134
139
143
134
139
127 126
0
20
40
60
80
100
120
140
160
30
Source: https://www.transparency.org/country/ Visited on 30th Aug2015

31. Why anti-corruption not successful
 Reconciliation ,mutual, on political pitch;
 Appointment of heads of ACAs at the discretion
of ruling regime.
 Weak Prosecution and follow up;
 Excessive discretion both political/bureaucratic;
 Lack of political will and priority;
 Social system and governance design not aimed
at public service and corruption eradication;
 Salaries of bureaucracy not market competitive
and unsecure posting tenure.
31

32. Findings
 Social design not aimed at creating a
corruption free society;
 Political leadership not committed for
corruption free governance;
 Anti-corruption agencies and white collar
corruption used as a tool for achieving the
political motives of the ruling elite.
32

33. Conclusion
 White collar corruption cases against
untouchable elite including political leadership
are kept dormant by anti-corruption agencies
on the directive of ruling regimes.
 Every government uses the dormant case as
the Sword of Damocles against the opponents
for political alignment through anti-corruption
agencies.
33

34. Recommendations
Reformation of Anti Corruption Mechanism
 Heads, Regional Heads, Investigation and Prosecution Chiefs to be
appointed through “Parliamentary Anti Corruption commission.
 Administrative scrutiny of applications invited, on the line
,against add. on touch stone of prescribed qualification;
 Open Public scrutiny and through Media-reports of
performance
 Each attribute of qualification to be numerically quantifiable,
without any discretionary marks, to finalize the appointment on
merit;
 Market competitive remuneration ,tenure secure, delegation
defined and performance indicator decided packages.
34

35. Recommendations -contd
 No duplication of agencies at provincial and federal level ;
one provincial and other at central govt.
 ACAs to be autonomous Financial -Administrative
 Complaints against ACAs employee to be decided by
Parliamentary Anticorruption Committee(PAC)
 All process of taking cognizance, initialization of inquiry
,investigation proceedings and closure at any stage be
decided by the ACA Board, whose member should be
notified by PAC; and media to sit as observer in
preceding.
 No acting charge, current change or additional change be
allowed by head for qualifying others a substitute
member of the board.
35

36. Recommendations
Reformation of Political System
 Election with in the party to be every two years and through election
commission
 Autonomous Election commission on the pattern of ACA
Governance and Cultural
Transformation(International)
 Government Structure for regulation only – slim
 Wages market competitive
 Better emphasize on proactive service delivery of Health, Education,
Housing, internal security-basic needs
 Cross cultural and reciprocal education program at universities –Pakistan
Education Hub
 Exploitation of natural resources/ reserves and distant urban centers and
new business of opportunities for poverty alleviation.
36

37. THANK YOU
37