Institutional Building For Good Governance in the Anti Corruption Sector

Institutional and Sustainable Development Foundation.

By  Ogwu Paul Okwuchukwu

© July 2019

 

About ISDF

 

Institutional and Sustainable Development Foundation was found based on the growing role of strong institutions in ensuring the growth and development of a country. Africa and most countries of developing nations lack strong institutions to support social and physical infrastructures development. Most institutions in Africa are weak.

 

http://isdfoundation.org.ng

 

Content

• Introduction

2.1    Instruments for The Fight against Corruption

2.2     International and Domesticated Multi Stakeholders Grouping

         Working on Corruption in Nigeria

3.1   Institutionalizing The Fight Against Corruption

4.1   Key Parameters Essential for Anti-Corruption Fight

5.1   Pending bills before the executives and Legislatures to strengthen

         the Fight against corruption

6.1   Executive orders by the government to Aid the Fight against

          corruption:

7.1 Laws the need to be in place to enhance the fight against corruption

8.1 Recommendation To Specific sectors on how to Fight Corruption

            8.1   Government 

            8.2   Education

            8.3   Prevention

            8.4   Citizenry

9.1 Reform options open to governments to reduce corruption and

       mitigate its effects

9. 2 Paying civil servants well

9.3     Creating transparency and openness in government spending:

9.4    Creating transparency and openness in government spending:

9.5    Cutting red tape and bureaucratic bottleneck

9.6   Replacing regressive and distorting subsidies with other means of

         empowerment

9.6   Deploying smart technology

10 .  Conclusion

11. Reference

 

INSTITUTIONAL BUILDING FOR GOOD GOVERNANCE IN THE ANTI CORRUPTION SECTORS.

1.1   Introduction

Corruption in Nigeria is multifaceted and takes many forms: from massive contract fraud to petty bribery; from straight-up embezzlement to complicated money laundering schemes; from pocketing the salaries of non-existent workers to steering plum jobs to relatives and friends. These descriptions go beyond the public sector to the private sector and also our relationship with peers, the family, the community and others we come in contact with. “Helping Countries Combat Corruption” report groups corruption into five broad categories: bribery, theft, political and bureaucratic corruption, isolated and systematic corruption, and private sector corruption. The British Department for International Development uses a typology that keys onto ten types of corruption covered by the United Nations (UN) Convention Against Corruption: bribery, embezzlement, public procurement abuse, abuse of function, influence trading, nepotism, money laundering, conflict of interest, judicial corruption, and private sector corruption.

 2.1 Instruments for the Fight against Corruption

On the country level, there are different instruments and frameworks for the fight against corruption both at the domestic and the international levels. These instruments have either been institutionalized rather wobblingly at the domestic level and internationalized with weak implementation. At the domestic level, the country has implemented and enacted various laws, rules, policies and public pronouncement towards the fight against corruption. These include the  Evidence Act, The Criminal Procedure Law, The Corrupt Practices and other Related Offenses Commission Act, the Economic and Financial Crimes Commission (EFCC) Acts 2004, Code of Conduct Bureau (CCB) and Tribunal (CCT)  but it also needs to strengthen some other provisions which   include  the case of public access to information, whistle blower and witness protection, procedure for public access to assets declaration forms, non-conviction – based asset forfeiture regimes, and money laundering and anti-terrorism financing . Also included are the beneficial ownership clause and open contracting in our procurement process and the oil and gas sector which is been promoted but not yet in full operation.

On the external instruments the country should strengthen and domesticate, more laws, adopted policies and set up new structures to deal with various manifestations of the United Nations Convention Against Corruption (UNCAC), African Union Convention on Preventing and Combating Corruption (AUCPCC) and the Economic Community of West African States Protocol on the Fight against Corruption (ECOWAS Protocol). These will positively impact our fight against corruption.

2.2 International and Domesticated Multi Stakeholders Grouping Working on Corruption in Nigeria.

International Multi-stakeholders group like the Extractive Industrial and Transparency Initiative (EITI), Open Government Partnership have played and continue to play a leading role in strengthening anti-corruption in Nigeria. NEITI the Nigeria armed of the EITI backed by an act of the parliament has been playing a leading role in transparency and accountability in the extractive sector. The NEITI has released several reports in the oil, gas, solid mineral sector. These reports and data released have been of the biggest achievement as the citizenry and other stakeholders have continued to engaged an obscure sector through those data. These have initiated a lot of reforms because of the financial, fiscal, process audits of the sector.

The Open Government Partnership globally and nationally have several commitments that deals with anti-corruption. Some of these commitments that aid the fight against corruption include open contracting, extractive sector transparency, Beneficial Ownership, Anti-corruption information sharing, and Asset Recovery Legislation.  These initiatives are potent instruments for the fight against corruption.

 

3.1    Institutionalizing The Fight Against Corruption

 For effective reduction of corruption or war against corruption, Nigeria needs to institutionalize the war against corruption. The institutional approach towards public policy should serve as a guide towards creating an enduring and sustainable war against corruption.  Having strong institutions will impact how we succeed in fighting corruption.  From the institutional perspective of the public policy, institutions as an organization have a distinctive sense of self and identity and its way and its beliefs become important for the society as well. It also starts representing the aspiration of the community and in turn influences the community with their own values and beliefs.  A real institution becomes a symbol for the community in many ways, like the very building in which it is housed.

The institutional approach focuses on the organizational structure, goals and principles as primary towards building a sustainable institution. So, a lot of attention was given to the problems related to the functioning of an organization that are entrusted with the responsibility of fighting corruption. In addition, the society and community should be encouraged to take up the fight against corruption as part of the structural involvement.

Although through the existence of these laws, Nigeria has largely complied with the provisions of the international instruments and local requirements. Instruments and laws like UNCAC, AUCPCC and ECOWAS protocol on the criminalization of corruption activities. The ICPC Act 2000, The EFCC Act 2004, The Money Laundering(Prohibition) Act 2004 (MLPA) 2004, the Advance Fee Fraud and other related Offences Act 1995, the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994 as amended, the Miscellaneous Offences Act, the Code of Conduct Bureau and Tribunal Act 1975, the Criminal Code and Penal Code Acts jointly and substantially criminalizes articles 15-27 and articles 28-41 of UNCAC, Articles 4&5 of AUCPCC and 6 &12 of ECOWAS Protocol have all been enacted and implemented. We still have some missing link to tackle a problem that is endemic and affecting all sectors of the country.

Nigeria  have not evolved beyond certain parameters due to the following factors; high and undue political interference  in the operation and running of the agencies, lack of buy-in by the critical mass and stakeholders civil servant, citizens ownership and poor social economic  indexes, cultural challenges and practice, lack of institutional capacity and capability , poor funding of existing institutional  and leadership failure, lack of synergy among the principal agencies , non-implementation of effective corruption strategy and lack of adequate punitive measures. These factors have made the institutional and instruments weak.

However, there are some preventive measures, laws which need to be implemented or consolidated for effective push back against corruption. The preventive measures put in place include the Corrupt Practices and Other Related Offenses Act 2000(ICPC Act), the enabling law of the ICPC which if well implemented will provide a strong preventive measure. This law criminalizes several corrupt activities and provides powers for the agency to engage in preventive measures and education against corruption. The EFCC Act 2004 also creates a Commission to focus on financial and economic crimes, with extensive powers to implement and enforce several laws and to put in place mechanisms for prevention and education against financial and economic crimes. Both laws establish dedicated anti-corruption agencies. The Fiscal Responsibility Act (FRA) 2007 and the Public Procurement Act (PPA) 2007 provide regimes and comprehensive framework for regulation of fiscal planning, and management of public expenditure at the Federal level in Nigeria, which are fully compliant with requirements of UNCAC, AUCPCC and ECOWAS Protocol. These are a complementary law that contributes to the overall law against corruption.

 On the policy side are the introduction of BVN by all the bank account holders, the NIPPS, GIFMIS and other rules and policies by the government which has been implemented as a way of preventing corruption. These are vital tools towards reducing the incidents of corruption.

It is quite unfortunate that the fight against corruption has been personalized by every government since after 1999. The current and preceding government practitioners have always used the two main anti-corruption agencies as a witch hunt against a perceived opponent and members of the opposing political parties. The functions and operations of these institutions need to be institutionalized, strengthened and made more responsive not to the individual in power but to the citizenry.  There are areas where the domestic legal regime requires new laws. The case of public access to information, whistleblower and witness protection, procedure for public access to assets declaration forms, non-conviction – based asset forfeiture regimes, money laundering and anti-terrorism financing are examples of these areas that the country need to work on and make sure it doesn’t contradict to any part of the constitution and individual human right.  The Evidence Act, The Criminal Procedure Law, The Corrupt Practices and other Related Offences Commission Act, the Economic and Financial Crimes Commission (EFCC) Acts 2004, Code of Conduct Bureau (CCB) and Tribunal (CCT) Acts all requires modifications. Some of these required modifications will enhance institutional effectiveness and independence of the agencies and thus enhance the war against corruption.

The Country has enacted more laws, adopted policies and set up new structures to deal with various manifestations of corruption. We seem not to lack the laws and policies towards fighting corruption but are poor in implementing the polices and laws. We have also signed and ratified a number of anti-corruption Conventions such as the United Nations Convention Against Corruption (UNCAC), African Union Convention on Preventing and Combating Corruption (AUCPCC) and the Economic Community of West African States Protocol on the Fight against Corruption (ECOWAS Protocol).

Apart from the laws and convention, Corruption laws that   need to be implemented and institutionalized are already there but the need to be strengthened and well implemented.  The country should also look at corruption from the behavioral and cultural enablers and supporters of corruption act. There numerous behavioral and organizational culture that encourage bureaucrats and officeholders to engage in corrupt act. And a society that seems to encourage the culture of corruption and its enabler.

4.1.  Key Parameters Essential for Anti-Corruption Fight

There are seven key parameters that are essential to the success of Anti-Corruption fight. They include ; Political will to fight corruption, Enabling legal framework, Independent and effective anti-graft institutions, Skilled efficient and effective public service, Full citizens access to information, awareness and an environment for effective citizens, participation in governance and the crusade against corruption,  Effective implementation of comprehensive ethics rules in all relevant sectors, Concise and coherent anti-corruption policy and strategy that supports performance monitoring and evaluation. Nigeria may appear to have some of the frameworks and instruments available but most appear weak, ineffectual or not well implemented. The different Institution that due to their act establishing them are empowered to fight corruption. They include ICPC, EFCC, Code of Conduct Bureau, Code of conduct Tribunal, NEITI, BPP (Bureau of Public Procurement, Accountant General of Federation, Auditor General of the Federation and a host of other policy initiatives and bureaucratic workings.

The need to institutionalized some policies and acts and operationalized Control and Curbing of Corruption cannot be overemphasis. In addition, there numerous policy initiatives that the government need to implement to ensure the success and understanding of the war against corruption. Some of these initiatives and awareness that needs clarity to include Corruption is not only about bribes: People especially the poor get hurt when resources are wasted. That’s why it is so important to understand the different kinds of corruption to develop smart responses. Corruption can take the form of system abuse, nepotism, favoritism etc Power of the people: Create pathways that give citizens relevant tools to engage and participate in their governments – identify priorities, problems and find solutions. The fight against corruption should be participatory by all the relevant stakeholders including the citizenry. Cut the red tape: Bring together formal and informal processes (this means working with the government as well as non-governmental groups and actors) to change behavior and monitor progress. These can be a collaborative effort by all the actors. The fight against corruption should be technology driven. We need to use the power of technology to build dynamic and continuous exchanges between key stakeholders: government, citizens, business, civil society groups, media, academia etc. Added to this is the need to deliver the goods, goals and priorities by investing in institutions and policy – sustainable improvement in how a government delivers services is only possible if the people in these institutions endorse sensible rules and practices that allow for change while making the best use of tested traditions and legacies – imported models often do not work. A reward system and incentives for good behavior and punishment for going contrary to the law should be encouraged. This should go with the market, behavioral and social forces. Also Keep citizens engaged in corruption at local, national, international and global levels – in line with the scale and scope of corruption. We need to effectively make use of the architecture that has been developed and the platforms that exist for engagement within the local, national and international levels. The building of capacity so that people that need to be agents of change towards curbing corruption.

5.1 Pending bills before the executives and Legislatures to strengthen the Fight against corruption.

There are still some corruption bills pending before the national assembly. They include.

1. money laundering (prevention and prohibition Act 2011 for repeal an amendment.
2. Mutual and Assistant in criminal matters bill,
3. Witness protection bill,
4. Federal Audit commission bill e. the whistle-blower protection bill,
5. Nigeria Financial Intelligence unit bill although recently signed.

6.1. Executive orders by the government to Aid the Fight against corruption:

1. Executive order no 6 of 2018 on the preservation of suspicious Assets connected with corruption and other related offences.
2. Executive order no 8 of 2018 meant to regulate Money laundering and tax evasion tagged voluntary offshore Assets Regularization scheme, VOARS

7.1 Laws the need to be in place to enhance the fight against corruption.

1. A law requiring tax in the form of “capital gains tax” to be levied against people who appear to have large sums of money illegitimately or even legitimately, other than as a result of a legitimate business transaction). This could also include all items that are not basic to the population.
2. A law requiring the Federal and State Ministries responsible for Lands and Housing to make it a condition for the granting of Certificates of Occupancy, as well as for approval of building plans on registered plots of land, to require applicants to indicate legal sources of funds and the payment of the relevant tax. Also, the NFIU should have access to all owners of land and buildings in the major cities.
3. A law enabling the Federal and State Tax Assessment and Collection Agencies as well as the Anti-Corruption Intelligence Agency (discussed below) and the Police to demand explanations for large acquisitions and expenditures.
4. A law requiring the mandatory public declaration of the assets of the “immediate family” (meaning husband, wife and children) of all specified senior public officers on appointment or assumption of duty as well as after disengagement. In addition, such assets (which must be covered by the Freedom of Information Act) must be verified and monitored routinely by the Anti-Corruption Intelligence Agency and the EFCC.
5. A law should be enacted, declaring all crimes of corruption “federal crimes” justiciable in federal courts or tribunals.
6. A law removing immunity from prosecution of all elected government official including the President, Vice President and the Deputy Governors.

8.1 Recommendation to Specific sectors on how to Fight Corruption

8.1 Government  

The government and the government bureaucracy should have the relevant framework, legislatures and initiatives that can help curb, prevent and punish corrupt acts in a fair, unbiased and equitable manner. The leadership should show enough example and political will to address the issues of corruption. They should do everything possible to strengthen the institutions entrusted with the responsibility of fighting corruption through independence, enabling laws and policies, capacity building, opportunity and non-interference.

8.2 Education

The most critical aspect of the war against corruption is that there should be a massive education on what constitutes corruption act and the opportunity cost and effect of Corruption. Education both formally and informally is one of the most effective tools of combating corruption as citizens are informed of the effect and consequences of a corrupt act. There should be a deliberate policy to make corruption education as part of the curriculum.

8.3   Prevention

The strategic documents, policies and initiatives should be channeled not only to punishing corrupt act but most critically preventive measures on corruption. This may mean the deployment of technologies and the bureaucratic initiatives that will prevent individuals and groups from having access to perpetuate corrupt act and tendencies.

8.4 Citizenry

The corruption fight should be made to be participatory and citizens should be encouraged to owe the fight. Citizen ownership should be encouraged This should be linked to the education of the citizenry to understand the long-term and short-term effect of corruption. In addition, we should explore the societal, cultural and behavioral acts that encourage corruption. These acts contribute a lot in fostering and entrenching the act of corruption. This will also be complemented with a strong ethics in life and business to displace the societal, cultural and behavioral act.

9.1 Reform options open to governments to reduce corruption and mitigate its effects

Having looked at some of the ways in which corruption damages the social and institutional fabric of a country, we now turn to reform options open to governments to reduce corruption and mitigate its effects. Rose-Ackerman (1998) recommends a two-pronged strategy aimed at increasing the benefits of being honest and the costs of being corrupt, a sensible combination of reward and punishment as the driving force of reforms.

9. 2 Paying civil servants well

The civil and Public servant is appropriately compensated or grossly underpaid will clearly affect motivation and incentives. It should also be criminalized any act of aiding and abetting corruption and ICPC should be strengthened to fight corruption.

9.3    Creating transparency and openness in government spending:

 There should be transparency in the handling of the following subsidies, tax exemptions, public procurement of goods and services, soft credits, extra-budgetary funds under the control of politicians—all are elements of the various ways in which governments manage public resources. Governments collect taxes, tap the capital markets to raise money, receive foreign aid and develop mechanisms to allocate these resources to satisfy a multiplicity of needs. Some that could affect public sector management should be abolished.

9.4    Cutting red tape and bureaucratic bottleneck

The high correlation between the incidence of corruption and the extent of bureaucratic red tape should be minimized and undue regulations reduced.

9.5   Replacing regressive and distorting subsidies with other means of empowerment

The government reducing Subsidies are another example of how government policy can distort incentives and create opportunities for corruption. According to an IMF study (2013), consumer subsidies for energy products amount to some $1.9 trillion per year, equivalent to about 2.5 per cent of global GDP or 8 per cent of government revenues. These subsidies are very regressively distributed, with over 60 per cent of total benefits accruing to the richest 20 per cent of households, in the case of gasoline. Removing them could result in a significant reduction in CO2 emissions and generate other positive spillover effects. Subsidies often lead to smuggling, to shortages, and to the emergence of black markets. Putting aside the issue of the opportunity costs (how many schools could be built with the cost of one year’s energy subsidy?),

9.6   Deploying smart technology

Just as government-induced distortions provide many opportunities for corruption, it is also the case that frequent, direct contact between government officials and citizens can the way for illicit transactions The use of technologies as with BVN, GIFMIX, PPPS, REMITA. One way to address this problem is to use readily available technologies to encourage more of an arms-length relationship between officials and civil society; in this respect, the Internet has been proved to be an effective tool to reduce corruption (Andersen et al., 2011).

10. Conclusion

Due to the high level of political interference, weak institutional capacity, the systematic level of corruption and other behavioral and social issues effecting the fight against corruption, the fight against corruption have been virtually ineffective and unproductive. A systematic analysis of the result so far shows a society that have not only accepted corruption but have adopted it as a way of life and survival.

Reference

https://carnegieendowment.org/2018/07/17/new-taxonomy-for-corruption-in-nigeria-pub-76811

Andrews, M. (2013). The limits of institutional reform in development. New York: Cambridge University Press. http://www.cambridge.org/gb/knowledge/isbn/item6950780/?site_locale=en_GB.

Aguilar, J., Caspary, G. & Seiler, V. (2011). Implementing EITI at the subnational level. Emerging experience and operational framework. Washington D.C.: World Bank. http://eiti.org/files/Implementing%20EITI%20at%20subnational%20level.pdf.

CommGAP. (2009). Theories of behaviour change. Washington D.C.: World Bank. http://siteresources.worldbank.org/EXTGOVACC/Resources/BehaviorChangeweb.pdf