Cost of Corruption – Accept It or Fight It?

High levels of corruption act like an additional tax. It is accepted in some places as cost of doing business or for getting things done. For Malaysia, it is 1-2% of GDP or about RM10 billion annually (see, 22 June 2018). In just 10 years, we could have lost RM100 billion, excluding the shenanigans of 1MDB. Global Financial Integrity Report (“GFI”) suggests Malaysia lost up to USD431 billion (RM1.8 trillion) in illicit outflows (see, 13 November 2018).

According to Transparency International, corruption is pervasive with over 68% of countries identified as having serious corruption problem. In Palestine it is USD800 million lost each year due to tax evasion. In Indonesia, one-fifth of rice distributed for an anti-poverty programme disappeared. In Pakistan, 43% polled faced a demand for bribes with local government, 69% with the judiciary and 84% dealing with the police. And that’s the Islamic Republic of Pakistan. Let alone those without a religious/shariah compliant requirement.

In communist China, the campaign against corruption began in 2012 with Xi Jinping. He vowed to crack down on “tigers and flies” -  high-level officials and local civil servants alike. As of 2016, 120 high-ranking official and five national leaders were “netted”. More than 100,000 people have been indicted for corruption. Reaction to the campaign has been mixed. Initial cynicism among the public has now turned to popular support. There are some concerns with China’s legal community. The deep-seated cultural issues used to be addressed including, gift giving during holidays, securing patrons for promotion, hosting banquets for minor deals, exchanging favours and the whole gamut of guanzi has to be dealt with.

What about Malaysia? We need to rope in the whole band of suspects into a “Kamunting” like “resort” and secure the loot before it destroys the very fabric of this nation. It is not acceptable in any religion this practice of “greasing” to speed things up or to “bend” the rules. A quick closure and recovery of loot will certainly restore the economy and integrity of this nation. The recent amnesty on tax is one way but not sufficiently aggressive. These parties with their access to funds (overseas) can cause serious trouble. Never underestimate a wounded animal!

References:

1)           Corruption: Cost for Developing Countries (Transparency international UK)

2)           Anti-corruption campaign under Xi Jinping (https://en.m.wikipedia.org)

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