Anti-Corruption

1. 1
Corruption and Unethical
Behavior
Theory and Exercise
By
Dr. Md. Shamsul Arefin
Secretary
Anti-Corruption Commission

2. What is Corruption
According to the World Bank, corruption is ‘the
misuse of public office for private gain”.
Transparency International (TI) defines as:
“Corruption is the abuse of entrusted power for
private gain”.
 Forms of Corruption:
Bribery
Extortion
Kickback
Cronyism
Embezzlement

3. • is unfair and harms those without power
• results in a loss of values and morality
• results in financial loss
• results in loss of trust in government, justice
and public services
• results in illegal activities, encourages
organized crime
• creates an inefficient society
• - Robert Lugolobi, Executive Director of Transparency
International

4. Rahim had practiced his driving skills with his instructor for
months. It was now days before his test, and he felt he was
ready for it. He stopped the car and waited for final feedback
from his teacher.
What came next was not what he had expected. The driving
instructor told him that if he wanted to pass his test, he
would need to bribe the examiner. If Rahim would give 100
dollars to the instructor, he would happily act as go-between,
making sure the examiner received his money before the test
began.
•What do you think of this situation?
•What would you do?

5. A non-profit organisation is going to purchase a new
office building. As a result, the present office building
is sold for USD 250,000. According to government tax
regulations, the buyer must pay taxes based on the
selling price. As this is a large percentage, the
organisation makes a deal with the buyer to “reduce”
the nominal selling price to USD 150,000 on a
separate invoice, so that the buyer will pay a much
lower tax.Questions:
If you were a board member of this non-profit
organisation:
•How would you respond?

6. Your daughter was hit by a car and rushed to the nearest
hospital. You pay a lot of money for surgery, treatment,
medication and a hospital room. The seriousness of her
injuries requires that she stay in hospital for at least a
week. Despite having already paid for her care, your
daughter complains that the nurses don’t help her when
asked. You know that if you give the nurse a few extra
dollars a day she will take care of your daughter.
Questions:
•Would it be wrong to pay the nurses extra?

7. One day you are riding your motorcycle and a
police car stops you on the motorway because you
are not wearing your helmet. (The law in your
country is that everyone who drives a motorcycle
must wear a helmet.)The police officer tells you to
pay a fine of 100 USD, but will ignore the violation if
you pay him 20 USD.
Questions:
•Should you pay the policeman? Why

8. • A lifestyle that is not in line with income
• Deliberately working alone, or always with the
same colleague
• Secretive phone calls
• Many discrepancies in the petty cash, round
figures
• Lots of incorrect or missing invoices, cash
tickets etc.
• Irritability, suspiciousness or defensiveness
• Control issues: unwillingness to share duties
• Unusually close association with
vendor/customer
• Addiction problems
• Someone who always arrives first and leaves last

9. You need to have your identity card processed at a
government office. Your relative happens to work at the
office, so in order to speed up the process and avoid
standing in line, you ask for her help speeding things up.
Later you give her Tk. 2000 as a gift.
Questions:
•Could you or your relative’s actions be considered illegal?
•Did your action hurt others?

10. Opportunity is the ability to act corruptly without
being caught.
Some issues that can create opportunities include:
•Weak internal controls
•Poor management oversight
•Being in a position of leadership and authority
•Inadequate procedures to detect corrupt activities.

12. An organization needs a standard set of policies
like:
•Code of conduct
•Set of rules to prevent corruption
•Procedure re. internal monitoring and evaluation
•Reporting guidelines and routines
•Have a safe procedure in place to report corruption
•Sanctions for those who act corruptly
•Clear policies & procedures for project asset ownership
and transfer

13. • Financial Transparency & Good Practice in:
• Decision making
• Monitoring & Reporting
• Accounting
• Spending
• Proper Human Resources management
• Fair compensation/salaries & other employee benefits
• Clear and detailed job descriptions
• Documented career advancement strategies
• Management & Power
• Prepared to answer questions, admit mistakes and, where
possible, rectify any errors

14. • Policies are clear, simple statements of how your
organization intends to conduct its services, actions or
business.
• Procedures describe how each policy will be used. Each
procedure should outline:
• Who is responsible for doing what
• What steps need to be taken
• Which forms or documents to use

15. You are the managing director of an NGO and you
receive a subsidy for building a community center in one
of the villages you work in. This is a big project and the
budget is considerable. Your nephew happens to run a
construction company and he makes it very clear that he
expects you to give him the job because you are family.
You realise that if you decide not to give him the job,
problems could arise within your family and community.
Questions:
•What would you do to prevent this from happening again?

16. AN HONEST PERSON WILL
NOT
Close his eyes to corruption
Close his ears to complaints
Keep quiet about corruption

17. Police Verification for Passport
Reported on June 17, 2017
As you all might know the police need to verify your address when
you apply for a passport. It is common practice that the police
officers responsible for completing verification ask you to pay some
money, otherwise they might send a late or negative report about
your address.
You were asked to pay Tk.3000/- to complete your verification.
Q. what you would do ?

18. Make sure you are not to be a part of the problem,
make a private pledge!
I pledge to…
•be a responsible and honest citizen and
•neither pay nor take bribes;
•obey the law and encourage others around me to obey the
law and to treat resources respectfully;
•neither abuse any money entrusted to my care, nor any
position I hold
•act with integrity in all my dealings
•always remember that public resources are intended for
the benefit of the public, not for private gain.

19. An anti-corruption code of conduct can tell you
what your responsibilities are, like:
•Respect for the law
•Refusing to give or take bribes
•Safe ways to report corruption
•Not using the organisation’s resources for private
purposes
“The right thing to do and the
hard thing to do are usually the
same.”
- Steve Maraboli

20. When you are an employee and you suspect corruption in
the company you work in, you may decide to act in order to
stop future mismanagement practices. These people are
called whistle blowers.
Remember:
•Whistle blowing is about mismanagement, corruption etc. It
is not a complaint system
•Whistle blowing is a key instrument against corruption, BUT
in many countries and organisations, there are no clear rules
for whistle blowers. A whistle blower may carry high
personal risk.

21. The board and leadership of a mid-size NGO has been working
on designing and writing policies and procedures for their
organisation. They have given everybody in the organisation a
copy of these policies and procedures, but they have observed
that many of these rules are not known by their personnel or
are simply ignored.
Question:
•What can they do to make sure that the new guidelines are
known and followed by everybody in the organisation?

22. Conflict of interest
A staff member should avoid putting himself/herself in a
position that may lead to an actual or perceived conflict
of interest with the organisation.
A staff member confronted with conflict of interest
should report this to his/her supervisor; he or she
should have no authority in the final decision making
related to the area of conflict of interest.

23. You are responsible for all purchases in a large company.
You have to buy 5 new Toyota Hiace Vans. You ask
three car dealers for their best offers. One of these
dealers is a good friend of yours and he offers you free
maintenance for your private car if you accept his offer.
You accept this offer and he sells the vans to the
company.
Questions:
•Can you suggest a policy and/or a procedure that deals
with these issues?

24. 1. We will avoid any conflict, real or potential, between our personal interests and
the interests of our organisation
2. We will not give or accept bribery in any form
3. We will not for private purposes seek to influence any person or body by using
our official position or by using force or threats.
4. We will not use deception, trickery or breach of confidence to gain an unfair or
dishonest advantage
5. We will not misappropriate or otherwise divert property or funds entrusted to
us
6. We will not give, solicit or receive directly or indirectly any gift or other favor
that may influence the exercise of our function, performance of duty or
judgment. This does not include conventional hospitality or minor gifts.
7. We will not favor friends, family or other close personal relations in
recruitment, procurement, aid delivery, consular services or other situations.
8. We will report any evidence or suspicion of breach of this Code of Conduct

25. Households bribery (Public Offices)
TIB’s research (2012):
 Extortion-13.6% of GoB Budget
 63.7% (7,906 Hh) told- compelled to pay bribes in public
offices
 TIB’s NHS (2015): victims of bribery-58.1% Hh, bribed
BDT 8,822 crs. (3.6% -GDP )
 In 2012, half of Afghan citizens paid a bribe while
requesting a public service -total cost of bribes paid
to public officials amounted to US$ 3.9 billion (20%
of GDP, according to the UNODC survey)

26. WB’s survey (2011) reveals:
Cost of corruption- US$ 2.6 Trillion (5%+ of Global GDP)
In Africa, corruption causes loss of nearly 25% of
its GDP-
In Bangladesh corruption eats up 2-3% of national
GDP
Losses in service oriented public offices of
Bangladesh-5% (TIB)
Losses by over /under invoicing

27. May 3, 2018 Dr. Md. Shamsul Arefin 27

28. May 3, 2018 Dr. Md. Shamsul Arefin
28