Chapter 1

Introduction

Corruption is not a new phenomenon. What is new and worrying is the

magnitude and size of corruption. It has spread its tentacles to every sphere
of national life. It is one of the biggest threats to development. It can tear the
very fabric of the society and, infect, it is doing so. Corruption benefits the
rich and the well-to-do. It enriches the rich and disproportionably affects the
poor, unprotected and the underprivileged and thereby it deepens their
deprivation. Unless it is checked, the governments and people will have to
pay a very heavy price in the consequent result of lower incomes, lower
investments and lower developments resulting in volatile economic swings.
In recent years, the subject of corruption has received considerable attention.
Work on governance has brought it into the light and it is no longer taboo.
Corruption is being addressed by financial institutions, government
agencies, bilateral donors, international organizations, non-governmental
organizations (NGOs) and development professionals. Its causes have been
measured empirically, as have its impacts on human development.
Institutions and administrative procedures have been overhauled. Countries
have negotiated and signed international anti-corruption conventions.1

1
www.karmayog.org/anticorruption/anticorruption_868.htm

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1.1 Concept of Corruption
The word “Corruption” comes form the Latin verb “corrupts” which literally
means a broken object. Conceptually, Corruption is a form of behavior,
which depart form ethics, morality, tradition, laws and civil virtue.
Corruption has recently been the subject of substantial theorizing and
empirical research, and this has produced a bewildering array of alternative
approaches, explanations, typologies and remedies. Corruption is understood
as everything from the paying of bribes to civil servants and the simple theft
of public purses, to a wide range of dubious economic and political practices
in which businesspeople, politicians and bureaucrats enrich themselves. The
issue of corruption is an old one, that has re-entered the current political and
economic debate from the new interest in the role of the state in the
developing world, and from the assumption that the state is an indispensable
instrument for economic development, redistribution and welfare.

1.2 Meaning of Corruption

The meaning of corruption is important in the context of global efforts to
reduce its influence in public life. But is not an easy task to define
corruption. Webster Dictionary describes corruption as morality, state of
being corrupted and according to the dictionary corruption means a state of
decomposition, dishonest, rotten, pollute, immoral and bad. A definition has
been found in a publication of the World Bank headed "VIETNAM-
Combating Corruption" as "Corruption practice refers to the act of offering,
giving, receiving or soliciting anything of value with the aim of influencing
the action of a public official in the procurement process or the contract
execution. The easy and artistic meaning of corruption may be an act s
sanctity. In the administrative view, corruption has a specific meaning. If a

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public servant abuses power or designation or does a wrong or refrains from
doing justified act with a view to fulfilling his desires or giving undue
privileges to his relatives, friends or any person, such act will be considered
as corruption. Professor Robert Cligaurd of South Africa gave the following
equation regarding corruption:

Corruption = monopoly + Discretion -Accountability - Salary.

From the above quotation it is said that if monopoly and discretionary power
of government is increased and on the other hand if there is no
accountability and salary is lower standard, the ultimate effect is the
promotion of corruption. But in the opposite manner, if the authority of the
first two elements is decreased and the authority of the last two elements is
increased, corruption will be alleviated.

Corruption is a social, legal, economic and political concept enmeshed in

ambiguity and consequently encouraging controversy. The ambiguity and
controversy result from the fact that a number of competing approaches to
understanding corruption is available. Naturally, definitions of corruption
focus on one of several aspects of the phenomenon; various approaches to c
corruption can be placed into five groups. These are public-interest centered,
market centered, public-office-entered, public-opinion-entered and legalistic.
Proponents of the public interest centered approach believe that corruption is
in some way injurious to or destructive of public interest. Market centered
enthusiasts suggests that norms governing public office have shifted from a
mandatory pricing model to a free market model, thereby considerably
changing the nature of corruption. Public centered protagonists stress the

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fact that misuse by incumbents of public office for private gain is corruption.
11 those who believe in public opinion centered definitions of corruption
emphasize the perspectives of public opinion about the conduct of
politicians, government and probity of public servants. Corruption includes
moral perversion; imprisonment of virtue and moral principals ;the luxury
and corruption among the upper classes; moral degeneracy followed
intellectual degeneration; its brothers, its opium parlors, its depravity ;Rome
had fallen into moral putrefaction .Corruption includes destroying someone's
honesty and loyalty ;undermining moral integrity; “Corruption is a minor”;
“the big city's subversion of rural innocence . Corruption includes
inducement by improper means to violates duty,” he was held on charge of
corruption and racketeering. Corruption is defined, for instants, as a
preservation of power.

1.3 Forms and Types of Corruption

1.3.1 Forms of corruption

Bribery: Bribery is the bestowing of a benefit in order to unduly influence

an action or decision. It can be initiated by a person who seeks bribes or by a
person who offers and pays brides. Active bribery refers to the offering or
paying of the bribe, while passive bribery refers to the receiving of the bride.
The “benefit” can be virtually any inducement, such as money, company
shares, inside information, entertainment and employment of the mere
promise of incentive the benefits gained can be direct or indirect. It can be
described as indirect gains when the benefits flow e.g. to a friend, family,
private business, campaign funds or political Parties.

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Embezzlement and Fraud
These offences involve the taking or conversion of money, property or
valuable items by an individual who is not entitled to them but, by virtue of
his or her position or employment, has access to them. Employment-related
equipment, such as motor vehicles, may be used for private purposes. Those
offences do not include "theft" per se but only situation involving a public
official or where the public interest is crucially affected.

Extortion
Extortion relies on coercion, such as the use or threat of violence or the
exposure of damaging information, to induce cooperation. Extortion can be
committed by government officials but they can also be victims of it. An
example of extortion is when police officers threaten to arrest people to
extract money from them.

A conflict of interests
It arises when a person, often a public sector employee or official, is
influenced by personal considerations when doing his or her job. Thus,
decisions are made for the wrong reasons. This kind of corruption involves,
for example, engaging in transactions, selling influence, or acquiring a
position that is incompatible with one's official duties for the purpose of
illegal enrichment. An example of this kind of corruption is when a public
official, who has access to secret information, uses the information to take
decisions concerning personal investments.

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Favouritism, Nepotism and Cronyism
Favouritism is a general term used to describe use of power to make
decisions on the basis of personal relations rather then on objective grounds.
There are several forms of favoritism. Among the most commonly cited are
nepotism and cronyism. Nepotism applies to a situation in which a person
uses his or her public power to obtain a favour for a member of his or her
family. Cronyism is a broader term than nepotism, and covers situations
where preferences are given to friends and colleagues and favoured political
supporters. These two kinds of corruption, nepotism and cronyism, can
easily overlap.

Political Corruption
Political corruption is the abuse of entrusted power by political leaders for
private gain, with the objective of increasing power or private wealth. It
need not involve money changing hands; it may take the form of granting
favors that "poison politics and threaten democracy". An example of
political corruption is when political parties or candidates receive money in
exchange for the goodwill towards the entity or group making the
contribution.

1.3.2 Types of Corruption

There are three broad classifications of corruption, which are however not
mutually exclusive:

a) Petty and Grand corruption

Petty Corruption: Practiced on a smaller scale. Defined as the use of public
office for private benefit in the course of delivering a pubic service. Usually

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involves relatively small amounts of money, including bribery (grease
money or speed payments) The public servant abuses his/her position by
accepting a benefit for what is a routine transaction or approval. The direct
victim of this abuse of power is the citizen.

Grand Corruption
The most dangerous and covert type of corruption. Instances where policy
making, its design and implementation are compromised by corrupt
practices. Found where public officers in high positions (such as councilors),
in the process of making decisions of significant economic value, routinely
demand bribes or kickbacks for ensuring that tenders or contracts are
awarded to specific contractors.

b) Political and Business corruption

Political Corruption: Occurs predominantly in developing and less
developed countries.
Usually associated with the electoral process. Includes:
voting irregularities
nepotism and cronyism
rule of a few
false political promises
paying journalists for favourable coverage of candidates and parties
influencing voters by the distribution of money, food and/or drink
holding on to power against the will of the people.

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Business Corruption
Often not regarded as a crime, rather as a means to accelerate business
processes. Proponents claim that the end result is not affected; the
mechanisms used to achieve
the result are simply accelerated; In essence, bureaucracy is bypassed and
time is utilized.
Includes bribery, insider trading, money laundering, embezzlement, tax
evasion and accounting
irregularities.

c) Chaotic and Organized corruption

Chaotic Corruption
A disorganized system where there is no clarity regarding whom to bribe and
how much payment should be offered.
There is: no guarantee that further bribes will not have to be paid to other
officials; no reasonable assurance that the favour will be delivered;
no coordination between the recipients of benefits, with the result
that the price of corruption is often inflated
All these distinctions have no value: no form of corruption is better or worse
than another.

Organized Corruption
A well-organized system of corruption in which there is a clear idea: of
whom to bribe; how much should be offered
and are confident that they will receive the favour in return.
Organized corruption is often perpetrated by crime gangs and syndicates and
includes white-collar crime and identity thef

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1.4 The Causes of Corruption2
Why corruption develops varies from one country to the next and there is
seldom a single identifiable cause. Some of the causes which have been
suggested are: poverty; poor administrative structures; weak judicial,
legislative and regulatory frameworks; inadequate education; and cultural
and social value systems that condone corrupt practices. Other possible
causes are inadequate civil servants remuneration; too broad discretionary
powers of civil servants and a lack of accountability, monitoring and
transparency. It has also been argued that planned economies, where many
prices are below market-clearing levels provide incentives to payoffs and so
does the presence of organized crime.

It is often claimed that poverty is a very important factor in the development

of corruption and that can true. It is for example, obvious that the risk of
corruption in the public sector increases if the civil-service wages are so low
that they do not allow public workers to support their families. If poverty
was, however, the only cause of corruption it would be hard to explain the
fact that most of those involved in "grand corruption" have much more than
they and their families will ever need. It can therefore been argued that
corruption “can emerge from wealth and abundance, or it can emerge from
the lack if it”.

Other factors that may not be causes of corruption but can certainly
encourage it are a low educational level which keeps the population passive
and ignorant of its rights and the lack of political will to fight corruption.
The motivation to remain honest may be further weakened if senior officials
2
www.un.org/special-rep/ohrlls/ldc/.../Good%20governence.pdf

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and political leaders use public office for private gain or of those who resist
corruption lack protection.fi 1] There are so many reasons behind
corruption. Some of the courses of corruption are mentioned below:

Poor governance
Poor governance is the underling problem of our country. It creates an
environment in which corruption will flourish. Because of poor governance
there is no transparency or accountability of the government to the public.
As such the politicians, public and private employees all get involved with
corruption.

Poverty
Around 50 percent of the people of Bangladesh live under poverty line. They
are unable to manage their basic needs. Honesty, morality, virtue etc are
meaningless to them. They need two meals a day for them and their family.
So they do not hesitate to adopt unfair means or offer bribe to fulfill their
needs.

Unemployment
This is a vicious problem for Bangladesh. There are around 140 million
people in Bangladesh and most of them are unemployed. It is also not
possible for the government of a poor country like Bangladesh to create
employment for all its peoples. The demand for jobs is much greater than its
availability. So people try to get a job by offering bribe.

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Lack of patriotism
Patriotism is a divine virtue of human being. It is normal that every citizen
would love his/her motherland. A true patriot loves his country and cannot
indulge in activities like corruption. But in our country the number of
patriotic people are decreasing day by day and the number of corrupted
people are increasing due to lack of patriotism.

Lack in rules of law

There are hundreds of laws in Bangladesh but the proper application of law
is rare. Also there are lots of ambiguous laws that need to be amended.
Besides the law enforcing agencies in Bangladesh is also corrupted. All
these create an environment for corruption and corruption gradually have its
roof deep in the society.

Political Unrest
Poly typical unrest is a common scenario of Bangladesh science
independence. The political parties in our country want to go power by any
means. When they are in power, they indulge in corruption in favour their
party rank and files. When the opposition parties go to power they also
follow the same path and engage in corruption.

Poor remuneration
The government servants are paid very poor salaries which is barely enough
to maintain their families. Although the price of essentials is going up every
day their salaries are not increased in proportion to the market price.
Besides, there are no arrangement for incentives for efficiency or
performance. Failing to maintain there families some of them indulge in

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unfair means. Of course there are a segment of the government who are by
nature corrupted.

1.5The History of Corruption in Bangladesh

The corruption of Bangladesh can be traced back to the history of the Bengal
and the Bengali population. During the course of thousands of years,
inhabitants of Bengal experienced a plethora of religious, ruling, cultural,
political changes, turmoils, and, repressions.

As is visible in most countries those were under colonial rule: Bengal also
became a testing ground for various thoughts and philosophies and systems.
Neither of those went in favor of the common people. Those were used by
rulers, or, more powerful neighbors to control the resources and the
population of Bengal. They severely affected unity and originality, and,
contributed to the division and polarization of the thoughts, philosophies,
and, the way of living of Bengali people.

For Bangladesh, the situation became aggravated during the modern times.
With the partition of India, the Hindu dominated western part of the Bengal,
became the part of India, and, thus found some sort of unity under the
umbrella of Indian nationalism which mostly stands on the grounds of
religion. On the other hand, Bangladesh first became the part of Pakistan and
experienced severe inequality and repression and thus the unity under
religious umbrella fell through. After the independence., Bangladesh
experienced a series of corrupt, autocratic and military rulers who ruled the
country on the basis of their personal agenda, platforms of thoughts and
conceptions which were not governed by the interests of the country and the

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people. These regimes affected the qualitative backbone of the government,
administration, and, politics.

1.6 Corruption in Bangladesh in Socio-Economic and Political

Perspective
1.6.1 Political perspective
Corruption has gradually increased in this country after the independence.
Politics is one of the notable sectors that corruption has seriously invaded.
There is lack of transparency in the activities of political parties of
Bangladesh. The condition reminds us one of the proverbs: "A person having
no principle enters into politics". It has become literally true in this country.
Corruption is increasing here not only due to lack of transparency but also
because of poor practice of democracy within the political parties. Grab
power by winning votes on giving false hope to the people is the philosophy
of the political parties the use of politics for personal interest by government
officials, taking advantage of bad politics to adopt unfair means are the signs
of corruption. If this vice has seriously invaded its political arena, the
country concerned will never turn into a developed one. Negligence in
administrative jobs, failure to perform the duties properly, receiving bribe
and misappropriation of government money are also the signs of corruption.
Poor salary of government officials, discrimination in promotion, absence of
appreciation for honesty and punishment for misdeeds also help increase in
corruption and inefficiency in the administration. The political conditions
and infrastructure positions of political parties of Bangladesh help in
increasing corruption. Less meritorious people are actively involved in
student politics and the quality of national politics has been deteriorating due
to less participation of meritorious people in it. As a result, they have

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become corrupt in spite of leading the society. So corruption-free political
parties are essentials for a fair administration Corruption has increased in the
society due to inappropriate and inadequate application of law. There is no
effective step to protest crime. No activities are there to protest and remove
corruption in Bangladesh. It is not easy to take action against corrupt
government officials. So they are being encouraged towards greater
corruption.

1.6.2 Sociological perspective

Social corruption is being spread by social organizations. Lack of trust
between family members, corruption in educational institutions and
involvement in different anti-social activities by social organizations
increase social corruption. Social fraternity is being hampered as the social
organizations are becoming increasingly corrupt. Religious belief of the
people of our country is very high. The Muslims, the Buddhists, the
Christians and the Hindus along with some tribes are living together here. So
a large number of saints, religious scholars and mosques, temples etc., are
there in this country. For this, sometimes religions can be easily misused.
Different unlawful activities in the name of religion are same as anti-social
activities. Business in the name of religion, cheating people using the cover
of religion, using religion for personal and party interests are among corrupt
practices under the garb of religion. To cheat one and use someone in own
interests are instances of personal corruption. Receiving money from others
in the name of giving jobs or freeing from danger is also corruption at
individual level.

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1.6.3 Economical perspective
Corruption is still present in Bangladesh in the spheres of trade and
commerce and construction of economic infrastructure and in the inclination
to use politics for own interest.
Since independence, most of those who ruled the country were corrupt. The
absence of honest, courageous leadership to guide a nation is the major
cause of increase in corruption. The youths of the country cannot
meaningfully participate in the development of the country for want of
honest and dedicated leadership.
Corruption is a disease that has become so widespread in our society that it
pervades all areas of public life. It not only threatens our economic security,
it also poses a threat to our national security.

1.7 Present situation of Corruption in Bangladesh3

Corruption is among the most formidable challenges against development,
democracy and rule of law. By international comparison Bangladesh has
been ranked amongst the countries where corruption is perceived to highest
in the world according to the Corruption Perception Index released every
year by the Berlin-based Transparency International. Scoring 2.0 in a scale
of 0-101 Bangladesh was ranked on top of the list for five successive years
from 2001 to 2005, while it became third in 2006 and seventh in 2007.
Research and surveys conducted by Transparency International Bangladesh
(TIB) have also demonstrated the depth and breadth of corruption affecting
the polity, economy and society over the years. The National Household
Survey on Corruption, conducted by Transparency International Bangladesh
(TIB) in 2005, for instance, revealed that Bangladeshi citizens had to pay
3
http://en.wikipedia.org/wiki/Present situation_ of Corruption in Bangladesh

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Tk. 485 on an average in 2004 for receiving services from nine specific
sectors. TIB’s diagnostic studies on institutions of public interest at the
national level and Citizens report Cards on key sectors of public service
delivery at the local level reveal the nature, extent and process of corruption
at the level of specific institutions.

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 Chapter 2
Background of Anti Corruption Commission in Bangladesh

2.1 The History of Anti Corruption Commission in Bangladesh4

Anti Corruption Commission in Bangladesh was formed through an act
promulgated on 23 February 2004 that into force on 9 May 2004. Although
initially, it could not make the desired impact, but immediately following its
reconstitution in February 2007, the ACC began working with renewed vigor
and impetus duly acceding to the United Nations' convention against
corruption that was adopted by the General Assembly away back on 31
October 2003.Its framework and function is governed by Anti-Corruption
Commission Act, 2004.

2.2 Organization
 The Commission has formulated some forms of corruption in
Bangladesh, for everyone to know, understand and prepare to completely
erase corruption, if not reduce it.
 Bribery: It is the offering of money, services or other valuables to
persuade someone to do something in return. Synonyms: kickbacks,
baksheesh (tips), payola, hush money, sweetener, protection money,
boodle, and gratuity.
 Embezzlement: Taking of money, property or other valuables by the
person to whom it has been entrusted for personal benefit.
 Extortion: Demanding or taking of money, property or other valuables
through use of coercion and/or force. A typical example of extortion

4
Info. “Office Location”.acc.org.bd Anti Corruption Commission Retrieved 15 June 2015

17
 would be when armed police or military men exact money for passage
through a roadblock. Synonyms include blackmail, bloodsucking and
extraction.
 Abuse of discretion: The abuse of office for private gain, but without
external inducement or extortion. Patterns of such abuses are usually
associated with bureaucracies in which broad individual discretion is
created, few oversights or accountability structures are present, as well as
those in which decision-making rules are so complex as to neutralize the
effectiveness of such structures even if they exist.
 Improper political contributions: Payments made in an attempt to unduly
influence present or future activities by a party or its members when they
are in office.
 Anti Corruption Commission established district committees all over
Bangladesh with each having 10 members.

2.3 Chairman and commissioners

The commission is mandated as independent, self-governed and neutral
entity. It consists of three Commissioners; of them one as the chairman and
all appointed by the President on the recommendation of the Selection
Committee fora period of four years from the date of their appointment.
While the commissioners function on full-time basis loses eligibility for
reappointment on expiry of the term in their office.

2.4 Functions of the commission

 To enquire into and conduct investigation of offences mentioned in
the schedule

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 To file cases on the basis of enquiry or investigation and conduct
cases
 To hold enquiry into allegations of corruption on its own motion or on
the application of aggrieved person or any person on his behalf
 To perform any function assigned to Commission by any Act in
respect of corruption
 To review any recognized provisions of any law for prevention of
corruption and submit recommendation to the President for their
effective implementation
 To undertake research, prepare plan for prevention of corruption and
submit to the President, recommendation for action based on the result
of such research
 To raise awareness and create feeling of honesty and integrity among
people with a view to preventing corruption
 To organize seminar, symposium, workshop etc. on the subjects
falling within the functions and duties of the Commission
 To identify various causes of corruption in the context of socio-
economic conditions of Bangladesh and make recommendation to the
President for taking necessary steps
 To determine the procedure of enquiry, investigation, filing of cases
and also the procedure of according sanction of the Commission for
filing case against corruption and
 To perform any other duty as may be considered necessary for
prevention of corruption.

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2.5 Power to make rules
The Commission for carrying out the purpose of Anti Corruption Act, 2004
has been vested with the power to make rules by notification published in
the official Gazette with the prior approval of the President.

2.6 Schedule
 Offences under Anti-Corruption Commission Act 2004 (Possession of
property disproportionate to known source of income)
 Offences punishable under the Prevention of Corruption Act, 1947
(Act 11 of 1947)
 Offences punishable under Anti-Money Laundering Act, 2002 (Act 7
of 2002)
 Offences punishable under sections 161-169,217,218, 408, 409 and
477A of the Penal Code, 160 (Act XLV of 1960)
 Offences of abetment, conspiracy and attempts as defined respectively
in section 109, 120B and 511 of the Penal Code, 1860 (Act XLV of
1860) in relation to clauses

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2.7 Notable Cases & Controversy

 The Commission filed cases against former Prime Minister Ichaleda

Zia regarding graft at Zia Charitable Trust and Zia Orphanage Trust5

 Two officers were terminated for demanding bribes from a realtor.

5
Supreme Court Correspondent “Zia Charitable Trust and Zia Orphanage Trust” www.bdnews24.com
Retrieved 15 June 2015

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