Corruption nail in the economy’s coffin
http://www.theindependent.co.zw/
Friday, 29 July 2011 11:37
Eric Bloch
THERE are many nails in the coffin of the desperately needed recovery of
the distressed Zimbabwean economy. They range from the endless political
instability to the destructive mouthings of the Minister of Indigenisation
and Economic Empowerment, Saviour Kasukuwere; the dismal circumstances of
most parastatals and their consequentialiy inadequate and erratic service
delivery; the recurrent governmental authorities’ disregard for property and
human rights; the disrespect for international and national laws; to the
insolvency of government absence of capitalisation of the central bank.
They also include gross money market illiquidity and the financial
instability of many in banking institutions, the economically
counterproductive customs tariffs impairing the operations of industry, and
the gargantuan divide between employers’ and labour’s income. These are but
a few of the ongoing drivers of Zimbabwe’s distraught economic
circumstances.
One of the most pronounced of the numerous ills that afflict the economy and
jeopardise substantive recovery is the magnitude of corruption that has
become endemic in Zimbabwe, and is continually intensifying. Most
Zimbabweans are inherently honest, but when a man’s stomach is continuously
rumbling from hunger and his children are ceaselessly crying because of the
pangs of starvation, that inherent honesty disappears. In addition to those
driven to corrupt and dishonest practices by extreme poverty, there is that
minority (usually already well-endowed with assets) driven by intense
avarice to enhance their already substantial wealth.
Although the former’s rationale for resorting to corrupt and unlawful
practices can be understood, despite the criminality and nationally adverse
consequences thereof, the unlawful self-enrichment acts of the latter can in
no manner be even remotely justified.
The greatest tragedy of Zimbabwe’s widespread corruption is the extent to
which it contributes to ongoing economic morass and resultant suffering for
millions of the populace, which in turn contributes to yet further
intensification of corrupt practices by even greater numbers. So widespread
has corruption become that I recall a recent discussion between myself and a
government minister wherein he said: “By now there are only two honest
people left in Zimbabwe”. I responded: “Really? Me and who else?” to which
he had the grace to look embarrassed and to remain silent!
To a very great degree, corruption exists within the corridors of
government, in several different forms, resulting in its ongoing
insufficiency of funds to service national needs. A few of the known
corrupt circumstances and practices prevailing are:
An estimated 75 000 ghost workers in the employ of the state, which
means that various civil servants or their hierarchy are enriching
themselves with the salaries and wages of those non-existent employees.
Even if each of the fictitious civil servants is paid a meagre US$150 per
month, that represents a misappropriation from the fiscus of US$135 million
each year. Especially disturbing is that there were governmental
disclosures of this criminal circumstance more than four months ago, but as
yet there has been no public statement of requisite action being taken to
curb the fraud and bring the culprits to book.
Various government ministers have intimated beliefs that there are
diverse civil servants, including many employed at senior levels, who
recurrently make claims for reimbursement for expenditures allegedly
incurred in the fulfillment of their duties (inclusive of travel and
subsistence expenses), when such expenditures were either not incurred, or
were unrelated to the claimants’ duties.
Countless industrial, commercial and services enterprises have been
subjected to demands, for payments (secretly effected), or other benefits in
kind in consideration for the award of tenders and contracts. Where the
private sector disgracefully succumbs to such demands, the attendant cost
inevitably impacts upon the tender or contract prices, thereby increasing
government’s expenditures and its consequential fiscal deficits.
It cannot be credibly disputed that public servants use governmental
supplies for private purposes. By way of example, hundreds (if not more) of
children of government employees can be seen using stationery for school
purposes, which stationery is clearly meant for government use.
Undoubtedly, many will also uplift for themselves other consumables such as
toilet paper, tea, coffee, sugar, soap, detergents and other cleaning
materials. Equally, they unhesitatingly use their employer’s telephones to
make personal calls within the country, region or internationally.
Those who do expropriate such goods and services perceive them to be
legitimate employment perks, notwithstanding the absence of any contracted
rights to those goods and services. They will similarly seek to justify to
themselves the use of government vehicles for private purposes (and
sometimes even for illicit taxi services). In so justifying they may contend
that the attendant costs to the state are minimal, but cumulatively across
the spectrum of the civil service the cost to the exchequer is very
considerable, further intensifying the fiscal deficit.
It is an equally corrupt practice of various public servants to utilise
confidential information gained through their employment for soliciting
bribes, prejudicing the state, private enterprise, or the population at
large.
Were all those practices to be markedly contained, the state would not
endlessly incur unsustainable deficits, would not have to resort to
punitively highly taxation measures, would be able to address vitally
essential infrastructural needs, and could restore Zimbabwe’s international
creditworthiness.
Tragically, these incalculable, untenable, corrupt practices are not unique
to the public sector, but are also very prevalent in all facets of the
private sector, be it industry, commerce or otherwise.
Ranging from soliciting and receiving secret payoffs for awards of
contracts, to the theft of raw materials, stocks, tools, other goods, and
consumables, many private sector employees are as criminally immoral and
corrupt as are many public servants. The result is that the viability and
survival of enterprises is in jeopardy as operational costs soar,
consequentially impacting upon selling prices and hence, upon inflation.
If the Zimbabwean economy is not to be buried, one of the many nails that
must be removed from the coffin is substantial containment of the pronounced
corruption that ails the country’s public and private sectors.