Lessons of anti-corruption?

Corruption is a global malaise that has serious consequences on a country’s ability to achieve sustainable development. Efforts to fight corruption could have surprising results as seen by the resignation of Pakistani Prime Minister Nawaz Sharif on Friday after Pakistan’s Supreme Court determined that he was unfit to hold political office. 

The ruling, made by a five-judge panel of the court, did not come as a surprise, as many legal experts and opposition leaders were expecting punitive measures against Sharif. The court also directed the country’s anti-corruption body to file corruption charges against Sharif, his two sons and daughter in the next six weeks for concealing their assets.  

The court also dismissed Finance Minister Ishaq Dar, one of Sharif’s closest allies. The corruption scandal, which rocked Pakistani politics and threatens to end Sharif’s dynastic ambitions was triggered by the infamous “Panama Papers” leak in 2016 that revealed Sharif’s family had bought posh London apartments through offshore companies.

The Supreme Court ruled in April there was insufficient evidence to remove Sharif from office – by a 2-3 verdict – but it ordered a probe by an investigative panel that included members of the military intelligence agencies.

The Joint Investigation Team (JIT) this month returned its findings in a 254-report that said Sharif’s family assets do not match their earnings. The panel also accused his children, including daughter Maryam, of signing forged documents to obscure ownership of the London flats. Sharif’s party, which has a majority in parliament, is expected to name a new Prime Minister with elections expected next year. 

The events in Pakistan are in strong contrast to Sri Lanka’s own reactions. Eighteen Sri Lankans were listed in documents leaked from Panamanian law firm Mossack Fonseca by the International Consortium of International Journalists (ICIJ). This included the Avant-Garde Chairman and other members of the company. In May 2016 former Finance Minister Ravi Karunanayake announced the Government would appoint a special panel to investigate individuals and corporations listed in the Panama Papers. Yet there has been indication that investigations progressed. 

Sri Lankan citizens are permitted to hold and invest monies offshore, but the incorporations must be registered with the Inland Revenue Department. Offshore investors must also submit a balance sheet of all entities incorporated overseas to the Exchange Controls Department and bring any dividends back to the country. If any of the offshore entities are not registered with Inland Revenue and the Exchange Controls Department of the Central Bank, individuals and corporations would be found to be in violation of Sri Lankan Exchange Control laws.

Good governance activist Chandra Jayaratne has repeatedly raised concerns over organisations, much like Mossack Fonseca, operating in Colombo. Many other anti-corruption activists and the public have appealed to the Government to push forward investigations into activities of politicians accused of misusing public funds but progress continues at snail pace. Everyone is now focused on the outcome of the Presidential commission appointed to gather information on the bond scam that implicates a top politician and other loyalists of the government. 

Can Sri Lanka’s institutions prove they have the same power of independence as the Pakistan Supreme Court? In an ideal world Sri Lanka would have the same strength of principle and integrity.