Wiping out corruption is no easy task

Fighting bribery and corruption is a common topic which dominates the political discourse in Sri Lanka. The significance of punishing those who were involved in bribery and corruption figured prominently at the last Presidential election. The anger towards the country’s political class for alleged corruption intensified with the onset of the 2022 economic crisis. Politicians by and large are viewed as corrupt and untrustworthy by the society. 

It has often been said that it takes two individuals to commit an act of corruption and do not be one of them. The willingness of the public to pay bribes to dishonest public officials and political agents has contributed in no small measure towards the non-ending cycle of corruption and graft in Sri Lanka. 

Bribery and corruption is a malaise which is rampant and widespread throughout the Sri Lankan society and it is not only confined to the island’s political class. Although much attention and scrutiny takes place on the corrupt activities of politicians, adequate attention is not paid towards the financial misconduct of officials in the public sector. The truth of the matter is that corruption among bureaucrats is more endemic and severe than corruption which is prevalent within the political system.

According to a survey conducted by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) last year, the Sri Lankan public perceives Police as the most corruption-prone institution in the country followed by the Customs, Department of Immigration and Emigration, Education Ministry and schools, the Land Registry, Provincial Councils, the Foreign Employment Bureau, Divisional Secretariats, Registrar General’s Department and the Judiciary. Meanwhile, underhand activities of Customs, Inland Revenue Department and provincial revenue offices, Excise Department, Immigration and Emigration, as well as the Department of Motor Traffic had been recognised as having the worst impact on the national economy.

Corruption in customs authorities is a worldwide issue arising from complex laws, high official discretion, and organised networks. Under-invoicing and smuggling are regular malpractices in Sri Lanka owing to the misconduct of Customs authorities that result in loss of valuable tax revenue to the national coffers. Corruption in customs authorities stifles private investments and raises cost of doing business, causing a drag on economic growth. Unfortunately, Customs Department in Sri Lanka is synonymous with bribery and corruption. Last year, the Colombo High Court sentenced four former Sri Lanka Customs officials to 35 years in prison for soliciting a Rs. 150 million bribe and accepting Rs. 125 million to release bus spare parts for the Sri Lanka Transport Board.

The gravity and scale of corruption in top State revenue-earning agencies like Customs, Inland Revenue, and Excise forced the IMF to urge the Government to establish internal affairs units in the respective institutions to investigate allegations of corruption against officials by the general public. As per the IMF’s Governance Diagnostic Assessment for Sri Lanka, exposure to corruption in customs and tax administration is substantial, given the absence of effective systems for performance monitoring and detecting and sanctioning officials for improper behaviour.

The Customs Ordinance gives Customs officers extensive powers, allowing them to act as judge and jury without judicial oversight. The extensive powers granted by the Customs Ordinance have been cited as one of the prime reasons for high level of corruption in the agency associated with cross border trade. Many attempts to amend the Customs Ordinance of 1869 have been met with stiff resistance from powerful trade unions linked to the Department.

Corruption in agencies like Customs and Inland Revenue cannot continue without the involvement of the private sector. Leaders in the private sector must also look into their mirrors when blaming the public sector for corruption. Eradicating corruption in Asian countries requires a considerable effort and sacrifice. Having stringent laws alone is not sufficient to fight this human misdeed and a fundamental change in attitudes across the society is sine qua non.