Fighting Corruption in Afghanistan By Ahmad Hasib Farhan

Fighting Corruption in Afghanistan By: Ahmad Hasib Farhan Public Policy Program (MP 1) Affiliation: Sanayee Development Foundation/MRRD/MAIL 22 July 2011 Policy Design and Implementation in Developing Countries

Contents of the Presentation What is Corruption? Corruption in Afghanistan What does corruption mean to Afghans? Forms of corruption in Afghanistan The Consequences of corruption from UN Convention’s Viewpoint The Consequences of corruption in Afghanistan Effects of Corruption on Aid management in Afghanistan Causes of Corruption in Afghanistan Afghan Government Anti Corruption Strategy Recommendations /Reform Plan Fighting Corruption in Afghanistan Conclusion

What is corruption? UNDP Anti–corruption papers “The misuse of the public power , office or authority for the private benefit-through bribery , extortion , influence peddling, nepotism, fraud, speed money or embezzlement” (USAID) corruption defines a “the misuse of public office for private gain. it encompasses abuses by government officials such as embezzlement and nepotism, as well as abuses linking public and private actors such as bribery, extortion, influence peddling, and fraud” World Bank provided a short and concise definition for the corruption “The abuse of public office for private gain”

Corruption in Afghanistan Corruption is largely the result of decades of war and instability that damaged the government institutions, lack of a check and balance system and the growth of the informal economy “According to the transparency international 2009 CPI index Afghanistan ranked to be a second the most corrupted country after Somalia among 180 countries of the world” (UNODC Jan, 2010) reported that “afghan paid 2. 5 billion dollars in bribe in over the last 12 months which is equal to almost one quarter of legitimate GDP” a survey conducted over 7600 Afghans. More than 60% of the afghan population are more concerned about the corruption in the government system then insecurity and unemployment

What does corruption means to Afghans?

UNODC 2010 Report: Population considering different issues as most important problems in Afghanistan

UNODC 2010 : Percentage of population who paid at least one bribe during the last 12 months by type of public official requesting the bribe

UNODC 2010: Percentage of adult population who paid at least one bribe to a public official during the last 12 months, by region

Forms of the corruption in Afghanistan Three General Types of Corruption in Afghanistan 1. Afghan Corruption 2. Foreign Corruption 3. Mixed, Afghan and Foreign Corruption (Most Dangerous) Other types : Nepotism, influencing actions to gain personal benefits , corruption in public procurement , illegal use of government income , not paying taxes , money laundering , theft of the public properties, extortion , cultivation and production of opium, corruption in the delivery of the international aid…etc.

The Consequences of Administrative Corruption from the UN Convention’s Viewpoint Administrative corruption is a serious problem which creates severe risks: Makes the security and stability of society weaker. Destabilizes administrative structures and values of democracy Harms ethical and social values. Slows the economic growth of country Disorders justice and governance of law

The Consequences of corruption in Afghanistan: Government legitimacy and credibility has weakened Mistrust between donors and Afghan government Increased insecurity and instability Influence of Taliban or Talibanization specially in rural areas Low quality of services of GOA Decrease in domestic revenues large scale of drug production and trafficking

Effects of Corruption on Aid management in Afghanistan

Continued…UNODC 2010 Report: Summary computation procedure of annual amount of bribes paid

Link between terrorism, opium business, corruption and instability

Causes of the corruption in Afghanistan Insecurity/ instability Low wages Institutional capacity Discretionary/Complex procurement procedure Lack of the transparency /accountability Bureaucracy Informal economy (Drug trafficking)

Afghan Government Anti Corruption Strategy The GOA signed United Nations Convention against Administrative Corruption on 20 February 2004 The GOA established a commission Under the leadership of the Chief Justice and Chief of the Supreme Court of the Islamic Republic of Afghanistan and with participation of Ø Attorney General, Ø Minister of Justice, Ø Chief members of the Justice Commission, Ø Administrative Reformers Ø and the Commission of Parliamentary struggle against Corruption and Senate Complaints Commission,

Continued… The Commission was assigned to codify strategy and procedure of the administrative reform and struggle against administrative corruption by using long term; mid-term and short term practical planning. The commission will report the results to the authorities of the Islamic Republic of Afghanistan. The General Department of Administrative affairs and the Secretariat of the Ministers council have the responsibility of being Secretariat of the Commission, independent ministers and chiefs of the administrations are obliged to lend multilateral cooperation with the mentioned commission.

High Office for Oversight and Anti-corruption (HOOAC) � President Karzai in July 2008, issued a Decree establishing a High Office for Oversight and Anti-corruption (HOOAC) � The creation of this Office has fulfilled the requirement of Article 6 of the UN Convention against Corruption. � The High Office of Oversight and Anti-corruption (HOOAC) is the highest office for the coordination and monitoring of the implementation of the Anti-Corruption Strategy and for the implementation of administrative procedural reform in the country. � The HOOAC is an independent commission which reports directly to the President.

Organizational Structure of the HOOAC

Elements of Anti Corruption Strategy of Afghanistan

Recommendations /Reform Plan Fighting Corruption in Afghanistan A strong governmental and political commitment needed in order to reduce the level of corruption in Afghanistan The ongoing reform process should be enhanced, improved and expanded. The international community should support the afghan government to implement the Afghanistan National development strategy (ANDS) particularly the current anticorruption strategy and follow up the progress the corruption in Afghanistan. The current high office of oversight and anti corruption (HOOAC) should be strengthening in terms of leadership, Management, Technology and independency. All the government top officials should declare their asset publically according the constitution of Afghanistan.

Continued… Afghan government needs to build the capacity of tax administration by enhancing the physical, human, and technological capacities for the efficient collection of the tax revenue. An independent external audit body should be established to conduct the audit of the government institutions. Government should provide needed skills to its employees on the government role and regulations particularly procurement process Law enforcement has to be enhanced; major reform should take place in the security and justice sectors which are the most vulnerable to corruption.

Conclusion Corruption has slow down the ongoing reconstruction process , it increased Insecurity and poverty. Moreover aid from international community has been misused. Now it’s time for actions, government of Afghanistan with the help of international community should take an immediate step with action to combat corruption within the government system. Identify the causes of the corruption, detects the corrupt practices and prosecute the corrupt individuals.

Questions/Comments? Thanks!