©The Star (Used
by permission)
By Gregore Pio Lopez
The achievement of the National Integrity Plan can be hastened through the
immediate implementation of transparency as a core principle at all Government
levels.
THE overall objective of the National Integrity Plan (NIP) is to fulfil the
fourth challenge of Vision 2020, which is “to establish a fully moral and
ethical society whose citizens are strong in religious and spiritual values and
imbued with the highest ethical standards.”
The NIP identified for the first five years (2004 – 2008) the following five
targets known as Target 2008 to achieve the above stated objective:
• Effective reduction of corruption, malpractices and abuse of power;
• Increasing efficiency of the public delivery system and overcoming
bureaucratic red–tape;
• Enhancing corporate governance and business
ethics;
• ·Strengthening the family institution; and
• Improving the quality of life and people’s
well–being.
The main obstacle to the achievement of the NIP Target 2008 appears to be the
perception that the public sector and the elected and appointed representatives
are corrupt and inefficient.
International rankings such as Transparency International’s Corruption
Perception Index confirm this affecting Malaysia negatively.
Transparency is an essential precondition for containing corruption, as it
renders abuse difficult and increases the likelihood of detection.
Most importantly, through transparency, accountability and economic efficiency
is raised. When processes are transparent, lawmakers, regulators and civil
servants are made to be accountable for their decisions.
Some compelling trends in Malaysia call for an immediate implementation of
transparency as a core principle. Privatisation programmes and Government
procurement in Malaysia are conducted through non–transparent processes. Only
notifications of tenders are made public.
The criteria for selection and the selection process are secretive. There is
also no avenue for arbitration. A greater cause for concern is the fact that
concessions agreements are considered “official secrets”.
Compounded with a non–transparent selection process, the concession agreements
and Government procurement lead to sub–optimal outcomes from a public policy
standpoint. This has also led to allegations of corruption.
For example, the outsourcing of health support services from the public sector
to three monopolies has raised the estimated expenditure of the Health Ministry
for these services to RM750mil in 2005 from RM220mil in 1994.
The privatisation of water services in Johor, Selangor, Kuala Lumpur and
Putrajaya has seen the water tariffs increased at higher rates compared with
states where water utilities are managed and operated by the public sector.
The Public Works Department is under siege for the multi–billion ringgit fiascos
involving the MRR2, the Matrade Building and the Navy Recruit Training Centre.
The recent upward revision of toll rates in the Klang Valley based on clauses in
the concession agreement and not on cost considerations has angered the public.
All these contracts were tendered and approved through non–transparent
processes.
Malaysia recently achieved top position in a pilot project Reports of the
Observance of Standards and Codes (ROSCs) initiated by the IMF/World Bank.
This indicates good governance in the financial sector as the project surveys
the adherence to international standards of the domestic financial sector.
The underlying philosophy of the ROSCs is the importance of international
standards in enhancing transparency, which in turn strengthens the international
financial architecture by identifying weaknesses and fostering market efficiency
and discipline that ultimately contribute to a more robust financial system.
At the national level, these international standards provide a benchmark that
can help identify vulnerabilities and guides policy reform.
The Water Services Industry Bill passed in 2006 is also a step in the right
direction as it includes provisions to ensure full transparency. So too are the
publicly known benchmarks for GLCs.
Limiting the use of the Official Secrets Act for matters relating only to
national security, defence and international relations, is also an important
step in strengthening the institutional framework for an efficient market
economy.
The Government can hasten the achievement of the NIP Target 2008 through a
single stroke of implementing transparency as a core principle at all levels of
Government.
Together with transparent privatisation and Government procurement processes
that include civil society participation, transparent, clear and defendable
criteria, and making all documentation from these processes publicly available
and accessible, will enable Malaysia to conform to international standards and
enjoy all the attending benefits.
The author is senior research officer at the Malaysian Institute of
Economic Research (MIER).