Transparency International

Corruption in Bangladesh: A Household Survey 2002 Transparency International Bangladesh

Corruption in Bangladesh: A Household Survey 2002 Transparency International Bangladesh

Executive Summary...... ii Chapter one Introduction...... 1 Chapter two Socio-economic condition...... 7 Chapter three Sectors prove to corruption...... 10 Chapter four Education sector...... 12 Chapter five Health sector...... 25 Chapter six Power sector...... 31 Chapter seven Land administration...... 38 Chapter eight Tax department...... 46 Chapter nine Police administration...... 51 Chapter ten Judiciary...... 58 Chapter eleven Krishi Bank...... 63 Chapter twelve Corruption: A comparative study...... 67 Chapter thirteen Conclusion...... 74

CHAPTER ONE Introduction 1.1 Socio-Economic Condition As one of the smallest and least developed nations in the world, Bangladesh is a peace-loving country with a rich national heritage. It is the ninth most populous country in the world with a density of 834 persons per square kilometer (population census 2001). In the last two decades the population growth rate has come down to 1.6 percent. The doctor: population ratio is 1:4147. In the meantime various steps have been taken in the education sector by government, private and non-governmental organizations. The adult literacy rate is 51 percent (BBS 2001). The majority of people in Bangladesh live in villages and depend upon agriculture for their livelihood. Floods, famines and cyclone are regular occurrences and the presence of arsenic in the drinking water is a cause of great anxiety. Although the transportation system is not fully developed, a network of roads connecting the interior regions with other parts of the country is now in place. Every one person out of 1000 has a telephone. Bangladesh has been trying to move from an agriculture-based economy to an industry-based economy. Since 1990, a number of reforms in the economic sectors have been implemented. Bangladesh is a member of the World Trade Organization. From 1990 to 1998, the economy has grown at the rate of 5 percent. At present the income per capita is US $ 387 (BBS 2000). This poverty, aggravated by corruption at all levels of the state and society, has resulted in an intolerable condition. Whilst ordinary people accept this condition as their inevitable destiny; this condition is turning every effort at economic and human development into mockery. 1.2 The spread and extent of corruption Since the liberation of Bangladesh in 1971, a number of problems have hampered economic development. The scarcity of resources, political instability, lack of good governance, and above all, the pervasiveness of corruption at all levels of the government and society, have thwarted the nation from achieving its desired goals. A parliamentary system is now in place, but the absence of transparency and accountability, and the abuse of power is apparent in all government departments. For these reasons, corruption is spreading rapidly throughout our society. Almost every problem in Bangladesh is connected to corruption, every action of the government or society has a strong nexus with corruption. If corruption continues at the current level, it is impossible for the state and society to progress. This is a truth that has been evident to all conscious citizens for a long time. The extent and pervasiveness of corruption in Bangladesh will become clear from the few illustrations given below. The absence of good governance encourages corruption. If the system of governance is not developed, political and administrative corruption is likely to proliferate. In a survey (CPI 2002) conducted by Transparency International (TI) of 102 countries in 2002, Bangladesh is at the top due to administrative and political corruption. Corruption must be stopped if poverty is to be eradicated. A large part of the

population of Bangladesh live below the poverty level. Huge sums of money are earmarked in every budget by every government for the eradication of poverty but little is achieved in alleviating poverty. A large portion of the money earmarked for poverty alleviation comes as foreign aid and grant, but almost 75% (Abul Barkat 2000) is looted and poverty alleviation targets are not achieved. A World Bank report into "Country Procurement " says: 'Files do not move in government offices without bribes. Bribe-taking has almost become as legitimate as taking salaries (Daily Jugantar, 9 January 2001) Corruption is no longer something that needs to be concealed. According to a report published by TIB (Corruption Database Report 2001) evidence from various newspapers indicate that employees and officers at various levels generally tend to be corrupt. Officers from low-level positions to high-level ones are all somehow implicated in corruption. Information gathered from 23 newspapers during 2001 indicate that the government lost 11256.2 crore taka (2 billion US $), an amount equal to 4.7% of the GDP of 1999-2000. In a meeting in Paris of donor countries held in March 13-15, 2002, the lack of good governance and the pervasiveness of corruption was the main topic of discussion (The Prothom Alo 14 March, 2002). All of which indicates that the extent of corruption is indeed frightening. Yet it is also a fact that efforts to stop corruption are not insignificant either. Here it our institutional failure that is most noteworthy. 1.3 TIB Profile The Transparency International Chapter of Bangladesh was launched in 1996 in order to undertake programs aimed at preventing corruption. The main aim of TIB is to create a climate of good governance by the elimination of corruption and emphasizing the importance of transparency and accountability, in order to achieve sustainable development. With this aim in mind, TIB has organized seminars and workshops with members of the civil society, established coalitions with similar-minded organizations, conducted research on laws related to the prevention of corruption and accountability, undertaken research on institutional structures, conducted surveys and report cards on service-delivery systems, and organized "Committees of Concerned Citizen" at Thana/Upazila levels to increase awareness of corruption amongst grassroots victims. As a social movement against corruption, TIB has created a "Corruption Database" based on scanning both national and regional newspapers. TIB has also created a database on peoples representations in the Parliament titled "Parliament Watch". TIB has successfully drawn the attention of the nation in its fight against corruption. 1.4 Objectives of the survey In 1997 TIB conducted a nationwide household survey of 2500 individuals, which attracted the attention of the media amongst others. The significance of the survey was discussed at TI's South Asian conference held in Katmandu, Nepal in 2000, and a discussion was taken to undertake a similar survey in five South Asian nations. The general aims of the survey are as follows: a. Measuring the nature and extent of corruption; b. Determining how and where corruption takes place; c. Finding the causes of corruption. 2

1.5 Methodology of the survey 1.5.1 Method of identifying sectors included in the survey The government generally provides services in the following sectors: education, health, justice, law and order, rehabilitation, taxation, and finance. Whilst, the government is involved in various other sectors it was not possible to conduct a survey of all government departments at the same time. Therefore certain indicators were identified to determine which sectors were to be included in the survey. The indicators are as follows: a) Most essential government service sectors b) Sectors from which the general population expects to get some benefit c) Sectors would be the same for all participating countries 1.5.2 Participating Countries and various Sectors A decision was taken to conduct a household survey in five South Asian countries: Bangladesh, India, Sri Lanka, Pakistan and Nepal. The above method was adopted to conduct the survey and seven general sectors were identified through voting. These sectors include: 1. Education, 2. Health, 3. Land Administration, 4. Power, 5. Taxation, 6. Police and 7. Judiciary 1.5.3 Survey Questionnaire Representatives of the five South Asian Countries prepared a questionnaire, the concepts, definition and facts used in the questionnaire were determined after much analysis. The questionnaire has four sections. The first section identifies households, facts about the supervisor and back checks. The second section contains information about respondent's demographic and socio-economic condition. The third section contains information about the potentially corrupt sectors and elicits respondents' opinions. The last section contains information on the seven sectors. The following heads were included in the questionnaire for the different sectors. 1. Connection established between the households and selected sectors; 2. Kind of connection established between households and selected sectors; 3. Nature of corruption; 4. Actors of corruption; 5. Extra cost involved; 6. Instrument and medium of corruption 7. Causes of corruption The questionnaire was initially tested upon people of various classes in different urban and rural areas. At this stage, the time taken to conduct the interview, selection of respondents, problems in selection of respondents and respondents' opinions, were examined and discussed. This pre-testing of the questionnaire led to some changes and the formulation of the final questionnaire. 3

1.5.4 Sample size of the survey The confidence level of the survey is 95 percent with a sample error of less than 2 percent. The total number of households in Bangladesh is 2.54 crores. With a confidence level of 95 percent, the number of representative households is 2500 with a sampling error of 2 percent. The sample size of the survey was 3030 drawn both from urban and rural areas. 1.5.5 Selection of samples The entire nation was divided into six parts according to the six administrative divisions, and then divided again into urban and rural areas. The samples were distributed amongst different geographical regions, 76% from rural and 24% from urban areas, and spread proportionately amongst the six divisions. In the first phase 10% of the nation's upazillas, 10% of municipalities and all city corporations were randomly selected, and the samples proportionately divided, 46 in rural areas and 34 in urban areas. In the second phase, one village from the selected upazilla, and one mohalla from the selected city, were selected through random sampling in order to conduct the survey. In the third phase, households were selected through systematic random sampling. Preliminary information was gathered from households of all selected villages and mohallas. 1.5.6 Appointment and training of interviewers and supervisors To conduct this nationwide survey, two supervisors and 26 interviewers were appointed. Of these 28, 8 had graduate degrees and 20 post graduate degrees. Most of the data collectors had prior experience. The overall survey was conducted by TIB's Research Officer, two Research Associates and two supervisors, all with experience in conducting surveys. The two supervisors and the interviewers were given training for two days in half day sessions. A six-hour practical training was given for the conduction of answer for the questionnaire. 1.5.7 Collection of Data Data for the household survey was collected from April 26 to May 28, 2002. For the collection of data, the names of the villages and localities from selected rural and urban areas were collected. Villages and mohallas were sele cted randomly, and a specified number of households were selected from these villages and mohallas. A card was used for preliminary data about the households. A list of the names of households was prepared from April 5 to April 25, 2002. Collection of preliminary household data and list of names took about 14 days. From the selected villages/ mohallas, a maximum of 135 persons/households and a minimum of 39 persons/households were selected. It took more time to conduct surveys in urban mohallas rather than in villages (3-7 days). Each interview took about 40 minutes on average, the variation in interview time was typically due to: the education of respondents, experience about the subject, comprehension, desire to respond, and so on. The survey revealed that men had more knowledge about the subject. Of the 3030 respondents whom data was collected, 91.2% 4

were selected initially and 8.8% were alternative respondents. Sixty four percent respondents were heads of households and 36% were members. 1.5.8 Supervision of survey and examination of standard of work The fieldwork was back checked between May 10 and June7, 2002. Forty percent of the data from villages and 22% from households was back-checked. The team organized for back checking handled the data for at least two village/ mohallas, and this work was directly supervised by TIB's Research Associates. The back-checking was conducted to determine whether data was collected properly. 1.5.9 Screening and editing of selected data After the collection of data, each questionnaire was edited manually and data scrupulously selected. This screening and editing procedure was conducted by TIB's Research Officer and Research Associates. The editing work was done from May 2 to June 8, 2002. 1.5.10 Preparation of a Computer Database A computer database was created for the preservation and analysis of data. The work was entrusted to a local computer firm with prior experience. Data collected from the survey entered into the database from May 5 to June 8, 2002. Before analysis of the preserved data, a TIB team back-checked 20% of the data randomly. 1.5.11 Data Of the 3030 persons from whom data was collected 2209 were men and 821 women, 2305 lived in rural and 725 in urban areas. Of the 3030 respondents, 457 were between the ages of 28-32, 440 between 33-37, and 416 between 38-42. None below 18 was selected. Only 239 respondents were between 48-52. Of the total respondents (3030), 839 had primary education, 606 had secondary education and 978 were illiterate. 188 respondents had higher secondary education, 103 had education up to BA and 38 had post graduate degrees. Of the 3030 respondents, 1030 were agricultural workers, 735 worked at home, 399 had their own businesses, 310 had jobs, and 219 were labourers. 5

Table 1.5.11 Distribution of the sample elements of the household Description of Sub-category Number of sample element category Un weighted Weighted Total Total 3030 3030 Area Rural 2305 2863 Urban 725 167 Types of respondents Household head 1943 1968 Household member 1087 1062 Sex Male 2209 2251 Female 821 779 Age 18-22 247 239 23-27 388 385 28-32 457 452 33-37 440 437 38-42 416 403 43-47 294 295 48-52 239 239 53-57 190 198 58 + 359 381 Education Illiterate 978 1080 Non-formal 278 290 education Primary education 839 842 Secondary education 606 557 Higher secondary 188 161 education Bachelor degree 103 76 Masters or equivalent 38 24 Occupation Service 310 203 Business 399 366 Lawyer 2 0 Farmer 1030 1170 Fisherman 8 7 Labourer 219 240 Student 116 107 Unemployed 26 23 Self-employed 94 103 House work 735 721 Retired 49 50 Others 42 41 Religion Buddhism 28 34 Christianity 7 3 Islam 2604 2604 Hinduism 391 390 Monthly income of <2000 949 1026 the Household 2001-6000 1688 1688 6001-12000 294 238 12001-20000 75 59 20001+ 24 20 6

CHAPTER TWO Socio Economic Condition 2.1 Gender of the Respondents Of the 3030 respondents from whom data was gathered, 2209 (72.9%) were male and 821 (27%) were female. Although the ratio of men and women in Bangladesh is 104:8, most households are headed by men, as it is common for men to be employed outside, mostly in government offices. The survey therefore focused more on men; women were selected only where it was not possible to gather data from men. Table 21: Sex of the respondents Sex Number of respondents Number Percentage (%) Male 2209 72.90 Female 821 27.10 Total 3030 100.00 2.2 Residence of Respondents Of the 3030 respondents, 2305 (76%) live in rural areas and 725 (24%) in urban areas. According to a population census in 2001, about 76% of the population live in rural and 23% in urban areas. Hence, the rationale for selecting 76% of the respondents from rural and 24% from urban areas. Figure 2.2: Place of residence of the respondents 24 Rural Urban 76 2.3 Age of Respondents Of the 3030 respondents, 15% were aged between 28-32 years, 14.5% between 33-37, 13.7% between 38-42. None was selected below the age of 18. Only 8% were between 48-52. 247 Figure 2.3 Age of Respondents 457 440 388 416 294 239 190 359 18-22 23-27 28-32 33-37 38-42 43-47 48-52 53-57 58 + 2.4 Educational qualifications of the Respondents Of the 3030 respondents, about 37% had primary education, 20% had secondary education, and 32 % were illiterate. On the other hand 6% had higher secondary education, 3% had graduate and more than 1% had post graduate degrees. 7

Table 2.4: Educational qualifications of the Respondents Educational qualifications of Number of Respondents the Respondents Number Percentage Illiterate 978 32.28 Primary Education 1117 36.86 Secondary Education 606 20.00 Higher Secondary 188 6.20 bachelor 103 3.40 masters 38 1.25 Total 3030 100.0 2.5 Professions of Respondents The majority of respondents were agricultural workers (34%), others were involved in housework (24%), 13% were involved in business, 10% in jobs and 7% were labourers. Figure 2.5: Professions of Respondents 10.23% 13.17% 33.99% 7.20% 3.80% 0.86% 3.10% 24.30% 1.60% 1.72% Service Business Farmer Labourer Students Un-employed Self-employed House work Retired Others 2.6 Monthly Household Income The monthly income of 56% of the households was between Taka 2001-6000. 31% had income less than 2000. About 10% household had income ranging from 6001-12000, only 0.80% households had income over 20,000 per month. The average monthly income of the households was taka 4172. There was a clear difference in the monthly income of rural (TK 3795) and urban (TK 5371) households. 8

Figure 2.6: Monthly household income 55.71% 31.32% 9.70% 2.47% 0.80% < 2000 2001-6000 6001-12000 12001-20000 20001 + 2.7 Religion of Respondents About 86% of the respondents were Muslims, and 13% Hindus. Only about 1% were Christians and Buddhists. Table: 2.7 Religion of Respondents Religion Number of Respondents Number Percentage Islam 2604 85.94 Hinduism 391 12.90 Christianity and 35 1.16 Buddhism 2.8 Household Size About 36.37% of the households had 5-6 members, 35.84% households had 8 or less than 8 members, 27.79% had 7 or less than 7 members. The average household size was 5.61, with the average rural household being 5.63 and urban household being 5.55. Figure 2.8 : Household Size 27.79% 35.84% 36.37% < 4 Persons 5-6 Persons 7+ Persons 9

CHAPTER THREE Sectors Prove to Corruption In identifying the most corrupt sectors in the country 39% respondents identified the 'Police', 21% identified the 'Health' sector, and 10% referred to 'Land Administration'. 6.77% respondents identified the 'Judiciary' and 5.77% stated 'Education'. Figure 3.1 Most corrupt sectors in the country 39.27% 21.29% 5.77% 10.16% 4.69% 0.53% 6.77% 3.56% 0.20% 0.16% 0.59% 1.09% 0.03% 1.52% 4.36% Education Health Electricity Land Administration Taxation Police Judiciary Bank Railway Telephone Customs NGO Post offcie Others No Answer The second most corrupt sector was 'Health' according to 25% of the respondents. 23% identified 'Police', 11.48% identified the 'Judiciary' 9% identified 'Education' and 6.17% identified the 'Power' sector as the second most corrupt sector. Figure 3.2 Second most corrupt sectors in the country 25.02% 22.74% 9.07% 6.17% 11.22% 0.79% 11.48% 3.96% 0.30% 0.33% 1.52% 1.72% 1.06% 4.62% Education Health Electricity Land Administration Taxation Police Judiciary Bank Railway Telephone Customs NGO Others No Answer 10

The third most corrupt sector was identified as 'Health' by 18% of the respondents. 14.5% identified the 'Police', 14.1% identified the judicial system, 11.91% 'Land Administration' 10.86% 'Education', and 8.35% identified the 'Power Sector' as the third most corrupt sector. Figure 3.3 Third most corrupt sectors in the country 18.28% 10.86% 14.52%14.12% 11.91% 8.35% 7.03% 5.28% 1.39% 0.43% 0.69% 2.57% 3.13% 0.33% 1.09% Education Health Electricity Land Administration Taxation Police Judiciary Bank Railway Telephone Customs NGO Post offcie Others No Answer Of those respondents who identified the most corrupt sector in Bangladesh, 25.5% identified the 'Police', 21.52% identified the 'Health Sector', 11.1% identified 'Land Administration' and 10.79% identified the 'Judiciary' as the most corrupt. This was followed by Education (8.56%), Power ( 6.4%), and the Banking Sector (4.85%) identified by the 5th, 6th and 7th highest number of respondents. 3.4 Most corrupt sectors in the country 21.52% 25.51% 8.56% 6.40% 11.10% 0.90% 10.79% 4.85% 0.30%0.39% 1.56%1.98% 0.12% 1.22% Education Health Electricity Land Administration Taxation Police Judiciary Bank Railway Telephone Customs NGO Post offcie Others 11

CHAPTER FOUR Education Sector 4.0 Introduction Education is a pre-condition to human progress, the primary basis for overall development. A strong foundation of education is the basis for an enlightened edifice of civilization. Our small nation is burdened by a massive population, beset by numerous problems. Perhaps the greatest problem is the complete illiteracy of a large bulk of the population, and fundamental flaws in the educational system from which hundreds and thousands have acquired some literacy. It is disgraceful that three decades after independence we have unable to impart planned basic education to more than half of our population. The Universal Declaration of Rights, a milestone in the progress of civilization, recognizes the right to education for all human beings, and calls upon all nations of the world to provide education to all. The constitution of Bangladesh pledges free and universal education for all boys and girls of the country. The present government has embarked upon a program of education for all within a short time frame and has also made primary education compulsory for all children. For poor children who have to work for their upkeep, a 'Food for Education' program has been introduced. But there are many faults and problems in all these systems. This was evident from TIB s household survey of 'Corruption in Bangladesh' conducted in 1997. TIB's News Scan Database, 2001, reveals that 'Education is the second most corrupt sector in Bangladesh. Because of irregularities and corruption, a huge amount of money is stolen or wasted in the Education sector each year. The education sector has therefore been incorporated in this survey in order to identify it s various faults and problems and thereby reduce the irregularities and corruption. The data gathered in this survey includes the following: admission procedures in different types of educational institutions, the extent of corruption in different educational institutions, persons responsible for corruption, and how is it organized. A brief discussion on the data outlined below: 4.1 Percentage of students in various educational institutions This survey showed that of the total number of households, 1976 households, or 65.28% had students who went to school. Students from 1970 households (or 62.37%), went to government or semi government institutions. Of the 3030 household members from whom data was collected, 47% of households had children who studied in primary schools, of which 66% went to government schools, 28% to semi-government schools, and 6% to private schools; 27% households had children who went to secondary schools, of which 12% went to government schools, 82% to semi-government schools, and 6% to private schools. 9.37% households had students going to college and only 1.65% households had university students. 4.2 Admission in different institutions 12

It can be seen from the survey data that 10% students secured admission through alternative process, the rate is 9.75% in rural area and 11.32% in urban area. The rate is slightly different between government and semi-government institutions. 12% students secured admission through alternative process in government institutions while 9% in semi-government institutions. In rural area, 11% students secured admission though alternative process in government institutions and 8% in semigovernment institutions. In urban area, 12.5% students secured admission though alternative process in government institutions and 10% in semi-government institutions. The World Bank conducted a survey in four major cities in 2002 in which it showed the rate of bribe giving for getting admission. in school. The percentage of giving bribe and donation for getting admission in school is 10% in Dhaka, 12% in Chittagong, 8% in Rajshahi and 18% in Khulna. 4.2 The rate of securing admission through alternative process 14.00 12.00 10.00 8.00 6.00 4.00 Rural Urban Average 2.00 0.00 Government Semi-government Average 4.2.1 Admission to primary schools In answer to the question how admission was secured to primary schools, 87% responded that it was secured through normal procedures, 13% through alternative procedures. In semi-government primary schools, 91% responded that admission was secured through normal means, and 9% through alternative means. Figure 4.2.1 Admission in primary schools 13

87.01% 91.12% 88.82% 12.99% 8.88% 11.18% Government semi-government Average Normal process Alternative process In villages, 91.5% respondents said admission to semi-government primary schools was secured normally, while 8.5% reported alternative process. In villages, 87% respondents said that admission to semi-government primary schools was secured normally and 13% through alternative process. In cities, 86% responded that admission to government primary schools was through normal procedures and 14% through alternative procedures. While 90% responded that admission to semi-government schools was secured normally, 10% responded that it was secured abnormally. Table 4.2.1: Admission in primary schools Admission process Rural Urban Government (%) Semi-government (%) Government (%) Semi-government (%) Normal process 87.24 91.50 86.28 89.65 Alternative process 12.75 8.50 13.71 10.34 4.2.2 Admission to secondary schools 89% of respondents said that admission to government secondary schools was secured normally and 11% said it was secured through alternative process. On the other hand, 91% responded that admission to semi-government secondary schools was secured normally while 90% responded that it was secured through alternative procedures. There was only a slight difference between urban and rural areas in Bangladesh. Figure 4.2.2 Admission process to secondary schools 14

89.46% 91.18% Normal process Alternative process 10.54% 8.82% Government semi-government In villages 90% respondents said that admission to government secondary schools was secured normally, while 10% said it was through alternative process. Only the other hand, 92% responded that admission to semi-government schools was normal, and 8% responded it was through alternative process. In cities, 89% responded that admission to government secondary schools was normal, while 11% said it was through alternative process. On the other hand, 90% responded that admission to semigovernment schools was normal, while 11% responded that it was through alternative process. 15

Table 4.2.2 Admission process to secondary schools in rural and urban areas Admission process Rural Urban Government (%) Semi-government (%) Government (%) Semi-government (%) Normal process 89.81 91.71 88.66 89.34 Alternative process 10.18 8.29 11.34 10.66 4.2.3 Admission to colleges and Universities In answer to the question how admission was secured to colleges and universities, 94% responded that it was secured through normal procedures, 6% through alternative procedures. In rural area, 95.41% responded that it was secured through normal procedures, 4.59% through alternative procedures. In urban area, it was 91.18% and 8.82% respectively. In government colleges and universities, the rate of admission through alternative process was 5.67%, the rate was 3.41% in rural area and 9.43% in urban area. On the other hand, in semi-government institutions, the rate of admission through alternative process was 6.147%, the rate was 5.38% in rural area and 8.16% in urban area. Figure 4.2.3 Admission to collages and universities through alternative process 8.82% 4.59% 5.94% Rural Urban Average 4.2.4 Nature of alternative procedure adopted for admission to educational institutions Of those who were admitted to various educational institutions through alternative process in the last year 33.74% got admission through donations. It was stated by 43.56% who were admitted through alternative process that additional money was demanded at the time of admission under unnecessary and dubious heads. The rate was 3.68% through the help of influential relatives, 2.45% by house tutor and 1.84% through political influence. 16

Figure 4.2.4: Nature of alternative procedure 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Influential relatives Private tutors Donation Additional money except donation Political influence Others 4.3 Extent of Corruption in Educational Institutions In response to the question of whether they were the victims of corruption a year after admission, 40% of respondents said that they were the victims of corruption. 38% of respondents said they were victims of corruption in government institutions, and 41% said they were victims of semi-government institutions. In rural areas, 38% were victims of government institutions and 40% of semi-government institutions. On the other hand, in urban areas, 38.6% of respondents were victims of government institutions and 46% of semi-government institutions. Figure 4.3 Extent of corruption in education sector 38.24% 41.21% Government semigovernment 12% students said that they faced difficulties to get good result or promotion to next class. The rate is more higher in urban area (30.45%) than rural area (6.31%). Almost 47% students reported that they had to be paid different kinds of irregular fees. The percentage of paying irregular fees was 47% in rural area and 42% in urban area. 8% of the respondents reported that they paid for taking certificates. Almost 13% said that they had to be paid additional money for form fill up. 10% of the respondents reported that the management deducted money from the stipend. 26% students said that the management took money for supplying govt. free goods. The following table shows the types and extent of corruption in educational institutions: 17

Table 4.3 Types of corruption in educational institutions Types of corruption Rural Urban Total Difficult to get good result or promotion to next class 6.31 30.45 12.31 unless the teachers are engaged as private tutors Different kinds of irregular fees had to be paid 47.07 42.27 45.88 For taking different kinds of certificate 9.17 5.91 8.36 Additional money to be paid for form fill up 12.33 14.09 12.77 Management deduct money from the stipend awarded to 10.83 7.72 10.05 the students Management took money for supplying Govt. free goods 27.22 23.18 26.21 like books, pen, papers Teacher referred to buy books, pen, papers from designated library 2.25 5.45 3.05 4.3.1 Private tutors The survey revealed that students who hired private tutors to improve their results spent an average of Taka 5000 for government institutions and an average of Taka 3500 for semi-government institutions. In rural areas, students spent an average of Taka 2500 for government institutions and Taka 1800 for semi-government institutions. In urban areas, students spent an average of taka 6200 for government institutions and Taka 4700 for semi-government institutions. Table 4.3.1: Average amount of money spent for private tutors Types of Institutions Average amount of money spent for private tutors Rural Urban Total Government 2490 6206 5036 Semi-government 1849 4789 3453 4.3.2 Irregular subscription/fees The survey revealed that students of government institutions had to pay Taka 71 on average as an irregular subscription, and students of semi-government institutions paid Taka 91 on average. In rural areas, the average was Taka 60 for government institutions and Taka 85 for semi-government institutions. On the other hand, in urban areas, it was Taka 105 on average for government institutions, and Taka 112 on average for semi-government institutions. The practice of illegal subscription from students is an instance of corruption. 18

Figure 4.3.2 Average amount of fees for per household 120 100 80 60 40 20 0 105 112 85 91 71 60 Rural Urban Total Government Semi-government 4.3.3 Extra money for issuance of certificate The survey revealed that many students had to pay extra money in addition to the normal certificate fee, in order to receive their certificates. In government institutions, they had to pay an average of Taka 102, and in semi-government institutions an average of Taka 84. In rural areas, students of government institutions, had to pay Taka 104 on average, and students at semi-government institutions had to pay Taka 84 on average. On the other hand, in urban areas, students of government institutions had to pay Taka 90 on average, and students of semi-government institutions had to pay taka 83 on average. Figure 4.3.3 Extra money for issuance of certificate Types of Average amount of money Institutions Rural Urban Total Government 104 90 102 Semi-government 84 83 84 4.3.4 Money deducted from the Scholarship The survey revealed that the scholarship money of many students was often reduced, by the institutional authorities for example government scholarships of students in government institutions was reduced by Taka 180 per household, and the government scholarships of students of semi-government institutions was reduced by 322 Taka per household.. In rural areas, for government institutions, the reduction was Taka 174, and for semi-government institutions it was 261. On the other hand, in urban areas, the reduction was Taka 235 for government institutions and Taka 512 for semi-government institutions. 19

Figure 4.3.4 Money deducted from the Scholarship awarded to students 600 500 400 300 200 100 0 512 322 261 235 174 181 Rural Urban Total Government Semi-government 4.3.5 Excess fee earned from various national examinations Members of many households alleged that extra fees are charged while filling out forms for various national examinations. Students of government institutions have to pay Taka 600 extra on average, while students of semi-government institutions have to pay Taka 668 on average. In rural areas, students of government institutions have to pay Taka a 635 on average while students of semigovernment institutions have to pay Taka 640 on average. In urban areas, students of government institutions have to pay Taka 653 on average, while students of semi-government institutions have to pay Taka 750. Figure 4.3.5 Excess fee earned from various national examinations 640 750 668 Semi-government 635 653 641 Government Rural Urban Total 4.3.6 Corruption in the Food for Education Program It has been revealed that those involved in the Food For Education program often did not receive as much food as pledged. The annual amount for students of government institutions is Taka 232 (at the rate of 10 tk/kg) and Taka 214 (at the rate of 10 tk/kg) for students of semi-government institutions. In 2001 TIB conducted a survey in the greater Mymensingh area, and it was seen that Taka 342 worth of food was distributed here. 20

Figure 4.3.6 Average amount of taka Annual which was embezzled per household 240 230 232 220 210 214 200 Government Semi-government In fact, many had to pay money to be included in Food For Education program. Students of government institutions had to pay Taka 23 on average to be included in the program and students of semigovernment institutions paid an average of Taka 48. Table 4.3.6 (B) Average amount of money paid to be included in the FFE programme Types of Institutions Amount of money Rural Urban Total Government 24 22 23 Semi-government 55 24 48 4.4 Additional expenditure to study in educational institutions Members of different households who faced corruption had to spend an additional Taka 742 per student. The amount of extra expenditure was different between urban and rural area. The amount is 354 taka in rural area and 1915 in urban area for per student. Figure 4.4 Additional expenditure to study in educational institutions (Per student) 2500 2000 1915 1500 1000 500 354 742 0 Rural Urban Total 21

The survey revealed that household members who faced corruption in government institutions had to pay Taka 850 per year on average for per student. In rural areas, the amount was Taka 338 per year on average, and in urban areas the amount was Taka 2260 per year on average. On the other hand, household members who study in semi-government institutions and faced corruption have to pay Taka 633 per year on average. In rural areas, this amount is Taka 369 per year, and in urban areas, it is Taka 1570 per year. 4.4 (B) Additional expenditure to study in government and semi-government institutions (Per student) 2260 1570 338369 850 633 Government Semi-government Rural Urban Total It can be said from analysis that due to irregularities in education sector, the students of Bangladesh spend 920 crore taka in a year on an average as extra expenditure. 4.5 Economic condition of households which are victims of corruption The survey revealed that household members who studied in various educational institutions had an average monthly income of Taka 4487. In rural areas, the amount is Taka 4077, and in urban areas, it is 5731. The average monthly income of households included in the survey was Taka 4172. In rural areas the amount was Taka 3795, and in urban areas it was Taka 5371. Households which were victims of corruption in educational institutions had an average monthly income of Taka 4329, and those households not affected by corruption had an average income of Taka 4548. In rural areas, households which are victims of corruption, had an average monthly income of Taka 3806, and those households not victims of corruption had an income of Taka 4242. In urban areas victim households had an average monthly income of Taka 5851, and non-victim households had an average income of Taka 5654. 22

Figure 4.5 Economic condition of households which are victims of corruption 4487 4548 4329 4172 Average household income Average household income in those household who has members who studied in various educational institutions Average household income which are victims of corruption of educational institutions Average household income which one is not the victims of corruption of educational institutions 4.6 Perpetrators of Corruption Households which are victims of corruption in educational institutions, indicated that teachers (87%) are the most common perpetrators, followed by food dealers (8), the management committee of institutions (6.55%) and employees of institutions (4.6%). Figure 4.6 Perpetrator of Corruption 87.46% 4.63% 6.55% 8.13% Teacher Employee Management committee Dealer Households in rural areas affected by corruption reported corruption of teachers at 86%, and corruption by food dealers at 10.53%. 8.27% households were affected by corruption by the management committee and 4.8% households by employees of educational institutions. On the other hand, in urban areas 91.8% members of households were affected by corruption by teachers, 4% affected by corruption of employees of educational institutions, 1.37% households affected by the management committee, and 0.9% households affected by food committees. 23

Table 4.6: Perpetrator of Corruption Perpetrators Rural Urban Total Teacher 86.01 91.82 87.46 Employee 4.81 4.09 4.63 Management committee 8.27 1.36 6.55 Dealer 10.53 0.91 8.13 4.7 Agents of corruption Of those households affected by corruption, 87% of members of households reported that money was demanded directly by the service-provider, 3.6% reported that money was demanded through a third person, and only 0.68% households reported offering bribes. There was very little difference between rural and urban areas in this scenario. Table 4.7: Types of transaction Types of transaction Rural Urban Total Money was demanded directly by the serviceprovider 87.67 84.54 86.89 Money was demanded by the service-provider 4.36 1.36 3.61 through a third party Money offered directly by the service recipient 0.45 1.36 0.68 Money offered directly by the service recipient 0.15 00 0.11 through third party No answer 7.37 12.73 8.70 4.8 Causes of corruption In response to the question of the causes of corruption, 52% of the respondents identified absence of accountability as the major cause, 38% respondents identified discretionary power, 30% respondents stated lack of transparency, and 15.5% identified the monopoly power, 11% respondents mentioned the influence of powerful people, and 4% mentioned the prevalence of red-tape. There was little difference in data from rural and urban areas. In rural areas, 49% of respondents identified absence of accountability as the major cause of corruption, 34% identified discretionary power, 28% the absence of transparency, and about 14% identified monopoly power as a cause of corruption, 9% referred to poor salaries of employees, 8% pointed to the influence of powerful people, 7% reported the scarcity of resources and 2% identified the influence of red-tape as other causes of corruption. 24

Figure 4.8: Causes of corruption 51.82% 30.26% 38.03% 15.58% 9.16% 6.69% 11.31% 4.04% 3.14% Lack of accountability Lack of transparency Discretionary power Monopoly power Low salaries of the staff Shortage of resources Influence of powerful people Redtapism Others On the other hand, in urban areas 61% respondents identified the absence of accountability, and 50% identified discretionary power as causes of corruption, 39 % identified the absence of transparency, 21% the influence of the powerful, and 21% identified monopoly power as causes of corruption. Other causes mentioned were the prevalence of red-tape (about 10%) poor salaries of employees (about 9%), and scarcity of resources (5%). Table 4.8 Causes of corruption Causes of Corruption Rural Urban Total Lack of accountability 48.94 61.18 51.82 Lack of transparency 27.64 38.81 30.26 Discretionary power 34.51 49.90 38.03 Monopoly power 13.97 20.84 15.58 Low salaries of the staff 9.27 8.79 9.16 Shortage of resources 7.28 4.78 6.69 Influence of powerful people 8.33 21.03 11.31 Redtapism 2.29 9.75 4.04 Others 2.87 4.01 3.14 4.9 Conclusion Irregularities and corruption in educational institutions revealed in the survey, include: alternative admission procedures, appointment of private tutors to do well in exams, extraction of irregular funds from students, additional fees for certificates, reduced scholarship money given to students, additional fees taken during various national examinatio ns, less food given in the Food For Education program amongst others. It is seen that the poor are more affected by corruption than the rich. Teachers are primarily responsible for corruption in educational institutions and the absence of accountability is the major cause of corruption. 25

CHAPTER FIVE Health sector 5.0 Introduction Health is a fundamental human right. "Health for all" may be a popular slogan, but the reality is very different. Many are destined to early and premature deaths, because of inadequate health facilities. It is the responsibility of the Health Ministry of the government to provide health service to all citizens. Government hospitals in districts and upazillas are under the Health Ministry. The government, under the auspices of the Health Ministry, attempts to provide health services at the grassroots level through the establishment of hospitals in districts and upazillas. On the whole, the health system of the nation is very precarious, due to an absence of sincere and sympathetic health-providers; there is the tendency to misappropriate medicine meant for patients; supply of poor- quality food for patients; the pervasive influence of middleman and extortionists in hospital premises; the power and influence of medical employees at various levels; and above all, a weak system of management all contribute to an overall deterioration in the health service. In the postliberation period more than Taka fifteen thousand crores has been spent for health and family planning (The Daily Ittefaq, December 5, 2000), but the absence of responsibility and accountability has allowed the entire health system to be devoured by the monster of corruption. Corruption is deep and pervasive in the entire health system including the district and upazilla health complexes, all medical college hospitals, offices of the Civil Surgeon, and various family planning offices. This has been documented in the 1997 TIB nationwide survey, "Corruption in Bangladesh". The TIB News Scan Database of 2001 reported the health sector as the fourth most corrupt sector. Huge amounts of government money are stolen from the health sector each year, making the health sector an obvious choice for incorporation in the current report. This survey gathered data on the health sectors on the following subjects: admission procedures in government hospitals, extent of corruption in various health services, causes of corruption in the health sector, those responsible for corruption, and the instruments of corruption. A brief discussion of the results is given below. 5.1 Extent of Health Service Required The survey revealed that 61% of members of households received treatment at some hospitals. 46% received treatment at government hospitals in the past year; in rural areas, 46.46% went to government hospitals and in cities 45.52% received treatment at government hospitals. About 9% members of households received treatment from private hospitals and almost 6% from other hospitals. In rural areas, 8% and in urban areas, 11% received treatment from private hospitals. 26

Figure 5.1 Extent of Health Service Required 46.24% Government hospital 8.78% Private hospital 5.77% Others 5.2 Admission Procedures in Government Hospitals 52% of the members of households reported that admission to government hospitals was arranged through normal procedures whereas 47.56% reported using alternative procedures. The difference in admission procedures between rural and urban areas was negligible. For instance, in rural areas 51% got admission through normal and 49% through alternative procedures. In cities 56% got admission through normal procedures and 44% through alternative procedures. Figure 5.2 Admission Procedures in Government Hospitals 52.44% 47.56% Normal procedure Alternative procedure 5.3 Nature of Admission through Alternative Procedures 56% members who arranged admission through alternative procedures paid money: in rural areas, it was 59% and in cities 45%. About 40.5% said admission was arranged by paying fee to the doctor: in rural it was 41% of respondents and in urban areas it was 38%. Members of 22% of households said that admission was arranged through influential people/ relatives (in rural areas, it was 24% and in urban areas, 18%). Members of 15% households said that admission was obtained through hospitals staff: (in rural areas it was 15% and in cities 28%). Table 5.3 Nature of Admission through Alternative Procedures Alternative processes Percentage of alternative processes Rural Urban Total Private doctor 41.22 38.30 40.51 Influential relatives 24.32 14.89 22.05 Through hospital staff 15.54 27.66 18.46 By giving taka 59.46 44.68 55.89 Others 00 2.13 0.51 27

5.4 Extent and nature of Corruption on Patients Seeking Treatment Members of 45% of households reported that they were victims of corruption as out-patients. On the other hand almost 80% reported that were victims of corruption as in-patients. Outdoor patient corruption in villages was 45% and in cities 46%, and corruption for admitted patients was 78% in rural and 84% in urban areas. Figure 5.4 Extent of Corruption on Patients Seeking treatment 45.40% 79.85% Out door Indoor 5.5 Nature of corruption in hospitals: In reply to the question of what kinds of corruption they faced, 19% respondents replied that they had to pay for getting medicine. The rate is different between urban (13%) and rural (21%) respondents. 30% said that they gave bribes for getting bed. The following table shows the types and extent of corruption in hospitals: Table 5.5 Nature of corruption in hospitals Types of corruption Rural Urban Total Extra money had to be paid for getting allocated medicine Extra money had to be paid for getting bed Extra money had to be paid for X - ray Extra money had to be paid for pathological test Extra money had to be paid for blood Extra money had to be paid for operation Medicine had to be bought from designated pharmacy Pathological test had to be done from designated center 21.23 12.88 19.15 29.53 30.43 29.78 16.78 16.49 16.71 13.01 15.46 13.62 2.74 3.09 2.82 18.14 11.96 16.41 23.97 26.29 24.55 8.05 17.52 10.41 28

5.6 Expenditure for Treatment in Government Hospitals The survey revealed that members of households who received treatment at government hospitals and faced corruption they spent about Tk 1847 annually. In rural areas, the expense is Tk 1711, and in urban areas its Tk 2256. It can be said from the findings that those households faced corruption in public hospitals in a year had to pay 1250 crore taka in a year. Figure 5.6 Average expenditure for treatment in government hospitals 2500 2256 2000 1847 1711 1500 1000 500 0 Total Rural Urban 5.7 Socio-Economic Condition of Households Affected By Corruption The survey revealed that households whose members went for treatment to hospitals had an average monthly income of Taka 4338. In rural areas, the average income was Tk 4000 and in urban areas Tk 5361. The average monthly income was Tk 4172 for households included in the survey. In rural areas, the average monthly income is Tk 3795 and in urban areas it is Tk 5371. Households affected by corruption in hospitals had an average monthly income of Tk 4223 and those who were not affected by corruption had an average monthly income of TK 4465. In rural areas, the monthly income of households affected by corruption is Tk 3888, and not affected by corruption is Tk 4121. In urban areas, the monthly average income of households affected by corruption is Tk 5200, and not affected is Tk 5548. Figure 5.7 Socio-Economic Condition of Households Affected By Corruption 4172 4338 4223 4465 Average household income Average household income of those households Economic condition of households affected by corruption while received treatment Economic condition of households not affected by corruption 29

5.8 Perpetrators of Corruption Of those members affected by corruption in hospitals, 56% reported corruption by doctors, 36% reported corruption by hospital staff, and 5% by hospital nurses. The difference in data between rural and urban is negligible. Figure 5.8 Perpetrators of Corruption 56.43% 36.12% 5.01% 1.41% Doctor Hospital staff Nurse Other 5.9 Nature of interaction Of those who were affected by corruption in hospitals, 61% respondents said that this was done directly by the service providers, 17% said corruption was practiced indirectly through a third person, and 2.7% respondents directly offered money to the service providers. 0.64% offered money through a thirdperson. The scenario was more or less the same in both rural and urban areas. 60.92% Figure 5.9 Nature of interaction 17.35% 2.70% 0.64% Money was demanded directly by the service-provider Money was demanded through a third person Service receivers themselves made proposals for giving money directly Service receivers themselves made proposals for giving money through third party 5.10 Causes of Corruption Of the causes of corruption in government and semi-government hospitals in one year, 67% of the respondents cited the lack of accountability as the major cause. Discretionary power was identified as the second major cause (50%), followed by lack of transparency (45%), monopoly power (28%), the 30

influence of powerful people (13%), and abuses of red-tapism (7%). There was some difference in this data from rural and urban areas. Table 5.10 Causes of corruption Causes of Corruption Rural Urban Total Lack of accountability 64.33 77.02 67.48 Lack of transparency 40.94 57.33 45.00 Discretionary power 45.85 64.11 50.38 Monopoly power 26.86 31.73 28.07 Low salaries of the staff 2.75 4.16 3.09 Shortage of resources 6.93 7.00 6.95 Influence of powerful people 8.59 25.60 12.81 Red tapism 4.98 17.07 7.98 Others 7.15 7.88 7.33 5.11 Conclusion The survey revealed the following irregularities and corruption in the health sector in the procedure of admission to hospitals: help of private doctors sought, direct bribes are given for admission, and help of hospital staff and relatives is taken. In addition, money has to be given for receiving various services from the hospital, medicine has to be purchased from nominated pharmacies, and money given for various pathological tests in the hospitals. It is seen that the poor are affected by corruption more than the rich. Doctors are mostly responsible for corruption in hospitals and the absence of accountability was cited as the major causes of corruption in hospitals. 31

CHAPTER SIX Power sector 6.0 Introduction The Power Department is one of the most corrupt sectors in Bangladesh. TIB's News Scan Database of corruption in Bangladesh in 2001 reported that the government power sector was the 12th most corrupt sector. The report showed that 2.84% of total news covered the irregularities and corruption of the power sector. 0.57% of the economic losses of the government come from the power sector. From the point of view of economic loss the power sector is the tenth most corrupt sectors. The power sector has been incorporated in this survey in order to identify it faults and problems and thereby help reduce the irregularities and corruption in this sector. The different areas that have been covered in this survey include the following: methods of getting power connection, extent of corruption in various power department activities, causes of corruption, persons responsible for corruption and instruments of corruption. A brief discussion of the data on the issues above is given below. 6.1 Extent of Service from the Power Sector The survey revealed that of the 3030 households 23.63% or 716 households had members who went to the power department for some kind of service, of which 41% were from the urban and 18% from rural areas. 6.2 Methods of Getting Power Connection The survey revealed that 36% of households which had power supply arranged their power connection through alternative means. This percentage is higher in rural (45%) than in urban areas (23%) Figure 6.2 Methods of Getting Power Connection 54.68% 45.32% 77.26% 22.74% 64.11% 35.89% Normal procedure Alternative procedure Rural Urban Total 6.3 Nature of Alternative Procedure Of those who got power connection through alternative means, 98% arranged it by giving money to department employees; about 8% had to go to the power department several times before power was 32

connected, and 6% used political influence to get power connected. There was no difference in this data between urban and rural areas. Figure 6.3 Nature of Alternative Procedure 98.44% 5.84% 5.06% 7.78% 2.72% Paid to the Through office in political getting influence electricity connection Through relatives Making repeated trips to the electricity office Others 6.4 Extent of Corruption Of those who went to the power department after their power connection was arranged, about 32% were affected by corruption. Comparatively, more villagers (36%) were affected by corruption than city dwellers (27%). Figure 6.4 Extent of Corruption 40.00% 30.00% 35.73% 27.42% 32.26% 20.00% 10.00% 0.00% Rural Urban Total 6.5 Financial Transaction with the Power Department The survey revealed that members of households affected by corruption of the power department had to spend an additional Tk 950 per year. In cities, this amount was less than Tk 700, and in villages it was 33

more than Tk 1000. It can be said from the data that those households faced corruption by power sector had to pay 182 crore taka as bribe in a year. Of those who were affected by corruption in the last year, 28% of respondents reported that they had to give bribes for power connection. In rural areas the percentage was 24% and in urban areas, 35%. In rural areas the amount was Tk. 1500 and in cities, about Tk 700. Of those affected by corruption, 10.39% respondents reported that they gave bribes to keep their bills low. In rural areas, the percentage was 4% and in urban areas it was 22%. The average annual bribe money given was Tk 600, of which the amount was Tk 500 in rural and Tk 600 in urban areas. Purpose for giving bribes Getting electricity supply properly Reducing electricity bill Correcting the over billing To stop the disconnection of the line Table 6.5: Financial Transaction with the Power Department Rural Urban Total Percentage of Average Percentage of Average Percentage Average households amount of households amount of amount affected by money affected by of money households money corruption (annual) corruption (annual) affected by (annual) (%) (%) corruption (%) 24.16 1550 35.37 700 28.14 1200 4.03 500 21.95 650 10.39 600 17.45 400 24.39 800 19.91 550 12.08 1200 7.32 800 10.39 1100 Others 45.64 1100 36.58 550 42.42 1000 of Of those who were affected by corruption in the last year, 14.91% respondents reported that they had to give bribes to correct over-billing. In villages the percentages was 17% and in cities 24%. The amount of bribe given was over Tk. 550 per year, the amount being Tk 400 in rural and Tk 800 in urban areas. Of those affected by corruption in the last year, 10.39% respondents reported that they gave money to prevent being cut off due to non-payment of bills. In villages the percentage was 12% and in cities, 7%. More than Tk 1000 was given as bribes per year, the amount being Tk 1200 in rural and Tk 800 in urban areas. 42.42% of the members of households reported that they gave money to the power department for reasons other than the ones cited above. The percentage was 46% in rural and 36% in urban areas. On 34

average, Tk 1000 per year was given as bribes. In rural, the amount was Tk. 1100 and in urban areas it was over Tk 500. Figure 6.5: Amount of money as bribes 1200 1100 1000 600 550 Geeting electricity supply properly Reducing electricity bill Correcting the over billing To stop the disconnection of the line Others 6.6 Economic Condition of Households Affected by Corruption The survey revealed that households with electricity had a monthly average income of Tk 5985. In rural areas, the amount is Tk 5312 and in urban areas Tk 6890. Those households without electricity had an average monthly income of Tk 4172. In rural areas, the amount is Tk 3795 and in cities, it is Tk 5371. Households affected by corruption had an average monthly income of Tk. 6348 and those not affected by corruption had an income of Tk 5803. Households in rural areas affected by corruption of the power department had an average monthly income of Tk 5451, and those not affected had an income of Tk 5236. Households in urban areas affected by corruption had an average monthly income of Tk 7722, and those not affected had an income of Tk 6516. Figure 6.6 Economic Condition of Households Affected by Corruption 4172 5985 6348 5803 Average household income Average household income of those households who got elctricity connection Economic condition of households affected by corruption Economic condition of households not affected by corruption 35

6.7 Perpetrators of Corruption Of those households affected by corruption of the power department, 25.54% were affected by corruption perpetrated by meter readers, 20.35% by power department officers, 12% by linesmen, and 7% by billing staff. 34% could not identify the perpetrators of corruption. Figure 6.7: Perpetrators of Corruption 25.54% 20.35% 7.36% 1.73% 11.69% Meter Billing Officer reader employee Union LInesman leader Of those households affected by corruption in villages, 23% were affected by corruption of meter readers, 17% by officers, 11% by linesmen, and 3% by billing staff. 47% households in villages could not identify the perpetrators of corruption. On the other hand, households affected by corruption in cities reported that 30% were affected by corruption of meter readers, 27% by officers, 13% by linesman, and 15% by billing staff, 13% households could not identify the perpetrators of corruption. Table 6.7 : Perpetrators of Corruption Perpetrators of Rural Urban Corruption Meter reader 22.82 30.49 Billing employee 3.36 14.63 Officer 16.78 26.83 Union leader 2.68 00 Linesman 10.74 13.41 Repairman 0.67 00 Others 0.67 1.22 6.8 Instruments of Corruption Of those households affected by corruption, 79% reported that money was demanded directly by the service-providers, 13% said that money was demanded through third persons, and only 4.33% responded that money was given directly by those receiving service. Only 1.3% said that money was given indirectly through third persons. Some difference was perceived between rural and urban areas. 36

For instance, in villages 80.54% and in cities, 77% demanded money directly by service providers, while 17% in cities and 11% in villages demanded money through third persons, money was given directly by 2% in villages and 8.5% in cities. Figure 6.8: Nature of interaction 13.42% 4.33% 1.30% Money demanded directly by the service-provider Money demanded by serviceprovider through a third person Service recipients themselves made proposals for giving money directly 79.22% Service recipients themselves made proposals for giving money through third party 6.9 Causes of Corruption Of the causes of corruption in the power sector, respondents who received some service from the power sector gave the following answers: almost 57% identified lack of accountability as the main cause, and 47% identified monopoly power. 30% cited discretionary power as a major cause of corruption, and 31.56% identified the lack of transparency. 12% referred to the influence of the powerful, and another 12% mentioned the abuse of red-tapism as other causes. Some difference was perceived between villages and cities. For instance, 52% in rural and 63% in urban areas considered the lack of accountability as the major cause of corruption, while 51.56% in rural and 41% in urban areas considered monopoly power as the main cause of corruption. Discretionary power was identified by 40% in rural areas and almost 50% in urban areas as another cause of corruption. 37

Figure 6.9 Causes of Corruption 56.70% 31.56% 30.02% 46.79% 3.07% 6.56% 12.15% 12.43% 5.59% Lack of accountability Lack of transparency Discretionary power Monopoly power Low salaries of the staff Shortage of resources Influence of powerful people Redtapism Others 6.10 Conclusion Of the households that have electricity a large percentage arranged power connection through alternative procedures. This was prevalent more in rural than in urban areas, and was done mostly through bribes. Of the different forms of corruption that affected consumers, the following were mentioned: bribes for getting power connections, bribes for reduced monthly bills, bribes for correction of over-billing, and bribes for prevention of power severance due to non-payment of bills. The monthly income of households affected by corruption was found to be more than those households not affected by corruption. Meter readers were found to be the most frequent perpetrators of corruption, and it was also revealed that corruption was perpetrated directly by the meter readers. A majority of the respondents identified the lack of accountability as the major cause of corruption. 38

CHAPTER SEVEN Land Administration 7.0 Introduction Land is a major sector within the government of Bangladesh. A large number of citizens have to go to land administration offices for land-related problems. A TIB report of 1997 revealed that the Land Records office, Sub-Registry office, and Tahsil office were fourth, fifth and seventh most corrupt sectors of the country. TIB's News Scan Database of 2001 also revealed land administration as one of the tenth most corrupt sectors. Land administration was incorporated in the survey to identify the extent of corruption in land administration and help reduce it. The survey gathered the following data about corruption in land administration: the kinds of person affected by corruption, extent of corruption, persons responsible for corruption, reasons for corruption and so on. A brief discussion on the above issues is given below. 7.1 Service Provided by Land Administration and Extent of Corruption The survey revealed that out of the 3030 households, 709 or 23.4% members of households had to go to land administration offices within the past one year for land-related service, and the number was proportionately more from rural than from urban areas. 24.8% members from rural areas and 18.9% from urban areas went to land administration offices, and of them about 72.78% were affected by one form of corruption of another. Corruption was proportionately higher in rural areas: 75.5% members were affected by corruption in rural areas and 62% members affected by corruption in urban areas. Figure 7.1 Percentage of households faced corruption 75.52 62.04 72.78 Rural Urban Total 7.2 Nature of Service Required from Land Administration Offices Of members who went to the land administrative offices during the last one year, 31% went for land survey, 20.7% went to pay land tax, and 17% went for land-buying related activities. About 12% went to sell land, 9.45% for Khas- land, 8.46% for land mutation and almost 7% for land-demarcation work. Other reasons include submission of tax (1.83%) and property transfer (2.26%). 39

Table 7.2: Purposes of interaction with land Purposes Rural (%) Urban (%) Total (%) For selling land 11.36 14.60 11.99 For buying land 18.01 13.14 17.07 For mutation 8.22 9.49 8.46 Tax paying 1.40 4.38 1.83 Distribution of khas land 10.31 5.84 9.45 Periodic survey 35.49 13.14 31.17 Determination of 6.47 8.76 6.91 boundary of land Transfer of property 2.10 2.92 2.26 For paying land tax 17.83 32.85 20.73 Others 4.37 9.49 5.36 7.3 Extent of Corruption in Various Land Administration Related Service Of the different forms of corruption that affected members of households, corruption in land mutation was highest, followed by khas-land problems, land survey, amongst other forms of corruption. Only a minority, however, were affected by corruption in the sale of land. Table 7.3 Extent of Corruption in Various Land Administration Related Service Purposes Rural (%) Urban (%) Total (%) For selling land 49.23 40.00 47.06 For buying land 79.61 38.90 73.55 For mutation 93.62 84.61 91.67 Tax paying 44.95 49.02 46.25 Distribution of khas 91.53 87.50 91.05 land Periodic survey 90.64 77.78 89.59 Determination of 94.59 66.67 87.76 boundary of land Transfer of property 83.33 100.00 87.50 Others 88.00 92.31 89.47 Land Sale: As regards land sale in the last year, 47% members were affected by corruption, of which the percentage was 49% in rural and 40% in urban areas. Buying of Land: Of those who bought land in the last year, 73.55% were affected by corruption, of which the percentage was 79.61% in rural and 38.9% in urban areas. 40

Land Mutation: In land mutation, 91.67% were affected by corruption, of which the percentage was 93.62% in rural and 84.61% in urban areas. Land Tax: In the payment of land tax in the last year, 46% were affected by corruption, of which the percentage was 45% in rural and 49% in urban areas. Khas land: Of those involved with khas land related activities in the last year, 91% were affected by corruption, of which the percentage was 91.5% in rural and 87.5% in urban areas. Seasonal land survey: In the matter of seasonal land survey, 89.6% were affected by corruption, of which the percentage was 90.6% in rural and 77.8% in urban areas. Demarcation of land: In the matter of demarcation of land in the last one year, 87.76% were affected by corruption, of which the percentage was 94.59% in rural and 66.67% in urban. Property Transfer: For property transfer or land transfer, 87.5% were affected by corruption, of which the percentage was 83% in rural and 100% in urban areas. Figure 7.3 (a): Extent of Corruption in Various Land Administration Related Work 91.67% 91.05% 89.59% 87.76% 87.50% 89.47% 73.55% 47.06% 46.25% For selling land For buying land For mutation Tax paying Distribution of khas land Periodic survey Determination of boundary of land Transfer of property Others Others: Other members who went to land administration offices for other land-related work were also affected by corruption (89%), 88% in villages and 92% in cities. 41

Figure 7.3 (b) Extent of Corruption in Various Land Administration Related Work in rural and urban areas 79.61 49.23 40 38.9 93.62 84.61 49.02 44.95 91.53 87.5 90.64 77.78 94.59 66.67 83.33 100 92.31 88 Rural Urban For selling land For buying land For mutation Tax paying Distribution of khas land Periodic survey Determination of boundary of land Transfer of property Others 7.4 Monetary Transactions with Land Administration The survey revealed that members of households who went to land administration offices had to spend an additional amount of Tk 3509 on average. In rural areas, the amount was Tk 2578 and in urban areas it was Tk 8229. Corruption in land administration forced each household to spend an additional amount of Tk 597. According to a population census of 2001, Bangladesh has 2,53,62321 households. It can therefore be estimated that about Tk 1515 crore is earned by various land administration offices. Table 7.4 Monetary Transactions with Land Administration Purposes of transaction Average expenditure per household due to corruption Rural (Taka) Urban (Taka) Total (Taka) Registration 4867.00 17592.00 7015.00 Mutation 2383.00 1904.00 2283.00 Annual land taxes 785.00 1979.00 1134.00 Showing lower price than actual price 1160.00 725.00 1093.00 to avoid taxes Getting Khas land 1819.00 6237.00 2129.00 Land survey 1877.00 2096.00 1896.00 Buying stamp 1877.00 975.00 1824.00 Determination of boundary land 1641.00 17422.00 3587.00 Writing deed 1155.00 1040.00 1130.00 Certificate 424.00 700.00 449.00 Others 1844.00 13077.00 4800.00 42

Land Registration: The survey revealed that households spent an average of Tk 7015 as bribes for land administration. This amount was comparatively higher in cities (Tk 17592) than in villages (Tk 4867), Some households had to pay additional money to register land at a price higher than the actual rate of market transaction. On average, households had to pay Tk 1093 for this practice. In rural areas this amount was Tk 1160 and in urban areas Tk 725. Mutation: On average, households paid Tk 2283 for mutation, the amount was higher in urban than in rural areas. In urban areas the amount was Tk 2383, and in rural areas Tk 1904. Figure 7.4 Monetary Transactions with Land Administration in Land Administration 7015 4800 3587 2283 2129 1896 1824 1134 1093 1130 449 Registration Mutation Annual land taxes Showing lower price than actual price to avoid taxes Getting Khas land Land survey Buying stamp Determination of boundary land Writing deed Certificate Others Land Tax: On average, households had to pay Tk 1134 as bribes. In urban, this amount was higher (Tk 1979) than in rural areas (Tk 785). Khas land: The survey revealed that some households had to pay Tk 2129 for possession of khas land. In rural areas, the amount was Tk 1819 and in urban areas it was Tk 6237. Land Survey: The survey revealed that some households had to spend an average of Tk 1896 for land survey. In rural areas the amount was Tk 1877 and in urban Tk 2096. 43

Stamp: Some households had to pay Tk 1824 on average to levy stamps. In rural areas the amount was Tk 1877 and in urban areas Tk 975. Demarcation of Land: the survey revealed that additional money (Tk 3587) had to be given as bribes for demarcation of land. The amount being higher in urban (Tk 17,422) than in rural areas (Tk 1641) Writing of land Deed: Households had to give extra money for the writing of land deeds (Tk 1130), the amount being lower in urban (Tk 1040) than in rural areas (Tk 1155). Receipt of Certificates: Households on average paid about Tk 449 to take possession of land certificates, the amount being Tk 700 in urban and Tk 424 in rural areas. Others: An average amount of Tk 4800 was received by the land administration for other services, the amount being Tk 13077 in urban and about Tk 1844 in rural areas. 7.5 Economic Condition of Households Affected by Corruption The survey revealed that the average monthly income of those households that sought help from land administration was about Tk 4625, the amount being Tk 4324 in rural areas and Tk 5852 in cities. The average monthly income of households included in the survey was Tk 4172, the amount being Tk 3795 in rural and Tk 5371 in urban areas. Households that were affected by corruption from land administration offices had an average monthly income of Tk 4397 and those not affected had an average monthly income of Tk 5235. In rural areas, households affected by corruption had an average monthly income of Tk 4258 and those not affected by corruption was Tk 4544. In urban areas, households affected by corruption had an average monthly income of Tk 5101 and those not affected had an income of Tk 7058. Figure 7.5 Economic Condition of Households Affected by Corruption 4172 4625 4397 5235 Average household income Average household income of those households who went to land offiecs for Eonomic condition of households affected by corruption Economic condition of those households not faced corruption 44

7.6 Perpetrators of Corruption Of those households affected by corruption from land administration, a majority (43%) identified corruption by surveyors as the highest, followed by corruption by Tahsildar (27%), revenue officials (13.6%) and deed-writers (12%). 6% were affected by corruption of stamp vendors. A majority of households in rural areas (46%) were also affected by the corruption of surveyors, followed by the corruption of Tahsildars (25%), revenue officials (13%), deed writers (12%) and stamp vendors (7%). 42.83% Figure 7.6: Perpetrators of Corruption 26.74% 13.57% 6.20% 12.01% Surveyor Tehsilder Revenue officer Stamp vendor Deed writer Those affected by corruption in cities reported that 36% were affected by the corruption of tahsildars, 27% by surveyors, 15% by revenue officials, 13% by deed-writers. Only 1% was affected by the corruption of stamp vendors. 7.7 Instruments of Corruption Of those households affected by corruption, 82% respondents reported that bribes were demanded directly, 14% said that bribes were taken through third person by the service provider, and only in 1.4% cases, bribes were offered directly by those seeking services. In 0.8% cases bribes were offered by the service recipient indirectly through third persons. There was little difference in the scenario between rural and urban areas. 45

Figure 7.7: Nature of interaction Money demanded directly by the serviceprovider 82.00% 14.00% 1.40% 0.80% Money demanded through a third person Service recipients themselves made proposals for giving money directly Service recipients themselves made proposals for giving money through third party 7.8 Causes of Corruption Of the causes of corruption in land administration identified by households, 64% referred to lack of accountability as the major cause. This was followed by discretionary power (55%), monopoly power (48%), and lack of transparency (45%). Other causes identified were the influence of the powerful (18%), and abuse of red-tapism (15%). There was little difference in this scenario between villages and cities. Causes of Corruption Total Lack of accountability 64.46% Lack of transparency 45.13% Discretionary power 55.29% Monopoly power 48.52% Low salaries of the staff 0.85% Shortage of resources 1.13% Influence of powerful people 18.19 Redtapism 15.23% Others 4.79% 7.9 Conclusion The survey revealed that people who go to land administration officers are affected mostly by corruption in mutation of land, followed by corruption in khas land affairs, land survey with the least corruption in the sale of land. Those who are affected by corruption in land administration have an lower average monthly income than those not affected by corruption. Households surveyed were mostly affected by the corruption of surveyors, who in most cases demand bribes directly. A majority of respondents identified that lack of accountability as the major cause of corruption. 46

CHAPTER EIGHT Tax department 8.0 Introduction A government runs on taxes collected from its citizens, and different kinds of taxes are collected from the people. According to a TIB report based on its News Scan Database 2001, the direct and indirect tax sector is the 13th most corrupt sector in Bangladesh. The tax sector was included in the survey to identify how people are affected by corruptio n in the tax sector and how this corruption may be reduced. The survey included the following data on the tax sector: nature of corruption, extent of corruption, persons responsible for corruption, causes of corruption, and so on. A brief discussion on the data collected is given below. 8.1 Percentage of different kinds of taxes The survey revealed that out of the 3030 households, 239 households or 7.89% members of households paid different kinds of taxes. More taxes were paid in urban areas rather in rural areas. Some kind of tax was given by 5.38% households within the last one year; in urban areas the percentage was 16%. The majority of households paid municipal taxes and local government taxes (4.26%), followed by holding taxes (4%) and income tax (0.49%). Figure 8.1 Percentage of tax payers 3.8% 4.3% Income tax 0.5% Holding tax Munici pal or local 1.0% Others Income Tax: Only about 0.17% members of households in rural areas and about 1.52% members of households in urban areas paid income tax in the last year. Holding Tax: The survey revealed that about 2.78% households in rural areas and 7.17% households in urban areas paid holding tax in the last one year. Municipal and Local Government Tax: About 4.26% households paid these, 1.2% members paid taxes in villages in the last one year, and in cities 13.93% paid municipal taxes in the last year. 47

Other Taxes:1.02% households paid other kind of taxes ; the percentage was 1.26% in villages and 0.27% in cities. 8.2 Extent of corruption Of the 7.89% members of households who paid taxes, 19.25% households were affected by corruption. More households in rural areas (23%) were affected by corruption than households in cities (15%). Figure 8.2 Extent of corruption 23.39% 14.78% 19.25% Rural Urban Total 8.3 Percentage of those affected by corruption while paying tax 20% were affected by corruption while paying income tax, 19% in paying holding tax, 10% in paying municipal /local government tax and almost 26% in paying other kinds of taxes. Figure 8.3 Percentage of those affected by corruption while paying tax Others 25.81% Municipal /Local govt. tax 10.08% Holding tax Income tax 18.96% 20.00% 8.4 Economic condition of households affected by tax The survey revealed that households that paid taxes of any kind had an average monthly income of Tk 6374, whilst the average monthly income of households included in the survey was Tk. 4172. In villages the amount was Tk. 3795 and in urban areas Tk. 5371. Of those households affected by 48

corruption in the tax sector in the rural areas, the average monthly income was Tk 5367, and households not affected by corruption had an average monthly income was Tk 6277. In urban areas, households affected by corruption in the tax sector had an average monthly income of Tk 10,307 and those not affected by corruption had an income of Tk 6258. Figure 8.4 Economic condition of households affected by tax 4172 6374 6860 6268 Average household income Average household income of those household who gave taxes in Economic condition of households affected by corruption Economic condition of households not affected by corruption 8.5 Perpetrators of Corruption Of those households affected by corruption in the tax sector, 67% could not identify the perpetrators of corruption, 22% reported that they were affected by tax employees and 11% by tax officials. Figure 8.5 Perpetrators of Corruption 10.87% Tax officer 67.39% 21.74% Tax employee of department Unknown 8.6 Instruments of corruption Of those households affected by corruption in the tax sector, 56% respondents reported that the bribe was demanded directly by the service-provider, 11% reported that bribe was taken through a third person by the service provider, and only 2.17% said that bribe was offered directly by the servicerecipient. No answer was given in 30.43% cases. 49

Figure 8.6: Nature of Interaction 56.52% 30.43% 10.87% 2.17% Money was demanded directly by the service-provider Money was demanded through a third person Service receivers themselves made proposals for giving money directly No answer 8.7 Financial Transaction with the tax department Households affected by corruption in the tax sector had to spend an average of Tk 318 as an additional expense. Those affected by corruption in paying income taxes had to pay on average of Tk 2683 per year. For holding tax and municipal/local government tax, additional amounts of Tk 128 and Tk 217 had to be paid. It can be said from the findings that the tax department collect 12 crore taka as bribe from those household who faced corruption for giving tax in a year. Figure 8.7 Financial Transaction with the tax department ( amount in TK) 3000 2500 2000 1500 1000 500 0 2683 128 217 Income tax Holding tax Municipal or local govt. tax 8.8 Causes of Corruption The causes of corruption in the tax sector in the past year, were identified by the majority of respondents (40%) as lack of accountability, discretionary power (27%), monopoly power (26.36%) and lack of transparency (26.36%). Other causes of corruption cited were the influence of the powerful (14%), low salary of the officer and employees (8%), and abuse of red-tapism (7.5%). 50

Figure 8.8 Causes of Corruption 40.58% 26.36% 27.20% 26.36% 24.28% 8.37% 1.67% 14.22% 7.53% 2.51% Lack of accountability Lack of transparency Discretionary power Monopoly power Low salaries of the staff Shortage of resources Influence of powerful people Redtapism Others No answer Table 8.8: Causes of Corruption Causes of Corruption Rural Urban Total Lack of accountability 47.58 33.04 40.58 Lack of transparency 30.64 21.74 26.36 Discretionary power 22.58 32.17 27.20 Monopoly power 31.45 20.87 26.36 Low salaries of the staff 13.71 2.61 8.37 Shortage of resources 2.42 0.87 1.67 Influence of powerful people 12.90 15.65 14.22 Redtapism 4.03 11.30 7.53 Others 1.61 3.48 2.51 No answer 17.74 31.30 24.28 There was some difference in the data between rural and urban areas. For instance, in rural areas 47% cited lack of accountability as the major cause of corruption, and in cities 33% identified that as the major cause. On the other hand, almost 31% in rural areas and 21% in urban areas identified monopoly power as the major cause. Discretionary power was cited in villages by 22% and in cities by 32%. 8.9 Conclusion The survey revealed that there was the most corruption in the payment of income tax and the least corruption in the payment of municipal/local government tax. Respondents were mostly affected by the corruption of tax employees, and in most cases bribes were demanded directly by the service-providers. A majority of the respondents identified the lack of accountability as the major cause of corruption. 51

CHAPTER NINE Police Administration 9.0 Introduction The police department is a major service sector in Bangladesh. A large section of the population has to seek the help of the police at different times. A TIB survey of 1997 found the Police Department as the most corrupt sector of the government. The News Scan Database (2001) of TIB revealed that the police or law enforcing agencies to be the most corrupt sector. The police sector was incorporated in this survey to identify the extent of corruption in the police and help reduce corruption. Data was collected on the following areas: nature of corruption faced by the respondents, extent of corruption, persons responsible for corruption, causes of corruption, and so on. 9.1 Extent of service and corruption in police administration The survey revealed that within the last year 305 households out of 3030 households or 10.07% members of households sought the help of the police. More people from the urban areas rather than from the rural areas went to seek police help. In urban areas the percentage was 11.31% and in rural areas it was 9.67%. The survey revealed that 83.61% of the respondents who went to the police were affected by corruption in the police force. The percentage was slightly higher in urban than in rural areas, the percentage being 83.41% in rural areas and 84.15% in urban areas. Figure 9.1Extent of corruption in police administration 84.20% 84.00% 83.80% 83.60% 83.40% 83.20% 83.00% 84.15% 83.61% 83.41% Urban Rural Total 9.2 Nature of service provided by the Police Of those who went to the police administration during the last year, 39% went as the accused, 34.43% went to file a complaint, and 15% to seek release from arrest under false charges. There was little difference in the data between rural and urban areas. 52

Table 9.2 Nature of service provided by the Police Purposes Rural % Urban % Total % To make complaints 35.87 30.49 34.43 As accused 39.46 37.80 39.02 Police Clearance Certificate 3.14 4.88 3.61 To get release from false arrest 14.35 17.07 15.08 Others 15.24 17.07 15.73 9.3 Extent of corruption in police administration Most of the people affected by corruption in the police force are attempting to seek release from arrest under false cases, others are seeking police clearance certificates, or filing of complaints. People are also affected by the corruption of police in other areas. Figure 9.3 Extent of corruption in police administration 87.62% 79.83% 90.91% 95.65% 75.00% To make As accused Police complaints clearance certificate To get release from arrest Others Filing of complaints: Of those who went to the police administration to file complaints, 87.62% were affected by corruption, of which 87.5% were from rural areas and 88% from urban areas. As accused: Of those who went to the police administration as the accused, 79.83% were affected by corruption, of which 79.55% were from rural areas and 80.65% from urban areas. Police Clearance Certificate: Of those who went to the police administration for police clearance certificates, 90.91% were affected by corruption, of which 100% were from rural areas and 75% from urban areas. 53

Purposes Table 9.3: Extent of Corruption Rural % Urban % Total % To make complaints 87.50 88.00 87.62 As accused 79.55 80.65 79.83 Police Clearance Certificate 100.00 75.00 90.91 To get release from arrest 93.75 100.00 95.65 Others 76.47 71.43 75.00 Release from false arrest: 95.65% of those who were false arrest were affected by corruption. The percentage was 93.75% in rural areas and 100% in urban areas. Others: Others who went to the police administration for different purposes also affected by corruption. The percentage was 75%, in villages it was 76.47% and in cities 71.43%. 9.4 Financial transaction with the Police Administration The survey revealed that those who were affected by corruption in the police force had to spend an additional Tk 9675; Tk 10282 in rural areas and Tk 7845 in urban areas. According to a 2001 census there are 2,53,62,321 households in Bangladesh, it can therefore be estimated that the corruption in the police force nets Tk 2066 crores from the households who faced corruption. The TIB 2001 report on corruption estimates the amount to be Tk 453 crores, based on information collected from various newspapers during the preceding year. Households affected by corruption while making G.D. entries in police stations had to pay an average of Tk. 458 as bribes, the amount being higher in urban areas (Tk 310) than in rural areas (Tk 517). Households affected by corruption in filing FIRs had to pay an average of Tk. 4000 as bribes, the amount being higher in rural areas than in urban areas. In urban areas the amount was over Tk.6800 and in rural areas it was more than 3000 Taka. Households affected by corruption while trying to get accused persons arrested had to pay bribes of more than Tk 18,000 on average, the difference being quite significant between urban and rural areas. The survey revealed that huge bribes were necessary for issuing charge-sheets, the average amount being more than Tk 18,000. Households affected by corruption in order to avoid false arrests had to pay bribes of Tk.18,800 on average, there being some difference in the amount given in cities and villages. Persons accused in different cases had to pay bribes of more than Tk.8000 on average to escape arrest. 54

Figure 9.4 Financial transaction with the Police Administration 18679 18300 18807 12219 8668 7075 4016 458 GD FIR To arrest Sending accused charge sheet To avoid false arrest To avoid To make arrest complaint 1964 1754 To get certificate for police clearance To get Others release from false arrest Households which paid bribes to file complaints had to spend almost Tk.2000 on average. Households had to pay about 1700 taka on average for police clearance certificates, almost 12,000 taka on average for release from false arrests, and for seeking different kinds of help from the police, bribes of almost 7,000 taka to be given. 9.5 Economic condition of households affected by corruption The survey revealed that households which sought police help during the last year had an average monthly income of 5016 taka, the amount being Tk.4520 in rural and Tk.6365 in urban areas. Those households included in the survey had an average monthly income of Tk.4172, the amount being Tk.3795 in rural areas and Tk.5371 in urban areas. Households affected by corruption in the police had an average monthly income of Tk.5145, and households not affected by corruption had an average monthly income of Tk.4361. Households in rural areas affected by corruption had an average monthly income of Tk.4589, and those not affected by corruption had an average monthly income of Tk.4173. Households in urban areas affected by corruption had an average monthly income of Tk.6642, and those not affected by corruption had an average monthly income of Tk.4896. 55

Figure 9.5 Economic conditions of households affected by corruption 4172 5016 5145 4361 Average household income Average household income of those household who took services from polices Average household income of those household who faced corruption from polices Average household income of those household who did not face corruption 9.6 Perpetrators of corruption Of these households affected by corruption, 24% households reported that they were affected by the corruption of the duty police officer, 19% reported that they were affected by the corruption of the investigation officer, 13% identified acting officials and 4% identified official clerks. 33% respondents did not identify the rank of the perpetrators. The data revealed little difference between urban and rural areas. Figure.9.6: Perpetrators of corruption 23.92 19.22 12.94 4.31 2.35 0.78 Total 20.29 21.74 10.14 5.8 1.45 0 Urban 25.27 18.28 13.98 3.76 2.69 1.07 Rural Duty police officer Investigation officer Officer in chrage Clerk of the police office Verification officer Broker Of those households affected by corruption in rural areas 25% households identified duty police officers as the perpetrators, 18% identified investigation officers, 14% identified officer in charge and only 4% identified official clerks. However, more than 35% did not identify the rank of the perpetrators. Of households affected by corruption in cities, 22% respondents identified investigating officers, 20% identified duty police officers, 10% identified acting officials and 6% identified official clerks. In urban areas 40% respondents did not know the rank of the perpetrators. 56

9.7 Instruments of corruption Of those households affected by corruption in police administration, 84% respondents reported that bribes were demanded directly by the service-providers, 9% reported that bribes were demanded through third persons and only 3.6% directly offered bribes. In 1.35% cases service-receivers offered bribes through third persons. There was little difference in the scenario between rural and urban areas. Figure 9.7: Types of interaction 3.60% 1.35% 9.01% Money demanded directly by the serviceprovider Money demanded through a third person 84.23% Service recipients themselves made proposals for giving money directly Service recipients themselves made proposals for giving money through third party 9.8 Causes of corruption Of those respondents who sought police help during the last year 76% percent respondents identified lack of accountability followed by discretionary power (73%), monopoly power (54%), and lack of transparency (33%). Other causes of corruption cited include the power of the influential (23%) and abuse of red-tapism (14%). There was little difference in the scenario between urban and rural areas. 57

Figure 9.8 Causes of corruption ( in percentage) 76.06% 33.11% 72.77% 53.77% 3.61% 2.29% 23.61% 13.77% 9.84% 2.62% Lack of accountability Lack of transparency Discretionary power Monopoly power Low salaries of the staff Shortage of resources Influence of powerful people Redtapism Others No answer 9.9 Conclusion Of those affected by corruption in seeking help from the police, release from false cases was cited as the major cause. This was followed by corruption in getting police clearance certificates and filing of complaints. People are also affected generally by corruption in many other police related matters. Those households affected by corruption in police had an average monthly income higher than those not affected. Of those households affected by corruption a majority identified the corruption of duty police officers, and in most cases bribes were demanded directly. A majority of respondents identified the lack of accountability as the major causes of corruption. 58

CHAPTER TEN Judiciary 10.0 Introduction The Judiciary is a major service sector of the government. A large number of people have to go to the court for legal help. The New Scan Database 2001 report prepared by TIB revealed that newspapers provide little information on corruption by this department despite the fact that a TIB survey of 1997 found this sector to be the second most corrupt sector in Bangladesh. Therefore data was collected on this sector to understand the nature and extent of corruption in the Justice Department. Data was collected on the nature of corruption, the extent of corruption, person responsible for corruption, the causes of corruption, and so on. A brief discussion is given below. 10.1 Extent of corruption in the Judiciary The survey revealed that 231 households or 7.62% members of households, out of a total of 3030 households, went to the Judiciary for legal help. More people from cities sought help than people from villages, the percentage being 7.2% in rural areas and 8.96% in urban areas. Of those who sought help 94% went to the lower courts and 3.46% went to the high court. It was revealed that 75.32% were affected by corruption, the percentage being higher in urban areas (80%) than in rural areas (73.49%). Figure 10.1: Extent of corruption in the judiciary 80% 80.00% 75.00% 73.49% 75.32% 70.00% Rural Urban Total 10.2 Reasons for seeking legal help Of those who sought legal help, 56% went to the court as the accused, 34.43% went to file complaints and there was very little difference between urban and rural areas in this respect. Table 10.2: Reasons for seeking legal help Purposes Rural (%) Urban (%) Total (%) To make complains 33.73 35.38 34.20 As accused 59.04 49.23 56.28 As witness 1.81 4.61 2.60 As a lawyer 00 1.54 0.43 Others 5.42 9.23 6.49 59

10.3 Extent of corruption in the Judiciary Of those who sought legal help in filing complaints 69.62% were affected by corruption. The percentage being slightly higher in cities (73.91%) than in villages (67.86%). Of those who sought legal help as the accused in a case, 80% were affected by corruption. The percentage being slightly higher in urban areas (84.37%) than in rural areas (78.57). Figure 10.3 Extent of corruption in the judiciary 100.00% 80.00% 78.57% 67.86% 84.37% 73.91% 80.00% 69.62% 60.00% 40.00% 20.00% 0.00% Rural Urban Total 10.4 Financial Transactions with the Judiciary The survey revealed that members of households who sought legal help mainly in lower courts and were affected by corruption had to spend an additional amount of about Taka7800 on average, the amount being Taka 7000 in rural areas and Taka 9500 in urban areas. The survey revealed that each household had to spend on average of Taka 436 because of corruption. According to the population census of 2001, that there are 25,362,321 households in Bangladesh It can therefore be estimated that the judiciary earns roughly an amount of Taka 1135 crores annually from the households affected by corruption. Table 10.4 Financial Transactions with the judiciary Name of bribe takers Average amount of money (Taka) Rural Urban Total To the witness 2670 9125 4514 To the public prosecutor 2917 8006 4613 Opponent lawyer 1114 9000 2060 Court employee 6165 3362 5484 Magistrate 14600 25939 18007 Other 5178 3954 4589 The survey revealed that some members had to be paid bribes to appear as witnesses. Witnesses on average had to pay Taka 4500, the amount being taka 2600 in rural areas and Taka 9000 in urban areas. Those who bribe the public prosecutors (PP) had to pay an average of Taka 4600, the amount being 60

Taka 2900 in the rural areas and Taka 8000 in the urban areas. Those who bribed the opponent s lawyer had to pay an average of Taka 2000, the amount being Taka 9000 in urban areas and Taka 1100 in rural areas. Those who bribed court officials paid an average of Taka 5400. The amount being Taka 3300 in rural areas and Taka 6000 in urban areas. Those who bribed magistrates paid an average of Taka 18,000. The amount being Taka 14,600 in rural areas and almost Taka 26,000 in urban areas. 10.5 Economic Condition of Households Affected by Corruption Households affected by corruption in the justice department had an average monthly income of Taka 4937, the amount being Taka 4749 in villages and Taka 5417 in cities. Figure 10.5: Economic condition of households affected by corruption 6000 5000 4000 3000 2000 1000 0 4172 4937 4775 5433 Household's monthly income Average monthly income of those households who had interaction with Justice department Average monthly income of those households who had affected by corruption with Justice department Average monthly income of those households who had not affected by corruption This compares to the average monthly income of Taka 4172 of those households included in the survey, the amount being Taka 3795 in rural and Taka 5371 in urban areas. The households affected by corruption had an average monthly income of Taka 4775, and those not affected by corruption had an income of Taka 5433. Households affected by corruption in rural had an average monthly income of Taka 4640 and households not affected had an income of Taka 5050. Households affected by corruption in urban areas had an average monthly income of Taka 5088 and households not affected by corruption had an income of Taka 6630. 10.6 Perpetrators of corruption A majority of households (66%) reported that they were affected by the corruption of court officials, 13% reported the corruption of public prosecutors, 10% lawyers of the opposition, 8.62% reported corruption of the magistrates. Households in rural areas affected by corruption reported that 71% were affected by corruption of the court offic ials, 11.47% by that of public prosecutors, 11.47% by opponents lawyers, and 9% by magistrates. Whereas, households in cities affected by corruption reported that 54% were affected by the corruption of court officials, 17% by public prosecutors, 6% by lawyers of the opposition, and 8% by magistrates. 61

Figure 10.6: Perpetrators of corruption Magistrate Witness Opponents lawyers PP Court employee Judge 8.62% 6.32% 9.77% 13.22% 3.45% 66.09% 10.7 Instruments of corruption Households affected by corruption reported that in 73% of cases bribes were demanded directly by the service providers, in 20% cases bribes were taken through a third person, and only in 3.45% cases bribes were directly offered by the service receiver. In 4.6% cases bribes were offered through a third person. In 75% cases in households in rural areas, bribes were demanded directly by the service-providers, in 19% cases bribes were demanded through a third person, and in only 5% cases, bribes were offered directly. In 6% cases bribes were given by service recipient indirectly through a third person. In 67% cases in households in cities, bribes were demanded directly, in 27% cases bribes were demanded indirectly through a third person, and none offered bribes directly. Only in 2% cases bribes were offered by service recipient indirectly through third person. Figure 10.7: Instruments of corruption 62

72.99% Money demanded directly by the actor 20.11% Money demanded by the actor through third party 3.45% 4.60% Money offered directly by the service recipient Money offered by by the service recipient through third party 10.8 Causes of corruption 68% households affected by corruption responded that the absence of accountability was the main cause of corruption, followed by voluntary abuse of power (61%), centralized power (45%), and absence of transparency (44%). Other cases of corruption were the following: Influence of the powerful (23%), and abuse of red-tapism (17%). The difference in the scenario between rural and urban areas is negligible. Figure 10.8: Causes of corruption 68.40% 61.47% 44.16% 45.45% 23.81% 17.32% Lack of account ability Lack of transpar ency DiscretioMonopoly nary power power 5.19% 1.30% Low salaries Shortage Power of influential people 6.93% Red Others tapism 10.9 Conclusion A large number of people were affected by corruption in seeking legal help and had to spend a lot of money as bribes. Those affected by corruption had a lower monthly income than those not affected by 63

the corruption. Most were affected by the corruption of court officials, and in most cases bribes were demanded directly. The absence of accountability was identified as the major cause of corruption. 64

CHAPTER ELEVEN Krishi Bank (Agriculture Bank) 11.0 Introduction Bangladesh is an agricultural country and the majority of the population depend upon agriculture for their livelihood. The farmers of Bangladesh are very poor, often facing great difficulty in acquiring initial credit. Floods and droughts every year often cause great financial problems, making it difficult for them to cultivate their lands. The government established the Krishi Bank (agriculture Bank) and the Krishi Unnayan Bank (Agricultural Development Bank) to help the indigent farmers with loans. This survey incorporated the Krishi Bank and the Krishi Unnayon Bank in order to understand the nature and degree of corruption in this sector. The survey revealed that 181 households or 5.97% households out of 3030 households sought help or loan from these agricultural banks. A brief discussion of the data gathered from these 181 households is given below. 11.1 Time spent in securing agricultural loans Of those who received loans, 75% got their loans within a month of their applications, 20% within three months but 2.76% needed more than three months. 1.7% could not give any answer. On average, applicants had to wait one month for their loans. Figure 11.1: Time spent in securing agricultural loans 20.00% 2.76% 75.00% One month 2-3 month Above 3 months 11.2 Bribes given for securing loans The survey revealed that 67.4% respondents had to give bribe and 32.6% did not have to give any bribes. Members of households who gave bribes for loans had to pay bribes of Taka 1420 on average. It was revealed that those who received loans had to give bribes of Taka 957 on average. It was seen that bribes worth 6.59% of the total loan had to be given. Additional costs in securing the loan including transportation, tips and preparation of paperwork amount to 1.67%, and the amount spent to withdraw loans was 8.26%. 65

Figure 11.2: Bribes given for securing loans 67.40% 32.60% Bribe given Bribe not given 11.3 Bribe-receivers 15.57% respondents reported that they had to give bribes to the bank manager for loans, 50% reported that bank officials had to be bribed, 27% to bank employees, and 47% reported third person (broker). Figure. 11.3: Bribe-receivers 50.00% 46.72% 27.04% 15.57% Manager Officer Employee Broker 11.4 Amount received as loans 64.6% respondents said that they received the amount of loan requested although 35.4% did not receive the amount requested. Figure: 11.4 Amount received as loans 35.40% 64.60% Household received the amount of loan requested Household did not receive the amount requested 66