Ctg Port in dock again
Shahiduzzaman Khan | Thursday, 26 June 2008
It is a surprising piece of news that bribery was still going on in full swing at the Chittagong Port. According to a report published in the print media this week, underhand dealings outside the Chittagong Port Customs (CPC) are a common scenario, despite vigilance by the joint forces and introduction of new systems.
This is the finding of a survey report carried out by the Transparency International, Bangladesh (TIB). The report was presented at a roundtable in Chittagong this week. The survey was conducted from November 2007 to May 2008 to identify the nature and level of illegal transactions involving export-import activities through the Chittagong Port, causes of corruption there and its mitigation.
'Corruption has assumed an institutional shape in the Chittagong Port Authority and the Customs.... The rule of law and accountability have been almost non-existent here', said the TIB report on the Chittagong Port through which 80 per cent of the country's import-export activities take place. Instances of open bribery and other irregularities involving clearance of cargo have declined to some extent and the speed at which containers are handled has increased sharply, following the taskforce clampdown last year on the port. However, business people still allege that bribes have to be paid in at least 30 spots for releasing a consignment from the customs and the port, the survey said.
The study mentioned that a section of the Chittagong Customs House (CCH) employees and businesspeople were still continuing corrupt practices secretly outside the working place or through their middle men eluding law enforcers, although open transaction of bribe money had stopped since the joint forces started the anti-crime drives. The survey revealed that the Chittagong Customs Authority could not play its due role in testing and inspecting goods due to shortage of equipment, manpower, modern laboratories and separate sheds for carrying out assessments.
Moreover, there is a strong presence of a syndicate in the auction process. As such, the government is being deprived of large revenues due to irregularities in trade-related issues. In export and import trade, the 'speed money' is given to speed up works in every step. All concerned are afraid of the situation in the Chittagong Port and Customs going back to the pre-1/11 situation without a systematic and sustainable change taking place alongside fundamental reforms.
Despite the recent clampdown on corruption, the country is still missing out over Tk 10 billion in revenue a year as the practices of phoney declarations, under-or over-invoicing, false inspection and certification of consignments do reportedly continue. If the L/C opening banks would have strictly followed the Bangladesh Bank's guidelines for foreign exchange transactions properly, it would have been possible to substantially to reduce the practices of under-invoicing to dodge customs duty and over-invoicing. Related officials of the banks need to check pricing on commodities including the credit rating of overseas suppliers, but the abundance of irregularities only shows the guidelines of the central bank are yet to be strictly complied with.
The customs wing of the National Board of Revenue (NBR) randomly checks only 10 per cent of the imported consignments. This is done manually and without any help of modern equipment, let alone sophisticated scanners being used at a majority of ports in the world. The age-old corruption in the sector is deep-rooted and enjoys the blessings of the vested interests. That is a reality that discourages even the most honest and efficient officials from acting against those involved in corrupt practices.
There is no denying that curbing corruption is a collective responsibility and people from all walks of life should remain vocal against the scourge. There is a need to increase salaries of officials and employees of both the government and private organisations at the port for curbing corruption, as graft would not reduce if their basic needs remain unmet.
It is also true that the practice of corruption was reduced in a few sectors due to some visible initiatives in the recent period, but it would not be sustainable without massive systematic changes. Corruption cannot be eliminated overnight. But the people may be able to keep it in check through raising voice. There is a need for public awareness about, and resistance to, corruption of all sorts.
The TIB survey put forward a 19-point recommendation for consideration of the government to ensure real transparency and accountability in Chittagong Customs. Formation of a civil-watch body is also needed to protect the post-1/11 achievements. It recommended fundamental and systematic reforms, appointment of skilled manpower and full-fledged automation of CCH, NBR and Chittagong Port to tame corruption that add to the cost of doing business and make Bangladesh's exports less competitive. The Customs Act 1969 also needs to be updated, it said.
The Chittagong Port is the lifeline of the Bangladesh economy. Any adverse impact on the smooth operations of the seaport has a telling effect on the economy. The port must, therefore, remain free from any agitation and political programmes.
It is, thus, expected that the government must recruit efficient manpower sufficiently, address weaknesses in screening system and make sure a transparent inspection arrangement is established in order to get rid of corruption at the Chittagong Port.
This is the finding of a survey report carried out by the Transparency International, Bangladesh (TIB). The report was presented at a roundtable in Chittagong this week. The survey was conducted from November 2007 to May 2008 to identify the nature and level of illegal transactions involving export-import activities through the Chittagong Port, causes of corruption there and its mitigation.
'Corruption has assumed an institutional shape in the Chittagong Port Authority and the Customs.... The rule of law and accountability have been almost non-existent here', said the TIB report on the Chittagong Port through which 80 per cent of the country's import-export activities take place. Instances of open bribery and other irregularities involving clearance of cargo have declined to some extent and the speed at which containers are handled has increased sharply, following the taskforce clampdown last year on the port. However, business people still allege that bribes have to be paid in at least 30 spots for releasing a consignment from the customs and the port, the survey said.
The study mentioned that a section of the Chittagong Customs House (CCH) employees and businesspeople were still continuing corrupt practices secretly outside the working place or through their middle men eluding law enforcers, although open transaction of bribe money had stopped since the joint forces started the anti-crime drives. The survey revealed that the Chittagong Customs Authority could not play its due role in testing and inspecting goods due to shortage of equipment, manpower, modern laboratories and separate sheds for carrying out assessments.
Moreover, there is a strong presence of a syndicate in the auction process. As such, the government is being deprived of large revenues due to irregularities in trade-related issues. In export and import trade, the 'speed money' is given to speed up works in every step. All concerned are afraid of the situation in the Chittagong Port and Customs going back to the pre-1/11 situation without a systematic and sustainable change taking place alongside fundamental reforms.
Despite the recent clampdown on corruption, the country is still missing out over Tk 10 billion in revenue a year as the practices of phoney declarations, under-or over-invoicing, false inspection and certification of consignments do reportedly continue. If the L/C opening banks would have strictly followed the Bangladesh Bank's guidelines for foreign exchange transactions properly, it would have been possible to substantially to reduce the practices of under-invoicing to dodge customs duty and over-invoicing. Related officials of the banks need to check pricing on commodities including the credit rating of overseas suppliers, but the abundance of irregularities only shows the guidelines of the central bank are yet to be strictly complied with.
The customs wing of the National Board of Revenue (NBR) randomly checks only 10 per cent of the imported consignments. This is done manually and without any help of modern equipment, let alone sophisticated scanners being used at a majority of ports in the world. The age-old corruption in the sector is deep-rooted and enjoys the blessings of the vested interests. That is a reality that discourages even the most honest and efficient officials from acting against those involved in corrupt practices.
There is no denying that curbing corruption is a collective responsibility and people from all walks of life should remain vocal against the scourge. There is a need to increase salaries of officials and employees of both the government and private organisations at the port for curbing corruption, as graft would not reduce if their basic needs remain unmet.
It is also true that the practice of corruption was reduced in a few sectors due to some visible initiatives in the recent period, but it would not be sustainable without massive systematic changes. Corruption cannot be eliminated overnight. But the people may be able to keep it in check through raising voice. There is a need for public awareness about, and resistance to, corruption of all sorts.
The TIB survey put forward a 19-point recommendation for consideration of the government to ensure real transparency and accountability in Chittagong Customs. Formation of a civil-watch body is also needed to protect the post-1/11 achievements. It recommended fundamental and systematic reforms, appointment of skilled manpower and full-fledged automation of CCH, NBR and Chittagong Port to tame corruption that add to the cost of doing business and make Bangladesh's exports less competitive. The Customs Act 1969 also needs to be updated, it said.
The Chittagong Port is the lifeline of the Bangladesh economy. Any adverse impact on the smooth operations of the seaport has a telling effect on the economy. The port must, therefore, remain free from any agitation and political programmes.
It is, thus, expected that the government must recruit efficient manpower sufficiently, address weaknesses in screening system and make sure a transparent inspection arrangement is established in order to get rid of corruption at the Chittagong Port.