chapter 4 occupational crimes 100 177

8/16/2019 Chapter 4 Occupational Crimes 100 177

1/78

CHAPTER 4

OCCUPATIONAL CRIMES

Occupational crime is a category of white-collar crimes that is the biggest in quantum and

dimension as compared to other categories. Occupational crimes are illegal acts made

possible through one’s lawful employment or occupational activity. It is the secretive

violation of law and norms regulating the occupational activities of individuals. All

occupations present some opportunities for criminal behavior. Such deviance is ignored

being trick of the trade. A milk seller makes money by diluting the milk; a commodity

trader multiplies his profits by mixing different grades of merchandise he deals in. A

ware house keeper manipulates stocks for quick gains. A grocer increases price of daily

use items by hoarding and withholding supplies to extort more profits from consumers. Adeveloper cuts corners by saving costs on houses he sells to consumers. Purchasing agent

makes money by receiving kickbacks. A quack cheats his unsuspecting clients by

offering treatments that he is not capable of providing. A pharmacist sells fake medicines

that have no desired medicinal effect. A businessman evades taxes by all types of

manipulations at hand. A police man extorts money from vulnerable people by misusing

his authority. A money exchange dealer involves himself in making quick money by

establishing parallel banking system facilitating money transfers and laundering. A

government official seeks bribe to facilitate the public access to services they are

rightfully entitled. In all these and many other cases, it is the position of power and trust

that induces glamour for criminal behavior and these positions are exploited by the white-

collar criminals for financial and other gains. Occupational crimes can be committed by

anyone engaged in a legitimate occupational activity and its scope and dimension is

wider than any other type of white-collar crime activity.

Occupational crimes may overlap other white-collar crimes where it is difficult to

differentiate between the two. Fraud, deceit, exploitation and secrecy are the essence of

occupational crimes. Although the majority of occupational crimes are small and often go

undetected or unreported, the cumulative economic impact of such crimes can be

significant (Leap, 2007). It is indeed not only the economic loss, but it is physical damage

100


2/78

also that leads to ill effects on health of the victims that include the general consumers.

Sale of spurious drugs, poor and adulterated quality of food items, hazardous candies,

recirculation of used syringes and other hospital waste, dangerous or useless medicines

proposed by quacks are some examples. These occupational crimes may be committed by

individuals alone or as a group depending upon environment in which the perpetrator is

able to trap a victim and vulnerability of the victim in given social scenario. A grocery

seller may be the single beneficiary when he sells commodities at higher price by mixing

inferior quality or by selling packs of a product having less weight than indicated. On the

other hand, a person who goes to an electric utility company for an electric connection

might have to face a stream of individuals such as, a middleman to bribe the

superintendent, a foreman to confirm technical feasibility, fee clerks and the lineman who

is to install the electric meter. An individual seeking to get his new passport will have to

face failure or difficulties and hire a middle man who in turn deals with everybody else

who matters in this process and quickly gets the passport made. In most of the cases for

occupational crimes, the motive is to make money in ordinary course of occupational

activity. This occupational activity is legitimate or is manifested as such or is socially

accepted. A grocery seller is in legitimate occupational activity. An employment

exchange company having no vacancies and still luring their victims to pay fee for good

job is manifesting legitimacy. A quack or faith healer claiming direct conduit to a

supernatural being is socially accepted and his occupational activity may not be

legitimate.

The data connected with this part of the humble work pertains to a group of occupational

crimes that are relevant to everyday life and affect economic and social life of society in

general.

CONSUMERS RELATED CRIMES

The manufacturing and sale of unsafe products may not violate specific laws if at all they

exist, but these practices are definitely unethical, unsafe, violent and reproachable acts

causing harm to society. Crimes against consumers not only are restricted to sale and

manufacturing of dangerous product but it also includes fraud and deception against the

101


3/78

consumers. In this context a variety of deceitful practices that are observable and are

observed daily and are most pronounced; include manufacturing and sale of spurious

beverages, pressure meat, potentially dangerous products like sale of gutka, spurious

drugs and poly pharmacy, under-weighing of products at sale, mixing and mis-grading of

commodities. The potential of a product to harm society obviously varies from product to

product and deceitful practices involved. Some products or deceitful practices may cause

restricted harm of loss of money only. Others may have harms coupled with dangerous

effects on health along with loss of money. Some of the cases underlined during this

humble work have been included as case samples to highlight white-collar crime from

this perspective of crime against consumers.

Hazardous Products

Chewing is one of the man’s oldest habits. This habit has prevailed in human history in

one form or the other. In Indo-Pak region this habit has been a rich cultural practice

where chewing of sweetened eureka nuts, betel leaf or paan and mainpuri etc and

offering it to guests remained a mark of hospitality for elite classes. This practice is

continuing even now. Later, this chewing habit was transformed to replace tobacco

smoking considering it to be a safe alternative. With passage of time, this alternate

proved even more dangerous as many harmful ingredients like low quality tobacco,

harmful food colors, aniseed, betel nuts, and other substances were mixed to manufacture

the chewing stuff. The most dangerous among these chewing substances has been a

product popularly known as gutka that contains low quality tobacco, eureka nuts, slaked

lime, catechu or katha, textile dyes as food colors, and aspartame and saccharine are used

as sweeteners in place of sugar. This chewing habit starts among the children in early age

and is major cause of mouth cancer. Chewing of gutka and mainpuri is found to be 50

times dangerous and a major cause behind cancer and cardiac illness (Dr.Mehboob,

personal communication, December 13, 2007). A study conducted by a local hospital

revealed that 70 percent of primary school children chew betel nut and 25 percent of

them consume betel leaf on daily basis (Agha Khan University, 2006). Another study

revealed that cancer of oral cavity ranked sixth in the world but in Karachi it ranked

102


4/78

second in both sexes and the highest in the world. This high rate is attributed to paan,

eureka nuts and gutka (Bhurgri, 2005). Five to six cases of oral cancer are reported daily

at Jinnah post graduate Medical Centre and 8 to 10 are reported at civil hospital (“Oral

Cancer”, 2007). A study by students of department of social work, university of Karachi,

revealed that 93 per cent of the students in 50 government and private schools in Saddar

town spent their pocket money on buying sweetened eureka nuts and supari. Remaining 7

percent bought gutka (Department of Social Work, 2006). An oncologist well conversant

with the problem and treatment of the city’s patients explained horrifying process of

treatment that is required for treatment of patients affected by gutka and other products:

“The stiffness of muscles and tissue of mouth, with tongue turning into a mere

rubber strap, was caused due to the prolonged chewing of supari and gutka. Theseconditions are manifestation of the early stage oral cancer which not only has noremedy but is also followed by horrifying sequence of control and treatmentmethods as the patient’s mouth has to be opened forcefully with certaininstruments and retained in proper position with the help of wood or plastic stripsto prevent further stricture. (Dr.Manzoor, August 16, 2006)

Harmful Effects

A lot of hew and cry is raised against gutka in public meetings, in seminars, by medical

professionals, politicians and print and electronic media. Thus the provincial government

was forced to ban manufacturing and sale of gutka in 2000. However, the manufacturing

and sale of the dangerous product is not only continuing but is also being imported from

India. A visit of Jordia bazaar, country’s biggest wholesale grocery market, revealed that

over 120 brands of gutka are available for sale. This is an indicator how dichotomic our

society is about issues of public importance. A prominent ENT specialist of Jinnah Post

Graduate Medical Centre disclosed:

“People living in the 15-million strong mega city of Karachi have the biggestincidence of oral cancer, necessarily because of consumption of betel nuts.Karachiites have 55% of all oral cancers occurring in the country. Incidence oforal cancer was 2 to 4 percent in Europe but it was as high as 40 percent in theIndo-Pak subcontinent. These betel nuts have a fungus which releases a toxin that produces cancer and since the people of subcontinent have the habit of chewing

103


5/78

betel nuts, they are more prone to oral cancer. This fungus is invisible becausegutka and Manipuri marketed in town are coated with non-food colors andsweeteners, which are extremely injurious to health. Previously people older than50 years were found with oral cancer but now this deadly disease is found even inchildren of 12 years of age since they chew gutka. This was a potential loss to the

country. The shops selling these cigarettes and gutka are “cancer shops” andunfortunately are functioning in almost every nook and corner despite ban.”(Prof.Rafi, Personal communication, August 27, 2007).

These words from an expert on one hand highlight the harms caused by the dangerous

product to the society, and at the same time underscore de-sanitization of society and

particularly of those using this poison. Failure of the government to enforce the ban

already imposed, leads us to believe how ineffective the system of governance has

become and how the government attaches low priority to overcome the problem. If it

was a matter threatening the existence of the political status quo, the government would

have not hesitated to turn heaven into hell. It is the culture of compromise on issues of

utmost public importance that is allowing this crime against society to thrive. Situation

worsens where the habitual chewer of gutka spoils his health and his first contact is with

a quack that causes substantial loss of time and thus the treatment becomes incurable.

Another, ENT specialist explained about prevalence of cancer among school children:

“Teenagers especially girls are now becoming victims of oral submucous fibrosis, because they chew betel nuts. This disease was not cancer, but it makesmovement of jaws very difficult and the affected person can’t open his/her mouth beyond one inch or so. The school and college children are most vulnerable because they chew betel nuts just as a fashion and often impressed by their peers.Some brands of betel nuts and gutka even were found contaminated with lowlevels of morphine and other addiction causing agents”. (Dr. Sajjad, personalcommunication, September 25 2007).

Another ENT surgeon explained harmful effects of gutka:

“Certain viruses also had role in spreading cancer. Eureka nuts used in gutkacontain fungi which produces certain toxins called aflatoxins. There are also othercarcinogens in these products like nickel, chromium etc. These shops sellinggutka and betel nuts are cancer shops and their salesmen are death traders. Young people are increasingly being diagnosed in advance stages of cancer”. (Dr. Umer, personal communication September 23, 2007).

104


6/78

The menace of gutka and related products, were so seriously felt by some citizens that

many complaints were lodged with the Provincial Ombudsman by many parents

complaining that their children were exposed to oral diseases because they were

surrounded by venders selling supari, betel nuts and gutka at the gates of the schools.

Earlier the Ombudsman had already advised the provincial government about three years

back; to ban manufacture, sale and use of gutka as rampant manufacturing and sale was

causing irreparable harm to health of children across the province. The provincial

government is yet to pass a law to contain the menace despite passage of 4 years by now.

Thanks to vested interests.

With fresh complaints, thorough investigation of the matter was carried out and expertcomments were also invited from some ENT specialists. A report prepared after a

detailed analysis of the samples collected from market, of both Pakistani and Indian

brands, gave stunning facts. These samples included aniseed, betel nuts; chocolate coated

nuts, sugar-coated aniseed, dry fruit and gutka. Out of 36 samples analyzed, 10 gave a

positive identification of diacety morphine heroin. Nine samples had low heroin contents.

The testing methods conformed to international standards. The report further added that

the diacety morphine present in the samples had also been quantified. Six samples

extracted with water also developed fungal growth within 48 hours, showing poor

hygienic conditions during packing or preparation. The same report referred to an earlier

report of 1997, when physical search of about 18000 students appearing in various exams

revealed that 25 to 28 percent of them were chewing some sort of supari, betel nuts,

aniseed or other similar material. It was also found that most of the students were

chewing only particular brands. Some students interviewed for indulgence in this habit,

accepted that when chewed once, they feel like taking another. Based on these

observations, it was inferred in the said report that possibility of addiction causing agents,

in these hazardous products could not be ruled out (Department of Chemistry, 2004). In a

moot on dental health, experts disclosed that betel nuts used in manufacturing of gutka

were contaminated with two lethal chemicals one of these was used in tannery units

(“Dental Congress”, 2006).

105


7/78

This report about the harmful substances may be an example to reflect how white-collar

criminals are able to play havoc with the lives of innocent citizens to keep its price low

and making it attractive for the victims. The situation also highlights how ignorant the

government is about their fundamental responsibility of protecting lives of their citizens.

As if potential harmful effects of these products were not enough to bring sure death to

their victims, the manufacturers who are perhaps immune to moral values and ethical

standards, started adding addiction-causing substances into these products to ensure sure

profits on regular basis.

Dynamics of Illegal Manufacturing and Sale

The indicate hazardous products made by unscrupulous white-collar criminals are

available in biggest wholesale grocery market of Jodia Bazar in a number of fancy

packing, styles and colors to lure the victims. One can find no details of manufacturers,

address, dates of manufacturing and expiry which is a mandatory requirement under the

food laws. A lot of stuff imported from India is also available without any check. In

December 2004, a draft law banning sale of these hazardous products was prepared and

sent to law ministry, but due to lack of political will, it is yet to be approved even after

passage of 4 years. This lack of political will may perhaps be seen tainted with motives

influenced by vested interest manufacturers who in our culture feel no difficulty to move

things to suite their interests. Whenever waves against these hazardous products,

particularly against gutka are created in the media, the officials of city district

government with the assistance of police, conduct raids on kiosks and outlets selling this

poison. No serious steps are taken to raid manufacturing facilities of these products and

still no effort has been made to impose ban on import from India. It may not be

surprising if someone hears a concerned government official neutralizing this necessity of

banning import from India claiming that such import was bringing revenue. Yet, if

banned, the import will convert into smuggling and these products may be sold cheaper

in the market. A visit to gutka making outlets in Aurangee Town areas revealed that these

manufacturing outlets were functioning like small cottage industries, no typical

106


8/78

machinery was required, one only need domestic mixtures, water and ingredients

required for manufacturing. These are limestone, tobacco, betel leaves, sweeteners, food

colors and fancy sachets for packing. An owner of a manufacturing outlet justifies his

wrongdoing in following words:

“We are not involved in any illegal activity and doing nothing wrong. We haveregular demand from wholesale market and thus we are regularly supplying. Theconsumers should know about any harmful effects of our products and if they donot want to use it we do not compel them. Every user of our products uses it forhis own enchantment and these are cheaper than smoking cigarettes. Cigarettesare also claimed to be harmful and everybody is using it. Nobody is imposing banon sale of cigarettes, then why should sale of gutka be stopped. Similar is the casewith Naswari (another moist paste that is often stuck behind the back of gums, producing a lot of colored, ill-smelling spit. explanation added ). We occasionally

hear about imposition of ban on sale of gutka but neither our production wasstopped nor our vehicles carrying supplies to wholesale market were raided. The production is continuing in other parts of city like Mehmoodabad , Korangee and Landhi areas.” (Fayaz, personal communication, December 9, 2007).

Criticizing occasional raids by city district government officials, an office bearer of the

Whole Sale Grocers market in Jodia bazaar explained his difficulties by stating that

market has demand for these products and we have supplies from the manufacturers. The

government raids our shops instead of stopping manufacturing of these products, if these

were really illegal. It is only to harass the traders without any seriousness to check sale of

these products if these are dangerous to human health. These products are not only being

manufactured but also are being imported from India. It is easy to check import but

government is doing nothing to ban its import. How in-country manufacturing can be

stopped when import is being allowed (Noorani, personal communication, October 6,

2007).

These arguments from the manufacturer and trader indicate how oblivious they are about

the harm they are causing to the society and how they forget their social obligation. Their

wanton disregard to the interests of society and responsibility towards collective good in

pursuits of selfish goals is what this research work refers to as destigmatization. Equally

disappointing is the law enforcement mechanism that condones this sort of attitude that

lets loose these deviants against the society. Despite the fact that symptoms of the

107


9/78

problem are already visible, there is hew and cry, professionals are voicing concerns

about ill effects of hazardous products, the system of governance is non responsive and

monitoring mechanism in non existent. The efforts of the government are merely

cosmetic work to hoodwink those raising voice against the menace, as there appear no

concrete steps to eliminate the evil. There is no law that prohibits manufacturing and

sales and yet it is uncertain how law will be enforced. This anomic phenomenon leads us

to a situation that provides fertile ground for the white-collar crime to flourish.

Due to obvious glamour the goals of financial gains are so strongly protected that these

desensitized manufacturers do not hesitate to manipulate their way through the courts.

Samples of some products collected from a manufacturer were tested from many

laboratories and it was found that these were harmful for human health as these contained

carcinogenic agents. The city district government; body responsible under law to

regulate eatables; ceased the manufacturing facility and cancelled license of the

manufacturer. He approached the High Court claiming his right of free trade guaranteed

under the constitutions of Pakistan. The High Court dismissed his petition holding that no

fundamental right was available to endanger human life (“High court upholds”, 2005).

Earlier, High Court Hyderabad bench also dismissed two identical petitions on same

grounds. In one of such petitions the High Court provided an option to the petitioners to

get their product tested from a competent lab and if it was found safe for consumers, then

sale may be allowed but they declined to go for such testing and still insisted that they be

allowed to sell these products on the grounds that these were less harmful than cigarettes,

a senseless argument. This mind set of traders signifies deep rooted state of social malady

that neutralizes guilt and promotes de-stigmatization in view of glamorous goals of

money.

Enigma of Ineffective Enforcement

Making of laws is one responsibility of state; its enforcement is bigger obligation for state

agents. It is a peculiar problem of our society that failure of enforcement has placed the

society in an enigmatic situation. This pattern of non enforcement is visible in every field

108


10/78

of social life. This non enforcement is one of the principal cause of Glamourization and

de-stigmatization of crime. With this context also, there is expressed provision of law

contained in Sind Food Act, 1947 that prohibits mixing, coloring and sale of products that

are injurious to health. The major problem lies in enforcing this law. There are no

effective mechanism in place that ensures enforcement of these laws. This is mainly due

incapacity of law enforcers and incapacity of the system of enforcement. Regarding the

ineffectiveness of ban on sale of gutka, Chairman of a consumer rights NGO recalled that

former chief minister of Bihar Mr. Lallo Parshad Yadev had expressed his astonishment

over the open sale of lethal gutka in markets in Rawalpindi. Mr. Yadev had pointed out

that such things were already banned in India. The ban on sale and manufacturing has

been imposed ten times but it has proved ineffective as there is no enforcement

mechanism in place neither there is a will to enforce it. (Mr.Maker, personal

communication, March 3, 2007). This scenario explains how desensitized the government

and society is in enforcing their own orders and how effective the vested interest

manufacturers and sellers are that they are able to act in a way that challenges the writ of

the government without any fear of apprehensions. An editorial in a national daily

highlights this problem of non enforcement:

“Decision by the government to ban the production and sale of ‘gutka’ is likely to be met with skepticism. It is not the first time that a decision meant for the benefitof people’s health has been taken but none of the earlier ones have been enforcedin right spirit, including previous attempts at banning the gutka. After all, the banon smoking in public places, to cite just one example, was prescribed for thereason that smoking is injurious to health. Yet it is widely flouted. Those involvedin production and sale of gutka too are likely to remain unaffected by the ban forthey will find ingenious ways to sidestep production. This must not be allowed tohappen. For that the government will have to remain alert and watchful andensure that its prohibition is strictly followed and enforced. Those found violatingthe ban or abetting the violators should be strictly dealt with. (“Enforcing ban ongutka”, 2006).

By making a law or passing an order under a law, the government establishes writ of the

state and makes its presence felt by preserving order in society. Where such laws are

made and orders are passed and then enforcement is not ensured; such situation

inculcates a habit of disrespect for rule law among the citizens. This as a result promotes

109


11/78

lawlessness. There have been several occasions when an order under a law is passed and

its implementation is not ensured. Some of the orders that are often violated in similar

fashion, include compulsory use of helmet for motor cyclists, restriction on encroachment

on public places, violation of building construction by-laws, no smoking in public places,

ban on plastic bags, action against black windows on vehicles, prohibition of fancy

number plates, smoke emitting vehicle and sale of cigarettes to under aged. The reasons

for non enforcement may include lack of will, connivance of government officials with

the violators, bribery and corruption, interference by an influential and sometimes lack of

resources. This dangerous trend in non enforcement is inculcating a culture of

compromise and this culture of compromise is indeed promoting destigmatization. This

destigmatization encourages the perpetrator to commit a crime. Thus the glamour for

crime increases.

Apathetic Consumers

One of the significant observations emerging during this study is consumer’s apathy to

problems affecting their interests. This apathetic approach is promoting Glamourization

of white-collar crime. Consumers own perception about hazardous effects of gutka play

vital role in encouraging its manufacturing and sale. An ENT specialist and an office

bearer of Pakistan Medical Association asserted that unless common people develop their

own perception about negative aspects of consuming gutka, its sale would show no

decline. Despite having a realization of the serious repercussions, majority of the

consumers seemed not ready to quit chewing gutka and other items. Such items cause

mouth and tongue cancer, tonsil laryngeal carcinoma which accounts for 70 to 80 percent

of all cancer cases. Globally, oral cancers account for three percent of all cancer cases but

in Pakistan this number is as high as 40 percent. (Dr. Qaiser, personal communication

March 5, 2007). This problem of consumer apathy is seen across the society. This

approach has very complex background where authoritarian rule in past decades have

shaped collective group mind of society that emanates from fear, harassment, coercion

and injustice. There are cultural dynamics too operating behind this apathy. When elders

in a family chew the hazardous stuff, the youngsters are bound to follow them as the

110


12/78

elder being role model for the youngsters, is imitated by them. The elders loose moral

authority to question these youngsters or ask them to stay away from the poison. The

sellers ignore their social responsibility towards the society they belong in view of reward

for their deviant occupational activity. A combination of multiple factors operates behind

their selfish pursuits of profit. The watch dogs of municipal health department remain

silent over this slow poisoning of community. They remain complacent by design by

issuing orders only. Lack of will, bribery and corruption, influential role, lack of

resources and silent and apathetic society are some of the factors contributing to this non

enforcement. This non enforcement reduces the chances of punishment for the offenders

and thus crime becomes more rewarding rational choice. The offender thus feels no

hesitation to deviate for profit in such apathetic setting. This de-stigmatization makes the

crime more glamorous.

TOXIC LIQUOR

Pakistani society is mostly inhabited by Muslims and composition of minorities of other

religions is less than two percent. Taking alcohol is forbidden by religious injunctions

and its import or manufacture is completely banned as per import laws to preserve

religious norms of culture (Government of Pakistan, 2007a). Not even a drop has been

imported during the last forty years but yet it is no big deal to find alcohol of any brand

and make through underworld net-works. Local brewery manufactures liquor for

exclusive use by minorities. Licensed outlets have been set up in city to serve their needs.

In this garb, influential and elite classes are patronizing a network of sale and

distribution. Some of the organized individuals are manufacturing local brands of

hazardous quality that is normally sold to lower classes of society. Headlines in print and

electronic media occasionally hit the news highlighting deaths of people at one place or

the other who die of consuming toxic alcohol. Two or three incidents of tragic deaths

are heard in a year news of people falling sick is occasionally heard every other day. One

or two causalities that occur every month go un-noticed as relative hide it from media and

police. (Ahmed, 2007). Alternatively they end up with private health facilities and pay

the doctors whatever they demand to hide identity of the patient and cause of illness. This

111


13/78

is a culture driven way of avoiding stigma. In September this year 2007, city hospitals

were packed with patients having serious symptoms of nausea, severe cramps, shaking

and blurred eye sight. Some were brought unconscious (“Toxic liquor”, 2007). All of

them consumed liquor purchased from a source. The senior police officers promptly

suspended police officer in-charge of the police station to mitigate public and media

outcries. The provincial government suspended three excise officers for negligence after

pressure from media. No heads rolled for this violent white-collar crime that brought

disaster to many families. A police officer explained his experience regarding this illegal

business:

“I was in-charge of a police station in a posh locality of the city. I had information

that an organized gang was selling all varieties of alcohol in the area. While on patrolling we intercepted a consignment of foreign liquor in a vehicle. Weescorted the vehicle and the driver and his accomplice to the police station, bothwere non-Muslims. As soon as I reached the police station, I was informed by mysubordinate that senior police officer wanted to speak to me urgently. I wasadmonished by my superiors for intercepting the consignment and was also persuaded that we should not interfere with civil liberties of non-Muslims. I knewthat the organized gangs were using these non-Muslims as a cover to further theiractivities. I was left with no options except to let them walk away. After a fewdays one of my subordinate advised me to turn a blind eye towards them if I wasto survive on my job. Later, I received a formal offer of monthly package if I keepmy eyes closed with an advice to accept it or else I would be no more in-charge ofthe police station. They are well connected and we have no institutional support. Iknow at least 11 places where illegal manufacturing of toxic liquor is taking place. There are about 50 outlets selling this liquor. Since there is lot of money inthis business, it is very difficult to stop it.”(Waqif, personal communication,October 13, 2007).

It is political will and professional pride of law enforcers that is needed to curb such

organized crime. Where regulatory and policing mechanism is non functional, connives

with the perpetrators and become helpless, the system looses its capacity to check the

crime.

The illegal liquor comprises methyl alcohol blended with other chemicals that are

poisonous for human body and is meant for use in industries. It generates dangerous type

of acids in human body that can cause death before any first aid is provided. There are

112


14/78

organized syndicates in city for manufacturing and sale of this liquor. It is called Kuppi

and desi sharab or Tharra in local parlance. The poor localities of the city are usual

targets for sales. Alcohol of any other imported brands and origin is available and is often

delivered at home or any given location. This is smuggled from India and Dubai through

land and sea routes. A senior police officer explained: Demand of various types of

alcohol increases on religious occasions like Christmas and Eid. Locally made toxic

liquor is cheap and hence is preference of the poor. Some consume it because of

addictions and others just for fun. It is sometimes sold in polythene bags and plastic

bottles depending upon money available with the buyer. Polythene bag full of liquor is

sold for Rs.70 to 100. A bottle is available for Rs. 150 to 200. (Waqif, personal

communication, October 8, 2007).

Desi sharab (alcohol) is made from molasses available from sugar mills. There are

decades old crude ways of extracting alcohol from molasses through distillation. There

are no checks on sale of molasses from sugar industry and any body motivated to involve

in this illegal business, can get it. Where the person making it is not well experienced, the

prepared liquor is bound to become toxic. Production, sale and trafficking of alcohol

carries stringent penalty under Islamic laws but the business keeps going because of high

reward. Where ideals of acquiring money are achievable through criminal means, other

ideals of high value are ignored. Although ideals of religious texture have core values in

normative structure of the society, even these are ignored by the white-collar criminals in

view of glamorous pursuits of money. This is true for those directly involved in the

illegal business, the police officials who facilitate this criminal activity and the influential

wielding power patronizing this crime. Their focus is on their cultural goals of acquiring

money by all means, and thus religious goals are de-emphasized. This is how glamour,

crime and de-stigmatization move together.

A senior police officer explained mechanics of this crime:

“There is general assessment among senior officers that illegal trade of liquor wasthriving under the patronage of area police. Local production of liquor was limited to few places, but it is available all over city. Supply and demand may vary depending largely

113


15/78

on how local police responds to this criminal activity. Bribery is the major catalyst thatfacilitates this crime, but it is not the only factor in preventing local police to take actionagainst the perpetrators. There is also influence from higher levels, that protects interestsof the illegal business, and if the police officers act with conviction, they will be askingfor trouble. They find it wise to co-operate and share the benefit. After all the business is

thriving because of demand from the public.”(Zamin, personal communication, October11, 2007).

These comments explain the dynamics how this organized crime of sale of liquor

continues. The perpetrator of this type of crime is required to cultivate friendship with

some senior bureaucrat or other influential that can protect the business interests. One has

to keep palm of the area police greasy all the time. A combination of money and

influence will ensure that business goes on. Even if few people die by taking toxic liquor,

it does not matter. After a few days of cries in media and sometimes by civil society, the

dust settles down and business is resumed. Where money plays an instrumental role in

crime dynamics, there is lot of glamour for offenders and this glamour increases intensity

and dimension of crime, criminal and criminality. The society becomes anomic when

social, moral, legal and religious norms are ignored and goals of money coming by all

means are preferred. Use of this money earned through criminal means, de-stigmatizes

the crime for law enforcers, perpetrators and for those who patronize this type of

criminality.

PRESSURE MEAT

It may be amazing to know of a unique way of white-collar criminality. It is a novel way

of minting money by some unscrupulous white-collar criminals who adulterate meat with

water, an unbelievable description. It may sound unbelievable but this novel technique is

used to multiply profits. There are a number of unauthorized small slaughter houses

operating in suburbs of city, thanks to non enforcement of law. Unauthorized

slaughtering is carried out in these butcheries and novel method is applied to cheat the

unsuspecting customers. An amazing but highly condemnable procedure is used to

increase weight and texture of the meat for sale to customers. After slaughtering and

removal of skin when blood is completely discharged and other organs of animals i.e

buffalos, cows and goats, are removed, the main heart artery is kept intact. It is cut from

114


16/78


17/78

money as bribery at government slaughter houses even if their animal is healthy.They also have to pay for both way transportation. It is thus convenient to go to a private slaughter house nearby and work at choice.”(Qureshi, personalcommunication, December 8, 2007).

A visit to government slaughter house revealed that slaughtering of animals continuesand each carcass is stamped by the municipal veterinary officer for being healthy.

Practically there is no such veterinary officer present and this ritual is performed by a

laborer. The meat merchants bringing their animals for slaughter are required to pay

money per animal that is a routine business. Slaughtering is prohibited on three days in a

week. However, it is no problem to slaughter the animals even on these days if one is

willing to pay.

After a lot of persuasion Mr Qureshi agreed to arrange a visit of the researcher to a

private slaughter house where pressure meat is prepared. It was a family owned facility.

The owner and his family were found busy in slaughtering and pressure processing the

animals along with their staff. The processed meat was transported to all over city

without any fear or guilt. Any other merchant can bring his own animals for slaughter and

pressure process after they are willing to pay per kilo of meat processed. The water used

for injecting into carcasses comes from normal water tap that is often contaminated and

unsuitable for drinking unless properly boiled. The family members including children

of the age of 14 to 16 years were found actively involved in this illegal business. This is a

dangerous tendency of under aged children socialization in a criminal environment.

When these youngsters start their life in an environment of dishonesty and fraud, they are

bound to grow as hardened crooks to harm the society. The owner of the slaughter house

neutralizes his guilt by explaining:

“We are not the only suppliers of pressure meat; there are many others in the citywho are selling this variety. We will lose our business if we do not match the prices. The wholesalers will not buy from us because of our high price. We workin clean environment in our slaughter house and government slaughter house isnot that clean. We have to pay money there without any reason and it is better towork with liberty at our own. Our supplies are going to all over city without any problems. Our processing technique helps the consumers as this meat take lesstime in cooking.” (Younis, personal communication, December 12, 2007).

116


18/78

Similar reasons were given by a retail seller who insisted that he did not want to get

involved in sale of pressure meat. But when he saw his other colleagues doing it in the

market, he was constrained to follow them because it was bringing more money without

any complaints. He further explained that residual water does not become visible even if

meat is cut into pieces unless the customer has left. Even if there is any complaint from

the customer, he is silenced by arguing that the meat was coming fresh from the butchery.

(Habib, personal communication, December 13, 2007).

This scenario conforms to modeling theory of behavior propounded by Bandora (1997).

The theory relates to acquiring new behaviors, thoughts and feelings by imitating others

usually referred to as models. Such an observation will produce an incentive; anycircumstance that creates an anticipation of positive outcome as a result of performing the

behavior (Bandora, 1989b). According to this theory learning of behavior occurs because

people are aware of consequences of their responses. Reinforcement or rewards for the

performance of behavior takes place when a person observes a model being rewarded for

performing a behavior. In the given scenario, criminal behavior is adopted by pressure

meat sellers when they see others doing it and being rewarded through excessive profits.

This excessive profit is rationalized because of the no fear of being penalized.

FRAUD AND DECEPTION

Double Shah Trickery

This case example relates to looting and plunder of money by one ingenious, enterprising

but unscrupulous swindler named Syed Sibtain Shah. He was euphemistically known as

‘double Shah’ among his victims and came to be known as such because he fleeced about

30000 people with an amount of Rs.5.75 billion in three districts of punjab promising that

their investment will be doubled in 70 days. It is the biggest case of financial deceit in

history of the country by a single person against his 30,000 victims. The trickery started

by a retired school teacher commanding lot of credibility among his clients who paid

double money to his clients in only 15 days and later he enhanced the duration to 45 days

117


19/78

and when there was tremendous rise in number of investors the duration was increased to

70 days. He established his trust by paying the double amount to a large number of

clients attracting more and more investments and even those doubling their amounts,

reinvested the money to further multiply it. ‘Be a millionaire in a short time’ was his

motto to attract his clients. He was running a network of over 200 agents and sub agents

in three districts to lure the investors. These agents were paid a lump sum amount of

Rs.5000 per investment of Rs.100, 000. Needy and greedy investors arranged money

from relatives and friends to double it in just 70 days that in all probabilities is

unrealistic. Among his investors included poor and illiterate villagers, daily wage earners,

fixed income classes, some senior government officials from police, FIA and local

government, and some well to do individuals who wanted to get their amounts doubled in

short time. A widow sold her land and cattle to invest Rs.500, 000. She wanted to arrange

marriage of her three daughters. A transporter sold his two vehicles and invested about

1.1 million to get the double amount. Another widow sold her house and invested. A

school teacher pledged her jewelry with a bank and invested for quick return. Some

exporters and industrialists also joined to reinvent their fortune through easy means. A

number of Pakistanis from the area settled abroad preferred double shah to invest their

hard earned money. Some of the clients got advance salaries from their employers and

invested. He wielded lot of influence among politicians and bureaucrats to keep his

business going. He was promptly paying the money to these senior bureaucrats, police

and influential locals on maturity to keep peace with time. His daily collections were

double of the amounts he was returning to investors which was keeping his illegal

business afloat and he was earning goodwill out of his dealings and honored

commitments. Local banks experienced a trend of declining deposits which they later

attributed to double shah’s trickery. While a few of his clients made hay in sun, quite a

majority of them were the sufferers. He was not keeping any formal records of

investments nor was issuing any authentic receipts for amounts received. Just a slip

bearing his signature, amount and date was considered a guarantee more reliable than a

signed bond.

118


20/78

Nobody bothered to probe about his business activities and none even thought of how he

could pay back such unrealistic returns. He was picked up by FIA and intelligence

agencies but they were constrained to release him as there was no complainant and no

evidence of his illegal activities. Interestingly, some of the officials investigating his

wrongdoings also invested to double their investments.

Finally, he was arrested by National Accountability Bureau for running a parallel banking

system. During investigation it was revealed that he owned six hotels and an apartment in

Dubai and a gasoline station in his hometown. He was so cunning that he established

such credibility among his clients that they resorted to protests and rallies to pressurize

the government to release him to continue his business. They feared that government

intervention would put their deposits at stake. They did not trust the law enforcer’s

capability to rescue them, a usual phenomenon in our society. This panicked the investors

and they protested and blocked roads and highways. Seeing the panic among the

investors, a new breed of agents surfaced underground who started contacting victims of

Double Shah, and offered them a 50 percent return of their principal amounts in exchange

for deposit slips issued by Double Shah with an understanding to stay calm. A journalist

having insight into this whole trickery claimed:

This new breed of agents was a genius plan of Double Shah who was stillexploiting his victims to retain half of their money through these agents. Theseagents were making use of uncertainty of the situation and lack of credibility oflaw enforcers. They were telling the investors that income tax authorities had alsoinvolved themselves and they would investigate source of money from thesetroubled victims. Guilty of tax evasion, these victims were willingly returningtheir deposit slips to have something rather than having more trouble (Wajahat, personal communication, December 28, 2007).

Arrest of Double Shah brought disasters among some families that was perhaps evident

sooner or later. At least 6 people including one woman suffered heart attack and died

seeing their dreams transforming into nightmares. After his arrest NAB advertised to

invite the affected investors to lodge their claims against offender to receive back their

money but despite twice extension in date of submission of claims, all of the investors did

not furnish their claims. This was probably due the reason that source of their

119


21/78

investments was itself dubious and they feared more trouble from enforcement agencies

than relief. A social enigma faced by the victims, reflecting a combination of guilt and

distrust.

The NAB also prepared a list of beneficiaries who had already doubled their investments

and had safely retrieved it. Their accounts were frozen. These beneficiaries included

some traders, politicians and senior government officials, some police and FIA officials

and few poor villagers. They were embarrassed to find themselves among the distressed

beneficiaries as they were faced with dilemma of disclosing their source of income for

their involvement in the scandal.

As it was a time for general election, Double shah trickery brought double trouble for

politicians. The victims of this scam formed an association to vote only those political

aspirants who could bring their investments back to their pockets. This challenge was

more enigmatic for aspirants from the ruling party because victims blamed them for this

scandal and a belief was prevalent that the offender had backing from influential

politicians and senior government officials to perpetuate his illegal activities.

This case example is complex because of a variety of social phenomena reflecting a

combination of greed and need on part of the victims and on the other hand hints at a

social scenario that indicates absence of institutional framework of social control through

law enforcement. The offender along with his team of agents and sub agents remained

active against his victims in three districts and was at liberty to violate the law. The

victims out of their need and greed trusted him. These victims belonged to a diverse

social stratum including illiterate villagers, educated traders, government officials,

politicians and fixed income groups. Lack of awareness thus cannot be the single factor

that contributed to the crime. These individuals from diverse social backgrounds

participated in facilitating the crime against them and were deprived of their money

through fraud and deception. They allowed the offender to set a stage to launch his

fraudulent plans against the community. None of them bothered to blow a whistle and

120


22/78

were concerned with their short cut gains. This social feature was seen across the cross

section of society and has been an emerging trend of this study.

The victims not only were old citizens, but included younger and better educated people

having wider interest in life and had more broad range of activities. The biggest cost that

society pays for fraud crimes is that trustworthiness and honesty is seriously affected and

as a result moral fiber of society is badly damaged. The credibility of the state and trust

between state and the subjects is vitiated with repeated events of fraud and plunder.

In a survey conducted in Illinois on the costs of white-collar crime, 55.2% of the

respondents believed that white-collar crime do more to undermine the morality in

society than do regular street crimes (Cullen et al, 1983). This damage to society depletes

social solidarity and cohesion. Consequently social fabric is torn apart and a culture of

apathy develops where victims stay isolated from these events instead of hitting back.

This is a basic cause of de-stigmatization of white-collar crime in society.

In a study of victims of failed financial institution (Sutherland Industrial and banking

Corporation), (Shover et al,1994) found that victims who lost investment in this

institution due to criminal activities of its officers and employees, harboured feelings of

bitterness and anger even after 10 years. A small number of victims were completely

devastated by their experiences, became severely depressed and felt intense anger. The

impact of such frauds is more devastating on people in Pakistani society where there are

little schemes of rehabilitation, social institutions are so caring and people have little

resources to share others problems. Investments of victims were mostly life time savings

and they had no other means to resolve their problems where money is desperately

needed. Such consequences lead to deprivation and frustration and because of intense

feelings of retribution some of the individuals involve in criminal activities like street

crimes. These victims will have to pass their time in uncertainty as law enforcement

mechanism is not so effective that remedy their deprivation. The case is much more

difficult than it seems as it has no answer for a solution. Such social milieu thus provides

121


23/78

a breeding ground for desensitized approach towards social problems and hence crime

flourishes and criminals manage to escape.

Employment Fraud

It is an everyday activity that prints media carries advertisements from several phony

employment companies claiming part time jobs, work at home and earn style of

advertisements. These companies lure in vulnerable and already poor people promising a

second job to supplement their incomes. They exploit their desperation for money to

squeeze more and more and the poor get poorer after entering into their trap.

A clerk seeking a second job to meet his needs explained how he was robbed of his

money. An advertisement appeared in newspapers projecting handsome and easy income

for those looking for a part time job. The job was promised without any outward

mobility. He approached the given address and was informed that there were varieties of

jobs available. He was given a form to fill up and get himself registered. An amount of

Rs.500/00 was charged as registration fee. A large number of other boys and girl were

also there with the same hope of getting a job to supplement their income. He was told

that his case will be processed and was told to come after one week. After one week he

was given another form to indicate his choices for job. He was good at typing and he

preferred to opt for typing as priority one. Other job category included a big variety, such

as stitching, embroidery work, translation, paper envelop making, workers supervision,

salesmen, and the list does not end. When he visited after another week, he was given

bunch of papers from a telephone directory with very small fonts. It was mandatory for

him to type at least 20 pages daily. He was told to complete the job by next evening and

get Rs.300/00 per day. Excited with his new assignment, the poor clerk came back home

and started typing, he then realized that he could only do just five pages daily even if he

missed his office job. Disappointed with his luck, he came back to the employment

exchange in-charge and protested for deceitful treatment. He was surprised to know that

instead of accepting their sharp practices, the in-charge rebuked him with laziness and

charged him with wasting their precious time as the typing work was assigned to them by

122


24/78

a foreign company. When he demanded his money paid on account of registration fee, he

was told that the paid money was non refundable being administrative costs.

Later the poor guy learned that a big number of boys and girls have lost their money

having same bitter experience with employment exchange and after about three months

they disappeared from the scene.

There are a number of similar employment exchanges operating in the city often fleecing

money from desperate and needy young boys and girls. They keep shifting their places

and names. Lucrative advertisements are daily seen in the newspapers to attract the

innocent victims. Once disappeared, it is not so easy to trace them. The poor victims are

already resource less and as the money is not big with little chances of recovery, they

often do not follow. These phony employment companies collect contribution from a big

group of victims and their ill gotten money increases. This powerlessness of the poor

facilitates crime of these phony employment companies often run by unscrupulous

individuals with no traceability and identity. Poverty, need, resourcelessness, lack of

opportunity, absence of a watch dog society, lax regulatory mechanism, vulnerability and

disadvantageous position are some of the ingredients of their powerlessness. On the other

hand, opportunism, ability to exploit, manipulation and relatively stronger position of

perpetrators are some of the factors influencing power of these perpetrators that induce

their criminality against their victims. This power gap thus promotes white-collar crime.

Confluence of Guilt and Exploitation

Here is a case how combination of guilt and exploitation glamorizes deviant behaviour

and thus promotes de-stigmatization. A courier working in a local courier company

explained how his supervisor managed to convert his fear of loosing his job into an

opportunity of making money when he could exploit a situation of his mistake and guilt

of his customer. A customer booked a parcel with the courier for delivery in another

country of Europe. The contents of the parcel were stated to be stitched garments and it

was properly sealed and secured. However, during scrutiny at company’s sorting office, it

123


25/78

was disclosed that a passport with a valid visa for Europe was hidden in the garments.

The clever supervisor was admonished for failing to do his work and the courier was

served notice for negligence. The supervisor somehow satisfied his superior and managed

to retrieve the passport from the parcel and manipulated the customer to exploit his guilt

to fleece money. He phoned the customer at midnight impersonating to be an officer of

the customs working at airport. He told the customer that his parcel sent to a European

country via courier had been blocked as it had a valid European visa. This act was an

offence under immigration laws and amounted to abetment in human trafficking. He

threatened the customer that if the matter was not settled within next 24 hours, he would

have to go behind the bars. The troubled customer took some time to revert. After about

two hours, the supervisor received call from the customer who begged for mercy. He was

advised to arrange Rs.200, 000/00 for the impersonating customs official, failing which

matter would be out of his control as he was bound to bring the matter to the notice of his

superiors. The panicked and guilty customer felt helpless and having no option except to

co-operate with impersonating customs official or face jail. After some negotiations, the

matter was settled at Rs.90, 000/00. The customer was advised to pay the money at a

given location and collect the passport from the same courier outlet after confirming on

phone. The panicked customer paid the money, to get out of trouble that he had brought

to himself and the passport was promptly delivered to him. He took a sigh of relief and

the supervisor made quick money by exploiting his guilt. A meager part was shared with

the counter courier booking the parcel.

This is how guilt a confluence of guilt and exploitation sometime works in a corruption

prone social scenario. This type of exploitation is often associated with police who

routinely demand and receive money when a case is lodged against an individual. Such

money is charged often from both parties. The complaint is forced to pay for making a

sound case. The accused party is charged against a promise of a lenient case. This illegal

practice has perhaps permeated into common man’s mind. This technique of fleecing and

extortion was exactly followed by the supervisor who used it with complete articulation.

The customer immediately became responsive to the call of the impersonator because it is

usual that one can expect a call from a government official to resolve one’s problem, if

124


26/78

one is willing to pay money. The guilty act of the customer was another catalyst to this

criminal compromise when he got panicked on imagining his likelihood of being exposed

to a probable process of law. He even never bothered to check up with Courier Company

nor could he think of another honorable or legal solution.

On one hand his immediate readiness to pay the money reflects a culture that readily

condones corruption and corrupt practices. On the other hand, it reflects how quickly and

short cut solutions are relied instead of following honorable and legal ways to deal with a

trouble. Impersonation of the courier supervisor as customs officials is yet an indicator

how money glamorizes and de-stigmatizes criminal conduct. He must have been sure that

his cleverly tricks would ensure him quick and convenient money and thus because of

this glamour, he exploited the situation in his favor. One might think from where this

assurance of gainful criminality came. Obviously from the culture of de-stigmatization

that fosters glamour for crime.

BRIBERY AND CORRUPTION

Bribery and corruption are deep rooted problems of Pakistani society. This problem is not

however peculiar to Pakistani society only. Many other societies of developing and

developed countries are fraught with corruption in one way or the other. The difference

perhaps is of nature, dimension and form of corruption. For example, it is accepted as

normal business practice in some segments of economies of some countries (Coleman,

2002). During the last about 10 years Transparency International have placed Pakistan

between 2.1 to 2.7 out of clean 10 in their Corruption Perception Index. The word

“corruption” has its origin in a Latin verb “corruptus” meaning ‘to break’. Literally it

means broken object. Conceptually, corruption is a form of behavior which departs from

ethics, morality, tradition, law and civic virtue (National Accountability Bureau, 2006).

Corruption has various definitions. The United Nations Manual on Anti-Corruption, the

Transparency International and the multilateral financial institutions like World Bank,

and Asian Development Bank define corruption as ‘abuse of public office for private

gains’. The National Anti-Corruption Strategy (NACS) has defined corruption as “a

behavior on part of office holder in public or private sector whereby they improperly and

125


27/78

unlawfully enrich themselves and/or those close to them, or induce others to do so, by

misusing the position in which they are placed”. Bribery is illegal gain secured through

use of one’s position in a given setting in exchange for a deserved or undeserved favour

to someone. In some cases these gains are secured through exploitation, blackmail or

even through extortion.

Bribery and corruption in our society have a history of decades. One of the major

contributors to this problem is continuing crisis of political instability and illegitimacy.

The civil servants faced with uncertainty, low salaries, insecurity of tenure and having

unbridled powers, are inclined to adopt corrupt practices. A survey of serving and retired

bureaucrats by Saba, Shafi and Saeed (1999) calls problems of corruption among

government servants as growing sense of helplessness in Pakistani society. Their study

seeks to identify and analyze the causes of corruption in the country’s bureaucracy. Their

survey found that bureaucratic corruption is fuelled by poor pay structure, the readily

available speed money, importance attached to cultural value of family ties and resultant

nepotism and overall lack of respect for rule of law. The civil servants remained under a

continual fear because each government on assuming power ventured to fire these civil

servants on pretext of eliminating corruption. Chaudhry (1999) gives a detailed account

as to how civil servants were fired ruthlessly by both military and civil governments in

the past. He quotes that 303 civil servants were fired by martial law regime of General

Yehya Khan. His account further explains how 1300 bureaucrats were retired

compulsorily and prematurely during Bhutto’s government in a thoughtless manner. It

was such a thoughtless act that the list included some who had already retired and some

who were dead. The martial law regime of General Zia gave same free hand to his

deputies to identify at will the so called corrupt bureaucrats and fire them. This firing of

civil servants with fatal carelessness promoted uncertainty and a culture of opportunism.

This combination of uncertainty and opportunism in return promoted a culture of

corruption among the bureaucrats who were systematically forced to fight for their

survival and look for some sort of security for survival when legitimate means of survival

were being tapped.

126


28/78

The citizens prefer to live with the rampant corruption and do not raise their voices

against corrupt practices. They become part of corrupt culture and have no feeling of

guilt or shame about their role in corruption (Alan & McIvor, 2003). During the last

about two decades the political elites crossed all limits of law and morality when they

resorted to sell their conscious to the highest bidders in exchange for favors like lucrative

positions to associates and relatives, plots and permits, writing off of loans in exchange

for support to political leaders yearning for power. They quickly changed loyalties for

financial gains and powerful offices betraying their ideological associations with their

political parties who made them elected as members of national and provincial

assemblies. Weak and illegitimate governments were all willing to accept these deviant

political elites granting them all types of undeserved privileges and perks. The terms like

‘horse trading’ defection and floor crossing were invented and introduced into political

culture during the last two decades to highlight deviant behavior of these political elites.

In last election of 2002 and 2007 a number of politicians were found being disqualified

for presenting fake educational degrees to prove their eligibility for election. Only in

general elections of 2002 for provincial and national assemblies 68 political aspirants

were caught attempting to prove their eligibility for graduate qualification to contest the

elections (Sadiq, 2007). In some known cases some of the politicians succeeded to reach

national assemblies and their disqualification based on fake education degrees were

proved much later when they managed to complete their tenure as member of national

assembly after marathon judicial follow up by the opposing candidates. This deviant,

unethical and illegal way of life of this powerful segment of society was followed by

other relatively weaker segments of society and thus the glamour for grandeur and

concentration of wealth without any consideration of its legitimate means promoted a

culture of competition where wealth became the criteria for respect and social prestige.

With this came a culture of love for electronic gadgetries, spacious houses and brand new

and stylish vehicles or what came to be known as pajero culture.

This deviant manifestation by elite classes promoted a strong syndrome of getting rich

overnight across the society when thoughtless consumption spree by elite classes is

127


29/78

emulated by lower classes. Demonstration of wealth promotes social pressures among

lower classes of society like ostentatious show of wealth on social occasions like

marriages, birthday celebrations and other family matters. This in return fostered a

culture of need and greed for wealth. De-stigmatization of society and indifferent attitude

of individuals towards the problem provide a breeding ground for bribery and corruption.

The main catalysts for this de-stigmatization are collective passivity of civil society, high

tolerance levels, helplessness, and illiteracy, lack of credibility of political authority,

discredited accountability mechanism, intricate, ancient, non transparent bureaucratic

procedures and powerlessness of common man.

According to a survey by Transparency International on corruption in Pakistan,

respondents ranked police, power, taxation, judiciary, customs health, land, education,

telephone, railway and banks in the sequence given (Transparency International, 2007).

NAB’s National Anti Corruption Strategy report (2003) indicated that estimated revenue

lost due to corruption is 64%, 48% and 45% in income tax, customs and sales tax

respectively.

Four previous governments were dismissed by Presidents for charges of corruption and

inefficiency. It was in 1997 when after public outcry an accountability cell was set up to

punish corrupt politicians, bureaucrats and businessmen. However credibility of this

accountability mechanism was vitiated when it was used to deal with political opponents

and coerce them to change loyalties in favor of ruling party by successive governments.

The Fourth government was dismissed by military dictator with a promise for

improvement and indiscriminate accountability. A law to be called as ‘National

Accountability Bureau Ordinance 1999 (NAB Ordinance) was promulgated. A dedicated

institution ‘NAB’ was set up. Initially a number of individuals were arrested and

prosecuted for their involvement in corruption and malpractices when they were in

influential positions. However, later on credibility of whole this accountability process

was diluted as it was generally perceived that it was incriminating government opponents

and was lenient with those supporting military rulers. As a result no change in attitudes

about corruption could be seen.

128


30/78

The military dictator was constrained to compromise with seasonal politicians who were

all out for their personal gains in return for granting legitimacy to illegitimate ruler.

Persecution of political dissidents and slow prosecution of politicians supporting the

military regime by NAB was so proverbial that it lost all its credibility as a prestigious

accountability institution. After recent general elections, when people of Pakistan rejected

supporters of military dictator, the Prime Minister in his address to National Assembly

announced abolition of NAB because of its vitiated credibility. Fifteen ministers out of 24

including the Prime Minister himself were persecuted and incarcerated by the NAB under

military rulers on false grounds because of dissident. The budget grants of NAB were

substantially curtailed to restrict its role instead of cleansing it and putting it on right

path.

Despite its questionable integrity and reputation National Accountability Bureau came

hard on some of corrupt individuals including politicians, bureaucrats, retired military

officers, businessmen and corporate leaders. During the last about seven years history of

accountability, NAB has recovered over Rs. 2.1 billions from the corrupt politicians,

bureaucrats, businessmen and industrialists and other public servants (National

Accountability Bureau, 2007). It has preemptively proceeded against number of

individuals who attempted to defraud the public by advertising lucrative and cheap

housing schemes. But due to swift actions of NAB, public was notified in advance and

individuals involved were taken to task. The conviction rate of NAB remained highest at

57% as compared to other prosecution agencies.

Some of the case examples of corruption and bribery included in this research work have

been divided to include corruption of public officials and bureaucrats, politicians and the

corporate leaders. The case examples included are those that have special features with

respect to position of individuals involved, volume of amount misappropriated or number

of victims suffering as a consequence of criminal act of white-collar criminals and the

unique modus operandi adopted by these white-collar criminals.

129


31/78

CORRUPTION OF PUBLIC OFFICIALS

The public officials are agents of the government responsible for implementing policy

and directives of the government that are in accordance with legislative decrees. It is the

responsibility of the public officials to implement law and policy in letter and spirit.

Where law is violated by government servants, or access of public to authorized facilities,

processes and benefits are restricted, the government officials doing so in fact act against

the intention of sovereign legislature. Where they try to do things in their own way in

utter disregard to law and norms of their obligations, they assume the role of the

legislature in an illegal manner. When public officials start crossing red lines, it is starting

point for their corruption. Corruption of public officials has many forms and faces some

of it includes misuse of position, breach of trust, nepotism, negligence, inaction,

influence selling, delays, circumventing legal procedures, exploitation and extortion.

Some case examples are described here to highlight corruption of public servants.

Illegal Allotment of Land

The case of Shahwani explains how misuse of position and trust is violated by senior

bureaucrats for personal gains. Mr Shahwani was the Chairman of country’s Capital

Development Authority (CDA) and was responsible to provide quality civic services to

reflect the international image of the city. Along with his official obligations, he ran a

parallel system to benefit his relatives and associates by awarding contracts through

illegal procedures, allotment of undeserved industrial, agriculture and commercial plots

and related petty benefits. During his 15 years tenure at CDA he worked at various

management positions as member planning and chairman land allotment committee. He

manipulated to allot to himself, his wife and close relative, a police officer; 3 industrial

plots declaring the allottees as industrialists. Subsequently he manipulated to exchange

one of the plot measuring 5000 square yards with a plot of larger size measuring 7333

square yards to his relative. One plot was allotted to his sister through a lady associate

who acted as front woman and finally this plot was transferred to his sister. Another plot

was allotted in similar manner to his mother-in-law. All these beneficiaries of

130


32/78

wrongdoings were booked as co-accused and ultimately were deprived of these illegal

benefits.

In another case he allotted an industrial plot to a petty contractor showing him as an

industrialist. Later a building was constructed on this plot which was sold to another co-

accused for later transfer to Shahwani. Interestingly the plot with building was sold at

Rs.1.8 million whereas mere reserve price of the plot was Rs. 2.6 million. This was later

established to be a paper transaction and the perpetrators himself remained the ultimate

beneficiary using the technique of land flipping.

He was prosecuted by National Accountability Bureau and was incarcerated for four

years and disqualified for holding any public office for 10 years. As a consequence all his

illegally acquired property was confiscated.

This example provides reflections on the culture of bureaucratic power and means how

this power is manipulated and exploited to assume a personalized style of running affairs

of the state by state agents.

Misappropriation of Donor’s Money

One of the choicest ways of corruption by government officials is to misappropriate

funds coming from donors institutions for public sector development. The use of these

funds mostly fall outside the ambit of public exchequer and hence remain hidden from

the process of auditor general’s review. The accountability and traceability for its use is

rather slow and sometimes without the interference and control of donors at micro levels.

This makes such development projects lucrative to embezzle for those responsible to

execute such projects. These include public sector officials and individuals overseeing the

projects run by NGOs that are funded by foreign donors.

It may be recalled that in 2007 earth quake that killed over 80,000 people and displaced

over 3.5 million individuals, the donors demanded transparent use of such funds with

131


33/78


34/78

government of Pakistan that was initially estimated at Rs.1.8 billion. The location and

quality of land required for the project was mostly river bed, non productive and cheapest

as it required minimum displacement of population. The organized gang of government

officials joined hands with influential individuals of the area to support high cost of the

land and hence unrealistic compensation to land owners. As a result, the manipulations

escalated cost of the project to Rs.7.5 billion. This was criticized by the media and the

public. Realizing public outcry, the interest groups still maneuvered to suggest

containment of this price at Rs. 4.57 billion that later somehow was escalated to Rs.5.0

billion. The process of acquisition was completed in a hasty manner. While paying

compensation to land owners at an artificial rate, the facts of low category of land, non

existent facilities, infrastructure, built up properties and orchards was completely ignored.

Rather these were shown to be in existence to justify high cost. The process was wrought

with gross violations of legal formalities, negligence by land acquisition officers and

connivance of influential of the area. There were complaints that claimed amounts have

not reached the ultimate land owners and amounts have been misappropriated by

intermediaries such as influentials locals, land revenue officers and officials of

Agriculture department. Tired with the complaints and pressure from donors finally, the

Chairman of WAPDA requested National Accountability Bureau for a full fledged

inquiry into systematic and gross corruption of land acquisition collectors, their staff,

bank officials, officials from Agriculture department WAPDA and the influential

beneficiaries of the area.

The World Bank desired for a second feasibility study of affectees and their resettlement.

The resettlement plan by WAPDA formulated resettlement action plan which

recommended associating project affectees in matters relating to land compensation,

resettlement and environment friendly country development plan. However while

executing this plan; directives of World Bank to determine fair and equitable

compensation of land were violated. Investigation revealed that exorbitant and unethical

rates of compensation were paid for non existent orchards, built up areas and other

infrastructure.

133


35/78

The scope of investigation by NAB was very wide and in fact biggest case that this

agency was investigating. The scope of investigation spread over two provinces, covered

52 villages comprising 89,000 kanals of area. The NAB arrested 20 persons including 7

government officials and 13 beneficiaries land owners. Investigation into this mega

scandal is continuing and so far only four cases have been sent to accountability court for

trial.

The investigation by NAB and arrest of certain land owners and beneficiaries, created a

sense of fear among some other land owners who volunteered to return excess payment

received by them. However, it was discovered that they have not received the total

amount indicated against their names although they were paid through bank accounts.

Thanks to bane of illiteracy and ignorance. The part was fleeced by the intermediaries

negotiating between officials and the illiterate land owners. It is unlikely that whole of

the amount could be recovered. Trial of some officials is continuing. It is lack of effective

mechanism of internal control and accountability that is a peculiar feature of our system

of governance. This lack of control and want of deterrence enables the responsible public

officials to gain unbridled influence (power) to manipulate their way for flagrant abuse of

the power at their hands. This system of weak or bad governance also nurtures a typical

mindset of reckless use of discretion that knows no fears of accountability. Such use of

discretion widens with the scope of corruption by public officials. The system of

accountability and control weakens due to horizontal connivance within the sub-culture.

Such institutional weakness of lack of internal controls promotes glamorization for crime

and weak system of accountability breeds de-stigmatization for corruption especially

when money seems to be coming in an easy way.

Misuse of Power

Using one’s influence for personal gains is a common practice of our society. This use of

influence usually includes misuse of power, coercing the subordinates, twisting the rules

and often manipulating law for own advantage. One such example is of Mr Khan who

was incarcerated for 10 years with fine of Rs. 45.45 millions by accountability court for

his misdeeds. He was member of Provincial Board of Revenue responsible for land

134


36/78

management in entire province. He accumulated properties and other assets beyond his

know sources of income by misusing his official position. At the time of his arrest he had

assets worth Rs.51.6 million including 4.8 million in a foreign currency account. He

coerced a local revenue official to declare a built up house as a vacant plot and then

undervalue its price as a residential accommodation, further getting it transferred to his

sister-in-law. During investigations, it was revealed that back in 1986; he purchased an

expensive house in Islamabad against the name of his unemployed and resource less

sister-in-law and later had a general power of attorney in favor of his wife. Then he

circumvented legal procedures and filed a suite against his wife and sister-in-law

claiming that he paid Rs.40 million to the two women and the house should be transferred

to him name. Both his wife and sister-in-law consented to the claim and thus he became

lawful owner of the house. Once consent degree was passed, he gifted it back to his wife.

His assets included three houses two residential plots, National Saving Certificates worth

Rs.13.7 million and a foreign currency account equivalent to Rs.4.8 million. His only

source of income was his meager salary that was just enough to make both ends meet. He

was living a luxurious life style without justifying his sources of income. Finally he

landed in jail for 10 years with a fine of Rs.45.45 million.

Misappropriation of Public Money

Misuse of one’s position and making money through use of influence is one dimension of

corruption. Using one’s positions to misappropriate available government funds for own

gains is another face of corruption among government officials. The case of Mr. Zaman

explains how funds allocated and government provided resources for operational

management of a government office are misappropriated through misuse of power and

discretion. He was jailed for 5 years with forfeiture of ill-gotten property worth Rs.10

million. He was Director Agriculture to oversee crop protection and development in the

field. He misused allotted budgets in connivance with his subordinates by way of

preparing fake pur

chapter 4 occupational crimes 100 177

Documents