The Tribune

EDITOR, The Tribune.

The classic Hollywood movie “Casablanca” featured a police chief superintendent, Captain Louis Renault, who was cheeky, a liar, back-stabber and totally corrupt.

He brazenly raided a casino on the same evening that he earlier had been a patron. When asked why the raid, he professed shock that gambling was taking place there. Seconds later a croupier brings him his winnings from a prior session at the tables.

When it comes to the issue of corruption, we are a nation of Louis Renaults unable to see our own hypocrisy on this issue.

Some learned people threw a conniption fit when the Prime Minister renewed his campaign promise to vanquish corruption which he first said was costing the state $200m a year and then he later revised that figure upwards to $500m.

The PM was ridiculed because he provided no proof to support his claim that corruption was costing us as much as 5% of our GDP (hence $500m). But just as the PM offered no proof that he was right, his detractors could offer no proof that he was wrong.

Some Bahamians view corruption as exclusively a swindle that the high and mighty perpetrate on the Treasury, or as shady deals that are designed to purloin the hard-earned money of taxpayers.

Corruption is a monster with many heads and the Prime Minister is swinging in all directions in the hope of taming the beast. He is right so to do. Corruption runs to the very core of our existence and has since the beginning of our history.

When Woodes Rodgers was sent here as the Royal Governor 300 years ago there was so much lawlessness that he saw it as his mission to kick out the pirates in order to restore commerce.

Since then some people have made fortunes in these islands by having a contact inside the Customs House. In the days of rum-running until now, pulling a fast one on Customs has become a fast track to millionaire’s row for some.

We should be clear that The Bahamas is not alone in the haemorrhage of money at its border. This is a vexing problem for many countries compounded by globalisation and free trade. As our thirst for foreign goods increases so too have the hands that are picking the pockets of Her Majesty’s Customs.

While there is petty corruption taking place at our air borders with citizens fudging their customs declaration or paying off officers to look the other way as they and their dutiable items sail out the door, airport corruption pales in comparison with seaports where the real action takes place.

It is no secret that in many developing countries, Customs ranks as the most corrupt government institution. Troubling for us, some Bahamians either don’t rate what happens there as corruption or they see nothing wrong with it.

Bribes to expedite clearance or to charge lower rates of duty are chalked up as the cost of doing business and it is simply passed on to customers. Some merchants who would otherwise abhor corruption are put in a no-win situation where they have to pay to play.

Given the amount of commerce that happens in our country it is not a stretch to see how the PM’s $500m figure can be easily reached and even surpassed.

Customs are our gatekeepers in addition to being our chief revenue collectors. Since the explosion of the drugs trade in the 1970s they have also taken on a national security role.

We can imagine that it is next to impossible to smuggle guns and ammunition on airplanes, so the next best shipment method is by sea. We need vigilant incorruptible customs officers to help stop the guns making it past the border and onto our streets.

The Commissioner of Police will be a happier man if he got more support at the borders from Customs. And that is another reason why the PM must look to tighten customs management through training and technology if he truly wants to curtail corruption.

Imagine if Customs were able to collect $500m more in revenue for the Treasury. It would eliminate the budget deficit, end the need for additional borrowing and would in fact allow for the VAT money to be used as intended, to pay down the national debt.

It would also enable the government to computerise its bureaucracy and pay higher wages and benefits to the hardworking women and men in Customs who would never countenance a bribe.

If the government pays down the debt it can do two things – reduce the tax burden or expand the public services that we all rely on. We could build better hospitals, schools and roads without going broke in the process.

We must accept that corruption is more than just bribery. It includes abuse of patronage such as padding the payroll with ghost workers, extortion, nepotism, outright theft of public assets or the diversion of state revenues for private gain.

In The Bahamas, routine corruption is the most common form. This is where public officers ask for a bribe to do their jobs. Pay now and get what you want today or refuse to pay and wait for the cows to come home.

Refuse to pay and you could end up with an extreme examination of your goods or a request for documents that are difficult to produce.

Another form of corruption is fraud. This involves the mislabeling of goods so that they attract a lower rate of duty. In this scenario, members of the public are initiating the corruption and paying the officers to turn a blind eye.

We are also plagued with criminal corruption. This is typically how guns and drugs get past the border, or in the case of the immigration department how illegal aliens easily get back in the country after being deported.

Stopping corruption works the same as stopping traffic violations. After we found out that the police were conducting “pop-up” road blocks to check for minor infractions like not wearing a seat beat on having valid licences and insurance papers, motorists started to comply with the law.

Likewise, if the PM persists with beating the drum against corruption he increases the likelihood that corruption will be detected, rooted out and punished. We must name and shame offenders if we are to change attitudes amongst the public.

Technology has a role to play as well and customs and other government departments need state-of-the-art computers and software, including liaison with officials at foreign ports.

Not surprisingly, corruption festers in complex bureaucratic procedures that require face-to-face interactions between the public and officials.

You simply cannot clear goods coming in here without personally interacting with officials. Customs is so deliberately complicated and outdated that you must grudgingly accept whatever advice the officer gives you. Few amongst us can navigate the labyrinth that is the Customs codes.

The PM’s battle against corruption must be enjoined, not castigated. Everybody wins when nobody gets an unfair advantage from a public service.

THE GRADUATE

Nassau,

May 5, 2018.