A case study of corruption from Pakistan

 A few months ago, I received an e-mail from an engineering firm in Pakistan. Out of the blue, the firm offered me the contract to build the Hingol Dam and four similar projects. The offer came as a surprise because working for International Rivers, an environmental organisation, I am rather sceptical of such projects. I may pass as a dam expert, but have never built such a structure before.

 Perplexed, I wrote back asking for more information.The engineering firm, which lists major international companies among its customers, told me it could get the contract for a modest commission, or by forming a joint venture with me. “Please be informed that we can win this tender for you if you are interested,” the firm’s chief executive assured me. When I asked how exactly this would work, he told me that he would prefer to discuss the details on the phone.

 At this difficult time, a lucrative contract would come in handy. I was intrigued to see evidence of corruption in the act, but did not take the bait. I had written about corrupt practices in infrastructure construction for many years, and knew that the Hingol contract was a rather
typical case. According to corruption watchdog Transparency International, public works are the world’s most corrupt sector – more corrupt than even oil or arms trade – and Pakistan’s water sector is particularly affected by fraudulent practices.

 Pakistan has the world’s largest contingent irrigation system. The country is crisscrossed by large canals, drainage highways and some of the world’s largest dams. Yet, the system is in deep crisis. More than 60% of the irrigation water is lost before it reaches the roots, and average crop yields are much lower than in neighbouring India. Because so much water is diverted, the mighty Indus no longer reaches the sea most of the time, and the Indus Delta is eaten away by coastal erosion.

 Almost 5 000 square kilometres of arable land have been lost to the sea, while the waste of water causes massive problems of waterlogging and salinisation further upstream. Plugging the leaks of this wasteful system would make more sense for farmers, taxpayers and the environment than building new dams and canals. Yet, this is not happening – because of corruption. Pakistan’s water authority is considered to be one of the country’s most corrupt institutions. Top positions are sold at a high price, and the officials need to recoup the purchase of their positions through kickbacks. They can do so by offering lucrative contracts for new dams and other construction projects, not through water conservation measures and other efficiency improvements.

 The poor farmers who sit at the end of the leaky canals and the environment pay the price for this corrupted system. Peter Eigen, the founder of Transparency International, says that such a perverse allocation of resources is a global problem in the infrastructure sector. “Corrupt government officials steer social and economic development toward large capital-intensive infrastructure projects that provide fertile ground for corruption,” he wrote in the “2005 Global Corruption Report” – a report which I had the opportunity to co-author.

 The independent World Commission on Dams noted: “Decision-makers may be inclined to favour large infrastructure, as they provide opportunities for personal enrichment not afforded by smaller or more diffuse alternatives. The consequences frequently directly affect the poor and the environment.”Now that I have seen a glimpse of such corruption in practice, I am quite curious to find out who will eventually get the Hingol Dam contract. I hope the farmers of Balochistan will reap some of its benefits.

 I feel sorry for all those farmers who pay the price for the corrupt practices of contractors and government officials, and for the wasteful system these practices bring about. 

Peter Bosshard

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