Strengthening governance and integrity in the COVID-19 response and recovery

WHAT do corruption and the COVID-19 pandemic have in common? Both have the ability to inflict deep and harmful impacts on a country’s immediate and future development. The pandemic can have a detrimental toll on a country’s healthcare infrastructure and the well-being of its citizens, impacting its ability to grow and develop its human capital. Similarly, corruption can affect a country’s economic, political and social sphere, affecting its reputation and eroding trust both internally and globally.

Many international organisations have reported on how this pandemic is being used to further erode good governance and integrity. The Organized Crime and Corruption Reporting Project (OCCRP) has stated that some political leaders have taken advantage of the pandemic to further consolidate their power, impose more restrictions on already limited access to information, eliminate transparency requirements from public procurement and avoid public accountability mechanisms.

The United Nations Development Programme (UNDP) reported that the procurement of medical supplies is one of the most vulnerable areas for corruption and fraud. Corrupt actors are capitalising on the emergency mechanisms in place and the global shortages in the supply chain to provide essential goods and services at grossly inflated prices.

The Organisation for Economic Co-operation and Development (OECD) is concerned that the outbreak of COVID-19 will create opportunities for abuses, especially in public procurement and the distribution of economic stimulus packages. Given the vast allocations involved, this can result in substantial leakages that seriously compromise the effectiveness of the packages.

Transparency International (TI) highlighted that corruption often thrives during times of crisis, particularly when institutions and oversight are weak and public trust is low. We have seen it occur during past global health emergencies such as the Ebola virus and Swine flu, where unscrupulous persons had profited from the misfortune of others.

A study by the Association of Certified Fraud Examiners (ACFE) has shown that the instances of fraud generally increase during a recession. In this pandemic, emergencies and subsequent rapid responses create opportunities for integrity violations, most notably fraud and corruption.

Like many other countries, Malaysia has announced large fiscal initiatives to address pressing issues such as meeting our urgent healthcare needs, boosting social-welfare programmes and rising unemployment. To date, the government has unveiled eight economic packages worth a cumulative RM530 billion to support the rakyat during these times of economic uncertainty.

It is vital that every ringgit the government spends is monitored closely to ensure that the objectives of assisting the rakyat and businesses are achieved. Following are some actions that the Malaysian government can take in practicing transparency in its COVID-19 response and recovery effort.

1. Build an effective framework to facilitate data openness and access

Data openness and access is critical to better governance and integrity in the nation’s COVID-19 response. Data should be made available to all stakeholders, including the media, independent think thanks and the public, so that everyone is well informed.

Conduct regular briefings to update the public, and have informed medical professionals to answer questions at these briefings. Importantly, respond to any misinformation or false reporting immediately, and acknowledge shortcomings and be truthful with the public.

2. Address immediate risks in the emergency public procurement process

Transparency is even more crucial during an emergency. Any compromise involving rules and regulations can lead to abuse of the public procurement process and result in higher risk of conflict of interest, embezzlement, tender manipulation and failure to deliver vital medical supplies.

Procurement contracts should be awarded to companies that have a proven track record. The purchase of vaccines is a business and the government needs to conduct due diligence so that contracts are awarded to the right companies and not rent seekers who use their “know who” skills instead of “know how”.

Guidelines on emergency procurement of vaccines with clear “check and balance” mechanisms should be developed as a short-term solution. In the long term, legislation can be enacted to create an ethical framework for decision-making in times of an emergency.

3. Mechanisms for effective implementation, compliance and review

Regular audit and governance oversight must be conducted to reduce the risk of fraud and corrupt practice occurring, with its results and recommendations acted upon and reported publicly. Where possible, these audits should be conducted mid-stream or during the implementation of a project to detect potential integrity red flags and circumvent any possible occurrence of fraud or corruption.

Creating a specialised oversight body would go a long way to achieving greater transparency. The US government has a specific oversight body – an epidemic response accountability committee – to oversee all government spending.

4. Safeguarding fairness in the enforcement of public integrity standards

Enforce rules and fines diligently and fairly to all. Remove discretionary powers from individuals in enforcement agencies.

Above all, do not give preferential treatment to selected persons based on their position or standing. By right, they should be subject to the maximum penalties allowed under the law for their failure to be role models and set a good example.

5. Fostering a culture of integrity in leadership

Have a clear plan and stick to it. There must be a single strategic line of command that everyone understands and abides by. Practice a culture of integrity – keep to your word; act with sincerity; strive for consistency; and don't make promises that you know you can't keep.

By doing so, our leaders can show a functional, unified team that is well coordinated and works for each other to achieve the overall goal.

In many ways this pandemic is an unanticipated opportunity for the government to rectify existing weaknesses and reform the inherent system. Address leakages, obtain value for money from public procurement, remove rent seekers, reduce red-tape and unnecessary processes and ensure the rakyat’s money is used in a transparent and accountable manner.

It is hoped that when the pandemic is finally brought under control and the general situation has improved, some positive results will be realised in our fight against corruption.

* Datuk Seri Akhbar Satar is the President of the Association of Certified Fraud Examiners (ACFE)-Malaysian Chapter

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.