Corruption And Underdevelopment: (a Case Study Of Halliburton)

CHAPTER ONE

GENERAL INTRODUCTION

Background of the Study A man can be born again; the springs of life can be cleansed instantly…if this is true of one, it can be true of any number. Thus, a nation can be born in a day if the ideals of the people can be changed [William Jennings Bryan]. Nigeria is one of the Countries in Africa that loses billions of dollars yearly because of corruption. She was ranked the second most corrupt country in the world in 2004 [Olu-Olu, 2008]. In 2005 and 2008, Nigeria was ranked 13th and 17th respectively out of 146 countries by Transparency International’s Corruption Perception Index [TICPI]. Although the 2007 ranking placed Nigeria as the 32nd most corrupt country out of 147 countries by TICPI, corruption still remains a serious problem in Nigeria [Shehu, 2006]. Corruption is a “multifaceted phenomenon with multiple causes and effects” [Andvig and fjeldstad, 2001: 1]. It is a trinity of illegal money, commercial and criminal activities [Baker, 2005; Guanardi, 2008]. According to section 8(1) of the Anti-Corruption Law of Nigeria (2004), it entails the act of asking for, receiving or obtaining any property or benefit of any kind for oneself or for any other person. It involves the abuse of public office for self-aggrandizement or private benefits [World Bank, 1997].

The term “corruption” covers a wide range of conduct patterns. It is a product of the socio-economic and political structure of any society. As a multi-faceted

P a g e | 10
phenomenon, no single theory is equipped enough to explain its causation and/or control. Corruption is not a Nigerian Word. It is an English Word. While corruption is an English word necessarily laced with western ideas, the concept behind it is found in other cultures. Corruption is one of the dare devils that stares humanity in the face. It is also a global problem with certain destructive tendencies in the Third World Countries like Nigeria. But the rate of corruption in Nigeria is so alarming that one is constrained to ask: Is there anything peculiar to the nature of Nigerians that makes them to be corrupt? Achebe [1983: 35], quoting from the weekly star newspaper of May 15, 1983, wrote that the corrupt nature of the Nigerian society is such that, keeping an average Nigerian from being corrupt is like keeping a goat from eating yam. Corruption serves as a spring board to under-development in Nigeria. Most economic, political and social problems in underdeveloped societies like Nigeria emanate from corruption which manifest in many ways such as: lack of accountability, inadequate funding of programs, diversion of public resources to private ownership, different types of discriminations, ethnicity, lack of competence, inefficiency etc. The problem of corruption as a phenomenon is historically rooted in the country’s political economy. In the colonial period, it was attributed to colonialism.
Although, the government has embarked upon anti-corruption measures, these are not sincerely and properly implemented such that the expected objectives and

P a g e | 11
goal are not achieved. The problem is thus rather aggravated. Consequently, corruption has continued to perpetuate underdevelopment in Nigeria. Many factors seem to have combined to make the situation severe or worse than the case in the colonial era. Firstly, Achebe (1983: 1) fascinatingly explained that: The trouble with Nigeria is simply and squarely, a failure of Leadership. There is nothing basically wrong with the Nigeria land and climate or water or air or anything else the Nigerian problem is the unwillingness or inability of its leaders to rise to the responsibility or to challenge of personal examples, which are hallmarks of true leadership. There is also a common belief that poverty is one of the major causes of corruption. Here, it is argued that there exists a great deal of poverty among Nigerians in almost every segment of their social life. In Nigeria today, it is just a few families that can boast of three square meals a day, wear good clothes, or enjoy the basic necessities of life, such as water, good road network and electricity. Hence, everyone takes to corruption, no matter one’s own small capacity as a way of making up or balancing the prevalent inequalities. It is also equally true that, corruption is due to the degeneration and shaky foundations of our moral upbringing. Corruption transcends nearly every structure of Nigerian society. The situation is so bad that corruption has been institutionalized to a point where it almost passes for official policy in both public and private sectors of our national life. The socio-economic and political system itself appears to be built on corruption and it thrives on it. Even the churches and other religious organizations are

P a g e | 12
themselves not completely free of corrupt practices. This study attempts to assess the impact of corruption in Nigeria’s development with a view to suggesting alternative approach of tackling the phenomenon.
• Statement of Problem
One of the most fundamental problems facing Nigeria today is corruption. The corruption has not only weakened the moral fiber of Nigeria, it has also wreaked havoc in its body politics. Corruption in Nigeria is so devastating and alarming that it has virtually affected every sector of the economy. Consequently, it is obvious that corruption has been a major bane of socio-economic and political development in Nigeria. This leads to the following questions on which the research is based.
• Is corruption responsible for Nigeria’s underdevelopment?
• Is the persistence of corruption in Nigeria linked to external factors?
• Can deregulation curb the menace of corruption and engender development in Nigeria?
Corruption has affected many sectors of the economy. For instance, Nigeria presents a typical care of a Country in Africa whose development has been undermined and retarded by the menace of corrupt practices.

P a g e | 13
To say that corruption has eaten deep into every aspect of the Nigerian Society is to affirm the obvious. This can be inferred from the revelations of probe panels that have been set up at different times by different regime. In Nigeria, since independence, series of reforms have been carried out in the public service so as to make the public bureaucracy more efficient and result oriented. However, the anticipated gains of such reforms have not been visible due to series of factors which include that of corruption. Whichever way one views corruption, particularly bureaucratic corruption, it involves a violation of public duty or deviation from high moral standards in exchange for [or in anticipation of] personal pecuniary going. It is connected with moral and dishonest acts. Gould D.J cited in identified more than twenty categories of corrupt practices in developing nations which are very much visible in Nigeria State. These are bribery, fraudulent use of official stationary, payment for office visit, payment for letter of recommendation, kickback for wiring, money travel documents and travel related peccadilloes, misuse of official housing two salaries, neglect of public service for per tonal business, salary computation fraud, embezzlement in its various form among other. Corruption in the bureaucratic class is the type of corruption the citizens encounter daily at places like the hospitals, schools, local counseling offices, encounters with the police, taking offices, etc. it is petty corruption of need that occurs when one obtains a business from the public sector through inappropriate procedure.

P a g e | 14
However, corruption in the bureaucratic class in Nigeria came into being when public servant not steamed in the traditions of a political professionalism, saw how politicians who hitherto, were nothing, became rich overnight through patronages, gift, bribes and actual embezzlement of government funds. It was only a matter of time before the bureaucrats joined them. In Nigeria’s fourth republic, corruption has become a Norm and practice of politics among the present political class [i.e. those that control the affairs of the state] from the presidency of the councilors of local authorities and party chairman. The furniture mentality which this political class brought to governance represents the highest form of corruption and enslavement of the popular masses of the country. Political corruption in Nigeria encompasses the use of official power and government resources by the political class for sordid and disrepute private gain. Indeed, political corruption could be said to be the “head” and other forms of corruption are the “body” cut of the head; the other parts could cease to grow. Nigeria’s main development problem is political corruption which needs to be eradicated.

Accurately, it can be asserted that, it is the duty and responsibility of every good government to create their environment and set the tone for good and effective policies, including conducive business environment, protection of persons and properties etc. in any society or country. The Nigeria government has been blamed properly. So, for not setting a conducive environment, economic and social

P a g e | 15
development over the years, particularly at this time, when public security and safety has steadily become a major issue for citizens and corporate investors alike. Corruption additionally, has become a hot topic among citizens and investors both apparently risen, due in part, to a battered and depressed economy, and since, the discussion or debate regarding corruption, has tended to be focused or centered around the government or public sector component of the hydra-head corruption monster. This is so, even though, corruption levels or magnitude is not much different, in the private sector. But is quite another thing, and pretend that corruption in Nigeria is localized to public officers and public office-holders sellers of adulterated kerosene are practicing unethical business methods, and even a criminal enterprise, ditto for the groundnut seller who cheats you out of more groundnut because he uses a crooked cup-measure, it is corruption practices, when banks and other financial institutions charge outrageous interest rates, refuse to grant loans to legitimate business people and companies, for capacity building, but grant loans to the well-connected and those willing to wet- the ground, but would never payback the loans. Government has brought ways of combating corruption through some crude in Nigeria. The provisions are laid down in the constitution of federal republic of Nigeria. These include the criminal code, probe panels and commissions, the anti-corruption tribunal, the anti-corruption acts and War against Indiscipline and Corruption Conduct of Bureau, Independent Corrupt Practices and other related offence commission etcetera.

P a g e | 16
In December 31, 1983, Gen. Muhammadu Buhari became the 7th Head of State in Nigeria selected to lead the country by middle and high ranking military officers after a successful coup d’état that overthrew civilian president Shehu Shagari on December 31, 1983. Buhari justified the military’s seizure of power by castigating the civilian government as hopelessly corrupt, and this administration subsequently initiated a public campaign against indiscipline known as “War against Indiscipline” [WAI]. Aspects of this campaign include public humiliation of civil servants who arrived late for work whilst guards were armed with whips to ensure orderly queues a bus stop. He also moved to silence critics of this administration passing decrees curbing press freedoms and allowing for opponents to be detained up to three months without formal charges. He also banned strikes and lockouts by workers and founded Nigeria’s first secrete police force, the national security organization. This policy was a bit affective, as it curbs Nigeria’s indiscipline for a while until Ibrahim Babangida Badamasi succeeded him in August 27, 1985. Public office is a trust which should not be abused. This necessitated the establishment of the code of conduct Bureau and Tribunal act, chapter 56 LFN 1990 which gave the bureau the mandate to establish and maintain a high standard of public morality in the conduct of government business and to ensure that the actions and behavior of public officers conform to the highest standard of public morality and accountability [Federal Republic 2002].
The Bureau has through its enlightenment programs enable the people to know what is expected of them and to an extent inflamed feat in the minds of some public officers as against corruption practices. Though, they have not achieved expected

P a g e | 17
result, hence, ICPC [Independent Corruption Practices and other related offense Commission] was established.