CONTRACT FOR INCOMPETENCE
Evasion of duty and taxes is a favorite topic of the revenue collectors. They are always ready to blame the industrialists, businessmen, and traders for the practice of evasion of duties and taxes. Evasion is, however, not a one-man hand and, thus requires the connivance of the collection agencies to a greater degree to get away with it. Customs duty evasion is one hot tamale. There is evasion of duty in many items. To counter this menace and to enhance the revenue collection targets, the Central Board of Revenue took some remedial measures. To check evasion of customs duty on certain imported items, a new system has been enforced. The task of checking evasion of customs duty has been given to a Swiss valuation firm, "COTECNA". Not a new bread of revenue collectors, not to the local private sector, not to anyone in Pakistan. The contract was given to a foreign firm.
This Swiss firm "COTECNA" will detect under-invoicing in imports which will lead to increase in revenue collections. Its effectiveness will help establish the extent of evasion of customs duty every year. Mr. Arshad Tanveer Chairman of SITE Association of Industry welcomed this decision to bring reforms in the Customs to check evasion of duty. He hoped that "by introducing the system, the innumerable disputes in Customs particularly of valuation shall come to an end and smooth clearance of goods shall take place without indulgence of red-tapism by the officers of Customs in the clearance of goods." The decision of CBR goes to show that all's not well with the present Customs structure. So, in order to get an efficient department, it had no choice but to hire the services of a foreign firm, "COTECNA", which is doing this same kind of work in Nigeria. On the other hand, Indonesia has given its total customs collection task to a foreign firm. The contracting of certain functions to a foreign firm gives ideas for improving the efficiency in other departments.
The Police Department is notorious for its inefficiency, corruption, and indifference. The recent trends of lawlessness, kidnappings, dacoities, car-snatching etc., in Karachi are a manifestation of the lackadaisical approach adopted by the Police force. The newspapers run out of space in highlighting the daily occurrence of crime related stories in Karachi. It has not reached a point where all hell breaks loose over the non-performance of the Police at any given time. To check the torture faced by the innocent, the Governor of Sindh set up the Citizen-Police Liaison Committees and the Central Reporting Cell. But they too have their limitations. There is a need for a methodical, pragmatic, and emphatic approach to this ominous danger to the citizens of Karachi. Therefore, it is proposed that the administrative control of the Police force be given on contract to a foreign firm or Organization, e.g. Scotland Yard. It will be uptothe Scotland Yard personnel to infuse latest crime-busting tactics in the police system, inculcate a sense of devotion to duty as a policemen and inspire public confidence in the Police. Since they will be shielded from; the pressures of influential powers, they will concentrate wholly and solely towards the attainment of the desired objective, that is, making Karachi crime - free.
The foreign contractors will also enable the Police force to perform many of its present non-crime related functions which hamper Police action in solving criminal matters. There is this protocol duty. The top echelons of the Police force are always at the beck and call of the VVIPS. They have to welcome and see-off these dignitaries, attend monotonous functions and receptions, and involve themselves in "pleasure duties" such as regular attendance at cricket and hockey matches. Now the top brass can devote themselves in these pursuits and leave crime-control in the experienced hands of these foreign sleuths. Thus the increase in crime rates on days when the VVIPS are in the city will not occur anymore. Then, if this system is workable and proves to be productive, the control of the disoriented traffic can be handed over to a foreign organization too. Maybe to the Bobbies of London. Gradually, then, the chaotic traffic system of Karachi which is primarily responsible for the decline in this city's productivity will turn for the better. The intended change in traffic will also diffuse the prevailing tension on the roads and streets of Karachi.
The telephone department can also be given to a foreign firm. The Nippon Telephone Company of Japan, for instance. The state-of-the-art equipment used by the Japanese telephone system, the exemplary work ethics of the Japanese employees, and the excellent functioning of the Japanese telephone system can be adapted in this city's presently despicable telephone network. The current nerve-wrecking antique system coupled with a lethargic work force has led to a record number of consumer complaints, a trend that increases in leaps and bounds every year. While m the one hand, the Ministry of Communications wants to take Pakistan into the 21st Century in tele-communications, thru cellular phones and other gadgetry on the other hand it is paying lip-service to the existing telephone network of Karachi. It is nigh well impossible to dial inter-exchange or even intra-exchange numbers. There are dropcalls, mixed lines, wrong numbers, dead phones, etc., The telephone system is totally screwed up, completely exhausted, and wholly broken-down. Give it to the foreign contractors to operate and see the miracle. In a couple of years, communication by telephone will become the most widely used channel. Anybody who wants a connexion will get one. Meantime, the present hierarchy of the telephone department can set up shops in Shershah and sell the present telephone equipments at the scrapyards. This will result in revenue for the government to pay the salaries of this motley crowd.
The nationalized commercial banks have also a big mess. They have to be reformed too. Why not give it to the gnomes of Switzerland to do wonders with the five nationalized banks? These five banks have embarked on a well-planned policy to squeeze dry their treasury by dubiously lending out each and every penny in their control. The over-staffed, highly-unionized, low-output workforce is another outcome after nationalization of these banks. The latest decision bythe democratically elected Government of Prime Minister Benazir Bhutto to privatize Muslim Commercial Bank is a thorn in the side of these languid unionists They do not want to put in even a day's toil, and hence they are trumpeting pooped-out rhetorics lamenting this step of the Gave t and regurgitating non-sensical figures of progress after nationalization. By turning over atleast the lending powers to the Swiss bankers, the Ministry of Finance can save these banks from the ruin projected by so many analysts. These Swiss bankers can also streamline the outmoded system of receiving deposits, cashing checks and maintaining accounts. The time saved will help provide a better productive rate for business and industries.
The public sector companies are in dire straits. Losses are eating away the capital base while mis-management is endemic. High level of pilferage is common in these mite. The corporations are remote-controlled from Islamabad with grave consequences. Since the Government is still pussy-footing with regard to total privatization, it is essential that these corporations run on sound basis. The solution is to hand over these corporations to a foreign management consulting firm, preferably from West Germany. This Organization will send in its own people to critically evaluate the anarchy prevalent in these mish-mash corporations, the aggravation of losses, the capricious system of mal-administrations the ignominious practice of nepotism, and the disregard of any concern for the consumer. It will help formulate far-reaching policies and strategies which will induce the desired metamorphosis in these Corporations. This transformation will enable the government to ask for, and obtain, a fair value when these Corporations are privatized.
In 1989 , during the time the annual charade perpetrated bythe financial wizards of Islamabad was thrust upon the people of Pakistan in the guise of a document ostensibly referred to as a "Budget", the erstwhile Chairman of SITE Association of Industry, Mr. Nazim F. Haji postulated the idea of handing over the Ministry of Finance to the World Bank. Although it was a sarcastic statement born out of sheer vexation, the thinking was on the right path. In fact, the recent appointment of "COTECNA" gives credence and value to the 1989 statement of SITE Association of Industry.
The service charges being paid to "COTECNA" is Rupees Two Hundred and Fifty Million per year. That is nearly 21 million per month or 800,000 per day or Rs. 100,000 per hour. ONEHUNDRED THOUSAND PER HOUR!! Paid in foreign exchange thru an irrevocable Letter of Credit. Looks like these "COTECNA" chaps dont trust Pakistan from the beginning. The top honchos of SITE Association of industry are ready to provide the same service (if not better) as "COTECNA" at only Rupees 50 million per annum plus the government's approval to its longstanding demand for a separate Chamber of Industry thrown in for good measure. And they promise a better than a 1 to 6 ratio of fees to collection that the CBR has envisaged. So how about it CBR. Care to give out another contract?
APRIL 18, 1990