Selasa, 30 Juli 2013

Civil servants, corruption

Civil servants, corruption
Hendi Yogi Prabowo ;   Director of the Centre for Forensic Accounting Studies at the Accounting Program at the Islamic University of Indonesia. He obtained his Master’s and PhD in forensic accounting from the University of Wollongong Australia
JAKARTA POST, 24 Juli 2013


The government plans to recruit around 60,000 civil servants in August to replace the 110,000 due for retirement. Many job seekers view a civil servant position as a way to ensure their success in the future; as a result this intensifies the competition for the job.

The new recruits will need to adapt to the formalized social structure and organizational behavior of the relevant institution. Leadership is a determining factor in the formation of an organization’s behavior.

Behaviorists believe that leaders with a strong vision will be able to construct perspectives that can be projected to colleague to shape their perceptions of the reality inside and outside their organizations. 

Among the major issues in civil servant recruitment are transparency and accountability. Reports of bribery have plagued recruitment in the past. This created the impression that civil servant recruitment is all about money rather than competency. Some consider the bribing of civil servant recruitment committees to be a negligible petty offence compared to much larger schemes perpetrated by high ranking officials.

Nevertheless, as far as organizational behavior is concerned, such acts shape the mindset of the new wave of civil servants: teaching them that their unlawful act is permissible under their organizations’ rules and culture. 

In the long run, this may contribute to the development of rationalization for unethical or even unlawful conduct throughout the organizations. When such a mindset is embedded within an organization’s collective consciousness, it will become fertile ground for the seeds of corruption to grow and flourish and will affect the entire system.

From the behavioral perspective, some experts believe corruption is an outcome of a disorder within an organization’s mindset, which prevents it from properly carrying out its primary functions. 

Such a disorder may be characterized by its tendency to live in its own world, unable to properly connect to reality. A public institution that suffers from “organizational autism” will be unable to properly communicate with the people that it should served, thus, decisions and policies are made based on the perceived rather than actual problems.

Indonesia is infamous for its corrupt culture. Many foreign companies consider bribing public officials an unavoidable cost for doing business in the country. 

Control Risks, a global risk and strategic consulting firm, recently published a paper based in part on its experience conducting business in Indonesia. 

It states that graft is a way of life that has created a high level of business uncertainty for foreign companies. Control Risks believe the current decentralization system has made corruption more entrenched than ever. 

Corruption was more centralized during the New Order regime and it was easier for foreign companies to predict when and where they would be asked to pay bribes. Under the current regime, however, uncertainty prevails as to when or where demands will come from. 

Furthermore, despite its bold moves, the Corruption Eradication Commission (KPK) is considered by foreign businesses insufficient to eradicate corruption and promote business certainty in the country. 

When it comes to corruption eradication, even small things matter. Among the most important areas that must be addressed is changing the organizational behavior of the country’s public offices. Such an effort starts from changing the behavior of public officials themselves.

A noticeable behavioral “red flag” among high ranking public officials is extravagant lifestyles obviously beyond their financial means. As individual behaviors shape the collective mindset of an organization, they also characterize its policies and decisions. An excessive wealth seeking mentality leads to the temptation of corruption.

Recently, the Indonesian Forum for Budget Transparency (FITRA) published a list of the top five most corrupt provinces, cities and municipalities. In its report, FITRA highlights regional governments’ lack of competency in managing their resources and suspects that corruption is a major cause of the inefficiencies. According to FITRA, the most common corruption patterns in these areas include fictitious procurement, mark-up, unfinished work, disbursement fraud and low quality goods.

There is no easy way to change the excessive wealth seeking mentality as process that started at an early age. Factors that influence the formation of this mentality include family, education and mass media, just to name a few. 

Universities have been criticized for overemphasizing on teaching their students about revenue and profit maximization while giving morality building a lesser amount of attention in, among others, their accounting and business curriculum. For this, education should be at the forefront of our struggle against corruption by building the ethics and morality our future generations.

Public offices must also focus control internally to minimize fraud opportunities, with a thorough and transparent recruitment process as part of the mechanism. Strong leadership must support and lead all these changes by people with strong integrity and solid characters. ●

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