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How Hong Kong became Corruption Free

Zimbabwe has been rattled by corruption for the past two decades. Cases of corruption has been ingrained in society with corruption being prevalent even n the police and the church. Hong Kong has successfully cleaned up corruption resulting in a steady flow of investments making Hong Kong a powerful banking centre. This has been due to the introduction of the ICAC (Independent Commission Against Corruption), fourty years ago to fight corruption. The ICAC been very succesful and the the results are showing. It takes a strong resolution to fight corruption and to set a strong precedent, so that many will be deterred from considering corrupt activities. Zimbabwe is at a watershed moment, where the stance taken on the present corruption sagas engulfing the nation will determine how the nation moves from this.
Rooting out corruption will out Zimbabwe on a road to recovery, that will see investment coming back to Zimbabwe. Below is an account of  how Hong Kong tackled corruption to beome the powerful force it is today. There is no reason why Zimbabwe cannot recover and become a centre of influence and power.

The Independent Commission Against Corruption (ICAC; Chinese: 廉政公署; and 總督特派廉政專員公署 before 1997) of Hong Kong was established by Governor Murray MacLehose on 15 February 1974, when Hong Kong was under British rule. Its main aim was to clean up endemic corruption in the many departments of the Hong Kong Government through law enforcement, prevention and community education.

What is the ICAC?
The ICAC is independent of the Hong Kong Civil Service. The Basic Law of Hong Kong stipulates that the ICAC shall function independently and be directly accountable to the Chief Executive of Hong Kong. Previous to the transfer of sovereignty in 1997, ICAC reported directly to the Governor of Hong Kong, and appointments to the ICAC were also made directly by his office.

The ICAC is headed by a Commissioner. Since 1997, the Commissioner of the ICAC has been appointed by the State Council of the People’s Republic of China, based on the recommendations of the Chief Executive of Hong Kong.

Historical Background
As Hong Kong got back on its feet after WWII, the population began to swell and manufacturing industries grew, and by the 1960s Hong Kong was experiencing economic growth. Against this background the government kept Civil Service salaries very low, and so it was probably no surprise that officials in all departments took advantage of their positions to supplement their wages with demands for ‘tea money’, ‘lucky money’ or substantially larger sums. Examples of corruption ranged from nursing sisters demanding money to provide extra blankets and/or food or to allow visitors outside normal hours, firemen lived by the saying, ‘Mo chin mo sui’ (no money no water) and in fact sometimes asked for money to turn off the water, preventing water damage, once a fire had been put out; officials in Lands and Public Works departments secured huge sums of money for ‘advice’ and ‘signatures’ that procured the award of tenders and enabled developments and projects to proceed; the Royal Hong Kong Police was also in on the act and entire stations were organised to ‘make money’ from hawkers, licences and in many other illicit schemes. Civil servants often had to pay for promotions and postings in positions known for a lucrative return. HK was awash with money, and poorly paid civil servants made sure that their wages were supplemented by it. That is not to say that those in private business/employment – from bankers to exporters from taxi drivers to restaurant workers – were scrupulously clean, the whole of Hong Kong was on the take.

The Hong Kong Police had previously had an Anti-Corruption Branch, but it did little to reduce corruption. There was a public perception that Anti Corruption cops essentially, following the discovery of corrupt practices, would then enter into dodgy dealings themselves. A particular example was Peter Fitzroy Godber, a senior officer stationed at Wanchai police station and later at Kai Tak Airport police station. Before his retirement in 1973, he had amassed no less than 4.3 million Hong Kong Dollars (approximately 600,000 US Dollars) in overseas bank accounts. The police’s Anti-Corruption Branch investigated his mysterious wealth and ordered him to explain his source of income. In response, Godber immediately arranged for his wife to leave the colony, then he used his police airport pass to bypass Immigration and Passport checks and walked onto a plane for London. Godber’s escape led to a large public outcry over the integrity and quality of the police’s self-investigation and called for reforms in the government’s anti-corruption efforts. Godber was later extradicted back to HK to face trial and convicted.

The newly formed Independent Commission Against Corruption was created to root out corruption; unlike the old police Anti-Corruption Branch, the new ICAC would be answerable to only the Governor of Hong Kong. Local cynics first joked that “ICAC” stood for “Investigating Chinese Ancient Customs” or even “I Can Accept Cash”. Most ICAC operations staff were sergeants recruited from specifically UK police forces and were certainly not beyond sharp practices themselves. Their tactics and methods were often crude and aggressive in the extreme, often they would sweep down to a police station and take an entire shift in for questioning. Such questioning was often just a ‘fishing exercise’. Ultimately though their shock tactics were effective.

In the summer of 1973 decorated police chief superintendent Peter Fitzroy Godber could see the writing on the wall. The London native had spent more than two decades living in Hong Kong, a city where institutionalised corruption penetrated every strata of society. Bribes known as “tea money” were paid for basic services, from getting a home phone installed to making sure firefighters showed up when there was a blaze. Police officers of all ranks had accepted payoffs for decades. In 1971, an internal police unit discovered an unusual remittance from Hong Kong to Canada; C$12,000 had been transferred to a Canadian bank account under the name “P. F. Gedber”.

Police launched an internal investigation, codenamed “Havana”. But with limited powers, the anti-corruption unit made little progress. Godber applied for early retirement, asking to quit his post in July, 1973.But three months shy of his departure, the police commissioner received a tip. Police contacted 480 banks and found millions of dollars in overseas and local bank accounts – all controlled by Godber.

Once hailed a hero during the 1967 riots for confronting violent protestors, Godber panicked. He asked that his retirement start in June. The prospect that he might flee sparked the creation of one of the world’s most powerful anti-graft organisations : the Independent Commission Against Corruption.

The ICAC began work 40 years ago today. The commission has been credited with transforming Hong Kong and paving the way for the economic boom of the 1980s and 1990s, which helped a more honest city become an international financial hub.

In his 2004 book, A Modern History of Hong Kong, Steve Tsang , a Chinese studies professor at University of Nottingham, described the ICAC as “one of the best parting gifts from the colonial government”, which “made the right psychological impact on the general public”.
The commission continues to wield considerable influence and much of the public remain confident in its work. Yet, in recent years, the body has been vilified after former ICAC chief Timothy Tong Hin-ming was accused in 2012 of misusing public funds during his tenure. The case is still under investigation.

In 2012, the latest report by the ICAC Complaints Committee, an independent office, says it received 19 complaints containing 57 allegations against the corruption agency and its officers. More than half of the allegations related to misconduct, followed by neglect of duties and abuse of power. However, despite criticism of the ICAC, the scale of the influence the institution has had on Hong Kong can be gauged by how unrecognisable the city is from the dark days of the 1960s and 1970s, when corruption ran through almost thread of society.

The ICAC began its work on February 15, 1974, in an aptly named location: the Sincere Building in Central. The agency later moved to its current headquarters in North Point, and today boasts a staff of 1,300. In the early years, the focus lay with police corruption and disrupting complex networks of syndicated bribe-taking in many police stations. In the Yau Ma Tei fruit market case, a heroin racket in West Kowloon in 1976, the ICAC rounded up so many officers that the local police station was nearly empty.

Neil Maloney , a British expatriate who joined the Hong Kong police force in 1969 before becoming an ICAC investigator in 1974, recalled that each police station had a dedicated room for a “collector”, whose sole job was to buy the bank drafts to send bribes to local and overseas accounts.

Leaving the ICAC in 2000, Maloney says his former employer was pivotal in creating modern Hong Kong. “Forty years ago, people joined the police and government so they could be corrupt, but now you’ve got young people working in government who have lived in a corruption-free society,” he says. “The younger generation take it for granted, but 35 years ago the way the government was run was like Bangkok or Manila.” In the summer of 1973, police rushed to collect evidence before Godber’s scheduled retirement date.

After searching Godber’s government accommodation, police found three logbooks and financial documents. The new evidence revealed that Godber controlled HK$4.3 million in assets, six times more than his total income since joining the police in 1952. But police couldn’t prove the money had been obtained illegally. On June 8, 1973, Godber did what any desperate man would have done: escape. Using a special airport security permit issued to police officers, he bypassed customs, boarded a flight at the old Kai Tak airport to Singapore, and flew to his native England.

The public exploded. Residents stormed Victoria Park, demanding that Godber be hunted down. The governor at the time, Sir Murray MacLehose, called a commission of inquiry, which recommended an all-powerful independent anti-graft agency. Its first job was to bring back Godber.

After eight months of legal battles, the once clean-cut Godber – by then sporting a bushy beard – was extradited to Hong Kong. He was charged with one count of conspiracy and one of bribery, after being accused of taking HK$25,000 from a Chinese police superintendent who had been desperate for a promotion. Despite a mountain of evidence amassed over many years, just one witness testified against him. Yet Godber was found guilty in 1976 and sentenced to four years in prison.

During ICAC’S initial years, many citizens, civil servants and police officers hated the commission because they missed the extra money from pay-offs. In 1977, dozens of officers stormed the ICAC offices, punching staff. The then-governor made a bold decision that shocked the ICAC staff: The city would pardon cases of corruption that had occurred before 1977 through a partial amnesty. It appeared to be a blow to the ICAC , but the decision – in hindsight – was a godsend, Maloney said. “It was a brilliant move because police themselves said we’ve been given a second chance,” he says.

Cases deemed to be very serious were still pursued. The reprieve meant that the young commission could continue its work, but with a shift in focus.”We sat on the waterfront near the Star Ferry, eating ice lollipops wondering what we were going to do,” said a former investigator, who wished to remain anonymous, who served with the ICAC from 1974 to the late 1980s. He, like Maloney, was among the very few officers hired in the first wave of recruitment – because so many local police were under investigation.

After the 1977 partial amnesty, the ICAC’s attention turned towards illegal behaviour in the disciplined services, government departments and later, the private sector. As cases mounted, the commission hired fresh graduates. Sociology graduate Raymond So Wing-keung was recruited in 1976.

“I wanted a meaningful job and at the time, the Chinese name of the ICAC was very different to what it is now,” So said. “Literally, it meant ‘Specially assigned by the Governor of Hong Kong, the Independent Commission Against Commission’.” He moved up the ranks to become a chief investigator in 1985, and in 2011, became assistant director in the operations department. Now 60, he will retire this June.

Some experts say that Hong Kong became an international financial hub -receiving more than HK$82 billion in overseas investment since 2000 -because of the commission’s work.

The ICAC’s mandate to find and investigate corruption in Hong Kong has made the archipelago one of the most corruption-free areas in the world,” wrote Bryane Michael , a fellow with University of Hong Kong’s law faculty, in a paper published last month, in which he considers how the ICAC might reduce graft on the mainland.

“The answer is very, very carefully,” he wrote. “You can’t say overnight that you want to be corruption-free; China would blow apart.” A recent survey by the ICAC, which has a current annual budget of HK$927 million, found that 95 per cent of respondents supported their work, but the figure was a four-year low. Public confidence was key to its survival and success, said So.

“A majority of the community now supports the ICAC, but there are a lot of people who may not like us because we are stopping them from making more money,” he said.

One of the highest-profile cases that ICAC is pursuing is that of the Kwok brothers – Sun Hung Kai Properties executives Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen, along with former chief secretary Rafael Hui Si-yan. They have been charged with bribery and misconduct in public office.

With the mainland graft crackdown of President Xi Jinping with high-profile cases such as Bo Xilai , will the ICAC still be relevant in the next 40 years? “Greed is a human instinct,” So said. “When people are greedy, you have corruption.”

Major ICAC cases

1974-75: Former police chief superintendent Peter Fizroy Godber was charged with bribery and conspiracy after investigators linked to bank accounts worth HK$4.3 million. Extradited from England in 1975, he was convicted and sentenced to four years jail.

1976-78: ICAC shut down a heroin racket at the Ya Mau Tei fruit market in West Kowloon where police had received kickbacks from drug dealers. Some 87 police officers were arrested on suspicion of taking bribes in the ICAC’s single biggest operation.

1976-79: Former detective sergeant Lui Lok, forced to retire early in 1968 when he could not explain his extensive assets, was later investigated and arrested in 1978. He was eventually convicted, sentenced to two years and fined HK$16 million.

1983-2000: Structural defects at 26 public housing blocks in Kwai Fong built between 1964 and 1973 were traced to construction companies who cut corners after winning multi-million dollar government contracts. Three contractors were convicted.

1986-87: The ICAC uncovered fraudulent loan practices at the Overseas Trust Bank which clocked HK$700 million in bad debts. The bank’s chairman and other senior executives fled Hong Kong but were extradited. All received prison sentences.

1998-2000: The chief property manager of the Government Property Agency was arrested for accepting kickbacks that favoured one company, in exchange for contracts worth more than HK$100 million. He was imprisoned for 30 months.

This article appeared in the South China Morning Post print edition as How the ICAC cleaned up

Categories: General
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