Corruption costs flight of SR3 trillion worth Saudi funds
Arab News - 22 February, 2007
www.gulfinthemedia.com/index.php?id=287883&news_type=Economy&lang=en

Saudi funds worth SR3 trillion ($ 800 billion) have gone out of the Kingdom
as a result of administrative corruption, according to Majed Garoub, a legal
consultant and chairman of the lawyers committee at the Riyadh Chamber of
Commerce and Industry. Garoub did not say over what period of time this
figure is derived.

He made this disclosure while commending the significance of the national
strategy for combating corruption, which was approved by the Council of
Ministers last Monday. The Cabinet also set up an authority to monitor
implementation of the strategy.

Garoub called for greater administrative and financial controls and
establishment of a separate ministry for administration.

"We are also in need of a constitutional court to ensure that our rules and
regulations are suitable and legitimate," he added. There are different
forms of administrative corruption, such as bribery, use of influence or
wasta (personal connections) and embezzlement of public money.

"We are losing billions of riyals every year as a result of corruption,"
said Amri Al-Kholi, professor of law at King Abdulaziz University in Jeddah.

While passing the anti-graft bill, the Cabinet urged all government
departments to combat corruption by carrying out their duties in accordance
with the law, reducing and facilitating administrative procedures and
holding all officials, irrespective of their positions, accountable.

The National Authority for Combating Corruption will be under the direct
supervision of Custodian of the Two Holy Mosques King Abdullah, who has
declared a war on corruption and bureaucratic practices ever since he
ascended the Saudi throne in August 2005.

The head of the authority will be appointed by a royal decree and will have
a ministerial rank, informed sources said, adding that all officials
including ministers would be held responsible for dishonest practices. Salim
Al-Qahtani, a Shoura Council member, said state-owned companies like Saudi
Basic Industries Corp. (SABIC), Aramco and Saudi Electricity Co. would also
be questioned in case of malpractices.

"The decision to establish a national authority for fighting corruption is
not only an acknowledgement of corruption in the country but also an
affirmation of the government's resolve to fight it," Muhammad Al-Qahtani,
professor of economy at the Institute of Diplomatic Studies, told Al-Watan
Arabic daily.

Qahtani said the decline in government services, especially in the health
and education sectors as well as the spread of poverty prove that public
money is not spent in a proper manner. He said administrative corruption was
taking place secretly, adding that all officials involved in graft cases
must be questioned. Saudi Arabia holds a remote 78th position among 160
countries in terms of transparency. "Using government position to realize
personal interests is one of the definitions for administrative corruption,"
Qahtani said. He also spoke about violations in government contracts and
stealing of public land and other properties.

Referring to malpractices taking places in government purchases, Qahtani
asked why the products purchased for government departments are priced five
times higher than their market value. "This is a dangerous but widely seen
practice," he added. Some studies show that government officials take bribes
because of low salaries. "But nobody should be allowed to accept bribes. If
customs officials and border guards take bribes for doing favors it will
have dangerous consequences," he added.