Liang Hongfu

ICAC has law, people on its side

By Hong Liang (China Daily)
Updated: 2006-08-15 06:33

The Independent Commission Against Corruption, or ICAC, is one of the most revered institutions in Hong Kong. Its record of combating corruption, which was at one time the curse of Hong Kong, has been well documented and widely studied by law enforcement agencies in various other jurisdictions, including the mainland.

Much of the ICAC's success has been attributed to its "independent" structure, a highly disciplined operating procedure and the professionalism and dedication of its officers. All these are, no doubt, true.

But many commentators, including some of the most ardent admirers of the ICAC, have glossed over the most important underlying factor that has made it possible for an organization entrusted with such wide-ranging power to have won so much public support. That factor is the rule of law.

When the ICAC was established in the 1970s, there were worries in Hong Kong that it could morph into a secret police force accountable only to the supreme ruler. Such concerns could not be ruled out in a regime characterized by the rule of man.

But this is not the case in Hong Kong. The independent judiciary has always been trusted and respected by the people of Hong Kong because it is seen to be dispensing justice fairly and equitably without undue delays.

Just as important is that the people in Hong Kong have taken for granted that their government will always rule in accordance with long established procedures and within the boundaries prescribed by the law. Such trust in the government stems not only from the record of the bureaucracy but also from the knowledge that a common citizen of Hong Kong has the right to sue the government in an impartial court. This point was driven home last year when an elderly woman of meagre means successfully blocked the government's initial attempt to sell securities backed by the commercial space in some public housing estates.

The people in Hong Kong have confidence in the ICAC because they trust the government and the courts. In a different social and political environment, the ICAC could have met great obstructions in discharging its duties. Or worse, it could have been turned into a sinister dark force of oppression rather than a dependable white knight of deliverance.

Law enforcement experts agree that corruption is among the most difficult crimes to detect. For that reason, the ICAC has dedicated great efforts to encouraging Hong Kongers to come forward and report suspected corrupt practices. Many people are known to have responded to the ICAC's call.

Admirers of the ICAC believe that the success of this informant programme is due mainly to the ICAC's promise of utmost confidentiality. Of course, that itself is a reflection of the ICAC's credibility. But what it represents is not just the integrity of the ICAC but, more importantly, the prevalence of the rule of law in Hong Kong.

Let's just think: If the people of Hong Kong did not have confidence in the accountability of the government and the incorruptibility of the judiciary, would they have trusted the words of the ICAC? The answer, I believe, is no.

To be sure, there were instances when the government was widely seen to have acted in ways that were considered controversial and it is possible that corruption in the civil service and among officers of the law has not been entirely eliminated. Although some government actions were contested in court, nobody is suggesting that the government has ever made a deliberate attempt to over-reach its legal power. What's more, systemic corruption in Hong Kong has largely been stamped out.

But the importance of the ICAC as a potent deterrent against corruption is becoming even more relevant as the Hong Kong economy becomes increasingly intertwined with that of the mainland. To secure a pivotal role in the economic development of the mainland, Hong Kong must do its utmost in achieving the highest international standard of integrity as a financial centre with global reach.

The government has introduced various measures, including the tightening of the disclosure requirements and the revamping of listing rules, to better regulate and supervise the capital market. It is in the process of drafting a fair trade law to ensure a level playing field for all businesses.

The banking ordinance of Hong Kong is among the tightest and most comprehensive in the world and the supervision of banks is entrusted to the highly trained and experienced examiners at the Monetary Authority of Hong Kong under the leadership of Joseph Yam, one of the most respected central bankers in the region. (Mr Yam's cogent essays, published in the MAHK's website, are a must-read for serious students of the Hong Kong economy.)

It is the duty of the ICAC to ensure that this framework, which defines the future of the Hong Kong economy, will not be eaten away by the termites of corruption. It has the people and the law on its side.

Email: jamesleung@chinadaily.com.cn

(China Daily 08/15/2006 page4)