Corruption in the Twenty-First Century
Combating Unethical Practices in Government, Commerce, and SocietyBy Vincent E. GreeniUniverse, Inc.
Copyright © 2013 Vincent E. Green
All right reserved.ISBN: 978-1-4759-6408-0Contents
Foreword...............................................................................................xiPreface................................................................................................xiiiAcknowledgments........................................................................................xviiEditorial Thanks.......................................................................................xxiIntroduction...........................................................................................xxiiiChapter 1: Standing in the Gap.........................................................................3Chapter 2: DOI and I...................................................................................11Chapter 3: Nothing Happens in a Vacuum.................................................................21Chapter 4: The Ground-Zero Experience..................................................................29Chapter 5: The Logical Path............................................................................35Chapter 6: One Man Can Make a Difference...............................................................53Chapter 7: One Size Does Not Fit All...................................................................65Chapter 8: Our World, and Welcome to It................................................................79Chapter 9: A Well-Regulated Corruption-Fighting Agency Shall Not Be Infringed Upon.....................97Chapter 10: Scurvy Elephants...........................................................................115Chapter 11: If You Build It, They Will Come............................................................149Chapter 12: Procurement 101............................................................................159Chapter 13: Pirates Need Not Apply.....................................................................175Chapter 14: Who Rigged the Bids?.......................................................................189Chapter 15: Shooting from the Lip......................................................................199Chapter 16: Someone to Watch Over......................................................................217Chapter 17: Best-Laid Plans of Mice and Men............................................................239Chapter 18: Strength Is Power; Wisdom Is Control.......................................................251Chapter 19: Carpe Diem!................................................................................271Index..................................................................................................275Bibliography...........................................................................................279
Chapter One
Standing in the Gap
When a person voluntarily accepts a position of public trust, he takes on new obligations. If he does not want to live up to them, he is free to decline the job. Not only is this a fair demand, but granting authority without expecting public servants to live up to it would be unfair to everyone they are expected to serve. Raise the salaries if jobs merit higher pay, but not in expectation of buying integrity. Nobody sells that. People who have it give it for free. Edwin J. Delattre
In 1626, Peter Minuit, the director-general of the Dutch West India Company, purchased property from the Canarsee Indians for $2,400 worth of metal kettles, knives, axes, guns, and blankets. The town of Nieuw Amsterdam, later to be renamed the borough of Manhattan in New York City (NYC), was established on this property. In 1653, the governmental structure in place in Nieuw Amsterdam hired a man named Tomas Bacxter (Bacxter), identified as a "retired pirate," to build a wall at the northern end of the settlement. They paid Bacxter the equivalent of $1,300 in US currency today.
Within two years, the wall crumbled. It seems that Bacxter used inferior lumber in constructing the wall. In so doing, he misappropriated half of the funds allocated to purchase the material from suppliers. Subsequently, the good citizens of Nieuw Amsterdam seized on the opportunity created by the crumbling wall and took pieces of the wall to save on incurring the cost of purchasing or laboring on their own to obtain firewood to keep their homes and businesses warm. The site where the wall was built is perhaps the world's most well-known and prominent financial center: Wall Street.
As I am editing this chapter, the Occupy Wall Street protests are taking place not far from the location where Bacxter built the wall. The organizers of these protests have joined in the belief that corruption is alive and well in the form of the movers and shakers on Wall Street and that it needs to come to an end. If the belief of the protesters is true, the dread pirate Bacxter must be proudly smiling in his grave.
The commissioning of Bacxter to construct the wall is among the first recorded stories of public corruption involving procurement fraud in the place where I have spent my career fighting corruption, New York City. It is possible that Bacxter was the first contractor to defraud the citizens of New York City. Regrettably, he was by no means the last.
It is unfortunate, but the weaknesses in the procurement process that opened the door for Bacxter's fraud are alive and well in the twenty-first century. I do not know the members of the selection committee, if such a committee existed, or the mind-set that was in place in 1653 that advocated it was a stroke of wisdom to hire a retired pirate to perform governmental work. The term "retired" does not translate into reformed or rehabilitated. In fact, if Bacxter were able to retire from being a pirate, it implies that he was successful at his chosen criminal career.
There is no reason to believe that Bacxter's retirement blessed him with a newfound desire for honesty and integrity. Nor is it likely that his success as a pirate would have appeared on his resume during the due diligence process when proposing that he possessed the skills to construct walls and, therefore, was qualified to be awarded the construction contract.
I make these points only because what appears to have been the likely selection process in this procurement is not new to me. This was a clear example of the actions of short-term thinkers in a long-term world. More than three centuries have passed, and the type of dangerous thinking that existed then still exists today. I see the hiring of modern-day pirates, with no intention of retiring, taking place today in the procurement process of many governments and organizations. Their existence continues to have far-reaching negative impacts on societies worldwide.
The spirit of Tomas Bacxter has produced a bumper crop of corrupt offspring. These spawns have taken up their father's cause and continue to devour and devalue nations through their corrupt actions. Governments continue to engage modern-day pirates, only today, these pirates are smart enough—or their lawyers are—to exploit all deficiencies and weaknesses of the system and all the loopholes in the laws and language.
This is a much more daunting scenario for corruption fighters to combat than just outright stealing; by trying to correct the deficiencies and fill in the loopholes, we often inadvertently create new ones. I have learned to take nothing for granted and to never, ever, assume that common sense is alive and well in the process.
Enough Is Enough
There are numerous colorful and entertaining stories of public corruption in New York City since the building of the wall. In spite of how entertaining these tales of misconduct may be, they fail to mask a grim reality. Public corruption is a global phenomenon that is far more threatening in the twenty-first century to the common good of any society than it was more than 350 years ago in Nieuw Amsterdam. This threat not only continues, but it has grown to sweeping proportions. Corruption has found a comfortable seat in almost all aspects of government.
A large percentage of corruption occurring within governments worldwide rests within the procurement of goods and services. Every day, billions of dollars in procurement transactions take place worldwide. It is unfortunate, but not every dollar, yen, euro, peso, or schilling ends up in the hands or accounts of the intended recipients. In a multitude of instances, these funds are redirected, embezzled, stolen, or just wasted.
Governments worldwide need to be honest and acknowledge that it is time to retreat from the daily impotent lip service they give to the topic of corruption and begin to take hold of this rabid tiger—not by the tail, to be dragged through the fields, but around the throat, choking off the air that gives life to the schemes that stifle the growth of a nation and its people.
The unvarnished truth is that the primary function of government is to procure services for its people. Without the procurement process, there would be no means to secure the goods and services required to educate the people, defend the nation, and build roads, bridges, and housing.
Without procurement, there would be no hospitals, trains, planes, and automobiles. Without procurement, government would cease to exist. It is a monumental undertaking that all governments take on in support of the people, as well as the development and sustaining of a nation. Unfortunately, with that endeavor also comes an effort by those who would undermine good government by attempting to achieve a personal benefit by corrupting the established governmental processes, not solely by outside forces, but sadly, also from within.
In order to prevent this unethical and illegal behavior, many governments have created, or are in the process of creating, offices whose primary function is to identify and eliminate corruption. Many of these offices are known as Inspectors General Offices or called by some name intended to convey the same message, which is "enough is enough!"
Each One, Teach One
There is a saying that goes: "Those who can, do. Those who can't, teach." This is nonsense. I would say that if you have not conducted corruption investigations, please do not try to teach corruption investigations. What we do is not about theories and hypothetical situations. It is about real situations that can change the lives of individuals in profound ways. These are not test cases or focus groups. Experience and an ability to educate are a phenomenal recipe for success. Each of you who possess them should share. Each one should teach one.
I have held the position of adjunct professor at several local colleges in New York City. I have ventured into the academic arena not simply because the opportunity existed, but because I felt strongly that I had something to contribute as a result of my life experiences. I have learned through the years that we go through life experiencing different emotions—joy, happiness, fear, regret, pain, pride, and disappointment, to name a few. In fact, I would say that it is our lifetime of experiences that is our greatest teacher.
I do not usually have my students spend hundreds of dollars purchasing textbooks. I usually provide them with what they need. I explain to them that in what they are about to experience, I am the textbook and so are they. If you have embraced life and possess a desire to confront injustices, there will be no substitute for the sharing of life experiences. This is not a theory; it is a fact.
Life-Changing Events
For me, one of the greatest, most profound, and life-changing experiences of my existence was the day I was blessed in becoming a member of the finest corruption-fighting organization ever devised by man and blessed by God.
Being a part of the Inspector General experience is not just something that I like doing; it is something that I love doing. For me, there is no greater sense of accomplishment or nobler cause in life than to be able to make a positive impact in someone's life every day that God has allowed me to be aboveground. When I awake each morning, I thank God for life, family, and health, and then I ask myself whose existence I can make better today; how cool is that!
Now, I have to admit that I do not like arresting people. That does not mean that I will not arrest an individual if circumstances call for it. I have been caused considerable concern over the years by how easily some of my colleagues blurt out the words, "Let's just arrest him." What is actually being said is, "Let us make a change in this person's life from which he is not likely to recover." That is what happens when a person is arrested. The person being arrested will be answering for that day for the rest of his life. It does not matter how successful this person may become as his life moves forward. He will, without a doubt, be answering for that arrest and your decision over and over again. I see it every day when I conduct due diligence checks on individuals seeking to obtain government contracts. While the debt may be paid to society, the notice of lien remains on the account.
Needless to say, there are a host of individuals deserving of arrest and, in fact, begging for it through their actions. Over the years, I have accommodated many of those pleas. Never once have I done so, however, without giving full and deliberate thought to the action I was about to take and the repercussions of that action. Taking an individual's freedom has always left a sour taste in my mouth. But when the situation calls for it, I know how to swallow hard and move on.
As I said, I rarely look forward to arresting anyone. Then again, I do love the chase! I get excited at the opportunity of matching wits with an adversary who thinks he or she has devised the perfect crime. It is an exhilarating experience. I liken it to Sherlock Holmes doing battle with Professor Moriarty.
As an investigator, there has never been a day that my eyes opened that I did not look forward to getting back into the fight. In fact, I toiled for twenty-nine years at this profession without ever availing myself of any of the sick days granted to employees. It is not something that I can explain. I suspect that my mind, body, and spirit worked as one in understanding my love for this profession and my desire to be ever present and prepared to contribute. Strange as it may seem, the few times that I have been under the weather; it has been on a weekend or holiday.
It was not until I experienced a transient ischemic attack (ministroke) on a Friday evening after work that I was forced to take a few days off. To be honest, I was truly willing to return to work on Monday morning. On the other hand, this was not something that my family would even remotely entertain. To me, and it seems only to me, returning to the fight made absolute sense. I guess it comes with being a part of the cause with the mind-set of a warrior, as opposed to a spectator. Maybe I take it too far and a little too seriously. Still, I believe that in many instances, seriously taking it to levels where others dare not go is the difference between victory and defeat. Nevertheless, as ordered, I remained in my hospital bed, only with my smartphone and laptop at my side.
When you decide to pick up the gauntlet in this battle, allow yourself to morph into the weapon of integrity that is needed to fight the fight and win the battles that you will come upon in this crusade. I use the term "crusade" because what you will do does not get resolved overnight or in one decisive battle. It is not about taking a hill in war. Complete and total victory will not come with the simple removal of corrupt individuals or reduction in the numbers of our foes. There must also be the cultivating of a new way of thinking that will infect the masses. This will not simply unfold in political speeches, the pages of a book, or at the end of a semester. What we do is a lifelong journey. It is like the weaving of a tapestry over, not just time, but lifetimes. It is not the successful investigation or the moment in time that counts; it is the decisive, deliberate, and unwavering steps that we take each day in this journey as we weave this intricate tapestry of integrity that will produce a work of art. It is my hope that the tapestry being weaved will one day hang in the museum of our minds as evidence of a time and a way of thinking long since past.
The prophet Ezekiel wrote, "And I sought for a man among them that should make up the hedge, and stand in the gap before me for the land, that I should not destroy it: but I found none"(Ezek. 22:30). We must draw a line in the sand, and let it be known that the immovable, unshakable gap between integrity and dishonor has been established in the form of the unconquerable corruption fighter. We shall stand in the gap and willingly take on all corrupt challengers.
Chapter Two
DOI and I
Whatsoever a man soweth, that shall he also reap. Galatians 6:7
Corruption fighting is not a haphazard, free-for-all type of endeavor. Not every law enforcement agency is suited for taking on this responsibility. It requires a working knowledge of the areas of government being compromised, while at the same time possessing the skill set to conduct criminal investigations, systems reviews, and efficiency checks, as well as communication skills, and most vital, report-writing skills. Corruption investigators are not made on an assembly line or rolled out of an academy. A skilled craftsman must mold them. Having an agency that is dedicated to this undertaking is a much better fit in this fight than making corruption fighting one of the many tasks that a law enforcement agency is empowered to take on.
One successful and enduring model of a corruption-fighting organization exists as the NYC Department of Investigation. DOI has been in existence since July 18, 1873. It is the umbrella agency that manages an Inspector General Office for every NYC mayoral agency and several nonmayoral agencies. It is a well-established and successful law enforcement agency that was in existence thirty-five years before the establishment of the US Federal Bureau of Investigation.
Unfortunately, as with most corruption-fighting agencies, its birth did not come about through an evolutionary, thoughtful, nurturing process. The creation of DOI was through a reactive process, as opposed to a proactive process. Its existence supports the adage "Necessity is the mother of invention." As with most corruption-fighting agencies, DOI had been conceived as a result of a scandal that was exposed. The department was originally known as the Office of the Commissioners of Accounts. It was given life in large part as a result of a scandal known as the Tammany Hall scandal. The scandal was unmasked in large part by the media during the mayoralty of Abraham Oakley Hall, also known as "Elegant Oakley," who was the mayor of New York City from 1869 to 1872.
The Tammany Hall scandal resulted in millions of dollars of government funds being stolen by essentially four well-placed government officials: the mayor himself, who was also a former district attorney, along with the city comptroller, an individual by the name of Richard ("Slippery Dick") Connolly, described in the publication Rogues, Rascals, & Heroes as being an individual "without an honest instinct in his nature," the chamberlain, Peter ("Brains" or "Sly") Sweeney, and the mastermind of the group, alderman and commissioner of the Department of Public Works, William "Boss" Tweed.
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