Costs of malfeasance, and why the law must be made paramount

Oct 08, 2015 Letters

---

Dear Editor,
On Monday 21- September 2015, the price of automobile shares in European Stock Exchanges fell steeply. The cause, the costs and continuing fall out remind us why ‘the rule of law’ should be the only dominant thing in society, and not the destructive, self-seeking/serving  view of domination we have heard  from certain individuals in Guyana, especially given the dangers of domination which its people, as victims, have already endured,  before independence and since.
The cause? Deception by Volkswagen(VW), the dominant German automobile manufacturer. The motives? To circumvent emissions rules for diesel engines, hoping to deceive the authorities, and in order to enrich itself even more. The US regulators caught VW and filed criminal charges. German authorities have followed suit.
The actual and potential costs to VW and to Germany are staggering.
VW shares have fallen by over 35 % in less than 14 days, wiping out more than US$27B of stockholder’s value. The Company has made provision of over US$6B in the third quarter of 2015 that could affect its earnings. About 11 million vehicles around the world may have to be recalled, the cost running into US billions. . Experts forecast that penalties could amount to US$18B (CNBC, Tuesday 22 September 2015 VW face many lawsuits and unspecified liabilities.)
For the State of Saxony, the home of VW, and Germany , if the estimates are correct, we are talking about the following at risk: one in seven  jobs in some way tied to the automobile industry,  along with  7 % of national GDP and 5% of exports; a portion of 20% shareholding held by the State of Saxony already lost; and the well being of 70,000 residents and 20,000 employees within the City of Wolfsberg (the home city of VW); and damage to Germany’s reputation for quality, reliability and trustworthiness  over the long term.
All of this actual and potential damage and destruction to Germany and its innocent citizens, because of malfeasance.
This recent case is cited, because it tells the story of what happens when people with power and in positions of responsibility, in the quest to enrich themselves and to increase domination, are corrupt and ignore the consequences and costs of their actions on ‘the many’.
The lessons?
First , malfeasance in the private sector is still corruption. All corruption is cancerous and therefore deadly.
Unlike private enterprise, however, which could be prosecuted by the state, unless law enforcement and the judiciary are untainted, independent and fearless, who will prosecute state functionaries? Corruption, involving government officials and private enterprise is therefore even more deadly, because it may be unstoppable. When executed within the network infrastructure of an oligarchy, the worst happens. This happened in Guyana, until May 2015 when the government changed. Guyanese witnessed this deadly combination up close, during the Jagdeo-Ramotar led malevolent oligarchy.
The outcomes were wide ranging, and beyond money, including suppression of democracy (no Local Government Elections for 20 years), phantom gangs and extra-judicial killings, by-pass of the National Assembly, unlawful use of the Consolidated and Contingency Funds, entities  such as NICIL deceptively used outside of the law, gold smuggling, and tax evasion. Several projects effectively resulted in embezzlement or diversion of taxpayers’ money into the hands of private persons, such as the Marriott Hotel. The trust in elected officials was lost. They failed in their duty to look after the public interest. These were of no concern to the actors.
Secondly, because of harm inflicted on the country and civilians/taxpayers, misconduct requires that justice is done, and therefore what needs to be made paramount and dominant in Guyana going forward is not the political party, or any individual or group, but rather, the law. The benefit of this is not only economic but social. The stability and order which the rigor of the law brings cannot be matched by any benevolent administrator, or government policy (often a euphemism for arbitrary actions). Most critical, APNU-AFC must strengthen the institutional capacity for vigorous law enforcement. This includes rooting out the ‘infrastructure’ of the malignant oligarchy left behind by the PPP. If done, this is a legacy that history will reward the APNU-AFC Coalition for.
When the ongoing Audits are completed therefore, the Guyanese people must see the consolidated costs of PPP’s malfeasance and other corrupt activities in figures. The Audit Reports are not a matter for posterity. The impact on the country’s future must be fully understood. Billions have already been lost in Guysuco, the Fiber Optic Cable Project, failed hydro-power and Guyana Power and Light projects. The Marriot and the Berbice Bridge may be the next major multi-billion entries into the taxpayer’s loss column. It never ends well for the victims of corruption and domination. However, the people will understand the costs of ‘corruption made simple’ when they see the costs in figures.
The implications? Civilians should support the government when it is doing the right things. However, healthy distrust and skepticism are good. Question everything. Challenge those that defy commonsense, remain vigilant and politically involved, and be ready to take action when officials cross the line. The justification for the APNU-AFC Audits, therefore, cannot be overstated, nor the subsequent actions to implement the findings, and seeing the process through to its logical conclusion. The costs of malfeasance and why the law must be made paramount, are reasons why this is not a matter for the government alone. Each civilian has a stake in the outcome.
Ivor Carryl

---

---