Daily Times

Didn’t we already know since the 1990s that the prime minister had properties in London? Didn’t we know that the prime minister’s sons were doing property business in London for a long time now? Didn’t we know that the prime minister and his sons had set up a steel mill in Saudi Arabia during his forced exile? Didn’t we know that in spite of all the efforts by the Musharraf government it could not be proved that Nawaz Sharif and his family had indulged in money laundering only because they were ‘legal leaks’ in the system? Didn’t we know that the Jati Umra palace was made by the family without showing the source of income? Didn’t we know that the lifestyle of the family does not match the revenue income shown and the taxes paid by them?

Of course we knew it. Agreed that a common man doesn’t know how business is done or lavish properties are bought in developed countries. And, of course, the common Pakistani didn’t know how to avoid taxes in developed countries by parking investments in offshore companies by the rich and beautiful. Now they know it — thanks to all the discussion in media — something that the establishment and business elite knew for many years. The Sharif family that has amassed wealth and properties abroad is not alone. Many other political leaders, civilians, military leaders, bureaucrats, and business leaders have been putting aside some of their investments in other countries without declaring it in Pakistan. Going back, when Asif Zardari was given power in 2007 didn’t we know about his past that was tarnished with corruption charges? Didn’t we know that he had foreign properties and businesses that sustain his and his family’s luxurious lifestyle abroad?

More recently, Hassan Nawaz, unsuccessfully, tried to explain in two ‘friendly’ interviews about where he got the money from for his London businesses. This was a little before the Panama leaks happened. His interviews had many holes but the leading anchors failed to raise hard questions. Now the question is why the Sharif family felt the need to explain the source of their investments abroad at this stage. It seems they had a tip about what was coming in the Panama leaks and wanted to pre-empt the reaction against the family.

Now let us come to some basic questions. One, why do our rulers not put all their legitimate and illegitimate savings in the Pakistan basket and invest abroad? Two, why do our people elect such leaders who they know are corrupt and have investments abroad? Three, why is there not much noise about corruption and fickle investments when they come to power? Four, if all this is not new then what is the hullabaloo about at this juncture?

Investing abroad is not a crime, provided it is done by following a legal process. It has to be proved that the money invested abroad has been earned legally and transferred through normal banking channels after paying taxes. It has to be also seen that profits made from these investments are brought back into the country, thus adding to country’s foreign exchange income. If no dividends are brought back then it is flight of capital, which occurs when the people are not confident about the markets in which they live.

But the case of top leadership of any country is different. If they indulge in flight of capital then it shows they have little confidence in the country they rule. In politically unstable countries like Pakistan, money has a tendency to flow out, and money of politicians is no different. In polities that have a culture of witch-hunting, some top politicians have to live in exile when forced out of power. In many cases they also keep some of their family members abroad, and for that money is parked outside the country. Thus middle-class morality is their last concern.

To understand why people elect leaders knowing fully well about their legitimate and illegitimate sources of income, we have to accept that we live in a quasi-tribal and feudal society, and those value systems prevail even in urban society, barring a small middle class. At the grassroots level people’s concerns are police highhandedness, and gutter and garbage mismanagement. They are more concerned about corruption at the lower level that touches their day-to-day life. Living below the poverty line or struggling to keep their heads up, most people want their immediate needs fulfilled. And they don’t care how their rulers are making money as long as they can manage to get some work done from politicians from time to time. They don’t know the economic equation that higher corruption leads to poor HDI’s. Empirically speaking, I have seen many people asking their elected representatives for some illegitimate favours.

Most businessmen who crib about corruption of politicians are the ones who bribe them. Without the support of the middle class bureaucracy and business tycoons politicians cannot make money under the counter. The same people and tainted money fund the election campaigns in most of the countries. That also explains the third question why the corruption issue was not raised when Zardari and Sharif came to power in 2007 and 2013 respectively.

This brings us to the last crucial question why there is so much noise at this stage. Thanks to Panama leaks — which is an international disclosure — the corruption of the rich around the world has come into focus. To his bad luck the Sharif family and a couple of offshore companies were listed in Panama and not in some other tax havens. More importantly, these leaks have come at a time when civil-military relations are apparently strained. This has given an opportunity to the opposition, media and, of course, the establishment to put the prime minister in the corner.

The prime minister and his team have handled this crisis clumsily. It seems there is no crisis management strategy and his advisers are handling it through haphazard collection of statements and speeches. The prime minister is jittery because the establishment is unhappy with him. He wants to buy time till at least November when he has to make a crucial decision about the most important post in Pakistan. His past track record in making such appointments has not been pleasing for the establishment. By asking for a new law the opposition’s ToRs have obliged him indirectly.

Interestingly, there is one common factor in the timing of corruption stories hype Zardari and Sharif — both tried to take control over the foreign policy regarding India and Afghanistan. In the latter’s case the Panama leaks is a god-sent opportunity to stop him.

The writer can be reached at ayazbabar@gmail.com