Till the early seventies of the previous century, Hong Kong was much like India, a cesspool of graft and bribery, probably one of the most corrupt cities in the world. Hong Kong today has been transformed into one of the cleanest places in the world

Till the early seventies of the previous century, Hong Kong was much like India, a cesspool of graft and bribery, probably one of the most corrupt cities in the world. 

Graft pervaded every aspect of life—from womb to tomb. Firemen would not turn the water hoses on a burning building unless the owner paid them “tea money” or “heavenly grease” as James Clavell puts it in Noble House, his novel of Hong Kong in the sixties.

Ambulance crews would demand money before picking up sick people...  Even hospital ayahs asked for ‘tips’ before giving patients a bedpan or a glass of water. Hong Kong was the pits. A taxi-driver could even buy a monthly label to stick on the taxi and it would guarantee that there was no prosecution for traffic violations. 

A close ‘business’ association existed between law enforcement agencies and organized crime syndicates. All types of organized crimes, vice, gambling and drugs were protected. 

The sixties and seventies saw rapid economic change in the city state. Massive growth in population and fast expansion of manufacturing industry accelerated social and economic development. The government was unable to meet the insatiable needs of the swelling population. 

This provided a fertile environment for the unscrupulous. Many people had to take the “back-door” route simply to earn a living and secure other than basic services. Bribes became not only familiar to many Hong Kong people, but were accepted with resignation as a necessary way of life.

Corruption was rampant in the public sector. Bribes had to be offered to the right officials when applying for public housing, schooling and other public services. Corruption was particularly serious in the police force. Corrupt police officers offered protection to vice, gambling and drug activities. Law and order was under threat. Many in the community had fallen victim to corruption. And yet, they swallowed their anger.

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In the early seventies, a new and potent force of public opinion emerged. People pressed incessantly for the government to take decisive action to fight graft. Public resentment escalated when Peter Godber, a corrupt expatriate police officer under investigation escaped from Hong Kong with a huge graft hoard of HK$4.3 million. The case proved to be the last straw.

 Godber’s escape unleashed a public outcry. Students spearheaded a mass rally in Victoria Park, protesting and condemning the government for failing to tackle corruption. Demanding prompt government action, protesters with slogans like “Fight corruption, arrest Godber” insisted that Godber be extradited to stand trial.

Sir Alastair Blair-Kerr, a senior puisne judge, was appointed to form a Commission of Inquiry into Godber’s escape., Sir Alastair pointed out that “responsible bodies generally feel that the public will never be convinced that the government really intends to fight corruption unless the anti-corruption office is separated from the police...”

In the wake of the Blair-Kerr reports, the then governor Sir Murray MacLehose proposed an independent anti-corruption organisation. In a speech to the Legislative Council in October 1973, Sir Murray said: “I think the situation calls for an organisation, led by men of high rank and status, which can devote its whole time to the eradication of this evil.” Sir Murray told legislators. “A further and conclusive argument is that public confidence is very much involved. Clearly the public would have more confidence in a unit that is entirely independent, and separated from any department of the government, including the police.”

Thus was formed the Independent Commission against Corruption (ICAC). Goder was extradited, tried and sentenced to four years in jail. Many in the community sensed the wind of change at this time. They started to see the government setting the stage for the birth of an effective anti-corruption regime

Hong Kong today has been transformed into one of the cleanest places in the world, recognised as such by international institutions such as the World Bank, the Heritage Foundation and the Transparency International. Some countries have looked up to the ICAC as an effective model of combating graft holistically through detection, prevention and education.

(This is the first part of a three-part series on the subject)

(R Vijayaraghavan has been a professional journalist for more than four decades, specialising in finance, business and politics. He conceived and helped to launch Business Line, the financial daily of The Hindu group. He can be contacted at [email protected].)