Monday, June 9, 2008

Corruption in the Court

Part of my internship duties entail interviewing foreign businesses operating in Latvia. These interviews are conducted in order to obtain an outsider's perception towards Latvian corruption. Most interviews are rather dull, composed of quick "yes" and "no" answers. I can't blame them; here I am, some punk intern jutting into their business hours. But sometimes, if I am lucky, these people will have real beef against Latvia. Those interviews are the good ones.

I had one such interview last week. A prominent international business owner from Sweden gave me a few eye popping accounts of his dealings in the Latvian business sector. He also rattled off a few subjective insights.

He said that in his experience, the only country more corrupt in the private sector than Latvia is Russia. Anyone who knows anything about Russia knows that, if this is true, it is a big deal. He mentioned how the 3 largest Scandinavian construction companies completely gave up and withdrew from Latvia a number of years ago because their sector was so bogged down by bribery and under-the-table payments that they could never secure a bid.

He said that in his experience, noting the exceptions of the Scandinavian countries, Germany, Switzerland, and the UK, the European Union as a whole is more corrupt than the US. Anyone who knows anything about the US knows that, if this is true, it is a big deal - the US is nowhere near squeaky clean. He mentioned that the governments are so tied into the private sector that self-indulged bureaucrats run the entire economies. Again, he noted, it has been extremely difficult for foreign companies to win fair contracts there.

He related to me an experience that took place here in Latvia 5 years ago. A Latvian friend of his required an operation. The doctor requested an under-the-table "facilitation" payment of 1000Lats ($2220usd) in order to operate. Unable to afford the bribe, this Latvian friend approached the Swede asking to borrow the money. The money was lent and the operation ensued.

After the operation, the Swede and his friend decided to take the doctor to trail for extortion and taking bribes. A trail ensued. During the hearings, however, it was discovered that the courts themselves were guilty of the same crimes as the doctor: 2 judges involved in the case had accepted bribes from the doctor to rule in his favor.

The doctor was found guilty and sentenced accordingly. But still - after 5 years - no ruling has been made against the judges, despite the efforts of this Swedish business owner and others. The courts are simply too bogged down in their own internal corrupt behavior that nothing is being solved or done.

What a sad and disturbing thing to have happen. Can you imagine living in a country where corruption had permeated even the very courts which hold the responsibility of interpreting and upholding the law?

We can only hope things never get this out of control back home. The slope is definitely slippery when dealing with corruption. We must be willingly to do something about it if it does happen.

The biggest problem facing Latvians is apathy - people view corrupt businessmen, politicians, and courts as simply part of "the system" - it's just the way it is.

The fact is: that is not the way it is. In order to keep a democracy running, we cannot afford to ever forget that.

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