Friday, 6 April 2018

Breaking bad

When I was here before we were asked by the Mayor of a large provincial capital to help him improve the rate of collection of the municipal taxes and charges. He knew that one of the sources of his unpopularity – and that of the national government as well – was the prevalence of tax collectors legal and illegal who seem to appear from nowhere and demand payments that appear completely arbitrary. There were 40 different taxes, payable daily, monthly or annually. The Mayor was open to a complete overhaul of the system: one that would work for the city as well as the residents.

We loved the idea, and enthusiastically designed a census of all businesses that would allow us to calculate what each should pay and when, and have a proper record of the location of each business. What’s more we would give each business something they had never had: a street address. Each one would also – and this was the biggest achievement – receive a statement showing how much they should pay and when.

We helped the Mayor to develop a user-friendly revenue collection office, and rationalize the staffing, while cutting the number of tax collectors from about 40 to 10.

The results were truly impressive. Tax payers loved it. They were much more willing to pay. Corruption plummeted as the tax collectors had clear targets and had to account for their receipts. Total receipts more than doubled, while costs had been dramatically reduced. USAID, for whom we were working, were impressed and insisted that in the next project (the one that were are working on at present) be repeated in 10 – 20 more towns.

For the Mayor this was an opportunity for self advertisement, and he wasted no time in bragging about it. He boasted about his achievements in international conferences and soon he was on the steering committee of the association of Francophone Mayors. This took him to meetings all over the world and he began to see himself as a truly international celebrity.

With this achievement and the warmth of international acclamation behind him, he decided to reassess his situation. Although he had boasted about the successes in collection, the system had removed an important source of income. Before this project he had been receiving a percentage of all receipts. He was under severe pressure to give jobs to his hungry extended family. Luckily, the interfering USAID project had ended, so he was no longer under scrutiny. His mind was made up.

He scrapped the whole system, hired another 20 tax collectors who were answerable to him and settled back into the old ways. He once more has a substantial income and can look his extended family in the eye.After all he is appointed by the President. When I was here before we were asked by the Mayor of a large provincial capital to help him improve the rate of collection of the municipal taxes and charges. He knew that one of the sources of his unpopularity – and that of the national government as well – was the prevalence of tax collectors legal and illegal who seem to appear from nowhere and demand payments that appear completely arbitrary. There were 40 different taxes, payable daily, monthly or annually. The Mayor was open to a complete overhaul of the system: one that would work for the city as well as the residents.

We loved the idea, and enthusiastically designed a census of all businesses that would allow us to calculate what each should pay and when, and have a proper record of the location of each business. What’s more we would give each business something they had never had: a street address. Each one would also – and this was the biggest achievement – receive a statement showing how much they should pay and when.

We helped the Mayor to develop a user-friendly revenue collection office, and rationalize the staffing, while cutting the number of tax collectors from about 40 to 10.

The results were truly impressive. Tax payers loved it. They were much more willing to pay. Corruption plummeted as the tax collectors had clear targets and had to account for their receipts. Total receipts more than doubled, while costs had been dramatically reduced. USAID, for whom we were working, were impressed and insisted that in the next project (the one that were are working on at present) be repeated in 10 – 20 more towns.

For the Mayor this was an opportunity for self advertisement, and he wasted no time in bragging about it. He boasted about his achievements in international conferences and soon he was on the steering committee of the association of Francophone Mayors. This took him to meetings all over the world and he began to see himself as a truly international celebrity.

With this achievement and the warmth of international acclamation behind him, he decided to reassess his situation. Although he had boasted about the successes in collection, the system had removed an important source of income. Before this project he had been receiving a percentage of all receipts. He was under severe pressure to give jobs to his hungry extended family. Luckily, the interfering USAID project had ended, so he was no longer under scrutiny. His mind was made up.

So he scrapped the whole system, hired another 20 tax collectors who were answerable to him, and settled back into his old ways. His income secure once more, he could get that Mercedes he had been thirsting for. And although civil society might shout about his corruption and obvious abuse of power he doesn’t mind. After all he is appointed by the President.

What a shame!