Drowning in Shallow Water

By David S McDermont

Morgan Carter, an International Contract Consultant, reports on major corruption in an Indian roads contract. He pays a devastating price. A woman he loves is murdered. His world is shattered. He drifts and recklessly falls into something he has dreamed about for 20 years. Design, build and market a large trailer sailer. The Nomad 9!

He does have not have enough money. He is forced to get involved with an oversexed Professor and his partner, a beautiful yacht company manager, the police, and some criminals. Some have dark pasts that slowly lead to deceit, murder, revenge, and threaten Carter’s dream. He realises they are all slowly drowning in shallow water. Can anyone be saved?

An intriguing mystery that plays out in the beautiful river city of Perth in Western Australia.

• Language: English
• Publisher: Xlibris AU
• Release date: Apr 15, 2021
• ISBN: 9781664104037

David S McDermont

David McDermont is an Australian and lives in Perth. Worked as an International Government Contract Consultant for the last 23 years in 38 countries. This made him well aware that the contracting function is the most corrupt activity of most governments at all levels world-wide. David has sailed a range of sailing boats all his life. He currently owns a large trailer sailor very similar to the Nomad 9. He has enjoyed many great days and nights, racing and enjoying islands and rivers on the Australian coast.

Book preview

1

OLD TIMES

G avin Carter ceased his sketching and thought about what he had done. The proportions looked better now that he had compromised on the width of that locker. It gave more room for the adjacent bunks. If people were going to live in it, they needed plenty of sleeping space. A pipe dream? another of his ‘jump and see’ life changes? Something to do in retirement? He closed the sketch pad. Time to get back to real work. Can’t avoid this meeting much longer. This is not going to be pleasant. At least I am well prepared.

Carter tried to relax. He leaned back in the old and uncomfortable chair outside the Permanent Secretary’s office. The humid morning air, ever present in the decaying ex-Raj government offices of India, enveloped him with a cloying dankness and a slight hint of mould. He cast his eyes around the dimly lit office. Some of the old surviving British Raj-built buildings, such as this one, were now the sad tired unkempt shadow of their former colonial grandeur. The effects of years of limited maintenance and ever-increasing staff numbers made them depressing places to work in. Staff often employed their own cleaners for their offices and toilets. Carrying your own toilet paper was a necessity for all consultants. Never know when you would need it, or the water was turned off. In Australia, conditions such as these would probably cause a riot, but then most Australians did not know how lucky they were. India’s 1.2 billion people, with the remnants of a caste system, entrenched corruption, and a bulging bureaucracy, made it difficult to build a modern democracy. Despite all this India was modernising and continued to grow its economy just as China was doing. The real difference was that in India at least you could read about it in the papers.

He was not looking forward to the meeting. Gupta was going to react badly to his findings and may try to delay his leaving the country. He already had his departure flight booked.

This was the hard part of consulting, telling people something they did not want to hear. It had not gone well at all; he had uncovered major problems. Carter had worked in over forty countries over the last twenty years. His skill area was all aspects of Government Procurement in developing countries. It covered policy, legislation, and implementation of E-Systems. Mostly he worked for the Multilateral Development Banks, the Asian Development Bank, the World Bank, Inter-American Development Bank, and AusAID. He was currently contracted by the World Bank to provide an Independent Procurement Risk Assessment, of its Road Network Improvement Program administered by the State Rural Roads Agency. Some 3.2 billion US dollars had been spent so far over a five- year period.

Carter sucked air through his teeth and sighed. It had been a near impossible task. Many of the project records were incomplete. Decisions taken were hidden in the layers of Agency management, and there had been a carefully orchestrated response from the contract managers and contractors. Many road projects had run well over budget and timeframe. His assessment was aimed to encourage good governance and operational practices by identifying key risks, and how to manage them. It was the worst situation he had ever seen. Some of the managers were incompetent and under trained, so poor financial and contract performance had been accepted. This usually meant corruption was rampant.

Carter reflected on his experience. In most countries, particularly developing countries, government procurement of goods, services and works took somewhere between 10 and 30% of Annual Budgets. All this money and opportunity made it the most corrupt function in many governments. Bribes, conflict of interest, hidden payments, favouritism, ramped-up pricing, the lack of e-procurement systems, poor management, false spending and reporting records, and sheer incompetence all played their part. India was no exception. Neither was Australia. Analysis of contract information had recently put two Government Ministers in jail for corruption in Australia.

The only thing that would appear to change the attitude of such governments was a full-scale public revolution. This is very rare, better to make vacuous promises of reform, make a few changes and then carry on as usual. In the Philippines, Thailand, Myanmar, Egypt, and Libya, there had been revolutions based very much on the corruption issue, but little has changed. Since the eighties revolution in the Philippines two of the last five Presidents had been jailed for corruption. Governments needed to take a tough line with corrupt officials. Lee Kuan Yew did this in Singapore in the seventies. He tackled corruption head on. He established an independent agency with sweeping powers to investigate, imposed long terms in jail, and built a community awareness and acceptance of ‘clean’ business. Transparency International’s Perceptions of Corruption Index 2020 ranked Singapore overall at number three, the least corrupt country in Asia. It was some eight places above Australia, which is at number eleven.

Carter’s mind bounced back to the task at hand, his thoughts started to race. He had been stone-walled by the Road Agency’s sullen lack of co-operation and manipulation of his access to key people, sites, and information. He had become aware of this early and his P31s has been deployed and retrieved often. The Permanent Secretary, and his cohort of senior managers, by careful collusion, had tried to make the situation look as if it had some integrity. They had controlled and falsified and amended information relating to the contracts.

Carter had remonstrated with himself. He had promised not to use the P31s again. You are not supposed to spy on your clients! However, in this case, the P31s had been very effective as the people involved could not resist talking about the situation in their offices, and on the telephone or mobile after he left. All communication for the assessment, as stipulated by the World Bank, had to be in English. This meant language would not be a problem It would be disastrous if he got caught. The P31 was a very small recording device that could pick up a conversation within 10 metres. He could activate the device, using his mobile phone, and either hear the conversation live or its recording. The battery in the P31 lasted ten days. He retrieved it when he last met the person involved. Carter was almost developing a moral code regarding corruption. He had a well-established reputation as not being afraid to dig up the bodies. It had both won and lost him consultancy assignments. It also had its real dangers.

Carter felt a wave of remorse pass over him. It was a pity he had not applied such moral and financial rigor to his private life His international consultancies often meant working closely with intelligent women managers and staff in project teams. Close working relationships often developed. This had provided abundant opportunities for sexual dalliances, and some of these opportunities had not been avoided. Carter had lived in two worlds for ten years and it eventually cost him his marriage to his wife of twenty-two years. He still wallowed in the regret he felt, and the pain he had caused, even though five years had now passed. He had lost a life and was now trying to build a new one. He knew he needed to change but the impetus to do so was still proving difficult. He needed to grow up, put his chequered past behind him. Hopefully, not mission impossible.

It had become obvious to Carter early in this project that his meetings with stakeholders, site visits, and the documentation provided were being carefully stage-managed. He reluctantly recognised very early that the P31 would have to be called upon. Carter had perfected the technique during the last ten years. If he suspected the person he was dealing with was likely to be up to something, then at an early meeting the P31 could be attached to a hidden surface in the suspect’s office or workplace. The suspect was then primed with questions or observations that indicated Carter might know where the problems might be.

A favourite line was to say to the target:

‘The documentation on this contract appears incomplete and I will need to talk directly with all the contract supervisors and finance officials to reconcile the facts with the records. Could I meet with them individually as soon as possible?’

If Carter was right, once he had left their office, he would connect his mobile phone to the P31. The suspect would often phone someone and start unknowingly identifying people who were involved, files to be altered or removed, other persons to be warned, and so on. Once he broke into the cycle of deceit, and followed up the leads provided, his understanding of the situation mushroomed. More P31s were then laid with those identified. The trick was not to take actions that the suspects could identify as coming directly from their supposedly private conversations. Carter justified his actions as necessary to achieve real information and the greater good.

However, in a climate of high stakes corruption there was also the danger of the consultant being threatened, injured, or even killed, as had happened to his good friend David in one developing country. David was on his way to work in an open bus when a helmeted motorcycle rider pulled up alongside, picked him out, and shot him twice in the head. The murder was never solved. The organisation David had been auditing expressed its condolences and sent two thousand dollars to his wife to assist with arrangements. Probably twice the amount paid to the motorcyclist for the job.

Carter knew he had written a draft of his findings that was extremely critical of the contracting processes used in the projects. The Permanent Secretary, some eight senior managers and contract supervisors, and three of the major contractors were involved. The Permanent Secretary had insisted he see a copy of the draft summary of recommendations so he could brief his Minister. Carter had sent him a copy of the draft findings the previous morning. He said he would come by the Secretary’s office on his way to the airport. Carter had a rule. If you must give them bad news, make sure you have left or are leaving the country very shortly thereafter. That could minimise any problems that might arise.

‘Here you go again jumping off the cliff. Have you thought this through? You did not have to confront Gupta directly. Is this…….’

‘Mr Carter, the Secretary is ready to see you now.’

Carter was jolted from his musing and looked up at the unsmiling woman standing in front of him. She looked very efficient and direct. He was ushered into the Permanent Secretary’s spacious, well-furnished, and decorated office. He sat in one of the chairs in a front row of four chairs that faced the Secretary’s desk. It was the same chair Carter had sat in on his three previous meetings with the Secretary. It was where he had left the last P31. In hierarchical India rows of seating in executives’ offices were often found. Senior Managers and Chief Engineers sat in the front rows, Project Engineers in the rear chairs, and Assistant Engineers stood at the back, and spoke only when invited to.

The Permanent Secretary, Ranjay Gupta was sitting behind his desk. He did not look settled. Gupta was sweating and fidgeting with a copy of a summary findings in front of him. He started quietly.

‘Thank you for the summary, Mr Carter, it was most interesting if not a little confronting.’

His voice was as soothing as the sweet milk coffee, made ready on the polished low table in front of Carter’s chair. Gupta’s desk was on a raised mahogany platform that separated Carter from him. He was visibly trying to control his emotions. He locked his gaze on the middle of his desk.

‘I cannot accept your findings in respect to the approval, process, consistency, transparency and management of our National Country Roads Program in Andhra Pradesh. I have made significant improvements in these areas in the last ten years. Your recommendations for improvement are unrealistic, given the limited resources and enforcement I have available to me. The inferences as to the behaviour of some individuals, including myself, have no foundation and you must withdraw them from the summary. You are not in Australia now where you have abundant resources and well-established governance laws. Your country has had its own corruption. Just look at the contracts for the Collins Class Submarine, and kickbacks in the tendering of coal leases. Then there was the Australian Wheat Board, which I understand became involved in paying kickbacks to Saddam Hussein’s Iraqi regime under the oil for food program. I know corruption is endemic in my country, but we have made substantial changes. Our culture still strongly supports businesspeople, politicians, lawyers, and public servants having sponsors. This is necessary to survive on our low salaries. We work in an environment that lacks the will and resources to monitor and enforce codes of ethics, laws, and anti-corruption.’

Gupta frowned at Carter, smiled, and headed further downhill.

‘Whistle-blowers, and those who want reform, do so largely at their own peril. A manager must balance the need for reform and the risk involved. Top levels of the Government have yet to make the changes required. It is beyond the capabilities and resources of public servants and individuals like me.’

Carter was taken aback by Gupta’s sustained outburst, but he had heard it all before. Gupta was expounding the usual theme of: How can we be held responsible? We are a developing democracy and some of our Government Ministers are no strangers to corruption.

Carter could feel his frustration with the we are powerless excuse. He eyed the Secretary and decided to give Gupta both barrels. His voice became louder.

‘So, you accept that probably ten to fifteen percent of your funding for this project has disappeared. Do you know that last year in India alone it was estimated that twelve billion US dollars, enough to build two hundred schools, just disappeared! I found some records of contract award and management, key decisions and who made them, were missing or incomplete. The e-procurement system you should be using is only partly utilised. My visits to contract sites show about thirty percent of them are over budget, and well behind schedule. Some of the expected outcomes are unlikely to be achieved. Contract performance is not being well monitored. I found documents where they had been modified just hours before I saw them. Many of your engineers are undertrained in managing all aspects of the contracts in which they are involved. Most key decisions are made by yourself and two other senior managers. There are complaints from contractors relating to sudden changes in specifications, materials being stolen, and slow payments that have not been addressed. Many of your staff and some contractors are unhappy with the way the project is managed.’

Carter realised he was starting to deliver a sermon but persisted.

‘My summary is based on the views of your staff and contractors involved, as well as external government agencies and private monitoring agencies. I have reviewed relevant documentation, or the lack of it, conducted site visits, and have direct evidence that contract outcomes are not being achieved. You as the Permanent Secretary have to take some responsibility for this situation.’

Gupta threw up his hands in the air. His face reddened, he banged on his desk, and leaned forward, his voice rising and his anger spilling out.

‘Mr Carter you know very well that my career would be finished if I complained. Little would be achieved; real reform takes time. I do not accept your recommendations, and your unprofessional and malicious observations about my management, ethics, judgement, and my dealings with various suppliers. I am being made a scapegoat for the problems you have uncovered. It is the Government that must take responsibility, they cannot load all this on to me. I have made the corrections I want. See that you incorporate them in your report to your client the World Bank. I have sent my corrected copy to the Minister.’

Gupta handed a copy to Carter. Carter did not react at all. He appeared to be considering Gupta’s request. The evidence against Gupta was overwhelming. The public would have little sympathy for an incompetent, privileged son of a wealthy family. His connections had probably enabled him to be promoted in the public service way beyond his ability. He had then ingratiated himself to his backers by providing illegal wealth opportunities, in which he probably also participated. Gupta was more a Trojan horse than a scapegoat.

The World Bank would of course reasonably edit and amend his report in consultation with Carter. They would take an even approach. They would also see Gupta’s edited changes and seek reasons why Carter may have accepted or rejected them. The final report accepted by the Bank would then be used in its negotiations for change with the Government. These reports were seen as internal documents by most Development Banks and were not usually published. Gupta was as good as gone and he knew it. Carter felt little sympathy for him. More than thirty percent of his fellow citizens were living below or near the poverty line with little prospect of change.

‘Well, what are you going to do?’ snarled an exasperated Gupta.

‘The summary will form the basis of my report, but I will consider your written comments.’

Carter quickly shifted his gaze from Gupta to a painting of a royal elephant on the office wall. As Gupta followed his gaze, he slid his hand under the desk and felt the small vibration of the P31. All had continued to be recorded. Time for action; he had done this before. He knew the environment under this desk from his first meeting with Gupta about a month ago and from subsequent meetings. He rose, bent over, and let two identical small pen drives in his hand slide to the floor. He picked up one pen drive, showed it to Gupta, and used his foot to gently slide the other pen-drive under the Secretary’s desk. He faced Gupta who had been looking at the painting.

‘Mr Gupta thank you for the opportunity to meet. I will look at your suggested changes, but I am unlikely