Colonial Hong Kong’s Successful Fight against Corruption: The Formation and Operation of the ICAC

Asianometry

Historical Context of Corruption in Hong Kong (1950s-1960s)

Endemic corruption across private and public sectors
"Tea money" or "water money" bribes required for basic services
- Visa/passport applications
- Telephone/power line installations
Diminished public faith in British colonial government
Previous anti-corruption efforts failed due to incremental approach vs comprehensive strategy

First 55 years of British rule (1842-1897): no substantial punishment for corruption
1897 gambling scandal led to first anti-corruption law in 1898
Prevention of Corruption Ordinance passed but not enforced for decades
Colonial government feared antagonizing police force
- Afraid of "collapse of police morale" (euphemism for riots)
- Anti-corruption forces could not be separated from police

Police Sergeant Peter Fitzroy Godber investigated for excessive savings
- Had 6x more savings than possible under his salary
- Distinguished veteran with sterling reputation
- Had honorably handled riots in 1960s
Godber escaped to UK via Kai Tak International Airport
Public outcry followed, government seen as unresponsive
Society faced immense inequality and terrible living conditions
Became "straw that broke the camel's back"

Governor Murray MacLehose established truly independent anti-corruption force
Separated from Royal Hong Kong Police Force
Funding progression:
- 1974: 8 million HK dollars
- 1987: 193 million HK dollars
- Today: over 1 billion HK dollars
Direct access to governor, answers only to him
Oversight through committees: complaints, operations review, citizens advisory

Inherited 181 police officers and 44 civilian employees from Anti-Corruption Office
Recruited additional 144 personnel
Led by Jack Cater (first commissioner) with Sir John Prendergast as deputy
1977: Found 18 syndicates
October 1977: Raided three Kowloon police divisions
- Arrested 140 officers, detained 35 more
- Nearly 2,000 men marched on governor's office
- MacLehose had to pardon all but most serious offenses

Investigation Department: receives majority of budget
Prevention Department: focuses on systemic issues
Education Department: handles public relations and awareness campaigns
- Changed public perception of corruption to "high-risk, low-reward activity"
- Built confidence in ICAC effectiveness
- Encouraged complaints with names attached (2/3 by Handover)

ICAC modeled after study team findings from Singapore and Sri Lanka
Singapore's People's Action Party successful anti-corruption battle contributed philosophy
PR campaigns created "moral outrage" similar to Chicago's "throw the rascals out" movements
Allowed public to feel comfortable making complaints

Hong Kong never been people's democracy requiring elections
Streamlined political process when governor committed to anti-corruption
Contrasted with South Korea where each president dismantles predecessor's anti-corruption work
No consistency due to electoral cycle expectations

Britain's authoritarian laws without democratic oversight:
- Official Secrets Act
- Film censorship ordinance (censored content offensive to neighboring countries)
- Warrantless searches of premises
- Unlawful assembly definition starting at 3 people
1987 public order press gag ordinance made fake news crime
- No presumption of innocence
- Writers had to prove reasonable verification measures
- Eventually repealed

Did not fully implement Singapore lessons
Singapore emphasized removing corruption opportunities, not just enforcement
Singapore raised bureaucrat salaries to among world's highest
Hong Kong ICAC focused on enforcement but not core issues
Driver's license example:
- Took 1 year for domestic residents to get license
- Bribes helped speed up process
- ICAC discovered corruption, recommended punishment legislation
- Failed to recommend bureaucratic process improvements

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