Download - Clean India
Remember our CONSTITUTION?
"WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute
India into a SOVEREIGN
DEMOCRATIC REPUBLIC, and to secure to all its
citizens :
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity; and to promote among them
all;
FRATERNITY assuring the dignity of the individual and the unity of
the Nation:
IN OUR CONSTITUENT ASSEMBLY
this twenty-sixth day of November, 1949,
do HEREBY ADOPT, ENACT AND
GIVE TO OURSELVES THIS CONSTITUTION.―
2
In the Republic of India there is a widely shared desire in the country to
consolidate the gains made now as also to assess our future.
• Undoubtedly, the people of the country and the
managers of society can be congratulated on many
counts for India's achievements,
• (i) self-sufficiency (in fact surplus generation) in
food-grains,
• (ii) a strong industrial base,
• (iii) a rising expectancy of life,
• (iv) a higher percentage of literacy,
• (v) a united and better integrated India and
• (vi) a growing recognition by the world of our
capabilities and potential.
3
On the negative side, one can‘t ignore the
nagging problems of
• unemployment, illiteracy and poverty,
• accentuated by an ever increasing population.
Also, a low per capita income, inadequate
infrastructure, feudalistic tendencies and worst of
all a pathetic contempt of rule of law and ethics in
public life.
Finally, an administration which is perceived as
self seeking and citizen unfriendly.
4
• The Transparency International (TI) Corruption
Perception Index (CPI), ranks countries in terms of
the degree to which corruption is perceived to exist
among public officials and politicians. It is a
composite index derived from 15 different polls and
surveys from 9 independent institutions carried out
among business people and country analysts.
• CPI defines corruption as the abuse of public office
for private gains. The index provides an annual snap
shot of the views of business people and analysts
like bribing of public officials, kickbacks in public
procurement or embezzlement of public funds.
5
• Of the 102 countries surveyed in 2002, seventy countries
– including many of the world‘s most poverty stricken –
score less than five out of a clean score of ten.
• Corruption is perceived to be rampant in Indonesia,
Kenya, Angola, Nigeria, and Bangladesh, countries with a
score of less than two.
• Countries with a score of higher than 9, with very low
levels of perceived corruption, are rich countries, namely,
Finland, Denmark, New Zealand, Singapore, and
Sweden. 6
• There is nothing to be proud of India's ranking in the
Transparency International's Corruption Perception Index
2009.
• The country ranked low also in the Bribe Payers Index
among emerging economic giants.
• The use of public funds for private gain is common.
• The misuse of power, position and privilege is widespread.
• Corruption seems to be a fact that affects all sections of
society
7
TYPOLOGY OF CORRUPTION
Corruption is defined as the use of public office for private gains
Scales of corruption can be Grand, Middling or Petty and payment of bribes can be due to collusion between the bribe taker and the bribe giver, due to coercion or even anticipatory. Easy solution to personal issue.
Existence of corruption implies that there are corrupt people, there are also corrupt practices, and there is a corrupt system.
Therefore, all the three have to be fought simultaneously to eliminate the vice of corruption.
8
Corruption in public life in India-2015
As a recent editorial in a leading newspaper
observed: Corruption in public life is one of the
most daunting issues facing the country.
Edmund Burke: All that is necessary for the forces
of evil to triumph in the world is for enough good
men to do nothing.
9
Mahatma Gandhi:
(65 years ago)
Corruption will be out one
day, however much one
may try to conceal it.
The public can, as its right
and duty, in very case of
justifiable suspicion, call
its servants to strict
account, dismiss them,
sue them in a
law court or appoint an
arbitrator or inspector
to scrutinize their
conduct, as it likes.
(It doesn‘t care)
10
Are you aware corruption accentuates poverty,
aggravates economic disparity, thwarts development,
undermines democracy and is a threat to national
security and, destroys the moral fibre of the Nation?
No, corruption will NOT destroy India. Why Not?
Because, much of India functions, 'oiled' by
corruption. It damages India, for sure. But just as the
average Indian has more of a 'natural immunity' to
TB, Asthma, Dengue, Malaria, Conjunctivitis, 'Delhi-
Belly' and other 'gastro viruses and bacteria', than
other peoples, Indians have found ways of
continuing to work around this corrupt system.
11
12
Eight frequently asked questions about public
corruption:
(1)What is corruption?
(2) Which countries are the most corrupt?
(3) What are the common characteristics of countries with
high corruption?
(4) What is the magnitude of corruption?
(5) Do higher wages for bureaucrats reduce corruption?
(6) Can competition reduce corruption?
(7) Why have there been so few (recent) successful attempts
to fight corruption?
(8) Does corruption adversely affect growth?
PEOPLES’ PERSPECTIVE Indians think ( some even hope) that corruption cannot be eliminated in India – at least not in their lifetime. This pessimistic and cynical perception of the people is largely an outcome of confusing corruption with all kinds of illegal actions and activities by individuals.
Corruption is a threat to democracy and economic
development in many societies. It arises in the ways
people pursue, use and exchange wealth and
power, and in the strength or weakness of the state,
political and social institutions that sustain and restrain
those processes.
Most illegal actions, many of which are private actions, are
confused with corruption.
The Prevention of Corruption Act 1988 and Indian Penal
Code clearly distinguishes between corruption indulged by
public servants for private gains and illegal actions by
individuals.
There are separate Acts in India for dealing with different
kinds of illegal actions of private individuals. For example, if
a public servant amasses wealth disproportionate to his
known sources of income then he can be tried under
Prevention of Corruption Act 1988.
However, if a business-person amasses wealth
disproportionate to his known source of income he will be
dealt under Income Tax Act for concealing his income and
not under Prevention of Corruption Act. 14
Happenings in India
Corruption has been defined by the World Bank as the ‗use of public
office for private profit.‘ In our country, there are five major players on
the corruption scene, interdependent, strengthening and supportive
of the vicious cycle. They are the neta, the corrupt politician; the
babu, the corrupt bureaucrat; the lala, the corrupting businessman;
the jhola, the corrupt NGO; and the dada, the criminal of the
underworld !
The Prevention of Corruption Act 1988 and Indian
Penal Code _ clearly distinguishes between
corruption indulged by public servants for private
gains and illegal actions by individuals.
16
September 2000: Former President Rao was convicted of criminal
conspiracy and corruption in the 1993 vote buying scandal and became the
first Indian Prime Minister to be convicted in a criminal case. He was
acquitted on appeal, however, in March 2002.
March 2001: Following the release by an Indian news website of a videotape
showing 31 politicians, high level officials, bureaucrats and army officials
taking bribes, the Defence Minister and leaders of the ruling BJP party were
forced to resign. Four defence ministry officials were also suspended.
September 2005: Railway Minister Laloo Prasad Yadav was charged with
misappropriating state funds in the long running ―fodder scam‖. He and
Bihar Chief Minister were charged with embezzling over US$ 40 million in
state funds intended for the purchase of animal fodder. In total, 170 persons
were charged in connection with this scandal.
17
In January 2006: A reporter in Assam writing articles accusing local
forestry service officials of having links to timber smuggling was
murdered.
In March 2006: The BJP alleged corruption in a military contract to
buy six submarines from two French companies, claiming that the
government overpaid by approximately US$ 113 million and used
the excess to pay middle men that helped secure the deal.
In January 2009: Satyam Computer Services Ltd was barred by the
World Bank from bidding for contracts for eight years and top
officials were arrested after a major financial fraud over several
years was disclosed.
In 2010: Telecom Minister Andimuthu Raja allegedly rigged the sale
of 2G telecoms licenses for lower prices to the companies he
favored.
18
In 2010: The chief minister of Maharashtra resigned over his alleged
role in a scam involving homes for war widows. He was ordered by the
ruling Congress party to tender his resignation to Maharashtra's
governor while the matter was investigated. Mr. Chavan's relatives,
army officers and bureaucrats are among those who allegedly
acquired apartments. He denies any wrongdoing in relation to the
Mumbai housing project.
In 2010: Suresh Kalmadi, the much-maligned organising committee
chief of Commonwealth Games in Delhi, also quit his post in the
Congress party.
An other housing loan scam involving state-owned institutions and a
private and listed Mumbai-headquartered company Money Matters
Financial Services Ltd has been exposed. This has once again put
independent directors under a cloud At least three of the four
independent directors in Money Matters, whose CMD and two senior
executives were arrested by the Central Bureau of Investigation (CBI),
are ex-bankers and chairpersons of financial institutions.
19
In fact, R N Bhardwaj, non-executive independent
director on the board of Money Matters was the
chairman of LIC and LIC Housing Finance for more than a
year till May 2005. He has served in LIC since 1968 till
his retirement in 2005. Money Matters, the CBI has
alleged, bribed senior officials in LIC and LIC Housing
Finance while mediating and facilitating loans for
builders and corporates from these institutions. Among
those arrested include the chief executive of LIC Housing
Finance. The other two are the former chairman and
managing director of state-owned Allahabad Bank and a
former CEO and chairman of state-owned financial
institution IFCI Ltd.
20
Given their understanding and clout in the financial
services sector, experts wondered if they took their role
of 'independent directors' seriously and asked the right
questions. The fourth non-executive independent
director in Money Matters is Sanjiv Kapoor, a chartered
accountant, who has audited the books of the state-
owned insurer LIC.
Who will investigate these allegations?
• Central Vigilance Commission (CVC)
• Central Bureau of Investigation (CBI)
• Comptroller and Auditor General
(C & AG)
21
VYAPAM SCAM IN M P:
An enquiry into death of Shailesh, son of Governor of M
P, whose name figured in the scam, is being conducted
by C B I.
CBI has registered more than 10 cases against 200
people in connection with the Vyapam scam, about
irregularities in Police Constable Recruitment Test case,
pre-medical test in 2010, 2008, 2009, and 2011, leaking
model answer key, impersonation in the exams in 2014,
etc.
22
LALITH MODI AND CRICKET SCAM
Indian Premier League (IPL) that administered
cricket with eight franchise teams since 2008, had
Lalith Modi as Commissioner. He brought money to
the BCCI and with that came in corruption. The
2010 edition of the IPL came under scrutiny and
charges of money laundering put Lalith Mody in a
spot.
He was also accused of manipulating the auctions
and broadcast deals.
He fled the country and remained defiant.
23
BLACK MONEY LAW 2015
2015: ‗The Black Money (Undisclosed Foreign
Income and Assets) and Imposition of Tax Act,
2015‘ has been announced and criticized as harsh
and it is commented that officers would harass
them. Black money is a serious problem, which
needs strict handling. It needs to be brought into
the economic mainstream.
Stringent penalties are applicable under money
laundering legislations globally.
23
• The present system provides for taking on the
corrupt persons through a legal mechanism,
which has not been found to be very effective.
• Many corrupt practices fall outside the
purview of existing laws and need to be
tackled by people themselves.
• The responsibility for dealing with corrupt
people, corrupt practices and corrupt systems
devolves equally on individuals, civil society
institutions, legislature, executive, and the
judiciary.
24
CORRUPTION IN INDIA: A scenario-1
India is one of the most regulated economies of
the world with powers concentrated in few hands.
It is a poor country with scarce resources where
demand is always more than supply. The receivers
of the public services are largely poor, ignorant,
and illiterate.
There is also absence of transparency and
accountability of the public servants.
There is no system of rewards and punishments
for the public servants.
25
CORRUPTION IN INDIA: A scenario-2
There was also no right to information. The license-permit-quota-inspector regime was pervasive in India since independence and continues under a different nomenclature even after liberalization and globalization of 1991.
In addition, there are 3000 central statutes and 10 times as many state statutes plus subsidiary and administrative laws (most of them archaic), with several exemption clauses and discretionary powers sans accountability. All these conditions were fertile breeding grounds of corruption
26
Good Governance Agenda
The growth of civil society networks engaged in anti-corruption work has played a useful role.
The last decade has seen the rise of NGOs involved in a broad range of anti-corruption activity at the village, city, regional and national levels.
These organisations are active on many fronts and are increasingly networking and provide useful role models for anti-corruption campaigners throughout the country.
The rise of civil / judicial activism has been accompanied by demands for greater transparency in public life.
Electronic media with ‗Crime news‘ plays an active role now 24X7.
27
Success OF INDIAN CEOs IN SOME OF THE
FAMOUS Multi-National COMPANIES / institutions (old)
1.Indra Nooyi- Pepsico
2.Amarthya Sen - Economic laureate
3.Ajay Banka- City Bank
4.Arun Sarin - Vodafone
5.MS Banga -Unilever
6.C K Prahladh - University of Michigan
7.Raghuram Rajan - International Monetary Fund
8. Padmasree Warier- Motorola
9.Jagadessh Bhagawati - Colombia University
10.Vyonesh Joshal - Hewlet Packard
11. Deutsche bank(German Company) – Mr. Anshu Jain as CEO.
28
C o r r u p t i o n f l o u r i s h e s i n o u r s y s t e m b e c a u s e o f f i v e
b a s i c r e a s o n s ( b e s i d e s t h e i g n o r a n c e o f t h e v i c t i m s ) .
T h e s e a r e : ( i ) s c a r c i t y o f g o o d s a n d s e r v i c e s ( u r g e n c y
i n a v a i l a b i l i t y ) ; ( i i ) r e d t a p e a n d c o m p l i c a t e d r u l e s a n d
p r o c e d u r e s ; ( i i i ) l a c k o f t r a n s p a r e n c y i n d e c i s i o n -
m a k i n g ; ( i v ) l e g a l c u s h i o n s o f s a f e t y f o r t h e c o r r u p t
u n d e r t h e ‘ h e a l t h y ’ p r i n c i p l e t h a t e v e r y o n e i s i n n o c e n t
t i l l p r o v e d g u i l t y ; a n d ( v ) t r i b a l i s m o r b i r a d a r i a m o n g
t h e c o r r u p t w h o p r o t e c t e a c h o t h e r. T h e p o p u l a r
p h r a s e i s ‘ t h i c k a s t h i e v e s ’ n o t ‘ t h i c k a s h o n e s t
p e o p l e ’ .
‗Satyameva Jayate‘ …. eventually
Citizen Charters has been introduced to improve the quality of public services
30
N. Vittal spent a four-year term as Central Vigilance
Commissioner and he is aware of the challenge
which the forces of corruption in our country pose to
those who want to fight it.
India pays lip service to the principle of honesty.
Gandhiji told us: truth and non-violence were the
fundamental principles of existence. Vedic dictum is
, ‗Satyam vadha - dharmam charah‘. Our nation‘s
motto is ‗Satyameva Jayate‘ or ‗Truth will triumph‘.
31
The role of the Chief Vigilance Office, may broadly
be divided into two parts. i.e. preventive and
punitive. The Chief Vigilance Officers have so far
been concentrating mainly on the punitive side,
i.e. dealing with actual vigilance has not received
adequate attention. The word vigilance” mainly
implies watchfulness. The role of Vigilance Officer
is predominantly preventive. While detection and
punishment of corruption and other malpractices
is certainly important, what is even more
important is the taking of preventive measures
which could reduce the number of vigilance cases
considerably.
32
Corruption is a two-way street. For every bribe taker,
there is a bribe giver. While the debate on
corruption in our country has focused on the
demand side of corruption, i.e., on public servants
and politicians who demand bribes, there has been
a thundering silence on the supply side of
corruption, i.e., around the business community
which bribes the public servants and politicians. It is
therefore interesting to note the business
community‘s focus on the issue of ethics in
business. Recently the CII organised a session on
ethics and corporate integrity.
33
Corruption is like malaria, handled by either
giving medicine to those affected or by
preventing the breeding of mosquitoes.
Many of our rules and procedures breed
corruption. Orders have therefore been
issued to check and simplify procedures.
One example is a ban on post-tender
negotiations in government purchases,
except with the lowest bidder. Such
negotiations are a flexible source of
corruption.
34
Corruption flourishes in our system because of
five basic reasons. These are: (i) urgent need
for goods and services; (ii) impatience with
complicated rules and procedures; (iii) lack of
transparency in decision-making; (iv) legal
cushions of safety for the corrupt under the
‗healthy‘ principle that everyone is innocent till
proved guilty; and (v) tribalism or biradari
among the corrupt and lazy seeker of an
urgent service/benefit, who protect each
other. If we believe corruption can be
eliminated, it can be.
35
Given the integration of global markets and the
increasing application of information technology,
billions of dollars can be transmitted from one
market to another at the click of a computer
mouse. When foreign financial institutions invest
in an emerging market, they want to be sure that
not only will the management functions be
performed effectively, but that decisions will also
be taken in a transparent manner and principles
of corporate ethics observed. When the chips are
down, integrity and corporate ethics do count in
global trade today.
Business frauds Preventive and Predictive Maintenance
36
The level of security in the financial
institutions becomes especially important
because ultimately, as Oscar Wilde said, the
thief is the artist and the policeman only a
critic.
37
Is eliminating corruption a myth or reality? If we
believe corruption can be eliminated, it can be; if not,
it will remain a reality.
When Vivekananda went to meet Ramakrishna Paramhansa,
he asked directly, ‗Does God exist? Do you believe in Him?‘
Ramakrishna Paramhansa supposedly replied, ‗Yes, not only
do I believe in Him, but I can also make you see Him?‘
Vivekananda has also described the experience where as
Ramakrishna touched him, he felt the presence of God.
38
When it comes to business frauds, it is always
better to adopt preventive and predictive
maintenance principles rather than the breakdown
maintenance principle, which is like locking the
stable doors after the horse has bolted. A classic
example is the Harshad Mehta scam where
because of lack of computerisation in the Public
Debt Office of the Reserve Bank of India, a Rs
l8,000 crore scam was perpetrated. It was only
after the fraud was unearthed that the RBI
computerised the Public Debt Office.
Tata Group Chairman Ratan Tata
Tata did not enter the airline business because he wasn‘t comfortable with the notion of paying a bribe of 150 million rupees ($3.3 million) to an un-named government official.
―We went through three prime ministers, and each time there was a particular individual that thwarted our efforts to form another airline,‖ Tata said. He even quoted another industrialist that said, ―You people are very stupid. The minister wants Rs 15 crore. Why don‘t you just pay it? You want the airline.
39
40
• Tata‘s revelation follows the resignation of
Telecom Minister Andimuthu Raja.
• The government released a report on
Tuesday that Raja had allegedly rigged
the sale of 2G telecoms licenses for lower
prices to the companies he favored.
• The cost to the Indian government in lost
revenue has been estimated at 1.76
trillion rupees ($39 billion).
41
The need for training in computerisation and using information
technology for enhancing the level of security in the financial
institutions becomes especially important because ultimately,
as Oscar Wilde said, the thief is the artist and the policeman
only a critic.
What computerisation does is provide a means of processing
a vast amount of data, which inter alia also give an idea about
the modus operandi of fraudsters. Intelligent application of
these concepts can help in preventing corruption and fraud.
Ah! put in place effective punishment
One method of minimising frauds is to put in place effective punishment systems. Our legal systems are so dilatory that the guilty often escape and even if punishment is meted out, it takes a long time. Often, the fraudster has so many resources at his command that he can engage the best legal brains to buy his way to freedom.
Who should rework the punishment regimen and our legal system to ensure speedy punishment to the corrupt and the guilty?
42
Democratization of information and
knowledge:
The truth is that governments and citizens are fully
aware of the corruption which pervades their country.
The problem is that the people are ‗powerless‘ to stop
corruption.
Information, knowledge and patience are critical for
realizing all the human aspirations, such as,
improvement in quality of life. In the knowledge
society, in which we live today, acquisition of
information and knowledge and its application have
intense and pervasive impact on productivity gains.
43
44
The concept of Citizen Charters has been introduced to
improve the quality of public services. It ensures
accountability, transparency and quality of services
provided by various government / business organistions. It
enables citizens to avail of services with minimum hassle,
in reasonable time, and at a minimum cost. Effective
implementation of Citizens Charters will go a long way in
controlling corruption. The Government of India has
launched an ambitious programme for formulation and
implementation of Citizens Charters in all government
departments.
45
There is need to re-examine our culture, which has
normalised corruption in its many different forms.
We in India need to acknowledge the need for
introspection on our acceptance of the abuse of
power. The ―Seven Nolan Principles of Public Life‖
— selflessness, integrity, objectivity, accountability,
openness, honesty and leadership by example —
should form the standards for holding public office.
There should be regular and independent reviews
of individual and organisational functioning. The
challenge is to inspire and change individuals and
to transcend and transform societal norms.
A pluralist society with high ethics
in public life: Awake to it, India Vice of corruption can be overcome
Jai Ho
Adopting this strategy, we can definitely see India becoming a less
corrupt, progressive and developed country in the next 10 to 15
years.
Om Shanti! Shanti! Shanti
A Prayer for Wisdom
(Let us come together. Let
us enjoy together. Let our
strengths come together.
Let us move from
darkness to light. Let us
avoid the poison of
misunderstanding and
hatred. That way lies
progress.)
47
INDIA can become a Nation, which is best described in the
words of Rabindranath Tagore
"Where the mind is without fear and the head is held high;
Where knowledge is free;
Where the world has not been broken up into fragments by
narrow domestic walls;
Where words come out from the depth of truth;
Where tireless striving stretches its arms towards
perfection;
Where the clear stream of reason has not lost its way into
the dreary desert sand of dead habit;
Where the mind is led by thee into ever widening thought
and action- Into that heaven of freedom, Oh Citizens, let our
country awake."
Source: Gitanjali, verse XXXV.
48
57
"We are responsible for what
we are, and whatever we wish
ourselves to be, we have the
power to make ourselves. If
what we are now has been the
result of our own past actions,
it certainly follows that
whatever we wish to be in
future can be produced by our
present actions; so we have to
know how to act. "
-- Swami Vivekananda
Right to information act
The Right to Information Act (2005) and equivalent
acts in the states, that require government officials
to furnish information requested by citizens or face
punitive action, computerisation of services and
various central and state government acts that
established vigilance commissions have
considerably reduced corruption or at least have
opened up avenues to redress grievances.
58
59
Ombudsman [LokAyukta]
The LokAyukta is an anti-government corruption organization in the Indian
states. These institutions are based on the Ombudsman in Scandinavian
countries. An amendment to the Constitution has been proposed to implement
the Lokayukta uniformly across Indian States as a three-member body, headed
by a retired Supreme Court judge or high court chief justice, and comprise of the
state vigilance commissioner and a jurist or an eminent administrator as other
members .
Computerization
Bhoomi is a project jointly funded by the Government of India and the
Government of Karnataka to digitize the paper land records and create a
software mechanism to control changes to the land registry in Karnataka. The
project was designed to eliminate the long-standing problem of inefficiency and
corruption.
Introduction of smart cards for vehicle registration and drivers licenses by
Karnataka Regional Transport Organization.
Enforcement automation of traffic violations by Bangalore Traffic Police .
60
• There is saving grace that the world view of an average
Indian is averse of vices. The broad masses of the people
has simple task to ask for transparency, accept the
verdict as the rule of the game what they otherwise do in
the name of their fate, burn the real life demon what they
do with the mythological ones.
• Get to zero tolerance for the perpetrators beyond all
bounds of personal links and likes. Operational side of
the campaign calls for making the institutions of
democracy efficient. It will handle much of the nexus of
political, bureaucratic and criminals.
• Jai-Ho