Thursday, 10 May 2012

Tackling Menace of Corruption



There is a popular saying Power Corrupts and absolute Power Corrupts absolutely. The saying though oft repeated is still relevant since it is able to bring out the simple but pertinent view that the effectiveness of any functioning democracy can be judged from the fact that how successfully it has been able to make Power vested among elected representatives accountable relative to the basic tenant enshrined in the Constitution of India. With this basic significance of accountability in mind in democratic setup let us peep into historical narrative of Corruption after independence.

Democratic India since its inception as to bear with corruption with first major Scandal known as Mundhra Scam came in prominence during Nehru era itself with which the erstwhile Finance Minister has to resign. Famous JP movement of seventies also had Corruption as a prominent issue with Ms Indira Gandhi being famously indicted by Allahabad High Court for wrongful electoral practices. Ex- PM Rajeev Gandhi also has to face Bofors scandal as a hot political issue in late eighties leading to his government’s eventual downfall in ensuing general election though the allegation was never proved in a court of law. His successor Mr Narashima Rao also had to face Harshad Mehta bribery scam and Jain Diary case while in office leading to his government also loosing in next general election leading to its eventual ouster. Similar allegations have been levied in last sixty years on many state governments with some of them ousted also due to the electoral heat the issue generated. The people of India have always thus shown their angriness against politicians and parties who have been accused of indulging in corruption and amazing wealth through loot of public resources by defeating them in elections or by coming out in open in defiance. But still the malice of corruption has not been uprooted with various parties alternating in power while showing apathy or lack of much needed political will on issue when they were in office. Thus the Indian Polity in general flayed in providing real alternate to people of India capable of providing corruption-free governance nor the people of the country were able to mobilized themselves in sufficient strength behind the issue of corruption as to make it an issue of such political significance that politicians can ignore it only at their peril. From this brief historical narrative on the issue we will now move to concurrent times.  

 The present time is also again witnessing the issue of Corruption hitting the limelight with series of scandal coming into open especially in last two years. The major difference from earlier period is the scale of corruption in terms of quantum of public resources allegedly being appropriated in undesirable way for private gains with all past comparisons paling in significance. Most prominent of all scandals has been 2G scandal in telecom sector on which at present Joint Parliamentary Committee is looking into the matter along with Supreme Court monitored investigation carried out by Central Bureau of Investigation which has till date lead to resignation of two Cabinet Ministers who have been telecom minister at one time or other during the period of Investigation (2002 onwards) of scam. Similarly V.K Shunglu Committee indicted Chairman of Commonwealth Games Organizing Committee Mr. Kalmadi, who has since resigned, for the Commonwealth Games Scandal. The attention of the people has also been garbed on the issue due to efforts made by prominent civil society members led by Gandhian Anna Hazare for enactment of Strong Lokpal Bill and awareness campaign ushered by them among the people of the country on need of such kind of institutional mechanism to combat the malice of corruption. There awareness campaign culminated in formation of Joint Committee with civil society persons as its members. Though the Committee failed to come out with a consensus draft of Lokpal Bill but still the constant media attention both from electronic and print side on the deliberations in Joint Committee as in someway succeeded in raising consciousness of the citizens of India on Lokpal Bill.

Prominent Corruption Scandals Summarized

As have been pointed out earlier of late in India there have been many corruption scandals that have hit limelight. We will now try to analyze some of the more prominent scandals so as to under stand what they were all about, to be in a better position to comprehend the measures and steps that will assist us in uprooting the menace of corruption-

 
2G Scandal

 As brought  out by Comptroller and Auditor General (CAG) in his report, the 2G spectrum scam involved the issue of 122 licenses of the 2G spectrum in 2008 to 85 companies including many new telecom companies with little or no experience in the telecom sector at a price set in the year 2001. The scam involved allegations regarding the under pricing of the 2G spectrum by the Department of Telecommunications which resulted in a heavy loss to the exchequer and the arbitrary application of First Come First Serve Policy followed in the spectrum allocation process to favor particular companies by changing deadlines for application in opaque manner. The issue came to light after the auction of airwaves for 3G services which amounted to Indian Rupee symbol.svg67,719 crore (US$15.1 billion) to the exchequer. Report of the CAG based on the money collected from 3G licenses estimated that the loss to the exchequer due to under pricing of the 2G spectrum was Indian Rupee symbol.svg176,379 crore (US$39.33 billion).

Krishna-Godavari-D6 Gas Basin Scam

CAG in its draft report on Production Sharing Contracts (PSCs) in Oil and Gas Field has indicted the Ministry of Petroleum and Natural Gas (MOP&NG) of Union of India of providing “huge” and “undue benefit” to Reliance Industries Ltd (RIL) and for allowing “irregularities and bending rules” to “oblige” RIL in the Krishna Godavari basin gas fields, leading to a massive and as yet “unquantifiable” loss to the national exchequer. In its 193-page Draft Report on PSCs in the oil and gas field, the CAG has laid bare the close nexus between RIL and the bureaucrats working in the Petroleum Ministry as well as in Directorate General of Hydrocarbons (DGH). This bending of rules in arbitrary way has allowed RIL to retain its entire offshore acreage, rather than surrendering those areas where it has not found oil or gas so that the government could invite fresh bids from other companies. The CAG report also noted that former Directorate General of Hydrocarbons (DGH) permitted Reliance Industries Ltd (RIL) to inflate its development costs on extracting the gas in the D6 block of the KG basin (KG-D6) from USD $2.47 billion to a huge USD $ 8.84 billion which has reduced government's share of profit in the contract. It has earlier been alleged that an Empowered Group of Ministers (EGoM) had allowed Reliance Industries Ltd to sell per unit of the gas at a price of INR Rs. 4.20 even as the government companies were selling the same for just INR Rs. 1.20. After the CAG report, the high-level Ashok Chawla Committee had criticized the system of Production Sharing Contracts (PSC) like the one Reliance Industries Ltd signed for the gas-rich KG-D6 block, saying that these contracts are designed to benefit private players at the Government's expense. The structure and functioning of the DGH also came in for particular scrutiny of the Committee, which asked the government to shut what it called the revolving door that allowed oil industry executives to work at the DGH on deputation and go back to their firms thus compromising much needed independence of Independent Regulatory Commission. On the 1st of July, 2011, the CBI in a separate probe in the alleged scam has registered a case against former chief of Directorate General of Hydrocarbons, V K Sibal and seven others for allegedly favoring private firms like RIL in carrying out seismic exploration of oil and gas along Indian coasts, further boosting the case for some wrongdoing.



Commonwealth Games Scandal

The scandal is multifaceted in nature involving numerous government agencies working at different layers of Delhi and Central government. The scam is currently being probed by V.K. Shunglu Committee. The Committee has come out with many reports covering in detail swindles that have occurred during the sporting extravaganza.  The high-powered panel has slammed sacked Commonwealth Games Organising Committee (OC) chief Suresh Kalmadi for being the leader of a “sham OC with much lesser accountability and transparency even in comparison to Indian Olympic Association (IOC)”. The OC was constituted to retain absolute and unhindered control on the Games through a sham society which was later utilized for giving contracts in arbitrary way to interested parties at exorbitant price resulting in cost overruns and huge financial losses and collusion with contractors to grant them undue gains. The report has even gone to the extent of questioning the very documents related to Kalmadi’s appointment and stated that they were not without tampering and undue changes. The interim report submitted by the VK Shunglu Committee regarding swindles made in Delhi Commonwealth Games in 2010 has recommended that criminal cases be registered against Prasar Bharti CEO BS Lalli and Doordarshan Director General Aruna Sharma. The report submitted by the committee to the Prime Minister’s Office has alleged that both the officials caused around Rs 135-crore loss to the exchequer by granting CWG broadcasting rights to UK-based SIS Live in undesirable way. The report has also pointed out delay in implementation of work by the Delhi Development Authority which lead to huge financial loses and collusion with contractors. As per an estimate by the panel, the Delhi government carried out works worth Rs 5500 crore in which many civic agencies had taken up projects. However, the delay in implementation of the projects incurred a loss of Rs 800 crore.

Iron-ore illegal Mining in Karnataka
Rising global iron-ore prices made Iron-Mining business really lucrative and brought into focus the iron ore rich Bellary region of Karnataka. As per the report brought out by Karnataka Lokayukt, this iron ore is alleged to have been illegally mined after paying a minuscule royalty to the government. The major irregularities involve mines in Bellary, including those of Obulapuram Mining Company owned by G. Karunakara Reddy and G. Janardhana Reddy who are ministers in the Government of Karnataka.

 Lokayukta report on illegal-mining in Bellary

A report prepared by the LokAyukta uncovered major violations and systemic corruption in mining in Bellary, including encroachment of forest land, massive underpayment of state mining royalties and systematic starvation of government mining entities. Justice N. Santosh Hegde resigned from the Lokayukta position on 23 June 2010 citing inability to be effective in his anti-corruption mandate owing to a non-cooperative Government of Karnataka, which on persuasion he withdraw later. The report brought out collusion of officials and politicians in permitting illegal mining in Bellary. The guidelines under applicable laws call for a sketch of the mining area when a mining lease is applied for. It was found by the Lokayukta that sometimes the actual mining areas are not related to the sketch given with the applications without officials crosschecking them. Further mining applicants falsely claim a prohibited forest area as a revenue area. Finally the actual area of the mine is much bigger than the claimed area. The Indian Bureau of Mines rules which control the type of mining allow a maximum mining depth of six meters to prevent environmental degradation. But miners have flouted this rule to over-extract iron-ore. Officials at road check posts reportedly collude in a massive under-counting of Lorries and trucks transporting the iron-ore from the Bellary mines to the ports. News reports suggest that only 200 trucks are reported as against 4000 plying everyday. There is a huge difference in the market price of the ore and the royalty specified by the government as well as faulty measurement mechanisms of amount of ore extracted. It was found that 35 lakh (3.5 Million) tones of ore were illegally exported without paying a rupee of royalty to the exchequer, resulting in a loss of about Rs 1600 crores. With ore prices of USD 100-120 per ton, 3.5 Million tones adds up to about 350-400 Million USD.

Aadharsh Society Scandal
In 2010 media with utilization of provisions of Right to Information Act, 2005 brought to public awareness the alleged violations of rules at various phases of construction in the Aadharsh Society.  Serious questions were raised on the manner in which apartments in the building were allocated to bureaucrats, politicians and army personnel who had nothing to do with Kargil War causalities in whose name the building was originally planned and the inappropriate way in which clearances were obtained for the construction of the building of the Adarsh Society. The Adarsh society high-rise was constructed in the Colaba locality of Mumbai, which is considered to be a sensitive coastal area by Defence forces and houses various Indian Defense establishments' buildings. The society is also alleged to have violated the Ministry of Environment rules. Activists like Medha Patkar had been trying to uncover the problems since at least 2004. The expose had led to resignation of the then Chief Minister, Ashok Chavan.
Fertile grounds for emergence of situation where corruption seems ubiquitous

On review of various scandals and scam and deeper insight in to the issue it's pertinent that the general shallow understanding that Corruption is just bribe-taking and lack of morality in person doesn't seems to be the case. Rather, corruption can properly be understood as any instance in which a person in public office takes a decision, due to any factors which goes against impartial public interest. Thus various scams and scandals surveyed above have at there roots general fallacy in institutional mechanism in place to tackle corruption, wrong choice of policy framework which makes corruption inevitable in someway and various nexus working presently which fructify corruption by aligning of vested interests. In such situation both political and administrative corruption breeds and feeds with impunity.

Institutional mechanisms in place like Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI), Departmental level Vigilance Committee etc,  to combat corruption has degraded due to basic structural deficiencies to a level, where both the person who is bribing to seek undue favors and out of the turn treatment and the public servant who is receiving bribes, found them at ease since there doesn't seems to be any reason for them to believe that they will be caught while transacting exchange of money for the purpose. Even in few cases where they are caught due to special efforts of persons manning anti-corruption or Vigilance departments they are confident of impunity as in most of the case the person is either let off after departmental enquiry by just reprimanding him or punishment is at best in nature of slap on the wrist. If in rare case it's decided to launch prosecution the permission of government has to be sought in case the officer is working at level of Additional Secretary and above thus seriously undermining the independence of anti-corruption mechanism as a whole. Though on paper, some bodies like CVC or Lokayuktas seem independent, but then they do not have any powers to seriously able to prosecute guilty. They are just advisory bodies with mandate to advise the governments – to either impose departmental penalties on any officer or to prosecute him in court. Experience shows us that whenever any minister or a senior officer is involved, their advice is rarely followed. The other serious lacunae in anti-corruption setup seem to be multiplicity of anti-corruption agencies with fractured mandate which render them ineffective. Lastly, there is the problem of internal transparency and accountability of these anti-corruption agencies. There isn’t any separate and effective mechanism to check if the staff of these anti-corruption agencies turns corrupt. This seems to be the reason why despite so many agencies, corrupt people rarely go to jail. Corruption has become a high profit zero risk business. Deterrence against corruption has eroded to an unprecedented level.
  

Policy framework regulating various sectors of Indian economy also seems to be out of tune with prevailing realities leaving ample scope for corruption. As have been pointed out in 2G scam above the spectrums were allotted on 'First Come First Serve basis' in 2008 and that too at price prevailing in 2001 for the spectrum. The flawed policy has resulted in situation where spectrum has been allotted to companies with least exposure in telecom sector by manipulating allotment procedure through political patronage. These companies in turn has sold  these sought out spectrum at hefty premium to corporate active in telecom sector causing enormous loss to national exchequer. Such precarious situation would have easily been avoided if 2G spectrum would have been auctioned at first instance. As brought out by Prashant Bhushan in his speech titled 'Indian State and Cancer of Corruption', Unbridled Privatization without the commensurate regulatory framework in place under the diktat of neo-liberal policies has resulted in government gifting away our precious natural resources to Private Corporations for exploitation by just charging small royalty. The Policy of Captive Allotment of Mines has failed to raise precious resources for the government by transparent pricing of the yet unmined minerals through open bidding. This kind of policy leaves ample scope for fructification of what is popularly called as political-business-bureaucrat nexus for mutual gains. Radia tapes exposure have brought the working of this nexus in full public glare. The Radia tapes have given the citizens of this country a glimpse for the first time of how the government’s decisions, policies, laws passed by Parliament, decisions of regulatory authorities as well as media stories are being decided by political-business-bureaucrat nexus in which lobbyists have their role to play as middleman to keep the ball moving in particular direction for mutual benefit. Public resources worth lakhs of Crores have been swindled off for private gains through the working of this dangerous nexuses which as now reached the stage where they are tearing off the very basic essence and notions of democratic structure of Indian polity to aspire for egalitarian society. Similarly, the day to day corruption we witness in government offices also result from application of rigid rules and regulations which fosters non-transparency and unaccountability in functioning of various government departments lending routine utilities and services to people of country. For making the labyrinth move to render even basic services the citizens need to grease the palm of public functionaries manning these departments.

Measures

Battle against the menace of Corruption has to be fought with multi-pronged strategy encompassing integrated measures and methods to uproot the malice rather than usual stand alone or one off step as have been done in past repeatedly without much success. The general impatience and enrage among the citizens needs to be channeled in appropriate direction by civil society members leading the combat against corruption along with honest politicians in government who are interested in beating down the malice of corruption now engrained in all structural pillars of Indian democracy and hollowing them out. Reforms in this precarious situation thus have to be broadly encompass all the following fields-    

  1. Administrative reforms.
  2. Electoral Reforms
  3. Judicial Reforms
  4. Public participation through creating consciousness on the issue


  Administrative Reforms will play a crucial role in curbing the malice of corruption. The whole anti-corruption institutions like CVC, CBI and Vigilance machinery working in various departments need to be integrated and made accountable to single independent and powerful authority namely Lokpal. Such an institution will able to provide some teeth to anti-corruption setup against political and administrative corruption which at present seems to be fragmented with confused mandates leaving loopholes in the process of investigation and prosecution of culprit. The processes in place governing the operations of government departments need to be streamlined by removing wasteful activities which creates delay and red-tap thus assist in creating fertile ground for possibilities of bribery. Every department should be made to declare citizen charter of their own with deadlines for various services rendered by them along with the name of officers responsible for providing timely service. Grievance Redress mechanism for ordinary citizens should also be brought under the ambit of Lokpal institution. Lokpal police can be created manned by functionaries of impeccable integrity with appropriate infrastructure on lines of police service with popular helpline number available 24 hours. If any public servant seeks bribe the helpline number can be contacted to bring the culprit to book round the clock.

It is by now well-recognized that excessive, unaccounted and illegitimate election expenditure is the root cause of corruption. This high and illegal expenditure forces parties and politicians to extort money from a variety of sources, legitimizes corruption, encourages political recruitment of those willing to spend large amounts of ill-gotten black money, discourages public-spirited citizens from contesting, leads to a vicious cycle of corruption, greed and extortion, and undermines our democracy. The frequent change of governments and public representatives has hardly succeeded in making a difference which can only be felt when the norms of election funding are altered fundamentally.  It has generally been observed that politician's patronage of bureaucrats is at core of rampant prevailing politico-administrative corruption. Bureaucrats seeks favor from politicians in form of lucrative postings in return for what they have shelled out to fund what is now popularly called as Transfer Industry. This so called industry has become a source of electoral funding for politicians. Electoral reforms with aim to curb the use of illegitimate funds in election campaign by altering electoral laws, bringing proportional representative system to ensure that candidates polling only small percentage of votes don't get elected and bringing general transparency in funding of political parties and elections can pave the way for true free and fair elections. Such reforms will also encourage individuals with integrity and societal-consciousness to contest elections and foray into public service directly. At present, Section 77 of the Representation of the People Act, 1951 makes a mockery of the election expenditure ceiling, by excluding the expenditure incurred by parties and others from the purview of ceiling limits.  

Judicial reforms are needed to make sure that the institution which is finally going to convict the person accused of corruption is above board and free from the malice itself. According to Transparency International, judicial corruption in India is attributable to factors such as "delays in the disposal of cases, shortage of judges and complex procedures, all of which are exacerbated by a preponderance of new laws". The problem of delay especially in lower judiciary can be corrected by making adequate investments to built relevant infrastructure. India's judges per million ratio is abysmally low as compared to international standards. It need to be increased first by filling all the vacant posts immediately and than by making an honest assessment of sanctioned posts of judiciary by taking into account pending workload of cases and fresh cases that are likely to arise.  Judicial Accountability Bill should be enacted under which there should be provision for compulsory disclosure of assets by judges as well as constitution of committee for deciding appointment to higher judiciary with members from all the three organs of the state-Legislature, Executive and Judiciary, to usher in required transparency along with independence of judiciary.

Democratic norms of the country can really be deepened by institutionalizing the public participation in the combat against corruption. This can be sought through committees of citizens with integrity and societal consciousness attached with departments rendering services to the public to get the feedback and suggestions which can be utilized to make interaction at cutting edge level between citizens and government functionaries as much hassle free as possible. Public opinion should be built-up in favor of actions against malice of corruption by independent and responsible media by educating people on the issue which would only encourage participation of general public in the fight against corruption.

Summary

Present environment of general public unrest and furiousness on the issue is a once in a life time opportunity to take the battle against corruption to its logical end. As have been seen in past if something concrete is not achieved on the issue the apathy sets in with time and anger mellows down. Without going into the detail of specific intricacies involved what can be said is that in a democratic country like India especially in the wake of all the corruption scandals exposed recently the assertive public opinion in favor of strong, independent and effective Lokpal Institution need to be catered and addressed by government while enacting the Lokpal Bill in parliament.  The Supreme Court order on black money makes some strong observations about the macro-economic policies followed by successive governments in recent decades. It characterizes the economic policies of various regimes as “neo-liberal”, promoting a form of capitalism that is predatory in nature. The court also chose to dwell on India’s economic policy regime, describing it as “neo-liberal” and guided by the “Washington Consensus”.      
  

No comments:

Post a Comment