Investigating Corruption in PSUs
Complaints against Chief Executives and Functional Directors of the Public Sector Enterprises and CMDs and Functional Directors of Public Sector Banks and Financial Institutions whether pseudonymous or otherwise, received by the Cabinet Secretariat or the Department of Public Enterprises (DPE) or the Prime Minister’s office, will be first scrutinized by the Group headed by the secretary (Coordination) in the Cabinet Secretariat.
The Group constituted will also be looking into the complaints received by the Cabinet Secretary from CVC under the CVC Act or the Public interest Disclosure Resolution. The CVC shall be kept informed at regular intervals about the status of the scrutiny/review undertaken by the Group into complaints forwarded by the CVC.
The CVC enjoys the powers to look into the complaints under Section 8 of the CVC Act 2003. As per amended O.M. of DPE dated 12th April 2010, the Group headed by Secretary (Coordination) in the Cabinet Secretariat and having Secretary, Department of Public Enterprises, Additional Secretary, Department of Financial Services and Secretary, Central Vigilance Commission as Members will also be looking into the complaints received by the Cabinet Secretary from CVC, under the CVC Act or the Public Interest Disclosure Resolution. The CVC shall be kept informed at regular intervals about the status or the scrutiny/review undertaken by the Group into the complaints forwarded by the CVC.
This information was given by Shri Arun Yadav, Minister of State for Heavy Industries and Public Enterprises in a written reply to a question in Lok Sabha today.
Financial Irregularities in PSUs
The Comptroller and Auditor General (C&AG) in its Report (Commercial) No. CA 24 of 2009-10, which was placed in the Parliament on 9th July, 2009 has mentioned about deficiencies in management of PSUs that have certain financial implications.
The C&AG in its Report has also indicated the reasons for these deficiencies. The concerned Ministry/Department is required to take necessary action including remedial action, if any, on the Audit paras/observations relating to Central Public Sector Enterprises (CPSEs) under its administrative control. In order to effectively monitor and expedite the follow up action on C&AG report, each Administrative Ministry/Department has also set up a Monitoring Cell.
As per the audit observations made in the C&AG Reports No. CA 24 of 2009-10, CA 11 of 2008 and CA 11 of 2007 the financial implications amount to Rs. 1846.58 crore, Rs. 1404.32 crore and Rs. 4547.63 crore respectively.
This information was given by Shri Arun Yadav, Minister of State for Heavy Industries and Public Enterprises in a written reply to a question in Lok Sabha today.
Corporate Governance Standards in PSUs
In terms of the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Government in 2007, which are voluntary in nature, CPSEs may establish a mechanism for employees to report to the management concerns about unethical behaviour, actual or suspected fraud, or violation of the company’s General guidelines on conduct or ethics policy.
All CPSEs have already been advised to establish ‘Whistle Blower Policy’ listed in para 8 of Annex VIII of Guidelines on Corporate Governance for CPSEs, 2007. Oil and Natural Gas Corporation Ltd. (ONGC) has voluntarily adopted ‘Whistle Blower policy’ with effect from November, 2009 and GAIL (India) Ltd. is in the process of formulating a ‘Whistle Blower policy’.
The Government has now decided to make the Guidelines on Corporate Governance for CPSEs mandatory.
This information was given by Shri Arun Yadav, Minister of State for Heavy Industries and Public Enterprises in a written reply to a question in Lok Sabha today.
Respected Sir,
First of all I congrulate you for joining as ‘VC’ in CVC. Sir, I have no dare to write to you but even then I made courage to write to your goodself. Sir, After becoming Sh. Narender Modi Ji as Hon’ble Prime minister of india, it was looking that there will be reduction in corruption / fabrication but my practical experience is that Officers of PSU’S still are so dare and bold that they do not fear from any investigating agencies like CVC. As such after joining of your goodself I am bringing all this in your notice. Sir, the matter is like this:–
—There were irregularities / fabrication / openly corruption in one of the office of United india insurance office at Bhiwani[Hry.]. I sent complete details of the same to CVO as well to CMD of the United india insurance company last year. The co. played a ‘Drama’. The co. deputed officers of their company who gave / furnished false / Golmol report to the top management however all the irregularities / fabrication / corruption are still in record of that insurance company. As huge ‘Extra money / income’ is generated by other source / wrong methods as such no action was taken. As I am a senior surveyor from last 25 years in that company, so just after my complaint my work was immedietly stopped so that I may got aware with further activities of that office and the things are still happening on large scale in the same office without any fear. As This office is source of ‘Extra income’ as such no. of fellows who are involved in these activities fully support to the br. incharge of the same office and also misguide the top management of the company. The matter of sorrow is that from last year to till date I have written at least 30-35 mails / registered letters to the top executives of the company+ to the deptt. of ministry of finance+ to IRDA+ to Hon’ble minister office and to your office also but till to date there is no single reply from any of the office. Now I am trying my best efforts to make such a communication to Hon’ble Prime minister of India alongwith copies of all the mails as well regd. letters sent to the above deptts. So that our Hon’ble Prime minister may receive personally all my above mails and letters so that he may got aware with the activities which are happening in India still now. Even then I request you to please co-operate me in this matter and instruct the dealing fellows of your deptt. to investigate the real facts / things and then to punish the fellow involved.
I request all the gentlemen to please approach Transparency International India
After having conducted audits of large number of PSUS some of which are navratans I have found that there is multiplicity of authorities in PSUS for procuremnts which is considered most lucrative area for minting money .After deparmental requesition is made purchase committee intiates process of calling bids by floating tenders .In between there is financial concurence by another committee .After this there is bid evaluation committee which makes all kinds of evaluations which are mostly subjective with no criterias to be followed uniformly before excution of contract takes place preparing the stage for the CVCS and CAGS role.At every stage ther is lack of transparency in the garb of maintining secrecy and guarding of information but every piece of information is availiable for price .These multiplicity of authorities are apparently there to act as check on each other’s work but has been made instument of buck passing by these very authorities.
The task may prove to be extremely difficult and sensitive, as would appear from the footage and print area given to quite a few PSU bosses in the electronic and print media. The problem lies at the entry point and the rot starts there. Unless the appointments of CMDs/Directors and promotions in the executive levels in the PSUs are made transparent, and vested interest in these broken, the proposed vigilance mechanism would be tantamount to bolting the stable after the horse bolts. The public opinion, about the manner and reasons for selection of particular persons as CMDs, etc., and viewing them/their photo-ops very frequently on the TV channels or in the leading newspapers and periodicals, is rather unpalatable. One would to trust that the government under an honest PM is serious in stemming the deep-rooted rot. And so this is really a very welcome news.
In the 1990’s, a most upright, courageous, competent and transparent IPS officer was working as the CVO in a PSU in the South. In the course of his work, and he was trained in the techniques if investigation of fraud, and also being a great investigator, he stumbled upon a mountain of evidence against the CMD of the fertiliser PSU. As he developed the case, he unearthed documentary proof against the CMD and the latter, getting the scent, started creating very serious hurdles for the CVO even in his day-to-day work and, as is usual, poisoning the administrative ministry’s secretary and CVO-Jt. Secy. (both naturally from the royal generalist service-i.e., the IAS). The CVO had already completed his investigation and inquiries and also submitted interim reports to the ministry and even had kept the ministry bosses fully informed. One day, he was on casual leave after another installment of his report had been received in the ministry. The next day, when he reached the office, he found his chamber locked and a fax massage to him, the CMD and the Chief Secretary of the State cadre to which he belonged, informing all concerned that the officer “stood relieved from his post and duties of the CVO” with effect from the previous day, i.e., the day when he was on casual leave!
In another ministry, and a very important and “wet” economic ministry with a most important “priority sector” until the late 1990’s, the Jt. Secy. (Ad.as well as a div.) was the CVO, with 1/4th Section Officer! When that very Jt. Secy.’s daughter purportedly “purchased” a property from her father for a few lakhs of rupees(the JS), the same JS addressed an intimation to the CVO (i.e., himself, in another “avatar”), and then the 1/4the of an SO (!) put up that letter to the CVO who took that intimation “on record”, thereby fulfilling a rule of the CCS (Conduct) Rules.
In the same ministry, the IAS officers were too busy the year round in foreign tours for participating in highly technical discussions/meetings with foreign suppliers of technical know-how/plant & machinery/contracts for installing state-of-the-art plants, etc. And, by way of courtesy-plus, all of them (including the accompanying PSU executives) brought back very costly/expensive gifts, including jewellery too. On return, all the civil servants, ritually and religiously abiding by their own AIS(Conduct) Rules (specifically framed for protection of the interests of the ALL INDIA OFFICERS-the only officers supposed to serve in any part of the whole of India, though they are never posted in their career-unless desired by them-outside their allotted states, the centre and their “home” states on lucrative “deputation”) furnished the list of the absolutely token gifts of a pen or a pencil set or a key ring or a packet of handkerchiefs, etc., which, as per their Ten Commandments could kept with them only. The main gift luggages of these civil servants’, along with those of the top PSU bosses’, would be brought to India, along with the customery gifts for the Customs detail at the airport, by some underlings and delivered at the right places!
In yet another incident, a very scrupulously honest and straightforward, but cantankerous, un-diplomatic and bad-mouthed lady IRS officer was implicated in a false case of stealing while serving one of the wettest PSUs as its CVO. It is a very long tale of how murderous and corrupt bureaucrats and PSU bosses joined hands to destroy an honest, hardworking and efficient officer since she sought to expose and did succeed in exposing their naked corruption. One day, the CVO reached her office to find herself locked out of her room, without any notice. Her salary was not paid for years, by her own (parent) ministry, the ministry to which her services had been lent on deputation and, of course, the PSU itself!
All this I record for posterity-the present and future generation of officers, to warn them against ever opting for goingon deputation as CVOs in any PSU, unless some of them find this as more lucrative-as a leading PSU-airlines co.’s CVO’s post has been.
In other words, the anti-corruption set up in all the ministries and every PSU, autonomous bodies, semi-govt. bodies, municipalities/corporations, JVs with more govt. stake, etc. is really a farce and merely a formality. There is indeed no vigilance at all in any of the places mentioned above.
This is for the information of the general and gullible public. In fact, the most ludicrous example in this regard is a totally bogus concept of “Integrity Pact” being talked about by a particular NGO with its Parent body/HQ abroad. One should sicerely inquire, as to wheter, the extent of corruption (corruption index!)has gone up or down since the inception of this fraud of “Integrity Pact” being signed by the PSUs and this NGO of foreign origin!
The sum total is that, despite all the show business, we have a huge population of corrupt people and the so called corruption index does not even reflect a tiny per cent of the real progress and long strides being made by us every hour. Look at the exposure of corrupt officers, spies, cricket bosses, MCI bosses, govt. engineers, etc., in the one month ending as on this day! And, like in the private sector in India (save the TATAs), no PSU bothers about Corporate Governance, except that discussions/meeting are held in the presence of the nominee directors from the administrative ministries who get a chance to “unwind” themselves in resorts/5-star hotels for a couple of days due to these “important public duties”.
Where indeed is there any semblance of governance in the country-be it the central and state goverments themselves, or the family units, or sports bodies, or huge and foregn-connected NGOs., MCI, AICTE, UGC, Universities, schools, civic bodies, etc.?
We are a sad nation busy making fast bucks only. Perhaps that is the rule of nature itself. The pagans like the Hindus talk of something called the Kaliyuga-has the Hindu-India (as compared to the more progressive and noble Secular-India) reached this era of the Kali before its final and inevitable extinction?