India slack on corruption, says UN body

The country doesn’t have laws on public procurement and addressing corruption in the private sector

trithesh

Trithesh Nandan | May 15, 2013



A week before India comes under the mandatory 'review mechanism' at the United Nations Convention Against Corruption in Vienna, two reports released on Wednesday tore into India's preparedness to beat corruption. The two laws specifically mentioned that India doesn't have laws on public procurement and addressing corruption in the private sector.

“India has approximately 35 different ministries at the central level alone and no central procurement mechanisms,” said the report released by the UN Office on Drugs and Crime (UNODC).

Commenting on the lackadaisical attitude of states in enacting such legislation, the reports said that only two states (Karnataka and Tamil Nadu) have legislation for public procurement while others do not. According to Organisation for Economic Co-operation and Development (OECD) estimates on India, public procurement forms 20 to 30 percent of country’s GDP. In fact, procurement forms 50 percent of budget of ministries like defence, railways and telecom.

Procurement is still governed by General Financial Rules, 2005. “These rules do not have status of legislation and violations do not attract much penalty,” said the report titled ‘India: Probity in Public Procurement’. Meanwhile, the public procurement Bill 2012 still awaits clearance in the Rajya Sabha. “This bill needs to be passed by Parliament,” said T.R. Raghunandan, former civil servant, who was a consultant for the preparation of the report.

The report said that there is growing trend of PPP in India, yet the country is devoid of legislation and procedures that address probity issues in PPPs. There are 758 such projects in different sectors -- roads, ports, energy, urban development, airports, tourism, education, health care and railways.

“Twenty two percent respondents from private sector and 42 percent from government sector identified roads sector as needing more sensitisation on anti-corruption measures in procurement under PPPs as compared to other sectors,” said the report. The report is based on response from 100 officials from government and private companies.

According to the report, “Majority of respondents from the government sectors (47 percent) believe that the contractors should be debarred, followed by respondents (28 percent) who wanted internal measures against procurement officials involved in corrupt practices.”

“Consultants are not independent of the concessionaire,” it noted. Twenty five percent respondents from the private sector and 37 percent from the government said independent external consultants are unable to check leakages and monitor integrity during execution or monitoring of PPP projects.

However, 40 percent respondents said that manipulation of prequalification criteria remains the largest worry of private sector.

Addressing private sector corruption

Another report prepared by the same organisation said, “India has no specific legislation addressing corruption in the private sector.”  It said that real estate (20 percent) and mining (18 percent) are two sectors where it is impossible to do clean business.

Sixty six percent respondents named corruption in government and private sector as concerns for their business. “Eighty nine percent respondents agreed ethics code is lacking in a private company. It just exists on paper,” said the report titled ‘Corporate Integrity’.

The report also highlighted corruption within the sector hapopening within corporations, viz, cartelisation and insider information exchange. “High targets and tight deadlines, low orientation of the management’s focus on ethical issues along with a highly dynamic and competitive market are some fo the reasons cited for corruption in the Indian business sector,” the report added.

“We have to walk the talk. We have to translate into action,” said R Sri Kumar, vigilance commissioner, central vigilance commission.

Comments

 

Other News

Elections 2024: 1,351 candidates in fray for Phase 3

As many as 1,351 candidates from 12 states /UTs are contesting elections in Phase 3 of Lok Sabha Elections 2024. The number includes eight contesting candidates for the adjourned poll in 29-Betul (ST) PC of Madhya Pradesh. Additionally, one candidate from Surat PC in Gujarat has been elected unopp

2023-24 net direct tax collections exceed budget estimates by 7.40%

The provisional figures of direct tax collections for the financial year 2023-24 show that net collections are at Rs. 19.58 lakh crore, 17.70% more than Rs. 16.64 lakh crore in 2022-23. The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were fixed at Rs. 18.

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Indian Railways celebrates 171 years of its pioneering journey

The Indian Railways is celebrating 171 glorious years of its existence. Going back in time, the first train in India (and Asia) ran between Mumbai and Thane on April 16, 1853. It was flagged off from Boribunder (where CSMT stands today). As the years passed, the Great Indian Peninsula Railway which ran the

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter