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

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter