Corruption

Y. G. Muralidharan

CORRUPTION the rot within

CORRUPTION : THE ROT WITHIN

by Y. G. Muralidharan, email : ygmuralidharan@gmail.com

First Edition : 2013

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Corruption will be out one day, however much one may try to conceal it, and the public can, as it is its right and duty, in every 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.

- Mahatma Gandhi

III

PREFACE The series of corruption scandals that have seen the light of the day in the past three years has made the citizen doubt the very existence of the State. Though corruption existed in the past, it was never to the extent that it is today. Every organ of the state is submerged in corruption, denoting the utter failure of the Government in containing the menace. There is governance deficit all round. Corruption has become a major obstacle to the country’s development. What is more intriguing is the involvement of the very same persons and institutions in large scale corruption who are supposed to fight the disease. An offshoot of these happenings is a renewed discussion on corruption. Scholars, social scientists, think tanks, citizen groups, bureaucrats, politicians, intellectuals, policy makers and other stakeholders have been commenting on corruption and the means to put an end to this contagious disease.

Each one is grappling with the problem of corruption and using all his brains to find a solution.

Two years ago when Shri R. S. Rajaram, (Managing Director of Navakarnataka Publications) suggested that I write a book on corruption, I had my own reservations. Firstly, because writing on corruption is a painful job. Secondly, there is hardly anything left unsaid about corruption. Instead I suggested that a citizens’ guide to fight corruption would be helpful. This appealed to him and I started gathering material. Only then I realized that it would be a difficult job to put the subject of corruption within a few pages. Corruption cannot be treated in isolation. It has affected almost all walks of life. Ultimately I decided to write a full length book and follow it up with a small guide.

I kept postponing submission of the draft because every time I thought the book is over a new scam or scandal came to light.

Writing on corruption is like giving a running commentary.

Almost every day we are witnessing several incidents of bribery and corruption. However, the reason for corruption remains almost the same. It is greed, crass consumerism and access to power without accountability, weak oversight mechanism, loopholes in the law and above all the so called ‘respectability’ enjoyed by the corrupt in the society.

The topic of corruption needs a wide canvas. However, the intention of this book is not to make readers experts in the IV

theoretical aspects of corruption, but to inform, educate and empower the common citizens about the dangers of corruption and how best they can play an active role in reducing, if not, eradicating corruption. Keeping the space constraints and the objective of the book several issues relating to corruption have been kept out. For example, the book does not deal with the role of ICT and the business community in reducing corruption. The impact of globalization on corruption is also not dealt with in this book. No book on corruption can be complete without a reference to electoral reforms. Here, only a passing remark is made. Similarly discussion on Right to Information Act and the Lokpal Bill has been omitted. Not that these issues are unimportant but have been debated and discussed at length during the last few months.

The book starts with a brief introduction about corruption and its effect in the light of the scams and scandals that the country has witnessed in the recent past. In the subsequent chapters an attempt has been made to understand the concept of corruption, its history and then move towards the causes for corruption. The emphasis is on corruption among the political class and the bureaucracy. The efforts that are to be made to contain corruption are discussed including the legal instruments that are before the Parliament.

Corruption is an evil that needs to be tackled urgently and I hope that this book will make citizens think and contribute their best to eradicate one of the serious maladies of our times.

I have referred a large number of books, monographs, articles, paper clippings and internet sources. I have listed some of them at the end of this book. However, if some of the sources are left out it is purely due to oversight and I shall be grateful if it is brought to my notice. I have also included photographs and cartoons taken from various websites. Such additions will be included in the future editions. I thank Shri R.S.Rajaram and the staff of Navakarnataka Publications, who have made me write this book and for publishing it.

My special thanks to Mrs. Anitha Sham for editorial support and Shri S. Surendra (HOSATHU Magazine) for going through the draft and making necessary changes. My thanks to Shri M. C. Narasimhan and Shri C. R. Krishna Rao for their useful suggetions. My thanks are also to my wife Sunanda and son Harsha Vasishta who have relieved me of my responsibilities of running a family while preparing this book. I welcome suggestions and comments from the readers.

Bengaluru January, 2013

Y.G.Muralidharan email : ygmuralidharan@gmail.com V

To G.R.Ramanath & Geetha Ramanath

VI

WHAT EXPERTS SAY ABOUT THE BOOK? Y. G. Muralidharan’s Corruption - the rot within is a good effort in showcasing the evils of corruption in the society and in our nation and deserves appreciation. As the author has acknowledged in this book, corruption has ancient origin, has its own history and is deep rooted in the society. The author has tried to project the concept of corruption as perceived and as it exists in three different organs of the State – the Legislature, the Executive and the Judiciary. The observation by the author is that corruption is prevalent in all the three organs of the State, but only the degree may vary. The author has made an earnest attempt to focus on the current trends of corruption by citing and discussing the recent incidents which have attracted the attention of the media, more so, the visual media and the public reaction to the same.

The root cause for corruption is undoubtedly greed. Incompetent, ill-suited, substandard people occupying positions of power leading to increased incidents of corruption is highlighted with reference to the quality prescribed by Koutilya for a person to be in the position of a minister. The eroding moral values, lack of determination to be ethically correct and declining standards have all been pointed out as the contributing factors for corruption. The author has very painfully noticed the declining moral and ethical values in persons holding positions and power ever since our country achieved independence and the low position India occupies amongst countries in the world when it comes to the phenomenon of corruption.

Corruption is like cancer which has affected our society and has been the major cause for the tardy progress of our country after independence, and we as a nation have failed to provide even basic requirements to the citizens of our country even after sixty five years of our attaining freedom and self governance.

Muralidharan has also highlighted the need for the society to discourage the trend of corruption by expressing strong protests, resentment and opposition to corruption. But on the other hand, noticing the trend in the society of appreciating or applauding even corrupt people just because they are either in position of power or have accumulated ill-gotten wealth is lamented by the author. The author urges for a change in this trend and the calls upon the people as not to VII

encourage corrupt persons.

The author being a consumer rights protection activist and who through his enlightening and educative articles in the news dailies and periodicals has been making spirited and concerted efforts to create awareness amongst people about their rights and, in particular, consumers about their right to receive quality products and services at the stipulated price.

The author has traced the ways and means of curbing corruption and that is how he ends the book on a note of optimism. The book should serve as an informative and educative literature to acquaint the readers with the present trends of corruption. He has also indicated the remedial measures for fighting corruption by strengthening institutions meant to check and prevent corruption and also to punish the corrupt and by appointing competent and professional persons in the investigating agencies and in the judicial process and also by ushering new legislations and above all, by making earnest attempts to raise the ethical and moral standards amongst the people of our country.

Justice D. V. Shylendra Kumar High Court of Karnataka ✴

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Corruption is a serious impediment faced by nations in their governance process. Corruption has a debilitating effect on the polity and socio-economic development of a country, aggravates the deprivation of poorer sections of the society and increases the disadvantage of developing nations. Mahatma Gandhi had once said that, “Corruption and hypocrisy ought not to be inevitable products of democracy, as they undoubtedly are today”. Corruption has today become trans-national and besides having a negative effect on trade and commerce, it has serious security implication as corruption; money laundering and terrorist funding are increasingly getting interlinked.

Given the complexities and ramifications of corruption, it has become essential to fight it at various levels from the individual to the civil societies, to the state and central government level to the inter-state and international levels. The strategies should include, strengthening the existing institutions, taking effective enforcement measures and making it difficult for the corrupt to enjoy the fruits of corruption, building capacities of not only the anti-corruption agencies through exchange of best practices and knowledge, but also the empowerment of citizens and VIII

catching them young by spreading the message of ethical behaviour.

Leveraging technologies in minimising discretion and bringing in greater transparency and democratic decision making is called for.

Active Community participation and advocacy are important tools to fight the corrupt. "Corruption - the rot within" is an endeavour from a concerned civil society activist to educate the community and motivate them. It is a welcome move and the author and publisher deserve our encouragement and support.

On our part, we should join their effort and work towards Zero Tolerance towards corruption in the society. With the slogan, Stop complaining and Start acting against corruption today, every member of the community should do his / her fundamental duty towards establishment of good governance all around.

Come let us join hands in making India a corruption free nation, in our life time, so that our progeny is assured of a good future.

R. Sri Kumar

Central Vigilance Commissioner, Govt. of India Former DG and IGP, Karnataka ✴

✴

✴

Mr. Muralidharan has done an excellent job in writing ‘Corruption - the rot within’. Corruption is a subject which is being discussed very widely throughout the country. Corruption is eating away the vitals of our nation. Corruption has become like an octopus , extending its tentacles into the Executive, Judiciary, Legislature, the Army and all the important organs of the state. Private sector, public sector, cooperative sector and media are all infected cancerously with this malaise.

People are fed up, angry, but many times feel helpless. That is why even a small spark is igniting large protest actions like wildfire. There are many interpretations of corruption and large number of solutions suggested to end corruption or to at least reduce the corruption.

A big section of the people, at least the middle class and the intellectuals believe that strong Lokpal bill will end corruption.

Certainly, stronger measures are needed to fight corruption. We already have a number of laws to curb this virus, but, no honest attempt has been made to implement these laws. Unfortunately, the ruling party and the principal opposition party are neck deep in corruption. Quite a few of Parliament members have become purchasable commodities IX

making the democracy a farce. Atmosphere around looks frustrating. But, the ray of hope is the rousing anger and protest actions of the millions of people throughout the country against corruprion.

One has to understand the root cause of corruption before we plan for action. Mr. Y.G. Muralidharan’s book gives an insight of different angles of corruption. The author has worked very hard to study a lot of material and put them in a cohesive format to make the reader understand the real problem. Every chapter has got very valuable information. All those interested to understand and fight corruption should read this book.

As quoted by Mr. Muralidharan, the suggestion by Mr. Vittal, former Vigilance Chief Commissioner “confiscation” of the properties of those corrupted will work as a sword on their heads. This is the minimum along with fine and imprisonment and other such punishments. There should be better and effective methods in checking and counter checking the corrupt practices in different fields of our society. Left parties want corporate houses and big business houses also to be brought under the ‘Lokpal ‘ act. But surprisingly when this amendment was pressed for division in the Loksabha by the left MPs, it was voted down by the both Congress and BJP members. This is the litmus test sufficient to prove their credentials.

In the recent period, every big exposure of corruption like Common Wealth Games, 2G spectrum licences, coal mines licences scams with mind boggling amounts involved has got the hands of corporate houses and big businesses. Surprisingly people like Anna Hazare, Arvind Kejriwal, Prashant Bhushan and their colleagues are also not raising this issue. To fight corruption in india, fight against the corporate houses is a must.

Fighting against corruption, black money and immoral practices is the duty of every citizen. It is the patriotic responsibility of every citizen.

To save our people and the nation from the clutches of corruption, all of us should make our positive contribution without giving room to pessimism. This book of Mr. Muralidharan will help activists and democrats to carry forward the battle against corruption. I congratulate him once more for bringing out such a comprehensive volume.

Suravaram Sudhakar Reddy Gen. Secretary, National Council of CPI ✴

✴ X

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This book could well be titled “Everything You Wanted to Know about Corruption”. Corruption is indeed the rot within the nation.

Many economists tend to see corruption in economic terms only but it is essentially an ethical and moral problem. The merit of this book is that Shri Muralidharan has looked at corruption from an ethical and moral stand point. In a situation where honesty, sincerity and integrity have no value and corruption has become a way of life and socially acceptable, fighting it is a daunting task. It never fails to amaze me that people invite corrupt persons and honour them knowing full well about their venality. This attitude is an example of the complexity of the phenomenon of corruption.

Shri Muralidharan has given various definitions of corruption which are current. The common definition of corruption now is the one accepted by the World Bank: corruption is the use of public office for private gain. Shri Murlidharan has pointed out that Transparency International changed it to the use of entrusted power for private gain.

This is an important distinction because the modified definition can apply to the private sector as well. The World Bank, with its insistence on privatization, would prefer to leave the private sector out. But in my experience corruption in the private sector is far worse than in the public sector. The process of cleansing has to begin somewhere; let it begin with the govt. This book is the best guide for that.

Dr. Chiranjiv Singh

Former Addl. Chief Secretary, Govt. of Karnataka ✴

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Corruption: the rot within offers an interesting overview and a critical analysis of the canker of corruption. Its author, Mr. Y.G. Muralidharan, has ably examined the causes and consequences of corruption in government and the judiciary. He rightly underscores the centrality of public accountability in eradicating corruption. Like several other scholars and public intellectuals, he too bemoans the erosion of ethical and moral values and demands their reinstatement in our society. The book is replete with quotes from scholars and public figures and statistics about the magnitude of corruption.

Corruption: the rot within raises a number of issues surrounding corruption, a phenomenon which has assumed colossal importance since India embarked on the trajectory of globalization and privatization.

XI

Timely though it is, the book is modestly successful in enlightening readers about the core issues undergirding corruption. It tends to ignore the foundational factors underlying the malaise of corruption. Mr. Muralidharan highlights glaringly obvious phenomena like the crisis of governance, the lack of accountability, lax implementation of anticorruption measures etc. Unfortunately, he misses more fundamental structural factors such as the class character of the state elites, the current configuration of class interests which has engendered the phenomenon of primitive accumulation, the elitist and inegalitarian model of development being pursued by the elites primarily to create opportunities for corruption, and the role of ideology which encourages mindless consumerism and the get-rich-quick syndrome. Such egregious lacunae defy simple-minded solutions such as the inculcation of ethical and moral values through education, a much-touted panacea for corruption. In the absence of elementary notions of fair play and justice in the lived experiences of citizens, all talk of morality and ethics sounds hollow and will be, understandably, ignored. Similarly, demanding more stringent laws and more powerful institutions like the Jan Lokpal, though useful to some extent, will not suffice. Tackling corruption efficiently is possible only if it is part of a concerted peoples’ movement centered around demands for inclusive growth, the creation of a level playing field, and the reinstatement of genuine, people-oriented rule of law.

Dr. Badrinath K. Rao Kettering University, USA ✴

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Public awareness of the spreading cancer of corruption in our country and the need to control it has grown significantly in the last few years.

Y. G. Muralidharan's book, "Corruption: the rot within" is therefore most timely. He examines the causes of corruption and ways to combat it. He narrates the major scams that have occurred in the country and the factors underlying them. He refers to both national and international efforts to fight corruption. The author's contribution to the corruption debate is significant, especially given his track record as a consumer and civic activist. I recommend this book to all thoughtful citizens who wish to see a new era of corruption - free governance in our country.

- Dr. Samuel Paul Founder, Public Affairs Centre, Bengaluru ✴

✴ XII

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Sri Y. G. Muralidharan has in his book 'Corruption - the rot within' has dealt in detail with the various facets of the disastrous effects of the demonic problem of corruption prevalent in India today and which has been assuming ominous proportions day by day. The efforts he has put in fathoming the depths of this cancer like menace of corruption are indeed laudable. Likewise Navakarnataka Publications, the publishers of this work by bringing out this book, have served a good cause that will go a long way in enhancing the awareness amongst the people with regard to the problems like corruption. To be honest and with due regards to the author, I must say that the numerous bits of information, historical or otherwise, that the author has taken to assimilate are only a tip of the iceberg. This catastrostrophic phenomenon is so omnipresent that even an ordinary villager, so often bedevilled by it, will be able to narrate how corruption has been eating away the core of our society and the benefits of the so called development.

Today the tragedy of this country is that people themselves are deeply afflicted with ruthless deceit and dishonesty. I wish the author should have indicated the ways and means that will enable our country to get out of this tragic situation and cleanse the morbid mindset of the millions of our people. Such timely and valuable suggestions would certainly have helped in educating the masses on issues like this. The emphasis should have been on how to raise their ethical standards along with enacting stringent laws to curb the ingrained menace of corruption. No doubt he has made a few passing references to such measures (Chapter 7 & 9). He has indicated that there is an absolute necessity to enact suitable laws and establish institutions viz., Jan Lokpal Act, Legal Reforms for speedy disposal of cases, Electoral Reforms etc. He has stressed that the ruling classes should have more political will.

Corruption has practically percolated to the lowest rung of the society. Voters accept money to cast their votes in favour of a candidate of their choice. Voters themselves have turned corrupt ! What is the way out for this ? I hope struggles, mass countrywide actions will pave the way for the much needed change that may augur a better future.

Lastly, I must say the author has reiterated the methods often repeated elsewhere for bringing reforms in the society. But reforms by themselves are not enough. There is an urgent need for radical changes in the present day system. The question is who should lead

XIII

such struggles ? We, the people ? Is it by peaceful means or by revolution ? Yes, if it is feascible, by peaceful means or by armed struggle !

The people should decide.

- Ko. Chennabasappa Freedom Fighter and Writer Hon’ble District and Sessions Judge (Retd.) ✴

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Sri Y. G. Muralidharan’s highly informative book ‘Corruption the rot within’ is a valuable contribution in creating awareness among the public about the menace of corruption. The author has discussed the various aspects of corruption. Political corruption raised its ugly head after we attained independence. This evil of corruption which took its early shape with the misdeed of a few central ministers and state ministers here and there, spread widely during the 1970’s. As the nation stepped into the 21st century corruption touched its zenith, or in other words, went skyhigh both in the cetre and the sates. As the author states, “The feeling of dread, apprehension or the sense of shame of being labelled corrupt and above all the sense of guilt amongst the politicians, bureaucrats and officials in today’s India has completely vanished. The entire administrative system right from an ordinary staff at the lowest rung to an official at the apex level is replete with corruption.” Whether it be Share market dealing, Imports, Telecom allotments. Tax evasion scandals, Stashing away of billions of rupees of black money in Swiss banks, Mining scandals, Mismanagement in the Health sector, Scandals in respect of river water purification projects, Scandals in the purchase of fodder for cattle, Construction of highways... the list goes on and on. Everyhere corruption reigns supreme. This is a typical case of the fence eating the crop.

The government rewards the corrupt by giving them promotions.

Those who are behind the bars on serious charges of corruption are given royal treatment. The days are such that instead of punishing the corrupt officials. they are being transferred to the places of their choice.

This is the policy of the government today.

Corruption is getting more and more rampant in every elections.

The election commission which is supposed to put an end to corruptive practices and conduct free and fair elections has utterly failed in its task.

XIV

The CAG Vinod Rai has laid bare several scandals that have taken place at the centre. Instead of ordering high level investigations to look into these charges of serious nature involving lakhs of crores of tax payers’ money the government is busy thinking in terms of restricting the powers of the CAG institution itself.

The author has put toward several suggestions in order to put an end to corruption viz., raising awareness amongst the public at large, making use of The Right to Information Act and seeking the help of institutions that are fighting against corruption, Lokayukta etc., whenever necessary.

In today’s context corruption is the order of the day and is pervading into every aspect of life. It is highly commendable and timely that Navakarnataka Publications have brought out this book ‘Corruption - the rot within’ by Sri Y. G. Muralidharan.

H. S. Doreswamy Freedom Fighter ✴

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This book comes at a time when the discourse surrounding ‘corruption’ in India is happening around limited ideas and ideals, both conceptually and culturally. The discourse is dominated by selfrighteous anger, which is spawning an ‘us’ and ‘them’ division among the citizenry. The focus appears more to be on the ‘taker’ of the bribe and not the ‘giver’. Here too, the political class and the public servant are portrayed as the only viruses in the system. This argument is made with an ease similar to the one made by some people about welfare governments having to progressively step aside to make way for private enterprise. The skewed nature of the debate, is naturally circumscribing the solutions we are placing on the table to end the corruption menace.

Instead of conceiving a robust institutional mechanism, we are advancing the cause of a superman moral purveyor. This, am afraid, will push the existing democratic system to the precipice. I hope this book leads us to greater reflection on the subject and also helps us restore some sanity to the debate.

Sugata Srinivasaraju Chief Editor, Vijaya Karnataka (Times Group)

XV

CONTENTS Setting the Agenda

1

1. The Picture of Corruption

3

2. The Dynamics of Corruption

18

3. Corruption through the ages

33

The Malady

45

4. The Politics of Corruption

47

5. Corruption within the Steel Frame

66

6. Judicial Accountability

82

7. The Roots of Corruption

100

The Prescription

119

8. Combating Corruption

121

a. Political Will

126

b. Electoral Reforms

129

c. Legal Reforms

132

d. Limiting discretionery powers

147

9. Controlling Corruption – The Role of CAG

153

10. Towards an effective anti-corruption institution

165

11. What Civil Society can do?

182

12. Public Service Guarantee Law

193

13. Citizens Right to Grievance Redress Bill, 2011

205

14. Strengthening Ethical & Moral Values

213

Appendix

225

1. You can fight corruption - A Guide to the Citizens

227

2. Bibliography

239

Index

245

XVI

SETTING THE AGENDA

“It is not power that corrupts but

fear.

Fear

of

losing

power corrupts those who wield it and fear of the scourge of power corrupts those who are subject to it.”

- Aung San Suu Kyi, Freedom from Fear

CHAPTER – 1

THE PICTURE OF CORRUPTION For the past few years corruption has taken over all other societal issues. Unemployment, poverty, health, food, housing, education, availability of essential commodities, price rise and malnutrition have taken back seat. There is so much talk of corruption that there is hardly any space or time left in the media for other issues.

Corruption has emerged as a key national issue on the country’s agenda. What was talked in secrecy is now being openly debated from village tea shop to Parliament. Today corruption is a phenomenon that one has to face practically at every level and in every walk of life. It has become all-pervasive and is eating into the vitals of the society. There is not a single section of the society which is not plagued by scandals. There is no aspect of public life which is not affected by corruption. Like an acid it is eating into the vitals of this country. It has now grown to such levels that it threatens our polity, our economy and our administration.

The increasing instances of corruption have tarnished the image of India. Be it scams relating to the Commonwealth Games or the 2G spectrum Licenses or the Adarsh Housing Society, it is India’s image that has suffered a severe setback.

Never before, have so many scams of such mind-boggling magnitude hit the headlines in such a short span of time. The alleged involvement of the so called people’s representatives in these scams has made the general public cynical and pessimistic about any talk of controlling corruption. Corruption is a widespread disease corroding the political, economic and social institutions of the country. India, which was once acclaimed for its spiritual and moral values, is looked down upon as one of the most corrupt nations in the world.

The nation’s highest judicial body, the Supreme Court, had to express its concern over the growing menace of corruption.

Disposing off a case involving the allegation of an Income Tax Officer asking for bribe, the Court remarked, “why not the Corruption the rot within/3

government legalize bribery so that citizens will know how much to pay for obtaining a service’’. In the State of MP v/s. Ram Singh, the Supreme Court said, “corruption is termed as a plague which is not only contagious but if not controlled, spreads like a fire in the jungle. Its virus is compared with HIV leading to AIDS, being incurable. It has also been termed as royal thievery. The sociopolitical system exposed to such a dreaded communicable disease is likely to crumble under its own weight. Corruption is opposed to democracy and social order, being not only antipeople, but aimed at and targeted against them. It affects the economy and destroys the cultural heritage. Unless nipped in the bud at the earliest, it is likely to cause turbulence – shaking the socio-economic – political system in an otherwise healthy, wealthy, effective and vibrant society” [200 (5) SCC 88].

Reports based on surveys conducted by think tanks at the national and international level rate India as one among the most corrupt countries in the world. In the Corruption Perceptions Index of 2010 published by Transparency International (TI) India was ranked 87th, with only Argentina and Russia, doing worse than India. A survey of 7500 people conducted by the TI in December 2011 found majority of the respondents felt politicians and police have to be bribed to speed up work, avoid problems with authorities or simply to access basic services. Some of the major findings are given below: Bribed the police for one reason or the other

64 %

Paid bribes to land service officials

63%

Paid bribes for registry and permit services

62%

Perceived political parties to be the most corrupt institution

48%

Parliament and state legislatures were corrupt bodies

34.2%

Perceived police to be corrupt

40.4%

Feel that the level of corruption has gone up in the last 3 years

74%

Feel the government was ineffective in its fight against corruption

55%

Felt media was the most trusted body to fight corruption

4/Corruption the rot within

23.9%

CHAPTER – 2

THE DYNAMICS OF CORRUPTION Any talk of stamping out corruption requires a clear understanding of the nature of corruption. Though most of the citizens are victims of corruption and there is so much talk to eradicate it, very few would be able to define corruption.

Besides, the victim would have his own view of corruption.

There is no consensus about the meaning of corruption. As the society gets more and more organized and urbanized, the problem of corruption, too, becomes more and more ramified.

Corruption is not only a product of the system; it also feeds back into the system, and, in the long run, has a significant impact on macro outcomes of the economy. It manifests itself in a variety of shapes varying in heinousness. It is like Hydra, a multi-faced demon of the Greek mythology. It also varies with the same individual. Thus there is no single, comprehensive, universally accepted definition of corruption.

The term ‘corruption’ is used in a rather loose manner in literature as well as in day-to-day context. Attempts to formulate a definition invariably encounter legal, criminological and in many countries, political problems. Defining corruption is so difficult that when the negotiations of the United Nation Convention against corruption began in early 2002, one option under consideration was not to define corruption at all, but to list specific types or acts of corruption. Basically corruption is a complex phenomenon. It covers a broad range of human actions and encompasses four distinguishing features namely, misuse of a position of power, gaining of advantage for those who are, actively or passively, parties to the misuse, undesirable effects on third parties; and secrecy surrounding the transactions.

Etymologically, the word ‘corruption’ comes from Latin word ‘corruptus’ meaning ‘to break’. It literally means broken object.

The thing that is broken might be a moral or a social norm or an administrative rule.

18/Corruption the rot within

Transparency International (TI), an international anticorruption non-governmental organization (NGO), defines corruption as ‘the use of public office for private gain’. The TI later expanded its definition to include the ‘use of entrusted power for private gain’, thereby including government functions that had been privatized. But the World Bank preferred to retain the earlier definition. Going by this definition, corruption can mean seeking or extracting of promise or receipt of a gift or any other advantage by a public servant in consideration of the performance or omission of an act, in violation of the duties required of the office. In its simplest terms, corruption may be defined as the abuse of public position for personal gain or for benefit of an individual or group to whom one owes allegiance.

Traditionally, corruption was associated with public sector activities. There are different classes of ‘public’ corruption, which involves four actors – politicians, bureaucrats, the private elite and the general public. Each class of corruption involves permutations and combinations of these actors, with at least one protagonist from the public sector. Corruption occurs when a public official accepts, solicits, or extorts a payment, or when private agents offer a payment to circumvent the law for competitive or personal advantage. Obviously the definition takes into account only public service and ignores services in the private sector. Recent studies have shown that economic liberalization has increased corruption in developing economies. Hence Oxfam (an international civil society group) define corruption as the abuse of entrusted power for private gain. The use of the word corruption has been highly contextual. Earlier, corruption was used primarily as a term of moral condemnation. Social scientists viewed corruption as a moral and social issue. It was only after the 1960s that the ‘public office’ definition was used. Later, economists entered into the field with the emphasis on the market for the powers of public office.

The Asia Pacific Human Development Report (1997) views corruption within the framework of ‘principals’, ‘agents’, and ‘clients’. The principals want to ensure that a particular service Corruption the rot within/19

CHAPTER – 3

CORRUPTION THROUGH THE AGES The people of India live as fishes do in the sea. The great ones eat up the little. For first, the farmer robs the peasant, the gentleman robs the farmer; the greater robs the lesser, and the King robs all.

Sir Thomas Roe Towards end of 16th Century

The growing evil of corruption at all the levels of public administration, politics, trade and industry has made citizens believe that corruption is of recent origin and our ancient people were free from such temptations. Even those who have a fair knowledge about ancient history and culture of the world ignore the prevalence of corruption during those times.

But it cannot be denied that corruption was as much an issue then. From the available literature, stories, anecdotes and other materials it can be concluded that corruption could have been a major evil though not of same magnitude as we see today. Corruption seems to have existed ever since man learned to organize himself collectively. To say that all was pure and idyllic in the early period of history will be a travesty of truth. History is replete with examples of widespread corruption in the oriental and occidental societies during the ancient and medieval period. For example Kautilya’s Arthashastra, the Smrtis and other historical texts refer to corruption. According to these sources corruption was not confined to public administration but in judiciary, trade, commerce and military warfare.

It is interesting to note that the word ‘Bhrastachara’ commonly used to denote corruption is very rarely mentioned in ancient Indian texts. On the other hand what does get mentioned is Sadachara, which is the opposite of Bhrastachara.

So anything that was against the norms prescribed as Sadachara could be termed Bhrastachara or corruption. The ancient Corruption the rot within/33

scriptures mention the provisions relating to the appointment of judges, ministers and councilors. Only people who possessed three qualifications i.e. (a) behaviour (b) independence and (c) learning could be appointed for these posts. Kautilya states that a native of the country, of noble birth, easy to hold in check, trained in the arts, possessed the eye of science, intelligent, dexterous, eloquent, bold, possessed a ready wit, devoid of sickness and fickleness, amiable and not given to creating animosity is the right person to be appoint as a minister.

Apart from prescribing qualifications for a person to be appointed as a minister, Kautilya has also prescribed certain in terms as to how the candidate to the post is to be tested before appointment. He goes to the extent of advising the King to instigate each minister through secret agents. Kautilya was convinced that given the slightest chance the officials would misappropriate funds. Hence he suggested that each department should be under many heads without permanency of tenure of office. Regarding the possibility of misuse of public funds, Kautilya says, “just as it is not possible not to taste honey or poison placed on the surface of the tongue even so it is not possible for one dealing, with the money of the King not to taste the money, in however small a quantity. Just as you cannot know when a fish is drinking water, you cannot find out when an officer appointed for carrying out official duties, misappropriates public money. It is possible to know even the path the birds fly in the sky, but not the ways the officials function with their intentions concealed.�

Kautilya has given a big list of offences that the officers could commit and suggests that the King should first correct those officers who deal with money matters by means of imposing punishment. Kautilya has discussed the various aspects of bribery and embezzlement in its minutest details. He has also given different types of punishments for corrupt officials. According to him it is always safe to ascertain the purity or impurity in the character of ministers and officers by offering temptations.

Today judicial corruption is a topic of wide discussion. But our ancestors had addressed the issue during those days itself.

34/Corruption the rot within

THE MALADY

If a country is to be corruption free and become a nation of beautiful minds, I strongly feel there are three key societal members who can make a difference. They are the father, the mother and the teacher.

- Abdul Kalam

CHAPTER – 4

THE POLITICS OF CORRUPTION Corruption has spread its tentacles to all segments of the society. But its ugly presence in the high places is what that is worrisome, because political corruption is the source of other forms of corruption. If the lawmaker is sincere and honest it sends a message down the line. The non-corruptibility of the leader is a strong deterrent. Unfortunately, the nation is in the hands of persons, except a few, who are ready to stoop to any level for the sake of money and power. It is a story of the fence eating up the crop. The political class which has to set an example for integrity is itself deeply entrenched in corruption.

Political corruption is the disease and its presence in other spheres is only its symptom. Thus any effort to tackle corruption would be futile unless corruption in high places is addressed.

Politics today is a case of utter mis-governance, lost commitment, forgotten mission, betrayed trust and broken faith.

In his article ‘Is the nation in a coma?’ in the Business Line (31.5.2010) Mohan Murti explains the awkwardness and humiliation he went through during one of the discussions on mergers and acquisitions held in Germany. He says, “questions ranged from ‘is your nation in a coma?”, the corruption in judiciary, the possible impeachment of a judge, the 2G scam and to the money parked illegally in tax havens. He quotes a European media saying, “if all the scams of the last five years are added up, they are likely to rival and exceed the British colonial loot of India of about a trillion dollars”. One German business daily, which wrote an editorial on India said: ‘India is becoming a Banana Republic instead of being an economic superpower. To get the cut notion designated out, assurances are made to political allays. Special treatment is promised at the expense of the people. So, Ms. Mayavati who is chief Minister of the most densely inhabited state is calmed when an intelligence agency probe is scrapped. The multi0million dollars fodder Corruption the rot within/47

scam by another former chief minister wielding enormous power is put in cold storage. Prime Minister Manmohan Singh chairs over this kind of unparalleled loot’.

It is both easy and difficult to write about political corruption. It is easy because there is so much to write about.

As a fact of life, you encounter it at every point of existence. You don’t have to do a rag picker, searching out a shred here and shred there. The entire heap is your subject matter. The very size of the garbage poses a great problem. There may be several challenges to Indian politics such as terrorism and communalism. But it is political corruption that is a most serious threat riding into rank and file of our system. It not only leads to misallocation of resources, but it also affects the manner in which decisions are made. Political corruption has damaged the administration and has helped in the spread of administrative corruption to all levels.

Political corruption has specific norms and goals, owns its structure and manifests a particular pattern of behaviour, different from other types of corruption. The roots of corruption in India go deep into the nature of the country’s democratic politics. It is a manifestation of the growing ‘crisis of governability’ afflicting our system. Political corruption can be traced to the erosion of our institutions as bearers of authority.

Political leaders instead of sustaining and promoting the health

48/Corruption the rot within

CHAPTER – 5

CORRUPTION WITHIN THE STEEL FRAME The bureaucracy, aptly called the ‘steel frame’ by Lloyd George, is the most important instrument available to the Government to achieve the goal of nation building and socioeconomic progress. It is said that bureaucracy is the ‘fourth’ wing of a democratic system. The state has come out to be the prime instrument of the society and the bureaucracy as the basic tool of the state for execution of its various welfare schemes to accomplish its cherished goals. Thus the bureaucracy is justifiably considered to be a principle tool in the service of the society and for bringing out socio-economic changes. The bureaucracy is the backbone of administration. L.K.Jha in his book ‘Mr.Red Tape’ says that the, “bureaucracy plays a vital role in all democracies. It provides continuity in administration. Even when one party in power is replaced by another, it assists in a smooth transition from one set of policies to another in accordance with the electoral verdict. It also provides to its political masters the expert assistance they need in evolving new policies to ensure that they are sound and administratively feasible”.

The civil service or bureaucracy plays a very important role in public administration. As observed by Lord Balfour, “though they do not control the policy, they are responsible for it. Belonging to no party they are for that very reason an invaluable element in Party Government. It is through them, especially through their higher branches, that the transference of responsibility from one party or minister to another involves no destructive shock to the administrative machine. There may be a change of directions but the curve is smooth”. The bureaucracy is said to be nameless, faceless and speechless and is supposed to be invisible. Yet its role in a democracy cannot be overemphasized.

The Commission on Centre-State Relations set up in 1980s observed that, “the All India Services are as much necessary today as they were when the Constitution was framed and 66/Corruption the rot within

continue to be one of the premier institutions for maintaining the unity of the country. Undoubtedly, the members of the All India Services have shown themselves capable of discharging the roles that the framers of the Constitution envisaged for them. Any move to disband the All India Services or to permit a State Government to opt out of the scheme must be regarded as retrograde and harmful to the larger interests of the country. Such a step is sure to encourage parochial tendencies and undermine the integrity, cohesion, efficiency and co-ordination in administration of the country as a whole”. Post liberalization there has been much talk of good governance. The World Bank and other multilateral financial institutions have been insisting of good governance as a pre-condition to part with their funds. But the concept of good administration or governance is nothing new.

To be fair to bureaucracy during and a few decades subsequent to independence it was reasonably clean, efficient and citizen, friendly to a large extent. They lived up to the expectations of the citizens. Prior to independence the ICS had built up a formidable reputation for integrity and efficiency and the expectation was that it would maintain the same qualities.

In June 1947, a few days after it had been officially announced that India would become independent and would also be partitioned on 15th August of that year, Sardar Vallabhbhai Patel invited all Indian Officers belonging to the ICS and said, “I am going to rely on you to help us in the tasks that lie ahead”. True to the expectations the bureaucracy played their role well during and after independence as well. But soon after, instances of corruption began to emerge. As a result of independence the government took up a number of socioeconomic development plans in addition to its earlier role of maintaining law and order. This was followed by a plethora of rules and regulations which, created abundant opportunities for administrative discretion leading to corrupt practices.

For the past few years there has been a lot of talk and discussions among the intellectuals, civil society and the government about the extent of corruption prevalent in public administration. The First Five Year Plan very rightly emphasized the need for public probity. It said, “integrity in Corruption the rot within/67

CHAPTER - 6

JUDICIAL ACCOUNTABILITY Who is to control the exercise of power? Only the judges Someone must be trusted. Let it be the judges.

Lord Denning

The role of the judiciary in combating corruption needs no explanation. The judiciary is one of the institutions that has been held in high esteem for centuries. The judiciary is perceived to be the ultimate forum that upholds truth and justice. Despite delays, cost, cumbersome procedures and legal technicalities, citizens continue to repose faith in the judiciary. The backlog of millions of cases pending before various courts across the country is the reflection of citizens’ faith in the judiciary. It is like overcrowded public buses wherein commuters grumble about the inadequacies, yet prefer the same over other forms of transport. The citizens of this country have a tremendous stake in the judiciary. Apart from power, it is the moral authority of the judiciary that has kept the hope alive among the oppressed. Of the three pillars i.e. judiciary, legislature and the executive, it is the judiciary that is at the higher pedestal by virtue of its impartiality and independence, the hallmarks of democracy. Aptly, the judiciary is considered as the guardian of the Constitution.

In the last few years the judiciary, particularly the Supreme Court, has, by virtue of its landmark decisions, checked abuse of power by the legislature and the executive. Be it the appointment of the Chief Vigilance Commissioner to the Central Vigilance Commission or granting permission to prosecute the guilty officials, the Court has shown how it can wield its power to make the administration transparent and efficient. Many recent judgements of the High Courts and the Supreme Court have enhanced the regard of the judiciary, paving the way for citizen-friendly legislation and protection of human rights. It is increasingly realized that the fearlessness of 82/Corruption the rot within

these judicial pronouncements is predicated on the constitutionally mandated judicial independence from the executive which should in no instance be undermined (Combating Corruption, Seminar, 625, page 36). In the process the judiciary is perceived as an institution that can ensure political and bureaucratic accountability. By virtue of these decisions, the judiciary is considered as the last bastion for the citizen against state excesses, arbitrary behaviour and apathy.

However, Instances of corruption among a few members of the judiciary are not uncommon. Charges of corruption, misuse of judicial power, acquisition of assets disproportionate to their known sources of income have been made against the members of the judiciary. Matters have gone to such an extent that petitions have been filed against former judges and even a former Chief Justice. The instances have not only brought disrepute to their position but to the judiciary as well. To quote V.R.Krishna Iyer “no civilized society can command the people’s confidence if the judicature’s verdict is privately purchased at a competitive price. The functional fundamental of the judicial instrumentality is indubitable. But when judges turn obliquely friendly to graft, are addicted to delinquency or are noxious in negotiating their judgments, violating the basic structure and values of the Constitution, the system suffers a syndrome of administrative chaos or functional anarchy”.

Doubts have been raised about the integrity of the judiciary itself. This is an alarming situation which can erode the confidence of the people in the judicial system. Besides, any corruption within the judiciary will be used as a wrong defense for corrupt practices in other fields. As G.Mohan Gopal has rightly pointed out, “corruption within the judicial system is one of the most important reasons for the persistence of high levels of corruption in India because a corrupt judicial system shields impunity. A corruption-free judicial system is an essential (although by no means sufficient) prerequisite for combating corruption” [Seminar, 625, page 31]. Corruption in judiciary is a serious matter that cannot be overlooked.

It is not that judicial corruption is a new phenomenon. Some instances were reported since 1949. But it did not get as much Corruption the rot within/83

CHAPTER – 7

THE ROOTS OF CORRUPTION Any effort to tackle corruption presupposes a clear understanding of the factors that lead to corruption. The instances of corruption among the political class and administrators listed out in the previous chapters give an indication of the motive behind these corrupt practices. Yet the dynamics of corruption is so complex that it would be impossible to identify one or two reasons for corruption.

Besides, each of the causes is interlinked and one survives on the other. Given its dimension, it is a difficult task to identify the causes for corruption. It may be greed, nepotism, poverty, materialism, consumerism, type of political system and bureaucracy. In most societies, like in India, it is a combination of all these. Corruption is never an end in itself. It is always a means to an end: wealth, power, influence, favours or control.

Corruption is a result of historical, economic, social and political causes. Corruption in one form or another existed in all societies at all times of history, irrespective of the societal forms.

In dictatorship it is the dictator and his associates who are corrupt. In the kingship it is the countries and in a democratic form of government, it is the people in office who are corrupt.

Basically, corruption is a historical truth. As discussed in the previous chapters, corruption is an ancient evil throughout the world. There is no civilization which is free from corruption.

The downfall of the mighty Roman Empire is attributed to corruption. However, corruption in India in its present form is partly ancient and is partly the legacy of the British. Some even go to the extent of calling it a progeny of colonialism. The British rulers started a new practice of ‘bakhshish’ which subsequently institutionalized and government functionaries started demanding it in advance for performing any public duty. The colonial government paid its own senior officers handsomely.

The local officers, working mainly at lower levels, were paid 100/Corruption the rot within

very poor salaries. This definitely affected their integrity. During World War II, due to scarcity of goods like food, clothing etc. they were made available against ration cards. These controls provided opportunities for corruption. The climate for corruption created by wartime controls and scarcity was further aggravated by the post-war flush of money and inflation.

A number of other reasons are responsible for corruption,.

For instance, human factors like the desire to have undue personal advantage as public functionary which may be conditioned by the economic needs, social status value system, sub-culture may make a person corrupt. The opportunity to indulge in corruption may be provided by nature of work, discretionary power, amount of superior supervision, sharing of information without accountability, bleak chances of detection may be other reasons.

Fall in ethical values The deteriorating moral and ethical values in individuals and thereby in the society are a major cause for corruption.

Corruption of the state implies a corruption of the character of its citizens. States are made what they are by the type of mind they represent. Centuries ago Plato described how individual character decides the health of the community. He made a distinction between necessary and unnecessary appetites. While satisfying necessary appetites is essential, it is the unnecessary appetites that cause damage to the community. According to him, a corrupt democracy becomes the government of a community by professional politicians, at the expense of the well to do, and in the interest primarily of themselves and incidentally of the masses. S. Rimpoche says that, “corruption is now a very pervasive human problem; In fact, violence and corruption are the two sides of the same coin. The problem has been aggravated because we have lost contact with the truth.

Present-day humanity and human civilization is now getting away from direct realization or direct contact with reality and truth and thereby the human mind is becoming more and more corrupt. It is getting vitiated with more explicit violence and corruption in the life of people and in the life of the nation�.

Corruption the rot within/101

THE PRESCRIPTION

History shows that where ethics and economis come in conflict, victory is always with economics. Vested interests have never been known to have willingly divested themselves unless there was sufficient force to compel them ?

- B. R. Ambedkar

CHAPTER - 8

COMBATING CORRUPTION Controlling corruption has emerged as the biggest challenge throughout the world. Almost all the countries are seized of the problem of corruption irrespective of their stages of development.

Corruption is not merely a distinguishing feature of developing countries; it is common even in the developed societies. Each of these countries has grappled with the ever growing menace of corruption and the ways and means to tackle it. In India a series of steps have been adopted and a number of institutions have been established since independence to combat the menace of corruption. Yet this disease continues unabated. It is now well established that given the depth to which corruption has entered into, no one step solution can be advocated to eradicate corruption. A multi-pronged approach is needed.

The first step in controlling corruption is to formulate a plan of action after thoroughly considering the successes and failures of such a strategy in other countries. Vinay Bhargava and Emil Bolongaita have recommended six action elements while framing an anticorruption strategy. The first is an understanding of the country’s governance and operating environment. They suggest that development and improvement of anticorruption policies and programs at national and sub-national levels need to begin with a solid understanding of the country’s governance and operating environment. This involves a thorough examination of various aspects of a country’s political, economic, social and historical experience.

The second element is a review of the global menu of anticorruption instruments. Volumes of literature are available about the efforts made by several countries to curb corruption.

Some have worked and many have failed. Reviewing the experiences of other countries can help identify policy and program alternatives. The third element is the selection of an appropriate anticorruption instrument. Before deciding in Corruption the rot within/121

favour of a particular anticorruption instrument, each country should analyze in terms of the likelihood of their being effective in a given set of governance conditions.

The fourth step would be to build broad coalitions to develop and implement anticorruption policies and programs. Vinay Bhargava and Emil Bolongaita observe that greater the corruption in a country, the more critical it is to build a broad coalition. The broader the coalition, the better. With a critical mass of state and non-state actors, anticorruption policies and programs can be placed at the top of a government’s agenda. The fifth requirement is establishing accountable leadership and management of anticorruption policies and programs. This includes constituting anticorruption commissions, ombudsmen, supreme audit institutions etc. The problem with many countries is that most of these institutions themselves are plagued with corruption. The sixth step would be to put in place an effective mechanism to monitor and evaluate the feedback about the performance of anticorruption policies and programs. The failure to foster and listen to feedback from implementation results in the fatal error of not knowing the nature, location and strength of corrupt elements that are naturally opposed to reforms.

The ADB OECD Anti-Corruption Action Plan for Asia and the Pacific has recommended three pillars of action, i.e. (a) Developing effective and transparent systems for public service, (b) Strengthening Anti-Bribery Actions and promoting integrity in business operations and (c) Supporting active public involvement. Thus it may be observed that this plan tries to involve the state, market and the civil society in fighting corruption. Which anticorruption model will be effective is a subject of debate. Empirical evidence on select anticorruption programs reveals that each of the components has its own merits and defects. For instance, establishment of anticorruption agencies have been successful in Hong Kong, Chile, New South Wales, Australia and Singapore. Public Opinion Surveys have been effective with regard to petty corruption. On the other hand it is observed that raising public sector wages in no way reduces corruption. In fact it has had a negative effect.

In an evaluation of anticorruption strategies (www.iss.co.za) in 122/Corruption the rot within

CHAPTER – 9

CONTROLLING CORRUPTION – THE ROLE OF CAG Law is not the only instrument to check corruption. Even the best anti-corruption laws suffer from loopholes, which the offenders use them to their advantage. Hence governments have established external oversight agencies, which are required to keep a watch on the functioning of the government and their institutions by way of auditing their accounts.

External oversight agencies perform a fundamental role in monitoring the exercise of power in democratic regimes, especially in countries characterized by high corruption rates and inefficiency in public management.

Throughout the world it is widely accepted that the Supreme Audit Institutions [SAI] play a critical role, as they help promote sound financial management and thus lead to accountable and transparent government. SAI’s are useful in managing public spending, ensuring financial accountability and strengthening public institutions. In India the CAG is the SAI. The CAG is a national agency responsible for auditing government revenue and spending. The importance of the CAG was expressed by none other than Dr.B.R.Ambedkar during debates in the Lok Sabha. He said, “I am of the opinion that this dignitary or officer is probably the most important officer of the Constitution of India. He is one man who is going to see that the expenses voted by the Parliament are not exceeded or varied in what has been laid down by the Parliament in what is called the Appropriation Act. If this functionary is to carry on his duties – and his duties, I submit, are far more important than the duties even of the judiciary, he should have been certainly as independent as the Judiciary”.

Later on, the role of the CAG in promoting the welfare of the country was highlighted by Dr.S.Radhakrishnan, the then Vice President of India. In one of his addresses he said, “building up Corruption the rot within/153

a welfare state is not to be regarded as merely a motive for promoting one’s own welfare. It is the welfare of the country which we have to set before ourselves and there the work which the Audit and Accounts Department can do is very great. By exposing failings, by revealing defects, you set before the country a great standard, and see to it that our schemes are carried out with economy and efficiency”.

The office of the CAG of India is created under the provisions of Articles 148 to 151 of the Constitution of India. The CAG has been guaranteed an independent position analogous to a Supreme Court Judge. The audit reports on the union accounts and states prepared by him are to be placed in the Parliament and State Legislatures. The Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 as amended in December 1987 governs the functioning of the CAG. The statutory duties of the CAG include the audit of:a. Receipts and expenditure from Consolidated Funds of India and of the States and Union Territories. b. Transactions relating to the Contingency Funds and Public Accounts. c. Trading and manufacturing, profit and loss account and balance sheets and other subsidiary accounts kept in any government department. d. Government companies set up under the Indian Companies Act 1956. e. Government corporations which have statutory provisions for audit by him. f. Accounts of stores and stock of Government offices or departments. g. Authorities and bodies substantially funded from the Consolidated Funds. h. Any body or authority, even though not substantially funded from the Consolidated Funds, either at the request of the President/Governor or on his own initiative.

An important feature of the Indian audit system is that there is a common CAG for both the Union and States. Article 148 of the Constitution has several provisions which ensure the independence of the CAG. The CAG is appointed by the 154/Corruption the rot within

CHAPTER – 10

TOWARDS AN EFFECTIVE ANTI-CORRUPTION INSTITUTION The need for an effective tool to combat corruption has been well recognized. Fighting corruption has inevitably become the most urgent need for addressing all major challenges to governance. In the mid 1990s the problem of corruption was recognized as a topic of international concern and drew the attention of numerous global and regional inter-governmental organisations. It is now well recognized that anti-corruption legislations and measures need to be implemented and monitored through specialized institutions with adequate powers, training and financial resources. As the corrupt grow more sophisticated, conventional law enforcement agencies become progressively less able to detect and prosecute complex corrupt cases. Matters are made worse when corruption is endemic and when conventional law enforcement mechanisms themselves harbor corrupt officials.

Almost all countries are experimenting with several models of anticorruption institution. And India is no exception.

India’s fight against corruption started soon after independence with the enactment of the Prevention of Corruption Act, 1948. This was followed with the appointment, in 1962, of the Santhanam Committee on prevention of corruption. Since then several efforts have been made to contain corruption. Apart from anti-corruption laws, institutions like the CVC and CBI have been established. Some of the states have constituted the Lokayuktha. There is a strong demand to have Lokpal type of ombudsman to deal with corruption. As the corrupt grow more sophisticated, these law enforcement agencies are becoming less able to detect and prosecute complex corruption cases. Instances have come to light wherein some officials of these anti-corruption agencies have themselves been held for corrupt practices. The anticorruption institutions like the CVC and CBI have come in for Corruption the rot within/165

criticism due to their inefficiency, delay in prosecution of cases, the alleged interference by the Government and the like.

Recently the Supreme Court held the appointment of a person as Chief Vigilance Commissioner, improper as the person so appointed was alleged to have been involved in a scandal in his earlier posting.

The functioning of the institution of Lokayuktha has not been satisfactory, except in Karnataka, that too for a brief period under Justice Venkatachala and Justice Santosh Hegde. Information provided to a RTI application reveals that in the past 10 years, from 1.1.2001 to 31.8.2011, the Karnataka Lokayuktha police trapped and raided only six IAS, six IPS, three IFS and 12 KAS officers. Given the fact that 2420 officials were trapped and 311 were raided, against top bureaucrats, the all India and state service officers, appears to be minimal. The performance of the Lokyuktha in other states is much more disappointing. As of February 2012 the office of Lokayuktha exists only in 19 states and most of them lack basic infrastructure and adequate powers.

The dismal situation of Lokayuktha was reported in India Today (February 20, 2012). Here is the summarized version: Particulars

Andhra Pradesh

Established in

1983

1989

1999

Annual budget (Rs.)

5 crores

72 lakhs

3.67 crores

Staff strength

133

20 (six posts vacant) 86

Jurisdiction

Governor, chief minister and speaker are outside his purview.

All government officials and ministers except the chief minister.

Over the entire political and administrative executive

Recommendations made 1391 in 2011

54 in 2010

Not available

Recommendations accepted

Not available

Not available

Not available

166/Corruption the rot within

Assam

Kerala

CHAPTER – 11

WHAT CIVIL SOCIETY CAN DO? The word ‘civil’ is derived from the Latin word ‘civis’ meaning citizen. It includes many types of voluntary associations in which people come together and work towards their collective interests. Karl Marx defined ‘civil society’ as that part of the middle class that is not in the government. Woodrow Wilson once observed that, “liberty has never come from the government. Liberty has always come from the subjects of it”.

In the words of Richard Holloway,” in order to understand the term ‘civil society’ we need to start from the perspective that looks at the State as consisting of three parts – the Government, the Market and the Citizenry. The purpose of the Government sector is to rule and to govern, and it uses the resources of state property, laws and taxes. The purpose of business sector or the private sector is to make profits from returns on invested capital through trade, manufacture etc. The third part of the state is the Citizens Sector, also called as the Third Sector, the Voluntary sector, or Civil Society. The purposes of civil society are, (a) to hold the government sector and the business sector accountable to the citizens, (b) to enable citizens to associate to advance their common interests, and (c) to improve the lives of the citizens.

In recent years the role of civil society organisations (CSO) in promoting good governance has received wide acceptance throughout the world. No national or international conferences or meetings are held without the presence of CSO representatives. Traditionally the civil society or NGOs, as they are often called, were focusing on social and charitable programs. Their work was limited to construction and running of hospitals, schools, old age homes, rehabilitation centres etc.

However, for the past few decades there has been a shift in the focus of civil society. There is a growing consensus that CSO can constructively engage in political life by helping to foster fairer, more honest, transparent, democratic and accountable 182/Corruption the rot within

governance. A number of CSOs have been founded with the single object of fighting corruption. The role of CSOs in fighting corruption has assumed importance because of its uniqueness.

As observed by Eigen, of the three actors – state, market and civil society – it is only civil society that has the mandate to prioritize the enhancement of human conditions above all else.

Government has the legitimacy to deal with the overreaching issue of the common good, but often lacks the global reach. On the other hand, business, while having the means to operate globally, lacks the mandate to prioritize serving the humanitarian cause. Thus, only civil society can provide the impetus and the leadership to wage the global fight against corruption (Eigen Peter, Closing the Corruption Casino).

Several factors have enabled the citizens to form groups and focus on matters of governance. Firstly, it is the enactment of the Right to Information Act, which can be used even by a common man to bring to light instances of corruption. Secondly, the lending institutions have made it mandatory to involve CSO in auditing and monitoring the progress of the programs and projects funded by them. Thirdly, the CSO sector has turned professional. Citizens with high educational and professional background are entering the sector. Besides, many honest public servants and bureaucrats who were unable to blow the whistle while in service are choosing the CSO path to vent their feelings.

Their expertise is used by the CSO. Achieving success in anti-corruption work is not an easy job.

Though many CSOs have attempted, very few have been able to succeed. This is because of the nature of CSOs and their funding. A majority of the CSOs depend on state funding. But it is the State that is prone to corruption. Hence it would be extremely difficult to oppose the state itself. Secondly, it is the credibility of the CSOs. A CSO which likes to take up anticorruption campaign will have to first assess itself whether it has the required capacity and wherewithal to launch and sustain a campaign against corruption. Whenever the CSO raises its voice against any issue, it is likely to be challenged by the State. The cry from the Government will be, ‘who are these people who call themselves CSOs or NGOs, and what is their Corruption the rot within/183

CHAPTER – 12

PUBLIC SERVICE GUARANTEE LAW More than six decades ago we the people of India choose to be a democratic country. The state was given powers to be the sole authority for providing certain services to the citizens. The introduction of the Constitution in 1950 set in motion a long process of efforts to change the former ‘law and order state’ into a ‘welfare state’. This goal was to be achieved through democratic planning. This created a class of intermediaries, i.e. bureaucracy, between the state and the citizens. The bureaucracy was expected to deliver the services efficiently to the satisfaction of the citizens. Though the official machinery performed well in the first few decades of independence, it has lost its sheen in the recent years. The phenomenal growth in the last six decades of developmental and nation-building activities of the state, has led to proliferation of the machinery of the government and increase in the complexities of the administrative process. As a result citizens’ dissatisfaction with administration has mounted up significantly. There is a growing distrust among the citizens about the efficacy of the state and its grievance redressal machinery. There is frustration and dissatisfaction amongst the people, especially the weaker sections of society, about the apathy, irresponsiveness and lack of accountability of public servants.

The delivery of public services in India has always been tardy, circuitous and inefficient. A number of reports and studies have shown that the quality of public service has been deteriorating over the years. Corruption, delay, denial, bribery and extortion are common at the point of service delivery. A number of studies have revealed that public service delivery is plagued with several structural and informational asymmetries.

Way back in 1953 Paul H.Appleby, who was specially invited

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by the government to survey the Indian administrative system, remarked that, “an administrative method that permits letters from citizens to go unanswered, poorly answered, or long delayed is not properly considerate or responsive…a method that underestimates the value of citizens’ criticisms merely because the citizen knows only what displeases him and not the difficulties in the way of pleasing him, is not sufficiently responsive”.

The progress of a nation depends largely on the efficiency of its public service delivery. The productivity, progress and quality of life of the people is an indication of the quality of public services. Effective performance and maintenance of public trust and confidence in the integrity of public service is crucial to the proper functioning of the government. The success of public service delivery depends on the bureaucracy.

But as far as corruption is concerned, the bureaucracy appears to be in competition with politicians. While the politicians blame the bureaucrats, the bureaucrats shift the blame to politicians. Ultimately, it is the common man who suffers.

Though corruption in the high places is equally dangerous and has long term effect on the common man, it is corruption in administration that makes the life of a citizen miserable The Santhanam Committee and the Administrative Reforms Commission under the chairmanship of Morarji Desai did focus on the measures to be taken to redress the grievances of the citizens. The Second Administrative Reforms Commission headed by Dr.Veerappa Moily did recommend measures to make public services citizen - friendly. Though the Central Government is yet to take steps in this direction, more than 20 states have enacted what is known as Public Service Guarantee Legislations.

The right to public service guarantee legislation basically refers to statutory laws which guarantee time bound delivery of services for various public services rendered by the state to the citizens. Firstly, public service is recognized as a legal right of the citizen. Secondly, the law contains a set of services notified by the state to be covered under the public service guarantee

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CHAPTER – 13

CITIZENS RIGHT TO GRIEVANCE REDRESS BILL, 2011 In the wake of a series of instances of corruption coming to light followed by public criticism the Government of India has taken the initiative of introducing a Bill to help the common man get public services and goods within a timeframe. The Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011 seeks to confer on every citizen the right to time bound delivery of specified goods and services and provide a mechanism for redressal of grievances.

The Bill has been introduced in the Lok Sabha on December 20, 2011. The Bill is being debated in a Parliamentary Standing Committee. The Bill was tabled in the background of the public furore and over the Lok Pal Bill in 2011. It forms a critical part of the wider institutional mechanisms being developed to address corruption and is likely to have far reaching consequences on citizens’ day to day interactions with Government.

The Bill requires every public authority to publish a Citizens’ Charter. The Bill defines a Citizens’ Charter as a ‘document declaring the functioning, obligations, duties, commitments of a public authority for providing goods and services effectively and efficiently with acceptable levels of standards, time limits and designation of public servants for delivery and grievance redress as defined in the Bill. The Citizens’ Charter should contain the following:a. Information with regard to the goods supplied and the services rendered. b. The name and address of the agency and person responsible for providing it. c. Time frame within which services are provided. d. Conditions for entitlement, quantitative and tangible parameters. e. Complaint redressal mechanism.

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It is obligatory on the part of the Head of the Department for updating and verifying the Citizens Charter and to disseminate it to the public. The Head of the Department will have to ensure that steps are taken to provide relevant information as required under Section 4 of the Right to Information Act 2005. All these information is to be provided free of cost in the local language and the most effective method of use for communication. In addition, every Public Authority shall establish Information and Facilitation Centre for efficient and effective delivery of services and redressal of grievances, which may include establishment of customer care centre, call centre, help desk and people’s support centre.

The Bill is applicable to all public authorities. According to the Bill, a public authority is any authority or body or institution of self-government established or constituted; i. By or under the Constitution. ii. By any other law made by Parliament. iii. By any other law made by State Legislature. iv. By notification issued or order made by the appropriate Government, and includes any of these (a) body owned, controlled or substantially financed, (b) non-government organisation substantially financed, directly or indirectly by funds provided by the appropriate Government, (c) an organisation or body corporate in its capacity as an

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CHAPTER - 14

STRENGTHENING ETHICAL & MORAL VALUES The subject of corruption‌has become much worse than before.

Restraint from without has practically gone. Corruption will go when the large number of persons given to the unworthy practice realizes that the nation does not exist for them but they do for the nation. It requires a high code of morals, extreme vigilance on the part of those who are free from the corrupt practice and who have influence over corrupt servants. Indifference in such matters is criminal. If our evening prayers are genuine, they must play no mean a part in removing from our midst the demon of corruption [Mahatma Gandhi, Delhi Diary, 26.1.1948]

The problem of corruption has become so gigantic that it is impossible to tackle it with one or two measures. It requires a multipronged approach. Broadly, these measures can be divided into two categories, i.e. prevention and prosecution. Identifying those who are corrupt, prosecuting and punishing them is one way of sending a message to others that corruption will not be tolerated.

Another method is to prevent misconduct from occurring in the first place by putting systems in place that ensure the integrity of the public officials. Normally a combination of both, prevention and prosecution is essential to keep a check on corruption.

Properly framed and strong preventive measures will help in controlling corruption. To quote Stephen D.Potts (Director, US Office of Government Ethics), the basic components of any effective prevention program are likely to include six elements:1. A fair and reasonable code of conduct that establishes uniform standards that public officials will be held accountable for.

2. A carefully crafted system of disclosure of financial interests that avoide conflicts and introduces transparency into an official’s decision making.

3. An imaginative education program that makes government employees aware of their responsibilities.

4. A regular monitoring system to assure that the quality of these preventive systems is maintained.

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5. Open channels of communication within government to provide assistance and address deficiencies; and, 6. An effective procurement system that emphasizes integrity and fairness.

The basic objective of ethics law or a code of conduct is not in punishing the wrong doer but in preventing him or her in committing the wrong. To quote Mark Davies, “government ethics laws focus not on the corrupt public official but on the public official who is basically honest but who does something stupid – like taking a gift from someone he or she is doing business with in his or her government job” (Ethics in Government and the Issue of Conflicts of Interest). Encouraging the political class, the bureaucracy and the general public to maintain a set of ethical and moral values is considered to be an effective tool to curb corrupt tendencies. Such values have a deep and lasting impact on the character and the future of the system of representative government.

The need for ethical and moral behaviour in public life has been emphasized in India since ancient times. This is based on the premise that corruption that is being witnessed in the society is the reflection and sum total of corruption at the individual level.

As long as individuals fall prey to corrupt behaviour, it expresses itself in the society. Hence any effort to combat corruption has to focus on changing the behavioural patterns of individuals.

Citizens should be made morally strong enough to overcome the pressures of either taking or giving bribes. In other words, individual integrity is the primary necessity to curb corruption.

Citizens should be ready to uphold their own moral character. In the words of Rajagopalachari, “national character is the keystone on which rests the fate and future of our public affairs, not this or that ‘ism’. National character again depends on and in fact is individual rectitude. Movements for the encouragement of personal rectitude, for purifying individual character, are therefore, not irrelevant in the context of politics but are vitally connected with our hopes in respect of national affairs”.

Values by themselves are not sufficient to ensure a corrupt free society. It requires some mechanism to make individuals adhere to values and punish who violate them. Dr.Jayaprakash 214/Corruption the rot within

APPENDIX

Corruption is an evil which has to be fought on all fronts, at all levels.

- Dr. S. Radhakrishnan

1. YOU CAN FIGHT CORRUPTION - A GUIDE TO THE CITIZENS The year 2010 has gone down in the history of India as the year of scams. A long list of scams like the 2G Spectrum allocation, land grabbing by politicians and ministers, Adarsha housing scam and corruption in Commonwealth has made Indians to bow down in shame. Nearer home, in Karnataka, we have dozens of ministers and elected representatives marching to jail for their corrupt deeds. It is not that corruption is new to India. We have evidence of corruption since the times of Kautilya. A number of scandals have erupted in independent India. But it is the sheer magnitude and the persons involved in corrupt practices that is of concern. It is like the fence swallowing the crops. All the ‘pillars of integrity’ are shaken and crumbling down due to the weight of corruption. Not only politicians, ministers and bureaucrats, but also the judiciary and media are alleged to be involved in corrupt practices. Even the institutions that were established to check bribery and corruption are themselves victims of corruption. In such a situation it is but natural that the citizen loses faith in the system and gets frustrated.

Though there is so much talk of corruption, when it comes to individual action there is sense of cynicism and helplessness.

This has led to disastrous consequences. First, there is a growing tendency to defend corruption. He or she may say ‘when others are making money through illegal means and leading a life of luxury without any punishment, why should I keep quite?’ If others in power make crores of rupees why not I do in thousands? Second, there is the danger of citizens turning to unlawful means like violence against the corrupt. Both are not in the interests of the society. It is true that corruption cannot be tolerated and need to be tackled. It requires a sustained and multi-pronged approach. If corruption is rampant in the society it signifies that the citizens are also responsible to a certain extent. Hence any anti-corruption measure should start with the Corruption the rot within/227

individual. This short guide will show you how citizens can fight corruption.

Understanding Corruption The first step in the fight against corruption is to understand what corruption means. Though corruption is everywhere and almost all citizens are victims at one time or the other, very few will be able to tell what corruption is.

Corruption has spread its tentacles so wide and deep that it cannot be defined within few words.

Basically corruption covers a broad range of human actions and encompasses four distinguishing features namely (1) misuse of a position of power (2) gaining of advantage for those who are, actively or passively, parties to the misuse (3) undesirable effects on third parties; and (4) secrecy surrounding the transactions. The Government of India, in 1947 constituted a committee under the Chairmanship of Mr. Santhanam to recommend measures to prevent corruption. The Committee defined corruption as ‘improper or selfish exercise of power and influence attached to a public office or to a special position one occupies in public life’. In its simplest terms, corruption may be defined as the abuse of public position for personal gain or for benefit of an individual or group to whom one owes allegiance.

It is use of public office for private gain. Corruption includes bribery, extortion, fraud, deception, collusion and moneylaundering.

Why citizens should fight corruption Corruption should be fought not only because it is immoral and illegal but because of its dangerous consequences.

Corruption is anti-poor, anti-national and anti-economic development. Corruption goes against the interests of the poor.

According to the United Nations Development Program (UNDP) corruption is a serious crime that:● Hinders social and economic development and increases poverty by diverting domestic and foreign investment away from where it is most needed; ● Weakens education and health systems, depriving people of 228/Corruption the rot within