“Corruption is an evil that grows respectable with age” (Voltaire)
Don’t know how many of the readers of this blog will recall that in 1991 there was something called The Bank Securities scam. It was at that time India’s biggest post independence scam the amount of money involved was more than 55000millionR. It was con work initiating from Public sector which passed hundreds of millions of rupees to certain banks. They, in turn, made the money available to selected share brokers, who channelled it into stock exchange. The Ministry of Finance (headed by then Finance Minister Manmohan Singh) and the RBI (which regula
tes the banking industry) that had inclination of ensuing scam kept studious silence. The intent was to show the boom in shares as public rebuff to critics of liberalisation. But as the scam came into public domain a JPC was set up. It submitted its report in 1993. The report indicted in varying measures Finance Minister Manmohan Singh among others. The report stringently censured the Ministry of Finance for failure to discharge their obligations. The JPC came to a broad conclusion that the scam was basically a deliberate and criminal misuse of public funds with the aim of ‘illegally’ siphoning the funds of banks and PSUs to ‘select stock brokers’. The JPC observed that there were several dimensions of the scandal. The functional aspect covers the banks, brokers, PSUs and various Ministries. Here accountability was “largely absent” and punishment for wrong committed was rare. The second aspect the report expressed grave concern was the failure of supervisory role from “top to bottom”. It added that “what is extremely worrisome” is that no witness who appeared admitted responsibility. The Committee felt distressed at a very damaging approach of transferring responsibility to others. As a follow up the committee recommended initiation of expert investigations to assess the scam wrought damage and apprehend ultimate beneficiary of loot. The Committee pointed out that “unprecedented economic offense” was committed “with the connivance of key persons in political and bureaucratic authority”. Needless to say nothing came out of the investigation!!!. It is shocking that the present government instead of strengthening institutions (specifically meant to fight corruption) has sought to undermine it, whether CAG or CVC. PM’s position is increasingly becoming untenable. I guess we are quite tired of this. It need be noted that it was because of Supreme Court that CVC was set up in the first place, and it was also SC judgement that sought to put CBI under it during these investigations. Needless to add CBI should be made absolutely independent of executive. Further the much delayed LokPal with SC status be instituted with full judicial power and take any action against public functionaries. Members and the chair person of Lokpal should not be appointed by the government but by the supreme body comprising President of India, Vice president, PM, CJI, leader of opposition.
Long time back (most likely 1998) i happen to attend a seminar on corruption (those days i loved seminars and free food) Mr PV Indiresan- i guess he was from IIT recounted this incident that i happen to scribble down in my notes (well after some free food scribbling few things isn’t a bad idea, it helps in digestion!) “IIT Madras developed a telecommunication switch that used wireless to connect subscribers to the exchange. The system has worked satisfactorily for over a year. The technology was sold to several countries including France and China. Yet not a single order was placed by DOT, they even refused to conduct mandatory trial tests. Later the Chairman of evaluation committee joined a joined a rival American firm along with another member of the committee. A son of another member was also employed at the above mentioned firm” (you can call him GenYnot!!).
Santhanam Committee on Prevention of Corruption (that submitted its report in 1964) has these few lines “...the failure of integrity is not uncommon among Ministers and that some Ministers who have held office during the last 16 years have enriched themselves illegitimately, obtained good jobs for their children and relations through nepotism, and have reaped other advantages inconsistent with any notion of purity in public life...” what is true about politician is also true about most other sections in particular those in Bureaucracy, Corporate, Media, Art etc indeed wherever the competence is subjective you will see this stampede. It’s about Art of Grabbing. With market entering in a big way it’s getting institutionalised, the liberal spin is the home run.
