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May 2014

The accomplice to crime of corruption is frequently our own indifference.

By Narayan Varma, Chartered Accountant
Reading Time 3 mins
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The accomplice to crime of corruption is frequently our own indifference.
?Bess Myerson

No one would deny that corruption is a worldwide phenomenon.

However. the issue to be considered is the extent of it – both the amount of money changing hands and the number of citizens directly affected by it, i.e., the extent to which low-level corruption affects ordinary people. It is unfortunate that the Prevention of Corruption (Amendment) Bill 2013, inspite of the Parliament Standing Committee on Personnel Public Grievances Law and Justice having already submitted its report on the above bill, and presented in Lok and Rajyasabha on 8th February 2014, did not come for passing in the Parliament in its last session. Some of the proposed amendments therein included:

1) Criminalise bribe-giving to the same extent as receiving bribes (In the present Prevention of Corruption Act, 1969 only receiver of bribe is prosecuted.)

2) Expand the scope of offences that will be termed ‘corruption’;

3) Make bribe-taking and bribe-giving in the corporate sector offences; and

4) Provide for procedures to confiscate the ill-gotten gains from corruption even before the completion of the trial.

According to our Constitution, as the last Lok Sabha was dissolved before the passage of this Bill, it is deemed to have lapsed. It has dealt an enormous blow to the anti-corruption movement. However at least the whistleblowers’ Protection bill, to protect those who make public interest disclosures against corruption is passed.

The need for such a legislation has been strongly felt, as a large number of RTI activists have been targeted and killed for probing corruption. Without legislative protection for a whistleblower, the enabling RTI legislation is rendered ineffective and the fight against corruption crippled.

The corruption perception index 2013 released by Transparency International ranks India at the 94th spot on a global list. Releasing the list, Transparency International said that its “Corruption Perceptions Index 2013 offers a warning that the abuse of power, secret dealings and bribery continue to ravage societies around the world”. “The Corruption Perceptions Index 2013 demonstrates that all countries still face the threat of corruption at all levels of the Government, from the issuing of local permits to the enforcement of laws and regulations,” said Huguette Labelle, chair of Transparency International.

“Corruption within the public sector remains one of the world’s biggest challenges,” Transparency International said, “particularly in areas such as political parties, police, and justice systems.”

“It is time to stop those who get away with acts of corruption. The legal loopholes and lack of political will in the Government, facilitate both domestic and crossborder corruption, and call for our intensified efforts to combat the impunity of the corrupt,” Labelle said. On 10th February, CBI Director Ranjit Sinha addressed the 7th Interpol Global Programme on Anti-Corruption, Financial Crime and Asset Recovery for South Asia in Delhi.

He stated that India’s anti-corruption laws must focus on confiscations of ill-gotten wealth. The proposed amendments in the Prevention of Corruption (Amendment) Bill, 2013 include provisions for procedures to confiscate the ill-gotten gains from corruption even before the completion of the trial. Unfortunately, legislation did not see the light of the day.

The CBI director said that majority of illicit funds that are moved across the border originate from three sources; bribery and corruption, criminal activity and commercial tax evasion. Their movement is facilitated by loopholes in the international financial system.

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