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October 2014

Cancerous Corruption

By Narayan Varma Chartered Accountant
Reading Time 5 mins
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From May 2014, this feature is restarted. In June 2014 issue, I recorded one meaning of “Corruption”.

Here under are some definitions of Corruption:

• Transparency.org:

CORRU PTION IS THE ABUSE OF ENTRU STED POWER FOR PRIVATE GAIN. IT HUR TS EVERY ONE WHO DEPENDS ON THE INTEGR ITY OF PEOPLE IN A POSITION OF AUTHORITY. Some More:

• Wrongdoing on the part of an authority or powerful party through means that are illegitimate, immoral, or incompatible with ethical standards. Corruption often results from patronage and is associated with bribery.

• Dishonest behaviour by those in position of power, such as managers or government officials. Corruption can include giving or accepting bribes or inappropriate gifts, double dealing, under-the-table transactions, manipulating election, diverting funds, laundering money and defrauding investors. One example of corruption in the world of finance would be an investment manager who is actually running a ponzi scheme.

World bank writes on Governance & Anti-Corruption:
The World Bank views good governance and anticorruption as important to its poverty alleviation mission. Many governance and anti-corruption initiatives are taking place throughout the World Bank Group. They focus on internal organisational integrity, minimising corruption on World Bank-funded projects, and assisting countries in improving governance and controlling corruption.

Combining participatory action-oriented learning, capacity-building tools, and the power of data, the World Bank Institute (WBI), in collaboration with other units in the World Bank Group, supports countries in improving governance and controlling corruption. We also provide policy and institutional advice and support to countries in their formulation of action programs.

Using a strategic and multidisciplinary approach, we apply action-learning methods to link empirical diagnostic surveys, their practical application, collective action, and prevention. Concrete results on the ground are emphasized in our learning programs and clinics as well as the periodic release of the Worldwide Governance Indicators (WGI) and country diagnostics. This integrated approach is supported by operational research and a comprehensive governance databank.

At one of the annual meeting, World Bank officials spoke extensively about corruption. It is an understandable concern: money that the Bank lends to developing countries that ends up in secret bank accounts or finances some contractors’ luxurious lifestyle leaves a country more indebted, not more prosperous.

Corruption Worldwide:
Corruption, fraud and money-laundering cost poor countries a total of $1.0 trillion a year, the anti-poverty organisation ONE said in a study released in this month. The group, founded by U2 rock group singer Bono, said the misuse of funds resulted in $38-64 billion a year in uncollected taxes alone. This in turn cost 3.6 million lives a year that could be saved if the missing money were wisely invested, nongovernment organisation ONE estimated.

Na Khaunga, na khane dunga:
• Bringing up the issue of corruption during the second leg of his daylong tour to Jammu & Kashmir last month, PM Narendra Modi said his mantra was “Na khaunga, na khane dunga (neither will I take bribe, nor will I allow anyone also to take bribe).”

(Compare above with former PM Manmohan Singh: He did not take bribe but allowed many of his ministers to take bribe)

• PM Narendra Modi described corruption as cancer that can destroy India and said people were no longer willing to tolerate it.

Addressing a gathering at a foundation stone laying ceremony for a highway, and amid slogans of Bharat mata ki jai, he asked, “Should strong steps not be taken to remove corruption?” Modi said some had pointed out that he did not speak on August 15.He reminded them that he had said “if somebody had to get any work done one would ask ‘mera kya’ (what’s in it for me). If the work is not done, one would say ‘mujhe kya’ (why do I care). This has spoiled the nation.”

Maharashtra Anti-corruption Bureau ( ACB )
• In a bid to check corruption and embarrass the offenders, the Maharashtra Anti Corruption Bureau (ACB) is planning to launch a page on a popular social networking site where it would upload the pictures of those caught for taking bribes.”In a bid to intensify our action against corrupt and reach out to people, we are planning to use the popular platform of Facebook shortly”, said Director General of Police (ACB) Pravin Dixit. When asked if the court rulings prevented posting pictures of suspects at public places, Dixit said the ACB cases were different. “We have a suspect who is known and arrested after adopting legal procedures. There is no question of identification parade like other crimes. Hence, there is nothing wrong in putting up pictures on the website or elsewhere.” Dixit said.
• The Facebook page, if started, will have the pictures of the accused, besides the details of the bribe amount the accused took, valuables and other documents recovered from him or her during searches at office and home, police said. The ACB which had laid as many as 744 traps so far this year, a 114 per cent jump from the same last year, has been for the past two months publishing pictures of those caught in the act on its own website. During the 744 traps till August 16, it has arrested 1,009 government employees and their associates, who are private individuals. In the same period last year, 348 traps were laid in which 452 were arrested.

Transparency International: Corruption perception Index 2013:

In August issue of BCAJ, some details of Corruption Perceptions Index 2013 were reported. I had missed to report CPI of some more neighbouring countries. Now along with 3 which were reported hereunder are Ranking of India and its neighbouring countries:

It is interesting to note that atleast one neighbouring country, Bhutan ranks at 31, quiet high, and scores 63.

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