Volume V

Monthly Newsletter of
Central Vigilance Commission
AUGUST 2011

In recent interviews to the press, Shri Pradeep Kumar, Central Vigilance

Commissioner stressed the need to fight corruption ruthlessly. Corruption was a
scourge which impacted everyone. It distorted decision making, led to distracted
priorities and was against good governance.

2. He held that there were many reasons why corruption was rampant. Some of these
related to administrative delays, discretionary and arbitrary decision making,
cumbersome procedures, etc. He emphasised the need to make greater effort to ensure
fairness, equity and transparency in the functioning of organisations.

3. Corruption at all levels needed to be tackled with a preventive approach and stringent
deterrent action. CVC held that the bureaucracy had its fair share of honest people,
who should be allowed to work fearlessly. The preventive, proactive approach included
sensitizing people and inculcating right values in them.

Shri Pradeep Kumar, CVC, addressing the officers of the Commission

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From the Editors Desk

Integrity cannot be legislated upon. It is a badge of
honour one wears, visible from outside and from
within, if ones conscience is alive and active. As
Douglas Adams observed, to give real service, you
must add something which cannot be bought or
measured with money, and that is sincerity and
integrity.

To start with, everyone has inherent integrity. This

however gets compromised through circumstance,
extraneous pressure or plain greed. The consequence
of such compromise is corruption. Its vital therefore
to develop strategies to curb corruption. This was the theme of the 8th Anniversary
Celebrations of the Vigilance Study Circle held in Hyderabad recently. Details
of the deliberations in this regard are brought out in this issue, as is also an article
on Anti-Corruption Strategies.
Editor Members of the Editorial Committee
Dr. Jaya Balachandran Shri Prabhat Kumar, Director, CVC
Additional Secretary, CVC Shri Surendra Mohan, Director, CVC

Designed By : Savreet Singh Khurana, Engineer, NIC

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Shri Pradeep Kumar, CVC (centre) along with Shri J M Garg, Vigilance Commissioner (left) and
Shri R Sri Kumar, Vigilance Commissioner (right) in an interactive session in the Commission.
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Training Course for CVOs

P.M. Pillai, Director, CVC

The Commission conducts training programmes for new CVOs at least twice a year.
Recently a one-week training programme was held in the Commission, from 4th to
8th July, 2011, for newly inducted CVOs. The participants (25 in all) consisted of
CVOs of PSUs, Insurance Companies, etc. A series of lectures were arranged, as
part of the training programme. The lectures covered various aspects of vigilance,
including the powers and functions of the CVC as per the CVC Act, 2003,
processing of and investigation into complaints, provisions of the Whistleblowers
Act, details of project `Vigeye, conducting of Inquiries, role and functions of CBI,
preventive vigilance, leveraging of technology, anti-corruption strategies, synergy
between Management and Vigilance etc. Apart from officers of the Commission, the
faculty consisted of senior officers with wide experience in handling vigilance
matters, including Shri Sudhir Kumar, ex-Vigilance Commissioner. The incumbent
Vigilance Commissioners also addressed the participants.

2. The sessions were largely interactive with the programme being well received by the
CVOs. According to them, the training was informative and educative. They were
of the view that such programmes needed to be organized by the Commission on a
more frequent basis.

Participants at the training course for CVOs held in the Commission in July 2011
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Anti-Corruption Strategies
Prabhat Kumar, Director, CVC

In 1983, Werner said, corruption may be controlled through alterations in its character
but, most importantly, not destroyed . Therefore, corruption cannot be completely
eliminated. However, its incidence and effects can be minimized with proper anti-
corruption strategies and approaches.
2. Following are the key ingredients for an effective anti-corruption strategy:-
an incorruptible and independent anti-corruption agency
making corruption a high risk and low reward activity by punishing the guilty
reducing opportunities for corruption in vulnerable Govt. Departments

3. For tackling petty corruption, the following measures can be taken:-

leveraging of technology
simplification of rules and procedures
empowering citizens by mechanisms like anti-bribery hotlines or whistleblower
provisions.

4. Grand corruption, where middle and senior level officials are involved has two sides to
it - demand and supply. For reducing demand side corruption, the following measures
would be required:-
code of ethics, conflict of interest to be declared
disclosure of source of funding to political parties , state electoral funding
concealment of ill-gotten wealth to be made more difficult,
fair and transparent selection procedure for public office
policy improvement , regulation of business
strengthening the independence and integrity of regulatory bodies

5. For addressing supply side corruption, the following could be considered:-

private sector to improve standards and be more responsive
enforcement of corporate governance and improvement in financial disclosures and
accounting norms
blacklisting and debarment of companies which follow unethical norms.

6. For effective control of corruption we need to establish new performance evaluation

systems, collect information about corruption and punish corrupt officials quickly. Rose-
Ackerman has said penalties for corruption should be a positive function of the size of
the bribe for the Government official and of the size of the profit to the corrupt client. For
this, equity and certainty of penalties have to be ensured and that opens a debate on
codification of penalties.

7. Plato had said the servants of the nations are to render their service without any
taking of presentsthe dishonest shall, if convicted, die without ceremony. From the
times of Plato, we have come to a stage where corruption cases linger on and the
dishonest keep thriving.

Disclaimer The views expressed by the author are his own.

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Role of the Disciplinary Authority

Rakesh Goyal, Deputy Secretary, CVC

1. In a vigilance case, the role of the Disciplinary Authority is crucial. At the time of
recommending penalty proceedings, he has to tread a fine balance in ensuring
that he takes a fair decision in respect of the misconduct of the delinquent officer
and which has to be supported by detailed reasoning. However in a majority of
cases, the Disciplinary Authority tends to take a lenient view in order to protect
the official concerned. The following two cases indicate that even though the
lapses were grave, necessitating major penalty proceedings, the Disciplinary
Authority recommended only minor penalty proceedings.

2. Case I
There was a complaint against a General Manager of a Public Sector
Undertaking, alleging irregularities in the intimation, processing and allotment of
tenders for a certain item of work. After investigation by the CVO, it was
observed that pre-qualification was not done in a transparent manner. Some
parties with deficient documents were shown as pre-qualified. Deficient
documents were being accepted without fixing a cut-off date and even after the
competent authority had approved the pre-qualified parties. The cost of tender
was kept on the higher side. Assurance regarding issue of LOI seems to have
been given to the L 1 party. However, the tender was cancelled later without any
minutes of the negotiation meeting with L 1 being drawn up and without
intimating the party about the same. During the 2nd call, the above said party
was left out and other parties were selected arbitrarily. Delivery of tender was
not ensured by the Zone, nor were the pre-qualified parties informed over phone.
The DA, however, recommended only minor penalty proceedings against the
officials responsible for the glaring irregularities. In view of clear, discernible
malafide, the Commission advised major penalty proceedings against the
officials.

3. Case II
During execution of an item of work; steel bars were issued arbitrarily and in
excess of actual requirement, without keeping a watch on available balance.
Physical verification of steel bars was not done though as per statutory
requirement, this was to be done every year. The cost of extra steel bars issued
in excess could not be recovered from the contractor. In addition to this, the
penal amount for recovery of excess steel could not be ensured, as the contract
was rescinded due to lapses on the part of the officers concerned. However, the
Disciplinary Authority differentiated between officials found responsible, by
recommending minor penalty proceedings against some and major penalty
proceedings against others despite there being only a marginal difference in the
excess steel issued. The Commission advised major penalty proceedings against
all the officials involved.
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In looking for people to hire, you look for three qualities; integrity, intelligence and energy.
And if they dont have the first, the other two will kill you.
-- Warren Buffet
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VIGILANCE :-
MYTH VIS-A-VIS REAL
Dr. Sudha Sharma, CVO , CBDT

Generally, Vigilance is viewed as a mechanism of obstruction in an organization

whenever it is employed. The myth about Vigilance needs to be removed and replaced
with its real picture, as under :

Myth Real
1. Vigilance Department is treated as an outside 1. It is very much part of the Management
agency working in an organization. function.

2. Vigilance hinders the progress of work. 2. It works only within the framework of the
Companys rules, CVC guidelines and
Government notifications.
3. It decides the penalties to be imposed. 3. The Disciplinary Authority decides penalties
to be imposed.
4. Vigilance Department frames charges. 4. It conducts only preliminary
verification/investigation to bring it to the
notice of the Disciplinary Authority.
5. Vigilance Department conducts investigation 5. It conducts only those cases where prima
into all types of cases. facie there is a vigilance angle.
6. In the case of charged employees, no 6. A charge-sheeted employee is considered
promotion is given till the charge-sheet is for promotion but, his case is kept in a Sealed
cleared. Cover till the case is decided by the
Disciplinary Authority.

7. Vigilance Department questions 7. Vigilance helps employees in maintaining

unnecessarily and asks for excessive their records properly.
documents.

8. There is no control over the Vigilance 8. It is accountable to CVC/CEO.

Department.

9. Vigilance delays matters. 9. There should be no delay as it has to work

within the time limit framed.

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Always do right. This will gratify some people and astonish the rest.
- Mark Twain
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Vigilance Study Circle

Arti Srivastav, CVO, ECIL

In order to provide a forum for vigilance executives to share their experiences and
expertise and to keep themselves abreast of the latest developments in the field of
vigilance, the Vigilance Study Circle was established in Hyderabad in July 2003 under
the guidance and patronage of Dr S Subramanian, IPS (Retd.) former ex DG, CRPF &
NSG. The VSC was inaugurated by the then CVC, Shri P Shankar in Hyderabad and it
is registered under the A.P. Societies Registration Act 2001. VSC aims to bring all
vigilance functionaries in the country together and promote the growth of the anti
corruption movement by establishing Vigilance Study Circles all over the Country.
Since its formation in 2003, the VSC has been growing from strength to strength.
Today four more chapters i.e. VSC Bangalore, VSC Kolkata, VSC Mumbai and VSC
Tamil Nadu are functioning in their respective areas.

2. Members of VSC drawn from PSUs, Banks and Government Departments meet
regularly. The VSC is an accessible platform for members of all Departments. Over the
years VSC has embraced a variety of functions which have strengthened the hands of
Government organizations in combating ever growing corruption and malafide in
organizations. VSC Hyderabad has instituted the National Vigilance Excellence
Awards from 2009 wherein eight organizations are awarded every year to motivate
vigilance functionaries to perform better.

3. VSC Hyderabad celebrated its eighth anniversary on 8.7.2011. The Chief Guest for
the function, His Excellency Shri E S L Narasimhan, the Governor of Andhra Pradesh
delivered the key note address on the topic Strategies to Curb Corruption. The
Governor stressed upon the need to have greater accountability at higher echelons of
bureaucracy and politics. He also impressed upon the desirability of imposing
exemplary punishment on the persons found guilty of indulging in corrupt practices
and attaching the properties of such persons.

4. In his address to the gathering, Shri R Sri kumar, Vigilance Commissioner stated
that an effort to form an Indian Association of Anti-Corruption agencies was
underway, to ensure better coordination. The VC also stated that after the UN
Convention against corruption was passed by the UN, an International Agency of Anti-
Corruption had already been formed, of which 145 countries were members, India
being an Executive Committee member.

5. Participating in a panel discussion on Strategies to curb corruption by eminent

speakers and CMDs of PSUs and Banks located in Hyderabad, Shri J M Garg,
Vigilance Commissioner, said that there should be a single homogenous body to deal
with corruption, just as the Central Vigilance Commission deals with Central
Government organizations. Talking about corruption by private sector employees, he
said that the sector has to be brought under some kind of an ombudsman.

6. As part of the celebrations a Souvenir was released by Shri J M Garg, Vigilance

Commissioner. Shri R Sri Kumar, Vigilance Commissioner gave away the National
Vigilance Excellence Awards to the vigilance functionaries.

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Release of Souvenir at the 8th Anniversary Celebration of the Hyderabad Vigilance Study Circle in July, 2011

Participants at the 8th Anniversary Celebrations of the Vigilance Study Circle Hyderabad in July, 2011.

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Non-Cooperation with evil is as much a duty as is co-
operation with good.
To believe in something and not to live it, is
dishonest.
--Mahatma Gandhi
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CENTRAL VIGILANCE COMMISSION
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INA, New Delhi-110023
Visit us at : www.cvc.nic.in, www.cvc.gov.in