Corruption

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In 2012, India has ranked 94th out of 176 countries in

Transparency International's Corruption Perception Index.

Agenda
Sources of corruption Causes of corruption Existing Infrastructure Jan Lokpal Bill Solution to the issue
Visible
Day-to-day Transactional, Prioritisational

Politicians, senior bureaucrats dipping into public funds. National security risks from corrupt security forces.

Invisible

Policy neglect by politicians and bureaucrats as a result of focus on making money.

Major Sources of Corruption

Land and Property sale/allocation
Bihar Land Scam (Rs. 400 Cr), Adarsh Housing Society Scam

Allottment of resources
2G Scam (Rs. 176,000 Cr), Coal Gate (Rs. 185,591 Cr), Iron Ore Mining Scandal

Govt aided programs

MNREGA, JNNURM, PMGSY, NRHM, UP Foodgrain scam, Fodder scam

Tendering process and awarding contracts

Commonwealth scam, DIAL (167,000 Cr)

Major Sources of Corruption

Income tax collection Black Market
Approximately $1.4 trillion in black money stored in Swiss banks. - The Hindu unofficial report India has more black money than the rest of the world combined. - Swiss Banking AssnReport (2006) Indian-owned Swiss bank account assets are worth 13 times the countrys national debt. - Unofficial reports

Bureaucracy

Causes of Corruption
Lack of penalties for corrupt behavior by public officials Tardy judicial system Elections and Discretionary powers of politicians High taxes and excessive regulation Opaque processes and paperwork Unemployment

Existing Infrastructure to fight corruption

1. Anti-corruption bodies
Directorate General of Income Tax Investigation Central Vigilance Commission Central Bureau of Investigation
Certain states like AP and Karnataka also have their own anti-corrption bodies

Existing Infrastructure to fight corruption

2. Laws

Indian Penal Court Prosecution section ofIncome Tax Act, 1961 Prevention of Corruption Act, 1988 Prevention of Money Laundering Act, 2002 Right to Information Act, 2005 Whistle Blowers Protection Bill, 2012: The bill is now pending in its Rajya Sabha.

Existing Infrastructure to fight corruption

3. Anti-corruption organizations

Bharat Swabhiman Trust India Against Corruption Jaago Re! One Billion Votes Association for Social Transparency, Rights and Action (ASTRA)is an NGO focused on grass-roots work to fight corruption in Karnataka. One organization, theLok Satta Movement, has transformed itself from a civil organization to a fullfledged political party, theLoksatta Party.

Jan Lokpal Bill

Also referred to theCitizen's Ombudsman Bill Focus on creating an independent body to investigate corruption cases.

To establish a central government anti-corruption institution calledLokpal, supported byLokayuktaat the state level.

Inspired by the Hong Kong 'Independent Commission against Corruption'

First introduced byShanti Bhushanin 1968; has already been presented 8 times before the parliament.

Government has not put Lokpal bill again in Rajya Sabhapost the winter session in 2011

Key features of proposed bill

Appointment of Members through a transparet & participatory process: by judges,IASofficers with a clean record, private citizens and constitutional authorities. Details of cases to be available on the Webite on a monthly basis Investigations to be completed in one year. Resulting trials should be concluded in the following year, giving a total maximum process time of two years. Losses to the govt by a corrupt individual will be recovered on conviction. Government office-work required by a citizen that is not completed within a prescribed time period will result inLokpalimposing financial penalties on those responsible, which will then be given as compensation to the complainant.

Key features of proposed bill

Complaints against any officer ofLokpalwill be investigated and completed within one month and, if found to be substantive, will result in the officer being dismissed within two months. The existing anti-corruption agencies will be merged intoLokpalwhich will have complete power authority to independently investigate and prosecute any officer, judge or politician. Whistle-Blowerswho alert the agency to potential corruption cases will also be provided with protection by it.

Points of difference between the Proposed and the Govt's version of the Lokpal Bill
Issue Prime Minister The Jan Lokpal Bill PM can be investigated with permission of seven member Lokpal bench. Can be investigated, though high level members may be investigated only with permission of a seven member Lokpal bench. Can be investigated with permission of seven member Lokpal bench. Government's Lokpal Bill PM can be investigated by Lokpal after she/he vacates office. Judiciary is exempt and will be covered by a separate "judicial accountability bill".

Judiciary

Conduct ofMPs

Can be investigated, but their conduct within Parliament, such as voting, cannot be investigated.

Points of difference between the Proposed and the Govt's version of the Lokpal Bill
Issue Lower bureaucracy AntiCorruption wing of theCBI The Jan Lokpal Bill All public servants would be included.
Government's Lokpal Bill

Only senior officers (Group A) will be covered.

The Anti-Corruption wing The Anti-Corruption wing of the CBI will be merged of the CBI cannot be into the Lokpal. merged into the Lokpal. Lokpal can only refer matters to the courts, not take any direct punitive actions. Penalties remain equivalent to those in current laws.

Punishment Lokpal can either directly for corruption impose penalties, or refer the matter to the courts. Penalties can include removal from office, imprisonment, and recovery of assets from those who benefited from the corruption.

Points of difference between the Proposed and the Govt's version of the Lokpal Bill
Investigatory powers Lokpal can obtain wiretaps, issueletters, and recruit investigating officers. Cannot issue contempt orders. Lokpal can issue contempt orders, and has the ability to punish those in contempt. No authority to obtain wiretaps, issue rogatory letters, or recruit investigating officers. Court system will handle matters of frivolous complaints. Courts can give 25 years imprisonment and fines of Rs 25,000 to 200,000. NGOs are within the scope and can be investigated.

False, frivolous and vexatious complaints

Lokpal can issue fines for frivolous complaints (including frivolous complaints against Lokpal itself), with a maximum penalty of Rs 100,000. NGOs not within the scope due to their role in exposing corruption.

NGOs

Points of difference between the Proposed and the Govt's version of the Lokpal Bill
Removal of Lokpal staff and officers Complaints against the Lokpal will conduct Lokpal staff will be inquiries into its own handled by behaviour. independient bodies constituted by retired IAS, Judicial people etc. Lokayukta and other local/state anticorruption agency would remain in place. All state anti-corruption agencies would be closed and responsibilities taken over by centralised Lokpal. No protection granted to whistleblowers by Lokpal.

Lokayukta

Whistleblower protection

Whistleblowers are protected by Lokpal.

Criticisms of the Jan Lokpal Bill

Naive approach to several issues Lack of clarity on the judicial and executive powers Extra-constitutional Scope of powers Divide between the power & responsibilities on side and the Resources on the other Merger of the existing bodies into Lokpal

Can the problem be solved?

Accounting for political party funds and expenditure Judicial & Police reforms Privatization RTI Computerization of govt processes Initiative by private players Independence of the Anti-corruption wings Income tax reforms Simplification of the laws, lesser role of beureaucracy. Protection to whistle blowers