• According to World Bank: Corruption is use of public authority for private gain.
• (Transparency International – Misuse of entrusted power for private gain (wider definition covering both private and public sector)
• India is ranked 78  in Corruption Perception Index prepared by Transparency International (Jan 2019)
• There is also supply side of corruption . Eg  Crony Capitalism (ie nexus between Politico-Administrative Class & Business group). There is danger of state becoming Banana Republic (corporate driven state) if it is continued to go on
• Corruption is an important manifestation of the failure of ethics.

Corruption can acquire various forms

In India, corruption has become habit. There is tolerance for corruption in India. People now don’t consider it unethical. Hence, we need both values and institutional support to change situation.

• Penetration of greed and materialism in society
• Lack of moral values like honesty, integrity

• Complex laws and procedures
• Acts & policies made in our country are such that they leave lot of discretion for Civil Servants.
• Colonial Legacy of unchallenged authority with no checks
• Enormous asymmetry of Power
• Lack of accountability and Transparency
• Lack of Independent investigation agency: India has no independent investigation agency . Existing agencies like CBI  is  named by the SC as caged parrot .

• Lack of protection to honest officers (Weak Whistle-blower Act)
• Security of tenure for civil services.

• Corruption in developing countries like India hurt more because money earned via corruption goes out of country in safe havens and not reinvested in country (Flight of capital)
• Harm to public perception towards government
• Increases poverty : Corruption is anti poor . Take example of PDS & other welfare schemes  where money meant to reach poor are siphoned out  .
• Destroys the moral fibre of society . People develop perception that anything that enhances your self interest is fine
• Quality of policy making reduces
• Destroys image of country in world : lower ranking given by Transparency International

Mehbub ul Haq on Corruption in South Asia

Mehbub ul Haq set out the ill effects of corruption in South Asian Developing Countries like ours 

• 1. Corruption in South Asia occurs upstream (at top level) & not downstream . Corruption at the top distorts fundamental decisions about development priorities
  2. Corruption money in South Asia has wings and not wheels => money smuggled out to safe havens .
  3. Corruption in South Asia often leads to promotion and not prison. The big fish – unless they belong to opposition rarely fry .
  4. Corruption in South Asia occurs with 515 million people in poverty , not with per capita incomes above 20,000 $ .

• Bribe giver is a victim of extortion
• Compelled to pay for a simple service, because if he doesn’t pay, he ends up losing much more than the bribe.

• Bribe-giver and bribe-taker together fleece society
• Bribe giver is as guilty or even more guilty than the bribe-taker.
• These are cases of
• • • • execution of substandard works,
      • distortion of competition,
      • commissions in public procurement,
      • tax evasion by collusion, etc

Singapore Model : Civil Servants are very highly paid after administrative reforms undertaken by Lee Kuan Yew which decreased corruption there . This can be adopted in India too

• Indian Penal Code (IPC) Sections 161 to 165  dealt with corruption
• At that time the need for a special law to deal with corruption was not felt.

• Second World War created shortages led to large scale corruption.
• Situation continued even after the war=> Prevention of Corruption Act, 1947 was enacted .

• Bring it in line with UNCAC (UN convention against Corruption) .
• Bill incorporates the recommendations given by Law Commission

• It seeks to punish bribe givers as well as bribe takers

• Protection to Public Servant
• • • Police Officer cant begin probe without prior approval of relevant authority  (except when caught red handed)

• Sanction for prosecution of Officials
• • • Sanction needed for prosecuting serving as well as former officials for offences done while in office

(Earlier sanction was required for Serving Officers only)

• Giving Bribe is offence
• • • Giving bribe is also made a punishable offence (Earlier just taking bribe was offence)
      • Punishable by 7 years prison
      • Except when one is forced to give bribe and  reported it within 7 days.

• Distinction made between  collusive bribe givers and coerced bribe givers
• • • • Coerced : If person is coerced to give bribe, he can report it to the enforcement authorities within 7 days.
      • Collusive : No such exception

• Redefined the Criminal Misconduct
• • • • Criminal misconduct covers only two types of offences ie Misappropriation of property entrusted to public servant and intentionally enriching oneself illicitly.

(Earlier there were 5 kinds)

• Trial Time Line = Speedy Justice
• • • • Guidelines will be setup to resolve cases within 2 years . In case of delay, reason has to be stated every 6 months
      • Total time period cant exceed 4 years in any case

• Forfeiture of property
• • • • Section introduced for Special Court to attach and confiscate property

Analysis : This helps to avoid a fresh procedure to confiscate property obtained through corruption

• Whistle blowing is the act of disclosing information by an employee or stakeholder on illegal or unethical conduct of an organisation.
• Whistle-blowers can help Public servants who work in a department know more about unethical practices going on in the organization. But they don’t come forward due to fear of reprisal. If  protection is granted, it can help to get substantial information about corruption.
• Whistle-blowing  came in lexicon post Watergate Scandal in US . After that Whistle-blowing was not only encouraged but considered as ethical duty on part of citizens
• India is also a signatory to the UN Convention against Corruption, which includes provisions for protecting whistle blowers.

• working with Indian Oil Corporation (IOC) | graduate of the IIM, Lucknow.
• Whistle-blowing on adulteration by the petrol pump owners.
• He was shot dead in 2005

• National Highways Authority of India (NHAI), exposed the rampant corruption in construction
• Found dead on 27th November, 2003.

• Raising voice within organisation
• Presenting wrongdoing to Internal Ombudsman

• Should be loyal to Organisation ordinarily but when issue involves  people’s lives like corruption in defence procurement; toxic leaks from a chemical factory etc, Whistleblowing becomes duty
• An individual may be an employee but he is also a citizen  and member of society

Second Dilemma : Personal Safety vs Larger Public interest

• Whistleblowing can lead to departmental victimisation  or  threat to life and property
•  eg : Satyendra Dubey and Manjunath Shanmugam were murdered

Third Dilemma : Whether to go for Internal Whistle blowing or External Whistle-blowing

• Intention should be larger public interest
• It should be adopted as last resort
• Whistle-blowing should be backed by objective evidences
• Right to privacy of anyone shouldn’t be hampered

He found a number of malpractices prevailing in the department assigned to him. For example, funds under various schemes and grants were being misappropriated. The official facilities were frequently being used for personal needs by the officers and staff. After some time, he noticed that the process of recruiting the staff was also not up to the mark. Prospective candidates were required to write an examination in which a lot of cheating was going on. Some candidates were provided external help in the examination. Rameshwar brought these incidents to the notice of his seniors. However, he was advised to keep his eyes, ears and mouth shut and ignore all these things which were taking place with the connivance of the higher-ups. Rameshwar felt highly disillusioned and uncomfortable. He comes to you seeking your advice.

Indicate various options that you think are available in this situation. How would you help him to evaluate these options and choose the most appropriate path to be adopted? 250 words.

Accept the orders and do nothing

Resignation or getting transfer

Leak of information to public domain anonymously

Collecting the evidences, informing the Internal Ombudsman and if nothing happens blow the Whistle

In any case, I will advise my friend to raise the voice against wrong doings and don’t be a mute spectator . But at the same time, I will advise him, before going outside organisation to stop wrongdoing , he must exhaust all internal redressal mechanism because he is part of that organisation and has duty of loyalty towards organisation too. If after exhausting all mechanisms, issue is not addressed than he has higher duty towards humanity and public at large and blow the whistle .