Friends,
This is a thought provoking speech by the C&AG. He has highlighted that Social Audit b citizens enabled by RTI Act is the need of the hour.
Dhirendra Krishna
..........................................................................................................................................
( Speech by Shri Vinod Rai C&AG delivered at IIC Annexe Auditorium on 18.3.2011:
Source: http://www.cag.gov.in/ )
Corruption free Governance
I am indeed grateful to the IC– Centre for Governance and the IIC for
inviting me to speak to you all today. It is an honour for me to be speaking
to such a galaxy of distinguished senior civil servants and other
functionaries who have been trail blazers of their time. I am conscious, as I
speak to you, that each one of you have impeccable track records and have
been pillars of the country's administrative set up. Indeed some of you
have been role models to most of us and there is much that we have, in our
times, imbibed from the way you have conducted yourself and the
contribution that you have made towards maintaining the integrity and
professional efficiency of the civil services.
2. The concerns on governance and in fact corruption free governance
are not new. I would like to draw your attention to the speeches made by
important dignitaries on the midnight that India gained independence.
While we are all familiar with the much talked about "Tryst with destiny"
speech of Shri Jawahar Lal Nehru, for our present purpose, I would like to
refer to another speech made at the same time. Speaking on the occasion
Dr. S. Radhakrishnan our first Vice President , a great visionary and
statesman said: Quote.
"Our opportunities are great but let me warn you that when power
outstrips ability, we will fall on evil days. We should develop
competence and ability which would help us to utilize the
opportunities which are now open to us. From tomorrow morning –
from midnight today – we cannot throw the blame on the Britishers.
We have to assume the responsibility ourselves for what we do. A
free India will be judged by the way in which it will serve the interests
of the common man in the matter of food, clothing, shelter and
social services. Unless we destroy corruption in high places, root out
every trace of nepotism, love of power, profiteering and black‐
marketing which have spoiled the good name of this great country in
recent times, we will not be able to raise the standards of efficiency
in administration as well as in the production and distribution of the
necessary goods of life."
3. Concerns regarding corruption in public dealing continue to occupy
the public mind. In a survey conducted internationally in 1964, about most
commonly used words in selected countries of the world: the findings for
the US was "John Kennedy" (that is probably because that then President
had been assassinated a few months earlier). The finding for India in the
same survey was: "Bhrastachar". I am quoting this to you only to
emphasise that concerns regarding probity in public life have continued
over the years. In fact if we go much further back in the history of India,
Kautilya has made the following observations in the Arthashastra.
"Just as it is impossible not to taste honey or poison that one may
find at the tip of one's tongue, so it is impossible for one dealing with
government funds not to taste, at least a little bit, of the King's
wealth.
Just as it is impossible to know when a fish moving in water is
drinking it , so it is impossible to find out when government servants
in charge of undertakings, misappropriate money."
Nevertheless, these were observations made by statesman who observed
and participated in public life and made their perceptions on the situation4
obtaining then. Today's level of probity in public life certainly paints a far
more dismal picture. We confront situations of the kind when:
# a Chief Minister of a mainstream state is arrested for amassing
wealth totally disproportionate to his sources of income and owning
mines and other entities abroad.
# When in the context of allegations made against a Chief Minister of
a Southern State his own party President has observed that his
actions were and I quote "not illegal but immoral".
# We have the most startling experience of bags of currency notes
being placed in the table of Parliament and 11 Hon'ble Members of
Parliament proceeded against for having accepted cash for asking
questions in the House and
# When officers in the Civil Service and Public Sector are caught redhanded with ill gotten gains.
4. I further draw your attention to the fact that whilst we were familiar
with expressions such as revenue deficit, fiscal deficit and current account
deficit, we are now being sensitized about deficit of trust and governance
deficit. If all this is not depressing enough to the normal Indian psyche we
have a senior Minister pointing towards a deficit in ethics in Government.
This truly drives the last nail in the reputation of the quality of public
administration in India. This is where we stand today.
5. It is also very interesting to observe that various models have been
deployed by those seeking to gain from devolution of public moneys. The
traditional method has always been seeking a share out of works or
purchase contracts. Later there were leakages from government project
funds which compelled a former Prime Minister to remark that he
suspected that only 17% reached the targeted population. Later, was
discovered the more sophisticated model developed for privatization
/disinvestment of public sector entities. We hastily commenced on this
model without gaining knowledge on how best government interests could
be protected. Yet another improvement on this was through approval of
Public Private Partnership concession agreements ‐ a model projected as
the ultimate panacea for all our physical infrastructure creation. Projects
for Airports, Ports, Power Plants, Road and Dams fell a prey to this model.
The ultimate super sophistication on all these models has been the lease or
auction of Public goods such as airways or gas wells to private entities on
revenue share terms which are most unevenly devised.
6. It is indeed most ironical that whilst on the one hand India is poised
to be one of the most robust economies in the world and prepares to be
counted as a super power, the quality of our governance has fallen to levels
to which I have just drawn attention.
All of you distinguished invitees today would agree with me that the issue
of corruption has been addressed on the basic premise that governments
are designed, interested, determined and in fact ought to be fighting it in
our society. However, I place the proposition before you that time has
come when we need to recognize the fact that this mindset has failed us. If
we have to fight corruption we need to look elsewhere. I wish to place
before you the proposition for the participation of civil society in
Government programmes and how such participation is critically linked to
good governance and effective delivery of Government services. I also wish
to add how public oversight of such delivery channels would add value and
not hinder the process of delivery. In the vein of public participation I would
also like to show how social audit can improve the processes of
Government spending and thereby increase accountability.
7. In this context, I advocate a major paradigm shift – a shift from the
old paradigm of Government action and civil society inaction, to one
wherein the ultimate stakeholder, which is civil society at large, takes on to
itself, the responsibility of cleansing the quality of governance. Hence, I
propose that civil society organizations no longer remain passive and
expect Government to fight corruption, because this does not seem to be
happening and probably will never happen. It is for us to recognize the
reality and take positive action with the empowerment provided by the
Parliament. We can no longer continue to deceive ourselves that it is the
duty of the Government of the day to fight corruption and indeed see them
fail. We need to be content that in the new paradigm the responsibility of
Government becomes that of enacting law and that of the citizens, civil
society groups, opinion leaders and the media, to ensure the enforcement
of these legislations. In doing so we will all be providing an element of
vigilante which will keep government on its toes. There is already
considerable pressure and media glare on Government functionaries
making them aware that they live and function in glass houses, that all their
actions have to be transparent and the public can hold them accountable
for acts of misdemeanor. We have media as an invaluable asset of our8
democracy. A free and vibrant press, which is on overdrive at times, does
act as a force multiplier in this paradigm shift.
8. The Indian economy has established its predominance in the
international arena. It is very reassuring that our vibrant democracy has
delivered such an impressive growth. The resilience displayed by the
private sector in economic development and the political stability in the
nation is also a remarkable example of freedom and equality for all within
the country. We seek double digit economic growth coupled with good
governance which would ensure leakage free delivery systems for flagship
programmes of Government thereby facilitating, inclusive growth. The
country has displayed an un‐paralleled capability, and demonstrated even
in the international fraternity, that growth with equity is not only feasible,
but achievable, and hence desirable. The Parliament has already created
an enabling legal environment to empower the public to fight corruption
without fear of victimization. I am referring to legislations such as the Right
to Information and the Whistle Blower Acts. The Indian Parliament had
earlier put in place another model of governance to ensure the
empowerment of the hitherto disadvantaged sections of society to ensure
participative governance. These are the 73rd and 74th Constitutional amendments which are a watershed in the Nations democratic history. With the introduction of these amendments Union Parliament has facilitated the participation of the 3rd tier of the Government towards development in education, health, creation of rural assets and
infrastructure as per local requirements.
States like Bihar, Chattisgarh, MP and Gujarat have amply
demonstrated that where policy formulation and implementation is
effective and leakage‐proof, there is a perceptible impact on creation of
infrastructure, economic opportunities and inclusive growth. And where
such Governments have succeeded in creating such enabling environment,
the Indian electorate has demonstrated its maturity by deciding to re‐elect
such efficient Governments.
9. The Government has launched massive programmes for generating
rural employment, rural incomes and rural infrastructure. There are
flagship programmes of the federal Government for which in the current
year roughly Rs. 90,000 crore would be devolved through Panchyati Raj
Institutions, Public Private Partnership Projects and a large number of non‐
Governmental organizations. These programmes do not fall within the
automatic legal mandate of the CAG audit. The common man has now
gained access to Government records through the RTI and the media has
become a powerful and effective tool to create a culture of accountability.
I feel it is incumbent upon us to partner with Government, and other
institutions empowered by Government for generating economic activity,
to ensure more effective delivery and better outcomes of such
programmes. There is adequate evidence in states to indicate that where
there has been participation of civil service organization and social groups,
the delivery of such programmes has been more effective.
10. I wish to draw your attention towards the Mazdoor Kissan Shikhsha
Sangathan which has played a very constructive role in Rajasthan. This
programme, pioneered by Smt. Aruna Roy, compelled the Rajasthan
Government to introduce its own RTI Act in 2000 itself. In a little over a
decade this organization has developed into one of India's most potent
social justice movements. The organization is a union of peasants and
workers and has successfully demonstrated the power of information as an
effective tool to enable citizens to participate in governance. The
programme is very well designed and has five elements viz., gathering
information, collating information, distributing information, public hearing
and follow‐up. The programme is commonly referred to as the "Jan Sunwai11
Programme". It has achieved remarkable results, often in the face of
bureaucratic apathy. In the Jan Sunwai, the officials are confronted with
factual information gleaned from Government files. There are any number
of instances where corrupt officials have been forced to return illegal
gratification cornered by them for discharging their routine duty. The
programme has evinced remarkable deterrence in leakage of Government
moneys purveyed through formal and informal channels. It has also
compelled the Rajasthan Government to introduce aspects of social
auditing within the local governance processes. The programme has been
successful in introducing a radical change in the institutional space provided
to citizens to scrutinize public spending in rural areas. Yet another example
is the programme of "communitization" in Nagaland. Started about 10
years back, this programme has achieved remarkable success in the
education and health sectors. Communitization has helped improve these
basic services through participation and ownership by the user community
and revitalization of dysfunctional and decadent health service by
improving staff attendance, medicine distribution and even timely
disbursement of salary.12
11. You are all familiar with the theory of fortune at the bottom of the
pyramid enunciated by late Dr. C.K. Prahlad. About 4 billion people
constitute the fourth tier of that pyramid. This is the fortune that he talks
about. I stand before you today to plead that 15% of this fourth tier live in
India. This is roughly 600 million people. Considering that India has
successfully transformed its huge population base into productive human
capital and where about 54% of the GDP is contributed by the service
sector, it is evident that these people are no longer a burden on society.
They need to be empowered to be resilient value creators and conscious
consumers. It is thus imperative that a national effort is launched to
develop and strengthen the accountability architecture from grass root
organizations upwards, in a manner which is commensurate with the
increasing value of fiscal transfers to grass root bodies. It is in this direction
that informed citizens and civil society groups of the kind that you
represent, can help in providing vigilante over Government departments
and the official machinery, to ensure that funds do reach the targeted
strata of the population.
12. The Constitution makers have put in place a very well designed
architecture for auditing. However, it needs to be recognized that such
architecture is beset with limitations and infirmities. The formal structure
has limitations in tracing the rupee from the Government Treasury to its
ultimate destinations. My department is reaching out to seek a partnership
with civil society to provide an effective architecture of social audit. Such a
model whether in Nagaland, Rajasthan or Kerala has delivered very
effectively and we are replicating the same in other states also. Quite often
Government audit has neither the sectoral professional competence,
knowledge of local areas nor the numbers to ensure intensive audit of
Government funds deployed in the social sector at every grass root level.
We have partnered with social action groups to give us that last mileage to
ascertain whether institutions such as PHC, Primary Education or Drinking
Water Programmes are in fact functioning in areas where funds have been
deployed for them. Informed social action groups have helped us initiate
public dialogue and scrutiny. They help examine the local relevance of
spending, process and asset creation thereby establishing the essentiality
of public spending. They have often helped devise local innovations and14
micro solutions and have helped to factor in checks and balances at the
village level.
One significant infirmity in Government audit is the fact that there is
no time limit within which the executive must render answers to the
queries sought by audit, whereas the common man, under the RTI, can
obtain any information from Government within 30 days. There is no such
stipulation for audit. Hence the reason for huge delays. We are seeking to
overcome such delays and have suggested to Government certain
modifications in the existing Audit Act. We have undertaken positive
reporting such that it is not only faults in the delivery channels that we
point out but also improvements and best practices. Since audit has the
benefit of holistically observing a Government programme, it can
disseminate best practices where it observes them. In fact to be able to
reach out to media, civil society organizations, educational institutions and
such other informed public agencies we have introduced a new series of
micro Reports for distribution.
Each one of you assembled here today embody certain very vital
social concerns and are passionate about upgrading governance, being
totally distraught by the corruption and infirmities that have crept in to the15
functioning of Government. It is in this context that the proposal to
establish an Anti Corruption Commission is laudable. The Chairman should
be a Constitutional appointee with the status of a Supreme Court Judge.
He should have a term of 5 years and be removed in a manner as that of a
Judge of the Supreme Court. In fact you need to lead opinion for
appointments such as CAG, Director CBI, Election Commissioners, Vigilance
Commissioners and Information Commissioners of the type that is
prescribed for the CVC. Just as it is specified that the CAG would not be
eligible for any appointment to an office under the Government post
completion of his tenure, the same needs to be mandated for Supreme
Court Chief Justice too.
I feel it is the duty of each one of us to function as opinion leaders
and formulate such information dissemination channels by which we can
act as catalytic agents to ensure that all officials function as per their
allegiance to the Constitution and that individuals or institutions with
vested agenda do not hijack Government functioning.
It is our bounden duty to instill confidence among that strata of civil
society in which we dwell, about the rights of any beneficiary, the duties of16
a civil servant and the need to ensure that a consideration is neither sought
nor paid, for performing the duties as mandated for any functionary.
It is our duty to help provide the partnership between such peoples
agencies and Government oversight bodies to ensure greater accountability
among officials implementing schemes at the local level. I firmly believe
that we stand today at the threshold of creating history. The focus is on us
and it might well be asked, if we can roll back the rampant corruption
observed in governance and the de‐generation which has taken place in
standards of government functioning.
My answer to this would be an emphatic "YES".
I say this because we are a country which debunked the stereotype
attached to our economy for about 30 years post independence. It was the
tag of the `Hindu rate of growth'. We are now knocking on the doors of
double digit growth.
We are a country which in desperation had to ship 20 tons of gold in
1991 to the Bank of England for availing of a loan of USD 400 million as per
conditions imposed by the IMF. We are now competing with China for
economic development and FDI.17
We are a country which despite all the adverse factors, bungling,
mismanagement and misdemeanor, still delivered the Commonwealth
Games which was world class and in which our own medal tally was the
highest ever.
It is in this context that this country must yet again display its
inherent strength and debunk the oft repeated phenomenon of a silent
majority. It is this majority which will have to take courage and challenge
the wrong doers in Government. It is this majority which has remained
silent till now and which will have to display its courage of conviction and
ensure that it can restore every common citizen its rightful due and that in
fact a Government functionary actually performs as a Government servant
and not master of the citizenry. This majority can no longer remain silent.
It has indeed started raising its voice. The PIL in the case of the
appointment of the CVC, pursuit of the Spectrum allocations case in court
and the relentless pursuit by the media in cases like the Jessica Lal murder,
the unofficer like behavior of the DGP of Haryana and the undeserved
release on false grounds of a politician's son on parole are outstanding
examples of how the hitherto silent majority can put pressure on18
government and bring into public domain the wrong doing of those in
power.
I am indeed grateful to you for patiently listening to me. While
concluding let me propose that we do not falter in our steps now such that
posterity judge us for having lost the opportunity to liberate, empower,
and economically stabilize the 600 million opportunity seekers at the
bottom of the pyramid and, let posterity not comment that we had the
opportunity to partner in the up‐gradation of governance, but we were
found wanting.
We would have let down our glorious past, lost the opportunity of a
golden present and certainly denied this delightful opportunity to
forthcoming generations.
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