R.C.PUNETHA, IRSSDeputy Chief Vigilance Officer

(STORES) South Central Railway

The Wonder that is India !!!The Wonder that is India !!! Ranked 70th with score-3.3,among 163

countries - “Corruption Perception Index (2006)”a study by Transparency International

Ranks First among 30 leading exporting countries which have the propensity

to bribe abroad – “Bribe Payer’s Index (2006)”

One of the most pessimistic about the elimination of corruption in the future “Global Corruption Barometer (2006)”

CPI (Corruption Perceptions CPI (Corruption Perceptions Index)Index):-:- Ranks countries in terms of degree to

which corruption is perceived to exist among public officials and politicians. Reflects the views of Business people and Analysts from around the world, including experts who are locals in the countries evaluated.

2007:- Survey was done in 180 countries. Nzl. tops the rank with 9.4 score. India ranks 72 with the score of 3.5. The rank is shared by China, Brazil, Mexico & Peru.

GCB (Global Corruption GCB (Global Corruption Barometer)Barometer):-:- A public opinion survey that is

administered around the world each year since 2003.

How corruption affects the daily life of the ordinary persons.

Public attitude towards corruption. Extent to which they believe C

pervades public institutions. How fight against C will fair in

future.

GCB 2007GCB 2007:-:- 60 Countries involved Poors- biggest victim, more in South

Asia Pecific, 1/10 pace bribery, Police/Judiciary ranks the top.

More than 32%-Pak. 18-32% India (25%), Indonesia. LT 2%-Sweden, Japan, Switz.

Future-54% (90%) increase; 20% (7%) decrease; 26% (3%) same.

Steps to check C – India - 68% ineffective; 25% effective.

BPI (Bribe Payers Index)BPI (Bribe Payers Index):-:- Ranks leading exporting countries in

terms of degree to which International Companies with their Hdq. in those countries are likely to pay bribes to senior public officials.

Measures the supply side of bribery in countries where the bribes are paid.

Question asked to indicate how likely companies from the following countries are to pay or offer bribes to win or retain business in this country.

Corruption in IndiaCorruption in India:-:- TII has recently made survey on the basis

of which major Indian states are kept under following category:-

Alarmingly corrupt:- Bihar, UP, MP & J&K Very Highly corrupt:- Karnataka, Rajasthan

& TN. Highly corrupt:- Delhi, Gujarat, Kerala,

Orissa, Chattisgarh & Jharkhand. Moderately Corrupt:- AP, HP, WB,

Maharashtra, Punjab, Haryana & Uttarakhand.

Corruption in India (Contd.)Corruption in India (Contd.):-:- 833 Cr. was paid by BPL familes

as bribe to avail public facilities. Out of 833, 215 Cr. was paid to Police.

Police, Forest, Land Revenue/Registration & Housing are found to be most corrupt Departments.

ANALYTICAL STUDY OF VIGILANCE CASESANALYTICAL STUDY OF VIGILANCE CASES

PERCENTAGE VIGILANCE CASES ASPECT WISE

Selections, Appointments&

Promotions17%

Purchases17%

Others32%

Aw ard of Tenders & Contracts

34%

VIGILANCE ORG.VIGILANCE ORG.:-:- CVC:- Apex Body at National level having

jurisdiction over central Govt. Ministries and PSUs.

Manned by Chief Vig. Commr. and to Vig. Commrs.

Issues directives to various Ministries which in turn issue procedure orders for their own Departments.

VIGILANCE ORG. (Contd.)VIGILANCE ORG. (Contd.):-:- Railway Board:- Headed by Adviser Vigilance Assisted by various EDs followed by

Joint Directors, Directors, Dy. Dir. & IIs. JD (P) undertakes cases of Sr. officials

of Railways. Co-ordinates between CVC & various

Railways and also various Directorates of Railway Board.

Objective of VigilanceObjective of Vigilance Prevention of corruption. Promotion of Integrity. Promotion of Vigilance

consciousness, amongst Railway men.

Effecting system improvement.

Advise suitable administrative or disciplinary action.

Vigilance Angle : What is it ?Vigilance Angle : What is it ? Demanding and/or accepting gratification

other than legal remuneration. Obtaining anything of value without

consideration or with inadequate consideration from those with whom official dealings are likely, either directly or by exerting influence.

Obtaining for self or for any other person, anything of value or pecuniary advantage by corrupt or illegal means or by abusing the position as a public servant.(cont’d)

Vigilance Angle (cont’d)Vigilance Angle (cont’d) Disproportionate Assets vis-à-vis

known sources of Income Misappropriation, Forgery, Cheating

or similar criminal offences Gross or willful negligence, reckless

decision making, blatant violation of systems and procedures and excessive exercise of discretion

Other irregularities where circumstances will have to be weighed carefully to view whether the government servants’ integrity is doubtful

Complaint Handling PolicyComplaint Handling PolicyNo authenticated complaint (i.e. a signed complaint with the name and address of the complainant which is acknowledged having been sent by complainant) involving a Gaz Officer can be closed by the Railways without consultation with the CVC even though, no irregularities are substantiated against any of the officials involved in the case.

( Contd.)

No action, as a general rule, is taken on Anonymous Complaints (i.e. complaints that do not bear name and address of the complainant) and Pseudonymous Complaints (i.e. complaints which do not bear the signature of the complainant or which on verification is not owned by the person in whose name it is made).However, verifiable facts alleged in such complaints may be looked into with prior concurrence of CVC.

Public Interest Disclosure and Public Interest Disclosure and Protection of InformersProtection of Informers

Resolution passed by GOI on 21.04.04 Popularly called “Whistle Blower Policy” CVC is the “designated authority” to

receive written complaints or disclosure on any allegation of corruption or misuse of office by government employee

Complaint should be in a sealed envelope super scribed “Complaint under the Public Interest Disclosure” and addressed to Secretary, Central Vigilance Commission

(cont’d)

Whistle Blower Policy (cont’d)Whistle Blower Policy (cont’d) Name and address of complainant

either in the beginning or end of the complaint or in an attached letter

No clues about the identity of the complainant in text of the complaint

Complaint to be Specific and Verifiable

No acknowledgement by CVC but instructions sent to Vigilance wing of the organization for investigation

CVC’s Directive on use of WebsiteCVC’s Directive on use of Website There are instances in which allegations have been made regarding inadequate/no publicity/non-availability of tender documents. Therefore, in order to bring about greater transparency and curb the mal-practices, it has been made mandatory to publish the complete bid documents along with application form on the website of the organization (Rly.Bd.’s ltr.No.2003/V-1/CVC/1/21Dt.19-07-2004).

(contd.)

CVC GuidelinesCVC Guidelines:-:- Already implemented by Railways. These guidelines aim to improve

the system-working i.e. improves transparency, reduces public interface, minimizes discretionary powers of the Executives & simplifies the rules & regulations/procedures.

Controls corruption at macro level.

CVC Guidelines (Contd.)CVC Guidelines (Contd.):-:- All OTs must be put in the website

in downloadable form. All OTs must include the eligibility

criteria in the Tender Schedule. In contracts, negotiation with L1

only. In case L1 withdraws the offer,

case to be retendered.

CVC’s Directive on use of WebsiteCVC’s Directive on use of Website

Post on the website, summary every month, of all the tenders/works contracts of value more than One Crore Rupees of Engg./Mech/Elec/S&T/ Medical department, Rs.50 Lakhs for Commercial Dept. and all the purchases of value more than Rs.20 Lakhs done through Stores contract (Rly.Bd;s Lr. No.2004/V-1/CVC/1/18 Dt.13-04-2005).

Booking of Vigilance Case Booking of Vigilance Case (Non-Gazetted):-(Non-Gazetted):- Case can be booked with the

approval of Dy.CVO concerned. Punishment advice is also

decided at Dy.CVO level & Draft Chargesheet with relevant documents is forwarded to DA.

Adequacy of punishment is confirmed by SDGM.

Clearance of Vigilance Case Clearance of Vigilance Case (Non-Gazetted) (Minor (Non-Gazetted) (Minor Penalty):-Penalty):- Vigilance clearance would be given

once the DA has finalized the DAR and NIP issued.

No consultation with Vigilance even if DA differs with vigilance advice.

In case of inadequacy vigilance can seek a revision through RA.

Clearance of Vigilance Case Clearance of Vigilance Case (Non-Gazetted) (Major (Non-Gazetted) (Major Penalty):-Penalty):-

Vigilance case will get closed once DA has imposed any of the Major Penalties and NIP is issued.

No consultation with Vig. is necessary where penalty imposed is as per Ist stage advice of Vig.

If still considered inadequate revision is sought through RA.

Clearance of Vigilance Case Clearance of Vigilance Case (Non-Gazetted) (Major (Non-Gazetted) (Major Penalty):- Contd…Penalty):- Contd… When DA proposes to exonerate or

impose a Minor Penalty, consultation with Vig. is necessary. DA has to first record his provisional views giving reasons for disagreement.

Even after this consultation if DA is at variance with the views of Vig., he is free to proceed and pass speaking order.

Vig. Case will get cleared on the issue of copy of NIP/exoneration speaking order. Vig. may seek revision through RA.

Booking of Vigilance Case Booking of Vigilance Case (Gazetted):-(Gazetted):- If convinced, SDGM will approve to record

the statement of Gaz. Officer. The case is deemed to have been booked.

Investigation report will be put up to GM though PHOD & SDGM.

Preliminary report to be put up to SDGM indicating the involvement of Gaz. Officer.

GM will record speaking orders duly recommending the penalty.

Booking of Vigilance Case Booking of Vigilance Case (Gazetted):- Contd…(Gazetted):- Contd… Case will be referred to Rly. Bd. Vig.

Upto Asst. level, Adviser Vigilance is the ultimate authority to confirm the penalty. Above Asst. level, all cases will be referred to CVC and final penalty advice will be decided with their consultation.

This CVC’s Ist stage advice is communicated to the Zonal Vig.

In case of Minor Penalty if punishment proposed to be imposed by DA is in line with CVC advice, no consultation is required.

Booking of Vigilance Case Booking of Vigilance Case (Gazetted):- Contd…(Gazetted):- Contd… In case of deviation, case is required to

be sent to CVC for reconsideration along with provisional views of DA and Vig. Comments thereon.

DA free to pass speaking order and issue NIP if he is still in disagreement with CVC reconsidered advice.

Copy of the NIP along with reasons of disagreement should be promptly sent to Vig. for onward transmission to CVC.

CVC can include in its annual report which is submitted to Parliament.

Booking of Vigilance Case Booking of Vigilance Case (Gazetted):- Contd…(Gazetted):- Contd… In Major Penalty cases, all are

required to refer to CVC for 2nd stage advice after completion of enquiry along with IOs report, provisional views of DA and Vig. Comments.

Vig. Case is closed once DA imposes penalty in accordance CVC’s 2nd stage advice and furnishes a copy of NIP to Vig. for onward submission to CVC.

Booking of Vigilance Case Booking of Vigilance Case (Gazetted):- Contd…(Gazetted):- Contd… If DA differs with CVC’s 2nd stage advice,

case is again required to referred to be CVC for reconsideration along with reasons for disagreement by DA and Vig. Comments. If DA still differs with CVC’s reconsidered 2nd stage advice, he can pass speaking orders and issue NIP. The case is deemed to have been closed.

A copy of NIP along with reasons of disagreement is required to be sent to Board for submission to CVC who can include it in Annual Report.

Traffic UnderchargesFraudulent payment to the staffScrap DisposalContracts – Engg, Stores, Electrical, S&T and CommercialMedical Stores

Key Thrust AreasKey Thrust Areas

Sensitive areas of workingSensitive areas of working Execution of Works & Procurement of

Supplies Tendering:

Open/ Advertised Limited/Special Limited (Restrictive)

Single (Proprietary) Quotations Spot purchase Passing of bills

Selections and Recruitment

Open TendersOpen Tenders Common IrregularitiesCommon Irregularities

Inadequate tender notice Inadequate time for

participation Inadequate publicity Late availability of tender

documents Tender box not available in

advance Deviations in eligibility criteria

Limited TendersLimited Tenders Common IrregularitiesCommon Irregularities

Arbitrary selection of firms. Firms with better experience

ignored and firms with dubious credential selected.

Inadequate time given for participation in tender.

Tender notice not sent to all the firms.

Bogus firms selected to inflate the number.

Rates can be reasonably higher since the competition is restricted.

Single TenderSingle TenderCommon IrregularitiesCommon Irregularities

Projecting undue/artificial urgency

Selecting unsuitable tenderer based on exaggerated credential ignoring his past failures.

Accepting exorbitant rates on the grounds of urgency then merrily giving extensions with token penalty or without penalty.

Scrap DisposalScrap Disposal THE IRREGULARITIES OBSERVED IN THE

CHECKS:SHORTAGE, EXCESS, UNACCOUNTED SCRAPMIXING OF NEW ARISING IN SOLD OUT LOTSPICK AND CHOOSE DURING DELIVERYIMPROPER FIXATION OF RESERVE PRICESELLING BELOW RP W/O RECORDING REASONS FORGED CASH RECEIPT

Scrap DisposalScrap DisposalTHE IRREGULARITIES OBSERVED IN THE

CHECKS: COMBINING LOTS OF DIFFERENT

MATERIAL EXTRACTING MONEY DURING DELIVERY MANIPULATION IN WEIGHBRIDGES ASSESSING THE QUANTITY WITHOUT

WEIGHMENT ACCEPTING THE CREDIT FOR MUCH

LESSER QUANTITY THAN DESPATCHED.

Scrap DisposalScrap Disposal VIGILANCE CHECKS CANNOT

SUBSTITUTE EXECUTIVE INSPECTIONS.

EXECUTIVES ARE LIABLE TO BE QUESTIONED IN CASE OF FAILURE IN SUPERVISORY RESPONSIBILITY.

LAID DOWN TENURE TO BE FOLLWED IN RESPECT OF SCRAP DISPOSAL POSTINGS

Accountal of receipts of scrapAccountal of receipts of scrap Materials received without

documents to be accounted through stock sheet within 14 days.

Ensure all DS-8s are entered promptly in DS-8 register and RO Nos are assigned within reasonable time.

Check the material for quality and quantity received alongwith DS-8s.

Accountal of receipts of scrapAccountal of receipts of scrap Try to indicate the location of

dumping of received material in the receipt register.

Ensure proper inventory is taken for the lines whenever proposed for disposal on ‘as is where is basis’.

Do not allow fresh arising to get mixed up with lots already surveyed and ready for sale.

Do not allow purchaser to carry fresh receipt while taking delivery

Every lot to be tried out individually at the first instance.

Do not form too big or too small lots, which hamper competition.

Do not allow the scrap merchants or other unauthorized persons to enter the scrap yard except strictly on business and under proper authorization.

Inspection of Lots before Inspection of Lots before inclusion in auctioninclusion in auction

Inspection of Lots before inclusion in Inspection of Lots before inclusion in auctionauction

Ensure that lots of distinct nature are made as separate lots to avoid picking and choosing at the time of delivery.

Ensure that Lot inspection is properly done and lot No. is painted on the lot before inclusion in the auction.

Ensure filling up of all the columns in lot inspection certificate without leaving any blanks.

Ensure that lots are maintained in such a way that they cannot be changed by unauthorized persons before the delivery is completed.

Fixing of Reserve priceFixing of Reserve price Ensure reserve price is fixed for each

lot before auction. Ensure reserve price is well guarded. Ensure Reserve Price is fixed

considering past rates, other information and the condition of the material being sold.

Fixing of Reserve priceFixing of Reserve price Ensure that whenever lots are

accepted below reserve price under the powers of COS, the same are put up for Competent Authority’s approval immediately.

Ensure that the bids are competitive before giving acceptance.

Do not accept bids below reserve price unless reasons are recorded.

Delivery of scrap to purchasersDelivery of scrap to purchasers Ensure that the Delivery Order is properly

released in all respect i.e. quantity, payment of balance sale value, free delivery period etc.

Ensure that the interest and ground rent are paid wherever necessary before effecting the delivery.

Ensure delivery is effected in presence of all witnessing officials.

Ensure all weighments and deliveries are correctly recorded in the relevant registers.

Ensure that material being delivered is exactly the same as sold in the auction.

Ensure that no other material other than sold is delivered to the purchaser.

While giving installment delivery, ensure that the quantity being delivered is in proportion to the amount paid and that no extra material is delivered.

Progress of the delivery should be entered on daily basis on the reverse of delivery order.

Ensure that all the excluded items are collected from the purchaser, before giving delivery of condemned rolling stock.

Bring to the notice of Depot Officer if the contents of lot to be delivered are found to be significantly different from the description shown in the delivery order.

Ensure that delivery is made in the permitted hours of working.

Delivery of scrap to purchasersDelivery of scrap to purchasers

Do not allow delivery of different lots by same batch of witnessing officials simultaneously at the same time.

Do not club different lots having different materials while making delivery on the pretext that transportation is convenient.

Do not allow purchasers to pick and choose while arranging delivery of the sold materials. The delivery should start from one end.

Do not allow sold materials to get out of the Railway premises except under proper issue notes and gate passes.

Do not allow purchaser to disturb the nearby material while taking delivery of sold lot.

Delivery of scrap to purchasersDelivery of scrap to purchasers

Shortage and refund after Shortage and refund after the deliveriesthe deliveries

Ensure that shortage of material at the time of delivery is genuine.

Ensure that the excess/savings of material at the time of delivery of material is promptly taken into ledgers for on line lots.

Ensure that lots are promptly cancelled forfeiting the EMD wherever the purchasers fail to pay the balance sale value in time.

Ensure that large variations in the quantities are properly investigated.

Shortage and refund after Shortage and refund after the deliveriesthe deliveries

Do not delay refunds in genuine cases of shortages.

Do not adjust the shortages from other lots or from fresh receipts.

Case study – ICase study – INon-acceptance of Material Non-acceptance of Material

as per P.O. Conditionsas per P.O. Conditions

In a COS purchase order for supply of Main Bearings FP Diesel, the firm has supplied material as per part number which is different from what was mentioned in the COS P.O. Therefore, the material was rightly rejected by DME/AME, however the same material was subsequently accepted with warranty, after conducting fitment tests, without modification/amendment to the Purchase Order.

Case study - IICase study - IIDeviations in a Coach Cleaning Deviations in a Coach Cleaning

Contract at Coaching DepotContract at Coaching Depot ISI branded chemical and cleaning

materials were not in use. Trained manpower was not employed. Measurement of work done was not

being recorded in M.Book. Even then payment was made on the basis of some documentary evidence.

Penalty was not imposed despite contractor failed to carry out the work as per agreement.

Case study - IIICase study - IIIMisrepresentation of the LotMisrepresentation of the Lot

3 Lots of MG ST.SL.Appeared in

May auction. Rejected at the highest bid of

Rs.400/- each. Lots withdrawn in February and

reintroduced in the next auction as clubbed “new lot”, deleting the complete history of the lot.

Weight of the ST.SL. was also reduced from 28.5 kg. to 24.5 kg.

Case study – IVCase study – IVDelivery of ScrapDelivery of Scrap

4 Under truck bogies weighing 60 T sold on the basis of PMT.

D.O. was issued for handing over the lot w/o being specific to “cutting permission”.

Firm started gas cutting the lot indiscriminately.

Custodian apprise the auction conducting officer about this cutting when almost full lot was cut.

Del. was given in the presence of all witnessing officials recoding a shortage of appx. 30 T

Do not overlook negative actions merely because they are small ; however small a

spark may be, it can burn down a haystack as big as a

mountain”

Lord Buddha

Thank YouThank You