![]() Financial Daily from THE HINDU group of publications Monday, Jul 25, 2005 |
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Opinion
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Foreign Direct Investment Columns - Offhand Double standard
VOLKSWAGEN has set a noble example to those in public life and business by accepting constructive responsibility for the duping of the Andhra Pradesh Industries Minister to the extent of Rs 11 crore by persons claiming to be its representatives, and returning the entire amount to the Government. It is still a mystery how without asking any questions about the bona fides of the individuals and simply accepting, at face, value their promise of locating the auto plant in the State, a Government Order was issued authorising the crediting of the huge sum of two million euros into a bogus account, which was spirited away without trace. However, all is well that ends well. It was not such a happy ending in another similar case that occurred in 1996, but now totally forgotten. Following the offer by one M/s Karsan Ltd. of Ankara to supply two million tones of urea for a total value of $38 million, the National Fertilisers Ltd, a public sector undertaking, at the highest level remitted the entire amount as advance without any bank guarantee or other safeguards to pin the firm down to its commitment. The money disappeared and not an ounce of fertiliser has reached India till date. Mr H. D. Devegowda, then Prime Minister, promised "to put down the crime with a heavy hand." The CBI arrested the CMD and a few officials but nothing has been heard of it since. The average citizen, by contrast, cannot dream of getting from any government department his entitlements of whatever kind arrears of dues, old age pension, return of refundable deposit, or ex-gratia payments without being subjected to painful hassles. Even when he produces the orders sanctioning them and the documents and certificates asked for, and even if it is a paltry sum in double or triple digits, he will be asked to make several visits to the office, without any consideration for his pleas of coming from a long distance and having to spend more than the amount due in transport expenses. Sometimes, if he does not cough up the prescribed bribe (yes, there are scheduled rates of grease money for particular services), the payment may be stalled for months, if not years. In other words, crooks seem to be able to manipulate government machinery to their benefit more deftly than the average citizen.
B. S. Raghavan
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