The Hindu Business Line : CVC proposes posting `outsiders' as vigilance officers in PSUs

THE Central Vigilance Commission (CVC) has floated a proposal to the Government to consider posting "outsiders" as Central Vigilance Officers (CVOs) in some important public sector undertakings (PSUs) even as they possess full-time CVOs.

In its 2004 Annual Report placed in Parliament, the CVC, completing its first full year in its statutory form, said in certain departments such as the Railways, Telecom, Central Public Works Department, Posts & Telegraphs, Central Board of Direct Taxes and Central Board of Excise & Customs, the time has come when the Government should consider posting "outsiders" as CVOs, though there are full-time CVOs in them.

"Without in anyway detracting from the fairly efficient vigilance organisations in these departments, such a step would further strengthen the independence and objectivity of vigilance besides protecting the vigilance personnel from victimisation and harassment once their tenure in vigilance is over," the report said.

Stating that its earlier steps to remove unnecessary apprehensions in the minds of executives tasked to take quick commercial decisions and implemented in the case of banks had "a salutary effect", it now proposes analogous measures in the case of PSUs too. However, a spate of decisions needs to be preceded for this if the PSUs have to really enjoy autonomy and freedom of operation in an increasingly competitive market milieu.

The report of the Group of Experts on Empowerment of Central Public Sector Enterprises addresses several important issues which if implemented would give the required leeway to top executives of the PSUs and simultaneously stamping out "certain unhealthy practices which are a source of corruption in Government", it said.

The CVC report identified issues, which have the potential to foster corruption in this regard. These include instances of some departments informally and formally interfering in areas such as purchase, causing delays and giving rise to serious complaints of corruption, handling of complains against top executives in a very subjective and non-transparent manner or using such investigations to bring pressure on the officers concerned and delays in personnel issues such as appointment of CMDs/Directors on the basis of Public Enterprise Selection Board recommendations and confirmations and extensions of tenure.

Pointing out that more steps remain to be implemented to render vigilance set-up really effective in the PSUs and Government departments, the CVC report said there should be no delay in posting of regular CVO after the completion of the tenure of the incumbent CVO.

Currently, the tenure of the CVO is for a period of three years extendable by two years. As this works against the independence and neutrality of the CVO, the Commission favours that such extension should be automatic subject to the Commission certifying the satisfactory performance/functioning of the CVO.

"No discretion should be left in the hands of the CEOs of the organisations and the Ministry concerned," the report said.

As Government purchases and award of contracts remain one of the major areas of concern with the Transparency International (TI) identifying this as the important source of corruption, the Commission has heightened its focus on this front.

The inspections of the Chief Technical Examiner's Organisation have been beefed up, by involving the CVOs of organisations and even designated officers of the Commission to cover a wider segment of Government purchases.

It said the Commission has joined hands with TI, to popularise the adoption of the concept of Integrity Pact by leading government departments and PSUs.

The Defence Ministry has incorporated the idea of integrity pact in some form in its new defence procurement procedures and ONGC has also declared the adoption of Integrity Pact in all its procurement effective from July 2005.

The CVC is sanguine that with these initiatives, complaints of corruption in public procurement would become less and vendor confidence would also improve, contributing to positive perception of the country from the standpoint of probity and more importantly, considerable saving in cost of procurement to the public exchequer.

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