The Lokpal and Lokayuktas Bill, passed in both the Houses of Parliament last week, is being projected as a “better tool” to fight corruption in the country. Both the Congress and the Bharatiya Janata Party have welcomed the Bill.

We, in the Left too, have helped in the passage of the Bill. But a crucial amendment moved by us, that the proposed Lokpal should have the power to investigate corruption in Public-Private Partnerships (PPPs) and by corporate houses, was defeated jointly by the two big parties.

Since reforms started in 1991, whenever the Lokpal Bill came to Parliament — be it in 1996, 1998, 2001, 2005, 2008 and most recently in 2011 — the Left parties had argued that Lokpal should be able to keep an eye on the private sector too.

This anti-corruption ombudsman is limited to the Government and its activities. Such a Lokpal would have been better for the pre-reforms period. The Lokpal as it stands will not have much to do in the present model of governance.

Take a look at recent scams such as 2G, coal, PPP in airports, hydrocarbon production sharing contracts, Commonwealth Games and Ultra mega Power Projects. The beneficiaries have been big corporates. The accused include cabinet Ministers and senior officials. The credibility of big industrialists came under question, but they could not be probed because of the lack of a proper mechanism to hook the “supply side” of corruption.

When the Rajya Sabha formed a select committee to discuss and suggest amendments to the Bill, we argued that the current Bill is inadequate to address the increasing influence of corporates on policy- making. The dimensions of corruption have changed tremendously since 1991. Corruption is deeply rooted in the day-to-day decision-making system of a Government, be it in the States or at the Centre.

CAG, PAC and CoPU The CAG’s performance audit is to see that “Government programmes have achieved the desired objectives at lowest cost and given the intended benefits.” In the case of PPPs and in the case of issuing licenses to corporates, the CAG can only audit the way the allotments were made by the Government. Both the CAG and the Left have demanded that CAG should have the power to audit PPPs to see how public resources are being used.

The Government has been maintaining that the CAG has no role in looking at the PPPs and comment on the policy of a Government. Both the NDA and UPA Governments had warned the CAG against crossing its limits. According to these Governments, allowing PPPs was a policy decision of the Government, a prerogative of the executive. They succeeded in limiting the CAG as just an “advisory” mechanism. But nothing bars Parliament or the Public Accounts Committee to probe whether public monies were disbursed legally on the service or purpose to which they were applied, whether the expenditure was authorised and how funds were distributed. But PAC faced strident opposition from Congress against an impartial consideration of the CAG’s reports. Thus PAC was also restrained in several cases.

The Committee on Public Undertakings can also use the CAG reports to ensure the efficiency of public undertakings and to see “whether they are being managed in accordance with sound business principles and prudent commercial practices.”

But of late, these committees are being neglected by the Government. The Government is not bound to accept their suggestions. PAC’s report on 2G suggesting cancellation of all allotments was rejected. CoPU’s report against merger of Air India and Indian Airlines and the purchase of high-end aircraft was sent to the dustbin.

CVC: Still an Advisor Another major mechanism is the Central Vigilance Commission. It too had an advisory role. In 1998, it was made a multi-member Commission with statutory status. In 2003, the Central Vigilance Commission Act came into effect.

It can exercise superintendence over the functioning of the CBI. But there are times when the CVC also becomes helpless. A group of MPs wrote to the CVC demanding a CBI probe into the “modernisation” of Mumbai and Delhi airports and the illegal collection of user fees. There was not even a reply from the CVC. The CAG had pointed out that the loss was several thousand crore rupees. The Supreme Court had ruled that UDF is illegal. Till date, there is no probe into the issue. The proposed Lokpal will also be helpless as airport modernisation was done through PPP.

The Prevention of Corruption Act of 1988 is also inadequate to recoup money from the corrupt. The accused may get jail but there are no provisions under the Act or the Criminal Procedure Code to ensure that the loss to the exchequer is recovered from the bribe-givers and bribe-takers. The Government claims that the Act will be amended to ensure equal punishment to the bribe givers too.

Such issues point to a problem in the system to deal with post-reform corruption. This has to change. Sovereign functions of the Government are given to the private sector, mostly through PPPs. Be it power distribution, building roads, building hospitals, building airports, building ports or creating such infrastructure, PPP is the flavour of the season.

Look at roads and airport services. Toll and user development fees are arbitrary. The collection of UDF is done without a proper law to back it. “No taxation without representation” was a slogan during anti-colonial struggles around the world, a principle accepted in our constitution. In modern India, Parliament and its panels are subverted to allow PPPs to fleece citizens.

Lokpal's Role In the present policy scenario, the Lokpal must be able to investigate cases which involve corporate houses. It should have the power to ask the Governments to cancel licences, contracts and leases or agreements of companies indulging in corruption. The Lokpal should also be able to recommend blacklisting of such companies so that they do not get government contracts and licences in future.

Losses incurred to the public by such entities should be recovered on Lokpal’s recommendation and there should be provisions in the Bill that the government should normally accept such recommendations from the anti-corruption panel and act upon it.

The trade of public resources has been a major source of corruption in the country. There should be provisions in the Bill to bring all institutions, be it private or public, that handle natural resources such as water, air, spectrum, forests and mines under the purview of the legislation. There is a big nexus between private players and public servants so that the natural resources, which belong to the people of this country, could be handed over to a few persons.

A strong Lokpal would have addressed many of these concerns. But the Congress and the BJP have decided to stand with the corporate houses and turned a blind eye towards the demands of people.

(The author is a Rajya Sabha member and represented the CPI(M) in the Parliament's select committee on Lokpal.)

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