www.transparency.org

www.cmi.no

Overview of and Anti- Corruption Efforts in

Query:

What is the latest on corruption and anti-corruption in India? Are there any recent studies?

Purpose: administration, infrastructure, public utilities, and the police. The latter has been identified as one of the most corrupt institutions by various surveys. The I am going to India to participate in inspection of Government has put in place a well developed legal our Embassy in , including development and institutional framework, with institutions including cooperation. the Central Bureau of Investigation, the Office of the Comptroller and the Auditor General, and the Central Content: Vigilance Commission. The Supreme Court, in particular, has taken a firm stance against corruption in Part 1: Overview of Corruption in India recent years and made several important rulings. Part 2: Anti-Corruption Efforts in India Another achievement in the fight against corruption has been the enactment of the Right to Information (RTI) Part 3: Further Reading Act in 2005, which grants citizens access to

government information and a mechanism to control

public spending. In spite of progress, however, law Summary: enforcement remains weak and reforms have a long way to go. The fight against corruption has been declared a high priority by Prime Minister . However, Part 1: Overview of Corruption in India corruption remains widespread in the country and there have been many instances of political and bureaucratic Since 1991, economic liberalisation in India has corruption, public funds embezzlement, fraudulent reduced red tape and bureaucracy, supported the procurement practices, and judicial corruption. High transition towards a market economy and transformed ranking officials have also been involved in major the economy, with record growth rates of 9.2% in 2007 corruption scandals. The sectors most affected by and 9.6% in 2006. However, though the Indian corruption include public procurement, tax and customs

Authored by: Marie Chêne, U4 Helpdesk, Transparency International, [email protected] Reviewed by: Robin Hodess Ph.D., Transparency International, [email protected] Date: 21 January 2009

U4 Expert Answers provide targeted and timely anti-corruption expert advice to U4 partner agency staff www.U4.no

Overview of Corruption in India

economy has become the 6th largest in the world, its approximately US$ 113 million and used the excess to growth has been uneven across social and economic pay middle men that helped secure the deal. groups, with sections of society experiencing some of the highest levels of poverty in the world. Endemic In January 2009: Satyam Computer Services Ltd was corruption contributes to this uneven distribution of barred by the World Bank from bidding for contracts for wealth. The cost of corruption, perceptible in public eight years and top officials were arrested after a major sector inefficiencies and inadequate infrastructure, is financial fraud over several years was disclosed. undermining efforts to reduce poverty and promote sustainable growth. Corruption Surveys and Indices Extent of Corruption

Major Corruption Scandals Though credited with having made considerable progress in terms of economic reform over the past few Major scandals involving high level public officials have years, corruption is perceived to be widespread and shaken the Indian public service in recent years, with entrenched at all levels of the political and politicians and public servants regularly caught administrative system. India ranks 85 from 180 accepting bribes or mismanaging public resources. This countries surveyed in Transparency International’s suggests corruption has become a pervasive aspect of 2008 Corruption Perception Index (CPI), with a score Indian politics and bureaucracy. A report by Global of 3.4. Since the first iterations of the index, India has Integrity provides an overview of the major corruption scored between 2.7 and 3.5, indicating that - despite scandals that have hit the headlines over the past some progress - corruption continues to be perceived years, including: as rampant and endemic by the various CPI sources. (http://www.transparency.org/policy_research/surveys_i September 2000: Former President Rao was convicted ndices/cpi). of criminal conspiracy and corruption in the 1993 vote- buying scandal and became the first Indian Prime Similarly, the 2007 World Bank Governance Minister to be convicted in a criminal case. He was Indicators suggest little change over the years. The acquitted on appeal, however, in March 2002. country performs consistently above average on indicators of voice and accountability, government March 2001: Following the release by an Indian news effectiveness and the rule of law, but poorly in terms of website of a videotape showing 31 politicians, high regulatory quality and control of corruption1. Its rating level officials, bureaucrats and army officials taking for political stability is particularly weak bribes, the Defence Minister and leaders of the ruling (http://info.worldbank.org/governance/wgi/index.asp). BJP party were forced to resign. Four defence ministry officials were also suspended. Freedom House 2008 comes to similar conclusions, noting that government effectiveness and accountability September 2005: Railway Minister Laloo Prasad continue to be undermined by the close connections Yadav was charged with misappropriating state funds between crime and politics, weak government in the long running “”. He and Chief institutions and widespread corruption. Minister were charged with embezzling over US$ 40 (http://www.freedomhouse.org/template.cfm?page million in state funds intended for the purchase of =363&year=2008&country=7411). animal fodder. In total, 170 persons were charged in connection with this scandal. According to the Global Corruption Barometer 2007, petty corruption is common practice in India with 25% In January 2006: A reporter in writing articles of respondents admitting paying bribes to obtain basic accusing local forestry service officials of having links to timber smuggling was murdered.

In March 2006: The BJP alleged corruption in a military 1 contract to buy six submarines from two French From 1998 to 2007, India’s control of corruption scores range from between 48.1 to 46. 6. companies, claiming that the government overpaid by

www.U4.no 2

Overview of Corruption in India

services. Citizens do not expect the situation to change Forms of Corruption in the short term and expressed scepticism with regard to government political will and/or capacity to curb Most reports and studies emphasise that the country corruption. 90% of respondents believed that corruption continues to face major governance challenges. There would increase in the next three years while 68% is a lack of transparency in governance rules, perceived government efforts against corruption as procedures are complicated and the bureaucracy ineffective. enjoys broad discretionary power. is (http://www.transparency.org/policy_research/surveys_i embedded in the , journalists are harassed ndices/gcb/2007). for reporting on corruption and recent years have seen an increase in off-the-books campaign finance A corruption survey published in June 2008 by arrangements. Transparency International-India and the Centre for (http://report.globalintegrity.org/India/2007). Media Studies India confirms these findings. One-third of (BPL) households across the 31 The country is further characterised by rigid states covered by the survey paid bribes to access one bureaucratic structures, an exclusivist process of or more of 11 public services. The percentage of decision-making, overly centralised government, respondents paying bribes to access services was poorly-paid civil servants and the absence of effective especially high for the police, land registration and internal control mechanisms. and housing. These findings echo the results of a 2005 corruption scandals involving high ranking officials and corruption survey conducted by Transparency ministers periodically hit the headlines, undermining the International India2 which found that more than 50% of legitimacy of democratic processes and citizens’ trust in the respondents had firsthand experience of paying public institutions. bribes or peddling influence to get a job done in a public office. A recent analysis of reports of demands in India (http://www.transparencyindia.org/publication.htm). conducted by Trace International was published in January 2009 and provides an overview of the general India is also perceived to export corruption outside its patterns of corruption in the country. 96 anonymous borders. The country comes at the bottom of reports about bribery demands were filed between July Transparency International’s 2008 Bribe Payer 2007 and October 2008 on the organisation’s Business Index3, ranking 19 from 22 countries with a score of Registry for International Bribery and extortion 6.8. This indicates that Indian firms are perceived by (BRIBEline). This is a secure, multilingual online tool for business people as very likely to engage in bribery reporting bribe demands worldwide. 91% of the when doing business abroad. reported bribe demands were requested by a (http://www.transparency.org/policy_research/surveys_i government official, including 33% from national level ndices/bpi). officials, 30% from the police, and 16% from state or provincial officials. 77% of the reports described bribe demands made for avoiding harm rather than for gaining an advantage. Of those, more than 51% were for the timely delivery of services to which the individual was already entitled, such as clearing customs or getting a telephone connection. Only 12% of the reported bribe demands were for gaining an advantage. 2 This survey sampled 14,405 respondents from 150 cities (https://secure.traceinternational.org/news/pdf/IndiaRep and 360 villages. ortPressKit011009.pdf).

Bureaucratic corruption 3 The 2008 BPI ranks 22 of the world’s wealthiest and economically dominant countries by the likelihood of their These findings confirm the prevalence of the firms to bribe abroad. bureaucratic and administrative forms of corruption that take place at the implementation end of politics, where the public meets public officials. Bureaucratic

corruption pervades the Indian administrative system with widespread practices of bribery, nepotism, and

www.U4.no 3

Overview of Corruption in India

misuse of official positions and resources. The them to save the Manmohan Singh government. The Bertelsmann Foundation 2008 report states that India report presented in December 2008 found the evidence is characterised by a deeply rooted patronage system unconvincing and recommended further investigations and pervasive corruption at all levels of the polity and on the role played by the three parliamentarians. administration. (http://www.bertelsmann- (http://www.rediff.com/news/2008/dec/16upavote-cash- transformation-index.de/125.0.html?&L=1). for-vote-scam-report-referred-to-home-ministry.htm).

The entry of criminals into politics - despite laws The 2006 World Bank Enterprise Survey also requiring public disclosure of candidates’ assets, confirms the prevalence of bureaucratic and criminal records and educational backgrounds - is administrative corruption in the country. Red tape and another alarming facet of political corruption in India. wide ranging administrative discretion serve as a According to The Economist, more than a fifth of pretext for extortion and almost 48% of the firms federal parliament members in 2008 faced criminal surveyed expected to pay informal payments to public charges. Of the 522 members of India’s current officials to get things done. Close to 26% of the parliament, 120 are facing criminal charges; around 40 respondents identified corruption as a major constraint of these are accused of serious crimes, including for doing business in the country. murder and rape. (http://www.enterprisesurveys.org/ExploreEconomi (http://www.economist.com/surveys/displaystory.cfm?st ory_id=12749771). es/?economyid=89&year=2006). Companies also ranked corruption as the fourth most problematic factor for doing business in India in the World Economic Vulnerable Sectors and Institutions Forum Global Competitiveness Report – India 2007- 2008, indicating that corruption seriously compromises Public procurement private sector development in the country. (http://gcr07.weforum.org/). Public procurement is especially vulnerable to corruption in most developing countries. In India, there is a reasonably good framework of rules and Political Corruption procedures for public procurement that requires open tenders available to all qualified firms without The public trust in democratic processes in India is discrimination, the use of non-discriminatory tender seriously undermined by opaque financing of electoral documents, public bid openings and selection of the processes, widespread bribery and other forms of most advantageous tenders, taking all factors into corrupt practices. The 2007 Global Corruption consideration. These regulations are apparently poorly Barometer reveals that political parties are perceived by enforced, however, as public contracting continues to Indian citizens as one of the sectors most affected by be marred by major corruption scandals involving high corruption in the country, with a score of 4.6 on a 5 level politicians. In the 2006 World Enterprise survey, point scale. Freedom House 2008 reports that the close to 24% of respondent firms confirmed they were electoral system relies on black money obtained by expected to make a gift or payment to secure a dubious means, including tax evasion. Although government contract. politicians are regularly involved in major corruption scandals, investigations are rare and very few In addition, companies face different laws in different politicians and civil servants have been convicted. states, which complicate their operation throughout the country. According to the World Bank Country Circumstantial evidence confirms that practices such as Procurement Assessment Report 2003, the Indian buying votes with bribes or promises, conflicts of public procurement system is generally affected by a interest, or state capture are common in India. In lack of consistency as well as low credibility and public December 2005, 11 members of parliaments were confidence in the system. Corruption is perceived to be accused of accepting cash for raising specific questions worse at the state level than at the federal level, due to in Lok Sabha sessions and subsequently forced to the lack of qualified staff and widespread political resign. More recently, a Parliamentary Enquiry interference in state administration. The report further Committee was established to look into the alleged notes that the average bribe to obtain a public contract cash-for-votes scam during a trust vote that took place is estimated at 15% of the contract’s value. (http://www- in July 2008. Three parliamentarians displayed wads of wds.worldbank.org/servlet/WDSContentServer/WDSP/I currency notes alleging that huge sums were offered to

www.U4.no 4

Overview of Corruption in India

B/2004/04/02/000012009_20040402111746/Rendered/ compel citizens to pay bribes. About half of them paid a PDF/278590IN.pdf). bribe for ensuring that their complaint could be registered. Licences and public utilities Examples of corrupt practices among the police have 52.2% of the firms surveyed by the above-mentioned also been identified in a 2006 Marketing and 2006 World Bank Enterprise survey reported being Development Research Associates/Transparency India expected to give gifts to secure an operating licence. report on corruption in trucking operations. The study Corruption also affects access to public utilities such as reveals that truck drivers must pay bribes at every water, phone and electricity. Compared to the 2006 stage of their operations, mostly to police forces, to edition of the Global Corruption Barometer, most obtain permits, for traffic violations or toll payments. utilities and departments have fared worse in terms of When transporting goods across the country, public perception of corruption in 2007. Procedures stoppages by authorities on the pretext of checking surrounding access to water and electricity are documents are frequent. According to truck drivers, complicated and cumbersome and firms may be 60% of the checkpoints and forced stoppages on roads tempted to make ‘facilitation payments’ to speed up the are for extorting money. process. Close to 40% of the World Bank Enterprise (http://www.transparencyindia.org/publication.htm). survey reported paying bribes to get an electrical connection and 27% to get a water connection. Police recruitment is also compromised by practices of According to the Global Corruption Report 2008, nepotism, bribery and political interference. Until the citizens believe that corruption is on the rise in these apex court4 granted the (IPS) sectors. autonomy from political control in 2006, the Minister had powers of transfers and promotion over police Tax and customs administration chiefs’ careers. In 2007, in Uttar-Pradesh, an inquiry into fraudulent practices in police recruitment led to the 52.3% of the firms covered by the World Bank dismissal of 10,000 police officers over alleged Enterprise survey reported being expected to give gifts irregularities in their recruitment processes in meetings with tax officials. In this sector, rules and (http://news.bbc.co.uk/1/hi/world/south_asia/7003978.st procedures are extremely cumbersome; giving tax m). officials wide discretionary powers to interpret the rules. Some are suspected of deliberately stalling As the police - along with the courts - are the public administrative procedures to induce facilitation institutions most directly involved in sanctioning and payments. Bribes may be paid for an under- punishing corrupt practices, police corruption seriously assessment of incomes or to obtain penalty reductions undermines the government’s anti-corruption efforts. or tax refunds. According to the 2005 TI India corruption survey, 20% of the respondents admitted Judicial corruption having paid bribes to the tax department, while 60% perceived the department to be corrupt. The Indian court system consists of a supreme court, high courts at state level and subordinate courts at The police force district and local level. According to the Global Corruption Report 2007, the upper judiciary is The 2007 Global Corruption Barometer identifies the considered relatively clean, with open court police force as one of the institutions most affected by proceedings and free access to prosecution corruption, with a score of 4.5 on a 5 point scale. The documents, authenticated orders, etc. In the lower 2005 TI-India corruption survey also ranks the police as justice institutions, corruption is reportedly rampant and the most corrupt public service in India - with 80% of systemic. (Please see: citizens believing that corruption exists in the police force and 77% believing it is on the rise. The 2007 TI- India/CMS study indicates that 48% of below poverty line households who interacted with the police claimed to have paid a bribe while 17% used a contact to 4 The term is mostly found in texts originating in India, where access police services. Many of them claimed that the Apex Court stands for the Indian Supreme Court. procedural delays were part of a deliberate strategy to

www.U4.no 5

Overview of Corruption in India

http://www.transparency.org/publications/gcr/downl (http://www.business-anti- oad_gcr/download_gcr_2007). The Global corruption.com/normal.asp?pageid=205). Corruption Barometer 2007 gives the judiciary a score of 3.8 on a 5 point scale, while 80% of the 2005 TI India Both the 2005 and 2007 TI-India corruption studies also CMS study’s respondents perceive the judiciary as point to regional variations in corruption patterns. For corrupt. 47% claim to have paid bribes to lawyers or example, , and court officials. are perceived to experience moderate levels of corruption while states such as Bihar, Jammu Court procedures are very slow and complicated, and and Kashmir and are affected by the court system is severely backlogged and alarming levels of corruption. In 2007, the level of understaffed. This results in delays in the processing of corruption was found to be moderate in all services cases, and a loss of confidence in the law and in the studied in Himachal Pradesh, whereas in Madhya justice system. (Freedom House 2008 estimates that Pradesh and Assam, the level of corruption in all there are currently 30 million civil and criminal cases services was high, very high or alarming. pending). There is also a high level of discretion in the processing of paperwork during trials and multiple There are also regional differences in the sectors and points where court officials can misuse their power with institutions most affected by corruption at the state impunity. In such contexts, people are tempted to resort level, as illustrated by the 2005 study: to bribes, favours, hospitality or gifts not only to obtain a favourable decision but to move the case through the • In , the judiciary, the police and land system and speed up the court proceedings. administration are ranked as the most corrupt services in the state. The independence of the judiciary is guaranteed by the • In Maharashtra, municipal services are Constitution and India is ranked 26th of 131 countries perceived as most corrupt. on indicators of judicial independence in the Global • In Punjab, the police, the judiciary and Competitiveness Report 2007-2008. According to the municipal services are perceived to be most Global Corruption Report 2007, however, there have affected by corruption. been recent cases of political interference in judicial • In Bihar, all public services are ranked among decisions involving powerful individuals. In spite of the the most corrupt in India; various legal provisions in place, the appointment of • According to Freedom House 2008, rebel judges is not always free from political interference. The groups operate extensive extortion networks in Global Integrity Report 2007 also rates judicial the North East of the country, compounding accountability as weak. the impact of corruption in the various affected (http://report.globalintegrity.org/India/2007/scoreca states. rd/4). Part 2: Anti-Corruption Efforts in India The weakness of the judiciary, the lack of political independence of the police and poor law enforcement India’s performance on the 2007 Global Integrity contribute to a culture of impunity where few politicians Index indicates a huge gap between anti-corruption or civil servants are indicted or convicted for corruption. policies and practice. The legal and institutional framework to curb corruption is well developed and the Regional Patterns country receives high scores in terms of anti-corruption law and institutions. An analysis was conducted by India has a decentralised federal system of government Transparency India in 2007 to identify possible gaps in which state governments possess broad regulatory between the UN Convention against Corruption power. Although corruption is found to be pervasive (UNCAC) and the legal and institutional framework in across all states and public services, several reports place in the country. The report confirmed the good indicate important regional variations in the level and quality of the legal framework against corruption in impact of corruption. A World Bank and IFC report from India, with existing legislation in line with most of the 2004 notes that corruption and excessive regulations requirements of the UNCAC. The largest – and almost are cited as major obstacles to business across all only - substantial gap was identified by the report in the India, but that these figures rise respectively to 62% area of whistleblower protection. and 64% in the states of Gujarat and . (http://www.transparencyindia.org/publication/U_N_Con www.U4.no 6

Overview of Corruption in India

vention_against_corruption.pdf). Law enforcement, whistleblowers reporting corruption cases. The Global however, remains weak, suggesting a lack of political Integrity Report 2007 estimates that the resolution has will to effectively address corruption challenges in the logged over 1300 complaints in the three years of its country. existence. However, the CVC reported that over 30 whistleblowers have been harassed in spite of the The Legal Framework confidentiality of PIDR complaints.

The 1988 Prevention of Corruption Act criminalises The Global Integrity Report further mentions that corruption in the public and private sectors in the form important pieces of anti-corruption legislation have of active and passive bribery, extortion, bribery of been pending for years, including the Corrupt Public foreign officials, abuse of office and money laundering. Servants Bill and the Lok Pal Bill, which is supposed to There is also a 2002 Prevention of Money address corruption in high offices, including the office of Laundering Act (amended in 2005). At the local level, the Prime Minister. The Judge Inquiry Bill – which was state governments have state laws that address designed to introduce an inquiry mechanism for specific aspects of corruption. allegations and complaints against members of the judiciary - and the Election Commission’s The 2005 Right to Information (RTI) Act represents recommendation to debar candidates with a criminal one of the country’s most critical achievements in the background from parliamentary or State Assembly fight against corruption in recent years. Under the elections, have been held up for years. provisions of the Act, any citizen may request information from a "public authority" which is required to In terms of international norms, India endorsed the reply expeditiously or within 30 days. The Act also ADB-OECD Anti-Corruption Action Plan in 2001, and requires every public authority to computerise their has signed but not yet ratified the UN Convention records for wide dissemination and to proactively against Corruption (UNCAC) and the UN Convention publish certain categories of information for easy citizen against Transnational Organised Crime. access. This act provides citizens with a mechanism to control public spending. In the first year of National RTI, The Institutional Framework 42,876 (not yet official) applications for information were filed to Central (i.e. Federal) public authorities. There are various bodies in place for implementing anti- According to the Central Information Commission, RTI corruption policies and raising awareness on corruption applications have annually increased by 8 to 10 times issues. At the federal level, key institutions include the annually. Less than 5% of the million applications for Supreme Court, the Central Vigilance Commission information have been denied information under (CVC), the Central Bureau of Investigation (CBI), the various exemption categories. Office of the Controller & Auditor General (C&AG), and (http://en.wikipedia.org/wiki/Right_to_Information_ the Chief Information Commission (CIC). At the Sate level, local anti-corruption bureaux have been set up, Act). such as the Anti-corruption Bureau of Maharashtra. (Please see: http://www.business-anti- India does not have a law to protect whistleblowers. corruption.com/normal.asp?pageid=205). However, following the murder in 2003 of Sri Satyendra Dubey, who exposed corruption in the National The Supreme Court has taken a stronger stance Highway Authority, the Government faced increased against corruption in recent years, as confirmed by the pressure to ensure whistleblower protection and issued Bertelsmann Foundation Report 2008. It has a resolution known as the Public Interest Disclosure challenged the powers of states in several instances. Resolution (PIDR). This resolution authorised the For example, in 2007 in , it challenged Central Vigilance Commission (CVC) to be the the state governor’s powers to pardon politically ‘Designated Agency’ to receive written complaints for connected individuals based on arbitrary disclosure on any allegation of corruption or misuse of considerations. In other instances, judges have taken office and to recommend appropriate action. The CVC on a stronger role in responding to public interest can take action against anyone who leaks the names of litigation over official corruption and environmental whistleblowers and witnesses and may request police issues. In December 2006, in a landmark ruling, the assistance to investigate complaints. The Central Supreme Court ruled that prosecutors do not need prior Bureau of Investigation also has an online complaints permission to begin proceedings against politicians mechanism which guarantees the protection of www.U4.no 7

Overview of Corruption in India

facing corruption charges5. It has also started Report for being independent and well-staffed, with addressing corruption in the police by mandating the offices of Accountant Generals (AG) in all states. The C establishment of a police commission to look into these & AG has produced several reports on state matters and has ruled that corrupt officers can be departments such as railways, telecommunications, prosecuted without government consent. public sector enterprise, and tax administration. These reports have revealed many financial irregularities, The Central Vigilance Commission (CVC) is an suggesting a lack of monitoring of public expenses, independent watchdog agency established in 1964. poor targeting and corrupt practices in many branches The CVC has the power to undertake inquiries or of government. However, since the C & AG has no investigations of transactions involving certain authority to ensure compliance with its categories of public servants. It also has supervisory recommendations, the government often fails to powers over the Central Bureau of Investigations. The implement the reports’ proposals. CVC can investigate complaints against high level public officials at the central level, in cases where they The Chief Information Commission (CIC) was are suspected of having committed an offence under established in 2005 and came into operation in 2006. It the Prevention of Corruption Act. The CVC is mandated has delivered decisions instructing government, courts, to investigate public sector corruption at the federal universities, police, and ministries on how to share level and not at the state level. The CVC has an online information of public interest. State information whistleblower complaint mechanism available on its commissions have also been opened, thus giving website. practical shape to the 2005 Right to Information (RTI) Act. The commissions have not been immune to More recently, the CVC is working in collaboration with criticism, however. Of India's 28 states, 26 have Transparency International India on introducing officially constituted information commissions to Integrity pacts in all state-owned public sector implement the RTI Act. Nine pioneered access to companies, industries and banks. In December 2007, information laws before the RTI Act was passed. A the Commissioner issued a directive to this effect which state report card one year on complimented the quality has resulted in 32 public sector undertakings having of the law, but criticised the apathy and lack of adopted an integrity pact. awareness of many citizens. (http://www.transparency.org/publications/publications/ The Central Bureau of Investigation (CBI) is the global_corruption_report/gcr_2008). prime investigating agency of the central government and is generally referred to as a credible and respected E-Governance has considerably increased the speed institution in the country. It is placed under the Ministry of government services in a number of areas and of Personnel, Pensions & Grievances and consists of reduced opportunities for bribery. A wide range of three divisions: the Anti-Corruption Division, the Special public services have been digitised such as obtaining Crimes Division and the Economic Offences Division. licences, paying taxes and clearing goods. The These units have the power to investigate cases of National Portal of India was subsequently created and alleged corruption in all branches of the central lists all the services that have been digitised. government, but need the permission of state governments to investigate cases at the state level. The The assessment of the legal and institutional anti- Supreme and High Courts can instruct the CBI to corruption framework points to a combination of robust conduct investigations. Like the CVC, the CBI has a institutions and lack of accountability in key areas, as complaint mechanism on its website. emphasised in the 2007 Global Integrity Report. Some institutions such as the Supreme Court or the Election The Office of the Comptroller and Auditor General Commission have taken a stronger stance to combat (C & AG) are praised by the 2007 Global Integrity malpractice in recent years, while key pieces of legislation such as the RTI Act promote greater bureaucratic transparency, granting citizens access to public records. Despite these emerging trends, however, the institutional anti-corruption framework 5 Until this ruling, assent was needed from the parliament generally suffers from a lack of coordination, and speaker or a state governor to charge an MP or a legislator. overlapping and conflicting mandates between institutions addressing corruption. Key institutions often

www.U4.no 8

Overview of Corruption in India

lack the staff and resources to fulfil their mandate Participatory audits of local government performance adequately and struggle to protect themselves from were conducted based on these expenditure records. political interference. Often, they primarily focus on The struggle to access official records led to a national investigating alleged cases of corruption at the expense campaign for legislation granting citizens a right to of preventive activities. Influential politicians and senior information that contributed to the adoption of the Right officials are rarely convicted for corruption, eroding to Information Act in 2005. MKSS succeeded in getting public confidence in the political will to effectively tackle the state government to change the local government corruption. act to include local residents directly in auditing official development schemes. (Please see: Civil Society Initiatives http://www.bbk.ac.uk/polsoc/staff/academic/rob- jenkins/hybrid-forms-of-accountability). India enjoys a vigorous and vibrant civil society and one of the freest media in South Asia. Both have played an The RTI act has opened up critical opportunities for civil important role in placing corruption on the national society involvement in the fight against corruption. It agenda. has allowed civil society organisations to participate in debates on public spending and help them uncover Freedom of association is fully guaranteed and the corrupt practices in many states and projects. formation of interested groups is legally straight forward, resulting in a proliferation of civil society There are several organisations that are explicitly active organisations and movements. However, the 2008 in the anti-corruption arena, including: Bertelsmann Foundation Report estimates that most civil society organisations are poorly institutionalised, Transparency International India is the Indian politically fragmented and rather weak, while Global Chapter of Transparency International. TI India Integrity mentions cases of journalists being harassed promotes transparent practices in government, raises for reporting corruption cases. Although freedom of the awareness among citizens, and partners with civil press is guaranteed by the constitution, the Official society groups working towards similar goals. It Secrets Act has been used by the government in the manages various projects in different areas, on different past to censor articles or prosecute journalists, fronts, working in partnership with other NGOs to although this practice seems to be on the decline. promote good governance, raise awareness about the There have been recent instances where journalists RIA Act, and promoting the adoption of citizens’ have been harassed and newspapers offices attacked. charters in all public institutions. It also conducts anti- In 2006, a journalist was killed after revealing corruption corruption research and social audits. TI India in the state’s forestry services in a series of articles. advocates with like-minded NGOs for the ratification of India is ranked 120th out of 169 countries on Reporters UNCAC (http://www.transparencyindia.org/). without Borders’ Worldwide Press Freedom Index 2007. (Please see: http://www.business-anti- corruption.com/normal.asp?pageid=205). The Centre for Media Studies (CMS) is a non-profit, multi-disciplinary development research agency which Despite these limitations, there is considerable potential has undertaken corruption tracking surveys since 2000. for civil society impact in the fight against corruption. Its transparency Studies Unit publishes a quarterly Civil society has played a critical role in advocating for magazine that compiles research on selected issues access to information, which has resulted in the relevant for public accountability and transparency. It enactment of the RTI Act. This is demonstrated by has published in collaboration with TI India the 2005 example of Mazdoor Kisan Shakti Sangathan and 2007 India Corruption Studies. (MKSS) (http://www.mkssindia.org/). MKSS is a (http://www.cmsindia.org/cms/). small organisation formed in the 1990s which seeks to insert citizens and their associations directly into Parivartan was established in 2000 as an attempt to oversight functions. It pioneered a method for the expose corruption within the Income Tax Department in participatory audit of local spending in rural . New Delhi. The movement now focuses on using the To combat various forms of official corruption in public RIA Act to promote transparency and accountability in works programmes and fight for minimum wages, the public services. organisation sought access to official expenditure documents that could be verified by MKSS workers.

www.U4.no 9

Overview of Corruption in India

Part 3: Further Reading and Resources http://www.transparency.org./publications/gcr/download on India _gcr

REPORTS National Integrity Survey 2003 TI’s National Integrity System (NIS) country studies are qualitative reports that provide a detailed and nuanced assessment of anti-corruption systems at country level. The NIS on India can be found at: Reports of the Comptroller and Auditor General http://www.transparency.org/policy_research/nis/region CAG) of India al Among other information, the CAG website publishes the latest audit reports of public sector institutions as Freedom House 2008 well as disclosures under the right to Information Act. http://cag.gov.in/html/reports/PA2007.htm India Country Report The 43rd Central Vigilance Commission Report Freedom House publishes a flagship comparative (2006) assessment report, which looks at global political rights This latest published CVC annual report provides an and civil liberties in a wide range of countries. The 2007 overview of its operations, including data on numbers of country report on India can be found at: complaints handled, nature of cases, public institutions http://www.freedomhouse.org/template.cfm?page=363 involved, and penalties applied. &year=2007&country=7194 http://www.cvc.nic.in/ar2006.pdf Trace International 2009 Transparency International BRIBEline Reports on India (2009) TI India-CMS 2007 Corruption Studies (2008) This report by Trace International Inc analyses reports This corruption study covers 31 states and union of bribery demands in India that have been filed on the territories and is focused on poor and rural areas. It organisation’s Business Registry for International includes below poverty line peoples in both rural areas Bribery and Extortion (BRIBEline), a secure, and urban slums. http://www.transparencyindia.org/ multilingual, online tool for reporting bribe demands worldwide. http://ptinews.com/pti%5Cptisite.nsf/$ALL/AED8EF899 TI India – MDRA Study on Corruption in F3B543B6525753E0043C05D?opendocument Trucking Operations (2006) This report is based on a study to assess the nature and extent of corruption in trucking operations, using INDICES both quantitative and qualitative research methods. The report found that, for every kilometre covered by commercial trucks, an average Re. 0.70 per km is paid Bertelsmann Transformation Index 2008 out in bribes. http://www.transparencyindia.org/ The BTI is a global ranking of transition processes, in which the states of democracy and market economic systems as well as the quality of political management UNCAC Gap Analysis are analyzed in 125 transitional and developing This gap analysis was conducted by TI India in 2007 to countries. India is included in the analysis and the identify the legal and institutional gaps existing between rankings. The country reports can be found at: the convention’s requirements and India’s legal and http://www.bertelsmann-transformation- institutional framework. index.de/28.0.html?&L=1 http://www.transparencyindia.org/

Global Corruption Report 2008 and 2007 Bribe Payers Index 2008 The TI Bribe Payers Index evaluates the supply side of The country report section of TI’s Global Corruption corruption. It consists of a ranking of 22 of the world’s Report provides an overview of corruption-related most economically influential countries according to the problems in a selection of countries, worldwide likelihood of their firms to bribe abroad. In 2008, it was including India.

www.U4.no 10

Overview of Corruption in India

based on 2,742 interviews with senior business executives in 26 countries and territories. http://www.transparency.org/policy_research/surveys_in dices/bpi

Corruption Perceptions Index 2008 The CPI is an “index of indices” composed of nine different sources that provide a ranking of countries by their perceived levels of corruption based on expert assessments and opinion surveys. For the latest CPI survey data on India please see: http://transparency.org/policy_research/surveys_indices /cpi/2007

Global Integrity Index 2007 The Global Integrity reports asses the strengths and weaknesses of anti-corruption mechanisms worldwide. The country assessments comprising the reports are prepared by teams of in-country journalists, academics and researchers. For the rankings please see: http://report.globalintegrity.org/

World Bank Governance Indicators 2007 The Worldwide Governance Indicators (WGI), produced by the World Bank Research Institute, consist of six aggregate indicators of governance including: voice and accountability, political stability, regulatory quality, rule of law, control of corruption. It covers 200 countries and combines cross-country data from 30 organisations, including the sources used for the CPI. For the current 2007 index please see: http://info.worldbank.org/governance/wgi/index.asp

www.U4.no 11