Corruption hurts economy, dejects investors: PM

Prime Minister, Manmohan Singh addressed CBI and State Anti-Corruption Bureaux today on 26th August 2009 at Vigyan Bhavan.

I am very happy to be amongst you today. Let me begin by greeting and congratulating today’s recipients of the President’s Police Medal for Distinguished Services. I hope they will continue to excel professionally and be an example for other officers to follow.

This biennial conference will deliberate upon a very important issue - that of corruption in our public life. The urgent need to combat this menace cannot be over emphasized. Corruption distorts the rule of law and weakens institutions. It hurts our economic growth in a variety of ways, apart from hindering our efforts to build a just, fair and equitable society. Important projects, which have huge externalities for growth, do not get implemented in time, and when they do get finished, they are of a poor quality. The inflated project costs consume scarce resources which could have been better used in other important areas. The poor are disproportionately hurt because of corruption. We have some of the most ambitious and wide ranging programmes in place to help the poor and the deprived sections of the society.

However, there is a constant refrain in public discourse that much of what the government provides never reaches the intended beneficiaries - whether it is subsidized foodgrains for the poor, loans, fertilizers or seeds on concessional terms for small and marginal farmers or the benefit of employment programmes for the unemployed. This should be a matter of serious concern for all of us collectively.

The world respects our democracy, our plural and secular values, our independent judiciary and free press, our commitment to freedom and peace and our pursuit of equitable and inclusive growth. But pervasive corruption in our country tarnishes our image. It also discourages investors, who expect fair treatment and transparent dealings. As the country grows and integrates with the world economy, corruption continues to be an impediment to harnessing the best of technology and resources.

The malaise of corruption, so sapping our efforts to march ahead as a nation, should be treated immediately and effectively. And all of you present here today can contribute substantially in this war against corruption. Indeed, you are in a privileged position to do so.

There is no single remedy for fighting corruption. The battle against it has to be fought at many levels. The design of development programmes should provide for more transparency and accountability. Systems and procedures which are opaque, complicated, centralized and discretionary are a fertile breeding ground for the evil of corruption. They should be made more transparent, simple, decentralized and less discretionary. The Second Administrative Reforms Commission has given a wide range of recommendations in this regard in its report on ‘Ethics in Governance’. I am told that these have been examined in great detail and it should be soon possible to take a decision on them.

While systemic improvement is a long term goal, one cannot wait for it to happen. Our anti corruption agencies must make the cost of corruption unacceptably high for those indulging in it. There should be clear focus on corruption prone areas and individuals so that the available resources for anti corruption efforts are not dissipated. High-level corruption should be pursued aggressively. There is a pervasive feeling that while petty cases get tackled quickly, the big fish escape punishment. This has to change. Rapid, fair and accurate investigation of allegations of corruption in high places should remain your utmost priority. The nation expects you to act firmly, swiftly and without fear or favour. And you have the constitutional and legal protection and safeguards to do so.

The ever evolving levels of sophistication and complexity in different cases of corruption present special challenges for the enforcement agencies. The need is to stay one step ahead of the corrupt. For this, acquisition of new skills, through intensive and regular training, is an absolute pre-requisite. I hope all the agencies present here have put in place a system of learning and disseminating new ideas and skills for their personnel. It is only a well-trained, well-equipped and well-motivated set of officers who can be equal to the task.

It is also necessary for you to upgrade your capabilities by learning from the best global practices. I am told the Central Vigilance Commission has taken many initiatives in improving transparency in the procurement process in government and public sector undertakings, including introduction of an Integrity Pact for high value transactions. The Central Vigilance Commission has to play a pivotal role in sharing the best practices with all those involved in the anti-corruption effort. The State Vigilance Bureaus can also play a similar role by interacting with the various State departments, studying their procedures and coming up with suggestions to make them more transparent and less amendable to abuse or manipulation of any kind.

To the officers of the CBI I would say that the people have great faith and expectations from you. This is evident from the frequent public demand for a CBI investigation especially when a serious crime takes place. I urge the officers of the CBI to do their utmost to live up to this expectation. There have been occasions in the recent past when the conduct of the Bureau has come in for severe public criticism. I would like the CBI to have a critical look at itself and introspect deeply with an end to further improve its functioning. I have been informed that CBI has set a target for itself in investigation of cases for the next one year. I would urge the State agencies to set similar targets for themselves and aim at acquiring an enhanced credibility in the eyes of the people.

While quick investigation is important and necessary, it is not sufficient to bring the guilty to book. Trials should be conducted expeditiously and judgements delivered quickly. To begin with, the aim should be to conclude the trial in two years so that punishment could be given to the offenders within a period of three years or so. We have recently decided to set up 71 new CBI courts and expect them to function as model courts, hold day-to-day proceedings and avoid unnecessary adjournments.

I must also emphasize the need for the right balance which all of you need to strike in your anti corruption efforts. It must be ensured that innocent officials are not harassed for bonafide mistakes, even while the corrupt are relentlessly pursued and brought to book. Officials have to be encouraged to take decisions, to accept responsibility, to show initiative and, whenever required, to take risks if the bureaucracy is to shed its slothful and lethargic image. Very often, the fear of harassment and damage to reputation makes public officials unduly timid and slow and the whole government machinery ineffectual. Anti-corruption agencies have to develop a system of investigation that factors this into account. It is as much your duty to protect the honest and the efficient as it is to prosecute the venal and the corrupt.

As you begin deliberations, I wish the proceedings of this conference all the very best. I hope you will come up with concrete ideas on many important issues. Let me conclude by once again congratulating the medal winners for their splendid achievement.