By Minhaz Merchant, Chairman, Merchant Media
Global business abhors uncertainty. The ministerial-level corruption in UPA-II has slowed FDI and FII inflows. The stock market, despite double-digit corporate profit and 8.6% GDP growth, reflects the anxiety of Indian and foreign investors. To take India's growth story forward in the 20th year of economic reforms, political reforms must catch up. Misgovernance won't do in a globalised, interconnected world.
Two kinds of political corruption blight India: episodical and ongoing. Episodical corruption - from 2G spectrum to rice exports - has cost the public exchequer possibly over Rs 1,00,000 crore this year. The sum could have wiped out a quarter of India's 2010-11 fiscal deficit of Rs 4,12,000 crore. Ongoing corruption is more insidious and, therefore, more damaging. For example, over 10% of India's installed power capacity of Rs 1,61,000 mw is stolen every year with government connivance. At least 25% and possibly up to 50% of funds allocated to MGNREGS are siphoned off by district-level officials - an estimated loss of around Rs 20,000 crore per year. Illegal mining, water theft and land allotment frauds skim several thousand more crores of public funds.
All this public theft needs a nexus: politicians, businessmen and bureaucrats form the core and an army of district officials, contractors and middlemen form the base. Judicial oversight has replaced ministerial oversight in matters that lie firmly in the domain of the executive. The Supreme Court cannot - as it has been compelled to - play the role of the PMO.
The government must implement three urgent institutional reforms. One, enact legislation to give the Lokpal at the Centre and Lokayuktas in the states suo motu powers to prosecute ministers, MPs, MLAs and IAS officers. The proposed Lokpal Bill is eyewash. It gives the Lokpal advisory powers. He cannot prosecute a minister or MP accused of corruption without government approval. The alternative civil society Lokpal Bill, which gives the Lokpal independent authority to prosecute ministers and other public servants, is the only way to attack corruption at its root. Activist Anna Hazare has launched a nationwide campaign to revise the Lokpal Bill before it is legislated in the current session of Parliament.
Two, pass a special Act of Parliament to vest the Central Bureau of Investigation (CBI) with autonomous powers like the Election Commission (EC), freeing it from government control. The CBI director should be appointed by a constituted panel of three members: the newly empowered Lokpal, the leader of the largest Opposition party in the Lok Sabha and the Chief Justice of the Supreme Court. This will allow the CBI to investigate and prosecute without fear, favour or fetter.
Three, end through a constitutional amendment the practice of 'political' governors and speakers. The moment a governor or speaker is appointed, he or she should forfeit for life the right to serve in any other public office and also cease immediately and permanently to be a member of a political party. The Bhardwaj-Buta Singh model of governership must be buried for good.
The new anti-corruption ordinance being examined by the empowered group of ministers under finance minister Pranab Mukherjee must allow for prosecution of ministers, bureaucrats and other public officials by an independent CBI and Lokpal. Land, mining and other natural resources - from spectrum to gas - must be taken out of discretionary government hands (state and central) by law, not words. Nitish Kumar's Bihar has effectively combated corruption by introducing special courts under the Bihar Special Courts Act. Under the Act, such courts headed by a sessions judge with high court approval have the power to confiscate property and cash of government officials accused in corruption cases.
