Transparency in Governance is the Ultimate Key to Reforms

KALPESHKUMAR L. GUPTA
LL.M., MBL (NLSIU), M.Phil. (Law)

Academic Associate – IIM Ahmedabad

International Conference on
Transparency & Accountability
in Governance :
Issues & Challenges

ICTAG – 2012
October 13-14, 2012

Outline of the presentation :-

1. Introduction Outline

2. Research Methodology
3. Transparency – An
Overview
4. Some Initiatives on
Transparency
5. Issues & Challenges
6. Concluding Remarks
7. Video on Integrity Pact
8. Q & A
(c) K L Gupta

Governance:-

“Governance is the manner in which power
is exercised in the management of a
country’s economic and social resources
for development….

……Good governance is synonymous with
sound development management.”

- World Bank (1992)

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Governance

Good Governance

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Governance

Good Governance

Journey of
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Governance

Good Governance:-
Good governance means
- ruling justly,
- enforcing laws and
- contracts fairly,
- respecting human rights, property
rights, and
- fighting corruption……..

- Paul O’Neil, Treasury Secretary of US (2002)

(c) K L Gupta

Good Governance – Major Characteristics*:-
1. Participation
2. Rule of Law
3. Transparency
4. Responsiveness
5. Equity & Inclusiveness
6. Effectiveness
7. Efficiency
8. Accountability
9. Strategic Vision
10.Consensus Orientation

*Source :- V K Parigi & Others, “Ushering Transparency for Good Governance”, available at
http://www.cgg.gov.in/workingpapers/Ushering_in_Transparency.pdf accessed on September 15, 2012

(c) K L Gupta

Type of Paper:-
Conceptual paper

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Objective:-
The objective of the current study is
to examine level of transparency in
the governance prevailing in
Government Sector (Legislative &
Executive),
Judiciary and
Private Sector.

(c) K L Gupta

Research Questions:-
1.Will the transparency only in the
Government Sectors bring reform?

2. Will the transparency only in the
Judiciary bring reforms?

3. Will the transparency only in the Private
Sectors bring reforms?

4. Will the transparency in the Government
Sectors, Judiciary and Private Sectors all
together bring reforms?
(c) K L Gupta

Research Design / Data Collection:-
In order to answer the research objectives
a Content Analysis has been carried out
using website of the government,
judiciary, regulating agencies, concerned
organizations, reports in different forms,
journal papers and newspaper articles.

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Originality:-
The present paper gives us a
comprehensive analysis of transparency
in governance of Government sector,
Judiciary and Private sector and reforms
brought from this.

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Era of Birth of
Secrecy, Corruption
Lack of
Transparency

R.T.I

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http://indiancorruptjudges.com

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77 % believes that Indian 8 Chief Justices of India
Judiciary is corrupt : corrupt says former Law
Global Corruption Report Minister
(Transparency International Report, 2007) (NDTV, September 16, 2010)

Don't protect corrupt
Judiciary a contributor to
judges: Chief Justice of
encouraging corruption:
India to politicians.
(Hindustan Times, April 16, 2011) Hegde
(Indian Express, April 10, 2012)

(c) K L Gupta

2G Scam Coalgate

Satyam Reebok
Reebok India case:
Corporate
mismanagement
led to scam

Rs. 870 Crore
Corporate Fraud*

*Source :- Deccan Herald,
September 23, 2012

(c) K L GUPTA
(C) K L Gupta

Anti-graft laws will soon cover private
sector too: PM
Times of India, October 11, 2012

Government is working to amend existing
laws i.e. Prevention of Corruption Act, IPC to
punish bribery in the private sector, saying
economic reforms had created new
opportunities for corruption and there was
need to focus on the "supply side" of
corruption.

Expanding the ambit of anti-corruption laws
to cover private sector.

A clear and unambiguous definition for the term
'corruption', covering both the supply and demand
sides, is being sought to be provided."
(C) K L GUPTA

Integrity Pact :

-The Integrity Pact (IP) is a tool
developed in 1990s by
Transparency International (TI) to
help governments business and
civil society to fight corruption in
public contracting and
The Integrity Pact
procurements.
A perfect tool for clean bidding

-It covers all contract related
activities from pre-selection of
bidders, bidding, contracting,
implementation, completion and
operation

-IP is intended to make public
contracting and procurement
transparent by bidding to all ethical
conduct.
(c) K L Gupta

E-Governance bringing transparency
Case of Tamilnadu Medical Services Corporation Ltd.:

-TNMSC was set up in 1994, for ensuring ready availability of
all essential drugs & medicines in the govt. medical
institutions by adopting a streamlined procedure for their
procurement, storage & distribution

-IT system of TNMSC ensures quality compliance, transparency
in procurement & distribution & prevention of abuse.

-As far as quality control & transparency go, TNMSC’s efficient
tendering process helps discover the lowest possible price. It
purchases only from manufacturers holding Good
Manufacturing Practice Certificate & stringent testing process
that tests each batch.

(c) K L Gupta

e-Setu :-

-E-Setu has become the
electronic bridge between
the people & the
government especially for
people in distant place.

-The e-Setu practice is
Jorhat
located in Jorhat district
of Assam

-The e-Setu practice is a
sincere attempt to bridge
the citizen’s access to
Information &
Government Service

(c) K L Gupta

National e-Governance Plan (NeGP) :-

"Make all Government services accessible to the common man
in his locality, through common service delivery outlets, and
ensure efficiency, transparency, and reliability of such services
at affordable costs to realize the basic needs of the
common man"

Online Services under NeGP will cover Income tax, Passport /
Visa, Company Affairs, Central Excise, Pensions, Land Records,
Road Transport, Property Registration, Agriculture,
Municipalities, Grampanchayats, Police, Employment
Exchange, E-courts

(c) K L GUPTA
(C) K L Gupta

Government Sector :-
-RTI Act helps to bring transparency in governance. It
has many success stories.

-RTI is dying gradually because of lethargic appeal
process, vacancy and killings of RTI Activists who help
in uncover the maladministration, corruption in the
governance.

-Whistle Blower Bill, 2010, Lokpal Bill, 2011, Citizen
Charter Bill, 2011 are pending before the parliament.

(c) K L Gupta

Judiciary :-
-We can not see transparency in the Judicial System, it
causes delay in disposal of cases & biased decisions.

-The Judicial Standard & Accountability Bill, 2010 is
pending before the parliament.

- This bill requires judges to declare their assets, lays
down judicial standards and establishes process for
removal of judges of the SC & High Courts.

-There is no proper monitoring of cases in Judiciary.

(c) K L Gupta

Private Sector :-
-Recent scams show the mal-administration going in
the private sector.

-It is difficult to have transparency in the private
sector. For that certain mechanism needs to be
developed.

-Companies Bill, 2011 is pending before parliament
which points out role of Independent Director and
Auditor of the company.

- Independent Director & Auditor can be whistle
blower of the company and helps in bringing
transparency in the company.

(c) K L Gupta

Challenges:-
-Transparency tools in the form of different
Bills are pending before the parliament.

-There is always apprehension about the
passing of these bills that can play a pivotal
role in bringing transparency.

-Till date all above bills are lying in cold
storage.

(c) K L Gupta

REFORMS

TRANSPARENCY IN GOVERNANCE LEADING TO REFORMS
TRANSPARENCY IN GOVERNANCE LEADING TO REFORMS

(c) K L Gupta

Answer for Research Questions :-
-Transparency only in the Government Sectors
will not bring reforms in the country.

-Transparency only in the Judiciary will not bring
reforms in the country

-Transparency only in the Private Sectors will
not bring reforms in the country.

- Transparency in all three
sectors i.e. Government
Sectors, Judiciary and the
Private Sectors is required to
Reforms bring complete reforms in the
country. (c) K L Gupta

Government Sector :-
-Save RTI Act which is gradually dying.

-Whistle Blower Bill, 2010, Lokpal Bill, 2011, Citizen
Charter Bill, 2011 to be passed as soon as possible.

-The model of Integrity Pact should be made
compulsory in every public authority of the company

(c) K L Gupta

Judiciary :-
-The Judicial Standard & Accountability Bill, 2010 to be
passed in next session.

-Subordinate Judiciary should be covered under this
Bill as it deals with more than 85 percent of the
pending cases of the country.

-All courts must be enabled with Information
Technology system so that justice delivery system can
be expedited.

-Independent Case Management Authority needs to be
established for proper monitoring of the cases from its
initiation till its implementation.

(C) K L GUPTA

Model 1
National Case Management
Authority (NCMA)

(c) K L Gupta

Model 2
National Case Management
Authority (NCMA)

(c) K L Gupta

Working of
National Case Monitoring Authority (NCMA)

Collecting data on institution of Cases
Collecting data on institution of Cases

Collecting data on progress of registered cases
Collecting data on progress of registered cases
(along with the stage, adjournments with
(along with the stage, adjournments with
reasoning) ----"Watch Dog“ --
reasoning) "Watch Dog“ --

Collecting data on Judgment pronounced by the
Collecting data on Judgment pronounced by the
Courts, Forums, Tribunals etc.
Courts, Forums, Tribunals etc.

Monitor the Implementation of Judgments
Monitor the Implementation of Judgments

Study on overall aspects of judgments
Study on overall aspects of judgments
pronounced by the courts, forums, tribunals etc.
pronounced by the courts, forums, tribunals etc.

Prepare a report and submit to Department of
Prepare a report and submit to Department of
Justice / Law Commission
Justice / Law Commission Gupta
(c) K L
(C) K L GUPTA

Private Sector :-
-Companies Bill, 2011 to be passed as soon as
possible.

-Independent Directors & Auditors have to perform
their duty with due diligence especially as Whistle
Blower.

(c) K L Gupta

References:-
1.V K Parigi & Others, “Ushering Transparency for Good Governance”, available at
http://www.cgg.gov.in/workingpapers/Ushering_in_Transparency.pdf

2. IMF, “The IMF and Good Governance” , A Factsheet

3. The Economic Times, December 17, 2002

4. Daniel Kaufmann, Aart Kraay, and Pablo Zoido-Lobaton, “Aggregating Governance
Indicators”, Policy Research Working Paper, No. 2195, World Bank, Washington DC,
October 1999; and Daniel Kaufmann, Aart Kraay, and Pablo Zoido-Lobaton,
“Governance Matters,” Policy Research Working Paper, No. 2196, World Bank,
Washington DC, October 1999.

5. “Cabinet nod for Judicial Transparency Bill”, Times of India, October 6, 2010
available at http://articles.timesofindia.indiatimes.com/2010-10-
06/india/28252263_1_accountability-bill-judges-high-courts

6. A Abdulraheem, “Corruption in India :An Overview, Causes, Consequences and
Remedial Measures”, Social Action, Vol 59, October-December, 2009 available at
http://www.isidelhi.org.in/saissues/articles/artoct09.pdf

7. Kalpeshkumar L Gupta, “Delayed Justice – Denial of Fundamental Rights” in
Contemporary Challenges and Prospects for Strengthening Rule of Law and
Democracy in the Midst of Anarchy and Chaos in the Indian State Separation of
Powers, Judicial Accountability and Relevant Provisions of the Indian Constitution
Revisited, published by Gujarat National Law University, February 2012, p 57,

8. Maulik Vyas, “Corporate Governance issues too play spoilsport for fund flows” ,
Economic Times, January 3, 2012, available at
http://articles.economictimes.indiatimes.com/2012-01-
03/news/30584756_1_corporategovernance-corporate-fraud-companies-bill

(c) K L Gupta Cont.

Cont.

References:-

9. Transparency International India, available at
http://www.transparencyindia.org/resource/project_files/Brochure-
_Integrity_Pact.pdf_1289376032.pdf

10. Kiran Mazumdar Shaw, “Robust IT architecture holds key to making
government’s new health care plan effective”, Times of India, August 22, 2012
available at http://articles.timesofindia.indiatimes.com/2012-08-22/edit-
page/33304120_1_tn-model-spurious-drugs-drugs-account

11. “E-Setu – Bridge Online Between People & Government” available at
http://indiagovernance.gov.in/files/Esetu.pdf

12. Department of Electronics and Information Technology, Govt. of India available
at http://www.india.gov.in/outerwin.php?id=http://mit.gov.in/content/national-e-
governance-plan

13. “Companies Bill Soon : PM”, Hindustan Times, September 23, 2012, p 1, available
at http://www.hindustantimes.com/News-Feed/Chunk-HT-UI-BusinessSectionPage-
Economy/Companies-Billsoon-says-PM-Manmohan-Singh/Article1-934268.aspx

(c) K L Gupta

Kalpeshkumar L Gupta
Academic Associate
IIM Ahmedabad
klgupta@iimahd.ernet.in

(c) K L Gupta

Transparency in Governance is the Ultimate Key to Reforms

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