[The breathtaking brazenness of those exposed in the Radiagate engaged in
manipulating the political process of the country at the highest level to
serve corporate interests quite justifies the note of despair here.]

Scams Unlimited!

*By MuraleeDharan Raghavan*

04 December, 2010
*The Verdict*

The ill-gotten money becomes the biggest weapon to fight charges
against our polity and administrators and manipulate the procedure.
They are helped in the process again by their business partners. The
corrupt remain the most united and flock together. Clearly, the nation
could boast of being the most corrupt in the world, thanks to
public-private partnership…

In our country, scams and corrupt practices have become a way of
national development. But there is a curious aspect. It grows with
what is often euphemistically called public-private partnership. The
2G spectrum is not an exception. There has hardly been a financial
scandal without involvement of the private sector. Partnership is the
easiest way to siphon off public funds.

The first 40 years since Independence was not free of it. However
there was a silver lining. The four decades saw scams that could be
counted on finger tips - Dalmia’s LIC scam, Mundhra scam, Bajra
scandal, Nagarwala fraud and to cap it all Bofors. There were of
course some more, which were in flood, drought relief or milk powder
distribution.

Pertinently, the number and volume of frauds of all sorts in all
spheres of governance multiplied with the era of liberalisation. It
was an unrestricted freedom for anyone who had the slightest ingenuity
to strike a new scam.

What Haridas Mundhra did in 1958 that rocked Parliament was the
precursor to what Harshad Mehta did in the year 1992? Mundhra
manipulated LIC to invest Rs 1.24 crore ($3.2million) in shares of his
six troubled companies. In 1956, Ramkrishna Dalmia was jailed for
defrauding the LIC and Nagarwala was liquidated in the jail.
Since those days the public sector is being manipulated to benefit the
private sector. The institution of licence-permit raj was not the
Government invention. It was the suggestion of some of the top
industrialists in those early days so that competition could be put at
bay and they could control the Indian market in the name of
“swadeshi.” A few business families produced low quality goods at high
prices to defraud the Indian people.

They even forced the Government of India to buy a car that was
rejected by buyers in UK and had to fold up. Nobody really knows what
had gone into striking of that deal that lasted almost 50 years. They
did not make any design or engineering change till they found a
competitor in the then government-owned Maruti. But for almost the
next 15 years the government itself was not purchasing the more
efficient Maruti cars.

Even in those early days it was said that one of the top-most business
families had 22 MPs in Parliament. Why did industrialists need them?
In the late 1960s, the private sector textile mills played another
fraud. They took advantage of the socialistic nationalisation drive
and sent many sick mills to the Government for nursing. Many were
nursed, brought back to health by “inefficient” Government managers
and restored back to the owners. All behaving as if the Government
were the hospital for sick units. Later, many such “inefficient”
Government officials were hired by the same companies.

If Ratan Tata or Rahul Bajaj are lamenting the corrupt ways of some
Government officials or Ministers, they also need to know who started
corrupting them. Tata may be correct in his statement about the
Tata-Singapore Airlines but he also needs to explain why Tatas so
willingly handed over the control of Air India to the government in
1950s. How would they explain the methods of Satyam’s Ramalingam Raju
or chartered accountant firm Pricewaterhouse and the C R Bhansali
Capital?

Importantly, don’t they know the story of the rise of a family, now
considered among the fabulous richest in the world? The family had
influenced almost all spheres of Indian economy - banking, crude oil,
gas, textile, polymer, telecom etc. Their close nexus with various
Governments of all shades, Ministers and officials is an open secret.
This is not all. Their method of lobbying includes so many kinds of
allurements, facilities and influences. Millions, if not billions, is
set apart by them for corporate liaison and lobbying.

It is considered a “legitimate” business exercise. But who gets
corrupted in the process? Of course: the public servant. If he does
not, he is shunted out. Only recently, a whistle blower of the Adarsh
housing scandal was sent to a non-descript place as punishment.
Remember, how an NHAI engineer in Bihar was murdered for not listening
to the corporate scamsters.

The 2G Spectrum scandal only signifies a malaise that is afflicting
the nation in all its spheres. The collapse of an
illegally-constructed building, constructed by a builder who started
life as a mechanic for repairing kerosene stoves, in Delhi’s Lakshmi
Nagar only reveals the wide nexus that is eroding the body fibre of
the nation. Almost 70 people lost their lives in the building, where
about 400 lived in abysmal squalid conditions. Yet, the Delhi
Government, Municipal Corporation of Delhi, the local police - all
were oblivious to the problem for over two decades! This symbolises
the functioning of the real estate sector.

It is a shame that we call this governance. It is wrecking the
country. The prime minister and finance minister are euphoric about
double digit growth. This could possibly be a four-digit growth if we
could fix our backyards of governance.

Sadly, corporate or semi-corporate bribing at all levels has become
the rule. How much goes into it is difficult to fathom. A rough
calculation would lead to thousands of crores of rupees being
laundered every day all over the country to keep the rulebook in
abeyance, police at bay and allow criminalised business - illegal
buildings to arms and drugs down to capturing of licences in an
unauthorised manner - to thrive.

The corrupt have made inroads into all political parties, it is often
averred. A better way to see it would be that those in business know
how to corrupt anyone who matters. Either through allurements,
blackmailing or threats! No one is free from it. Recently, at least
four High Court judges have been found involved in one or the other
scandal. If the Ghaziabad Provident Fund scam is included, the number
might grow manifold.

In those early days whether it was Mundhra or Dalmia all were
punished. But now be it the fodder scam in Bihar, disproportionate
income in UP or Jharkhand, unapproved expenses in CWG, scams in
stocks, the corrupt have the solace to evade all punishment by
manipulating the investigation process, court procedures or developing
the right political connection.

The author is editor-in-chief of THE VERDICT – of the reader for the
reader, English weekly published from Mumbai. He can be reached at
*verdictwee...@gmail.com*


-- 
Peace Is Doable

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