India to ratify UN convention against corruption soon…..Deepshikha Sikarwar
Move to put obligation on govt to check corruption in private sector cos
Move to put obligation on govt to check corruption in private sector cos
NEW DELHI: India is all set to ratify the global convention against corruption seven years after the treaty came into being, taking on an obligation to check corruption in private sector amid the unravelling of multiple scams in the country.
The government is readying a law to meet the conditions of the United Nations Convention Against Corruption ( UNCAC ., but independent experts say India is already in a position to ratify the agreement.
The proposed law will deal with corruption and bribery in the private sector, a government official said, adding that a bill is likely to be moved in the budget session of Parliament.
At the G-20 summit in Seoul early this month, India signed the group’s anti-corruption action plan, which requires it to ratify and fully implement the anti-corruption convention .
Currently, India does not have a specific law to deal with corruption in private sector, although there are elaborate safeguards against the menace in the government sector.
A group of ministers set up by the prime minister had decided that instead of modifying the current law, there should be a separate law for private sector. The draft legislation will be examined by the group of ministers before it is sent to the Cabinet.
India will be able to seek full cooperation of the signatory countries in investigation of cases, especially with respect to off-shore bank accounts held by Indians.
“We had made an in-depth analysis’ on the convention and found that most of the requirements of the articles stood fulfilled in India’s case and laws, institutions, and tools of anti-corruption are operational,” said PS Bawa, India chairman of Transparency International, a global organisation against corruption.
India has slipped to the 87th spot in Transparency International’s latest ranking of nations based on the level of corruption from the 84th position.
The government is now battling corruption allegations in allotment of second generation spectrum to telecom companies in 2008. The latest in the series is the bribesfor-loan scandal involving some state-run lenders and real estate firms.
The G-20 summit finalised an anti-corruption action plan at the Seoul Summit, which was signed by India. The G20 countries also agreed to establish clear and effective channels for mutual legal assistance and other forms of international cooperation on corruption.
The group also sought specialised expertise for asset recovery in an appropriate agency by the next year’s summit to be held in France. India’s neighbours like Pakistan have already ratified the UNCAC.
India loses about $16 billion or . 72,496 crore every year to outflows related to tax avoidance by wealthy individuals and companies, corruption and bribery, according to Global Financial Integrity, a Washington-based research group.
COST OF CORRUPTION
* Over 2004-2008 , India lost assets at a rate of $19 billion per year
* Total capital flight out of India represents about 16.6% of India’s GDP as of year-end 2008
* In present value terms, India lost an equivalent of 36% of its 2008 GDP
* Some 68% of India’s aggregate illicit capital loss occurred after India’s economic reforms in 1991
* Deregulation & trade liberalisation actually contributed to & accelerated transfer of illicit money abroad