Wednesday, April 18, 2007

Major RTI victory : Delhi HC directs UPSC to reveal cut-off marks

In a important decision on 17th April , 2007 the Delhi High Court asked the Union Public Service Commission (UPSC) to disclose the cut-off marks of the civil services preliminary examination. Disclosure of information as directed by CIC cannot harm the interest of UPSC and or any third party. The approach of CIC in this matter has been in correct perspective," Justice B D Ahmed said. Last year on November 27, the High Court had stayed the CIC order in which it has directed the UPSC to disclose the individual scores of the candidates who appeared in the preliminary civil services examinations 2006.The November 13 CIC order to the UPSC was based on the plea of Rakesh Pratap and Shiv Shambhu, two candidates out of over 2,500 aspirants for the civil services.
The writ petition filed by the UPSC sought directions to CIC for an ex-parte interim stay of the order on grounds that disclosure of information would harm the examination system.
The CIC in its full Bench order, headed by Chief Information Commissioner Wajahat Habibullah, asked the Union Public Service Commission (UPSC) to disclose the marks obtained by each candidate, besides revealing the scaling system. However, the scaling system differs in terms of weightage given to the same marks in subjects like Maths and History.
Around 2500 unsuccessful candidates had filed separate applications seeking the disclosure of their marks.
In September last year, the UPSC announced that disclosure of information regarding cut-off marks, individual scores scaling criteria and model answers would lead to violation of the Official Secrets Act (OSA), following an appeal made to the Central Information Commission under the Right To Information (RTI) Act.

Saturday, April 7, 2007

RTI expose-Thousands of crore wasted in reviving sick PSUs

In a startling disclosure under RTI Act it revealed that even after the government of India pumped thousands of crores into sick PSUs nothing concrete happened and turn around of these PSUs could be made. Mostly these units were closed down ultimately or are under the process of liquidation. This was tax payers money which was given to these sick units . Finacil support is not only for VRS but money was given in the form of equity, interest free loan, waiving off of loan etc. with the hope that these units would be revived. Even after spending huge money in these sick units these units could not be revived. At the time of making proposals for revivals of these units a lot of promises in the form of high turnover and decent profits in few years are made. These promises are given on paper just for taking money from the government of India. Their promise and plans which are bound to be failed never materialize. After a year or so every body including CMD, secretary get change in the fast changing scenario of industry. Money is taken and siphoned off with impunity. In name of doing business and reviving the company those projects where personal interest of higher management and ministry officials are involved are taken . After some time these projects fail and so the money . But who cares for this.
If we analyse the data we will find that only one out of ten PSUs are revived with the efforts of government. In nine cases where money worth thousands of crores are invested go waste. Who is to blame for the scam which is going on since many years. We do not know any name of official who has been made responsible for the failure. In the collective responsibility no body is responsible. In the working of PSUs we find ministers take utmost interest in the reviving of company. These ministers who do not have a business sense of doing a small business take the decisions worth thousands crores . In PSUs thousands of employees work. In the name of helping these employees for which they also get the support from left parties money worth thousands crores get sanctioned from government of India. Once money is sanctioned first the arrears of employees are paid so that employees keep quiet. After distributing money to employees then work of starting projects begin . In the award of work of major projects the ministry dictate terms. Small works are kept for Directors or officers of the rank of GMs. Some directors who are left out in the award of works keep themselves satisfied by enjoying cars , air travels for self and family , free holidays at the expense of company. In a nutshell every body is satisfied except of tax payer whose money is actually spent in this process . .
Here are some the live examples of PSUs which were sanctioned revival plans but they could not be revived:
1. Hindustan fertilizers Ltd.
From the financial year 1998-99 to 2003-04 the company was sanctioned Equity/Plan/Non plan loan to the extent of Rs. 1275 crores. Now the company is under closure as approved by government of India.
2. Braithwaite & company Limited (BCL) Kolkatta
During 2005-06 Rs 4 crore was provided in the form of equity. Interest amounting o Rs. 43.61 crores was waived off on GOI loan till 31.05.05. Rs 69.30 crores of GOI loan was allowed into equity . Rs 167.30 crore was reduced from eqity capital by way of adjustment of accumulated losses. In addition From 2001-02 to 2005-06 the company was sanctioned Rs 57 crores but it could not be revived.

3. Braithwaite Burn & Jossop Construction Co. Ltd. (BBJ), Kolkatta

During 2005-06 Rs 4 crore was provided in the form of equity. Interest amounting o Rs. 30.73 crores was waived off on GOI loan till 31.05.05. Rs 13.88 crores of GOI loan was allowed into equity . in addition to this in 2005-06 the company was sanctioned Rs 2 crores but it could not be revived.
4. Hindustan Photo Films Manufacturing Co. ltd.
From 2001-02 to 2005-06 the company was sanctioned Rs 145 crores but it could not be revived.
5. Burn Standard Company Limited (BSCL)
From 2001-02 to 2005-06 the company was sanctioned Rs 251 crores but it could not be revived.
6. Bharat Wagon & Engg. Co. Ltd.(BWEL)
From 2002-03 to 2005-06 the company was sanctioned Rs 59 crores but it could not be revived.
7. HEC Ranchi
The company is engaged in manufacturing Iron casting , forging slab caster etc. HEC was referred to BIFR in 1994 and a revival package was approved in 1996. The revival package was declared failed by BIFR which on 06.07.04 recommended winding up of the company under SICA. Government went against the recommendation of BIFR and instead approved a revival package and financial restructuring of the company. GOI invested Rs 453.24 crore in HEC as on 31.03.04 with no concrete result. During 2005-06 government of India wrote off Rs1101.03 crore outstanding as loan and interest thereon. Plan loan as on 31.03.05 of Rs 15.27 crore was converted into equity capital. A non plan bridge loan of Rs 102 crore was released on 30.03.06 Even after spending so much the turnover of the company during 2005-06 was merely Rs. 171.53 crore.

8. HSL (Hindustan Salts Ltd. )
Outstanding loan and interest thereon amounting to Rs. 66.32 crore as on 31.03.05 was written off by government of India. During 2005-06 Rs 100 lac was also sanctioned for payment of pension to the pensioners of ex Salt Department.The turnover of the company during 2005-06 was merely Rs. 5.69 crore and net loss as Rs. 1.20 crore. Recently the CMD of the company was arrested while accepting a bribe of Rs 50000 from a contractor .
8. Cement corporation of India
From 2001-02 to 2005-06 the company was sanctioned Rs 366 crore by government but the company could not be revived.
Like above there are many other PSUs which after receiving financial support amounting to thousands of crore from government of India were closed down. In the attempt of reviving the companies government of India spent thousands of crore on them. Just pumping in the money is not the solution. Main area of concern is not lack of fund but inefficient management . If the government gives adequate thought on appointment of professional management the scenario can be changed. The present system of appointment through PSEB should be dispensed with. Instead PSEB should be totally revamped and appointing committee members should be taken from eminent personalities from corporate and management school. At present most of the appointments to the PSU board are political motivated. There is sufficient pull and pressure being exercised on PSEB members to select a particular candidate with political bcking instead of selection on merit basis.
After the advent of globalization in India there are many industries which are facing intense competition from all over the world. PSUs of telecom, fertilizer industries are facing heat of the competition. With heavy baggage of surplus manpower and social cost these companies can not be expected to compete with thin private players. Pumping in huge money in these companies is like throwing money in bottom less pit. Had the government of India sanctioned smaller amount that too for making compulsory retirement of employees the government could have saved thousands of crore. Sooner these companies are closed the better.

Tuesday, April 3, 2007

RTI Expose: SFAC-Is it helping small Farmers or helping Bureaucrats

Small Farmers Agri-Business Consortium ( SFAC) is a society formed by Ministry of Agriculture to help small farmers . On the analysis of information provided by body under RTI it revealed that the body instead of helping small farmers in their agri business is engaged to help the top bureaucrats in the agriculture ministry by providing them mobile phones. Beneficiaries of mobile phones are not only the senior bureaucrats but personal staff of minister concerned. See paper provided in this respect.
Security staff which as per government guidelines should be engaged through DGR is engaged through a private security agency.
SFAC is engaged in providing venture capital to farmers to help them in food processing business. But its financing job is also doubtful . Lacs of rupees was provided to societies and NGOs which after taking money from it vanished or changed thei entities. Please see the note to accounts .