Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts

Saturday, July 08, 2017

SpeedPost Courier Racket

India Post works like magic these days. If you pack a handloom saree and send it by SpeedPost it magically transforms enroute, into a cheap rexine handbag!

This is exactly what happened to us last week. My wife had been eagerly waiting for her first "Dubakka" cotton handloom saree sent from Maanini Vastra Samskriti India PL (MVSI), Bangalore. Photos had been exchanged on WhatsApp, a design had been carefully chosen and confirmed. When the packet arrived by Speedpost (no. CK 02481962 5 IN) yesterday, it looked like a saree packet, it weighed like one, but when we opened it, the packet contained a tacky, cheap rexine handbag.


SpeedPost packet no. CK 02481962 5 IN


Puzzled, we called up MVSI immediately. Had they, by any chance, sent us a handbag that was meant for another customer? The answer was an emphatic "No!". The company did not deal in anything other than handlooms. In fact it had carefully built a reputation as a reliable partner to a larger initiative by a group of handloom enthusiasts from "Kaithari", a social network that had been working tirelessly for the revival of handlooms across South India.

At a time when artisans in remote villages in Karnataka and Andhra Pradesh were losing their livelihoods to a change in fashion trends, groups like Kaithari and MVSI had come together with a revival initiative, linking weavers in small towns like Udupi and Dubakka (AP) to markets in urban India. Over 1200 sarees of the "Udupi weave" had been sold by MVSI, and the "Dubakka weave" (aka Chitkula Sarees), was just beginning to notch up sales.

Convinced that this was not a mistake at MVSI we examined that Speedpost packet a little more carefully. The packed had indeed been tampered while in transit. The brown tape had been carefully sliced open with a blade, the contents switched, and the packed re-sealed with transparent cello-tape.

While a formal complaint is being registered with India Post / SpeedPost, the question is - Is this a one-off incident or does it represent a larger problem plaguing India's booming e-commerce industry?

Two years back in 2014-15, the postal department’s revenues from e-commerce majors had more than doubled to over Rs 1,000 crore, up from Rs 500 crore the previous year, and just Rs 100 crore in 2013-14. While the e-commerce majors get all the attention, fact remains that SpeedPost, with its unmatched national network, remains the first choice for entrepreneurs in remote corners of the country.

Many rural communities depend on Speedpost for their livelihoods. Unless strict action is taken against such pilferage "Make in India" and the fledgeling "Digital Economy"is bound to suffer. This is one magic-show that India Post customers can do without.

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LINKS & REFERENCES

MVNI - https://www.facebook.com/maaninivastrasamskrithi/

http://indianexpress.com/article/india/india-news-india/india-post-rides-e-tail-boom-reaps-big-rewards/

Dubakka Sarees aka Chituka Sarees - http://www.thehindu.com/lf/2005/06/03/stories/2005060301840200.htm

Wednesday, May 11, 2016

Cutting out the Middleman


A few years ago, Janagraha, a Bangalore-based NGO, started a website called "I Paid a Bribe". It was a hugely popular initiative with thousands of people logging in to report the bribes they had to pay to get work done at government offices across India.

Thanks to this initiative, finally some real data was being generated on how speed money was changing hands. However, limited awareness of the existence of such a portal, and, limited faith in its ability to curb the menace gives us a picture that may not reflect ground realities. For instance, it is difficult to believe that an overwhelming cases of bribery happen in Bangalore city (8300 cases; 10%), and that it is rare in North Indian cities.

A recent op-ed in the Indian Express by Philip Oldenberg has brought out an aspect which is overlooked in the hitherto black-and-white narratives of bribery and corruption. According to Oldenberg, even if an official is honest, all it takes is a the perception of fallibility, for middlemeen to makes piles of money.

Oldenberg gives the example of semi-literate villages who need to get their land valued by government officials. In the face of paperwork that looks formidable, they turn to the friendly neighborhood "dalal" (middleman) who  offered the farmer knowledge, access, and the willingness to dirty his hands, all for a modest commission, with a money-back guarantee.

"...When the officers of the land consolidation department come on their visits, the dalals would approach them in a semi-public way (with farmers watching), whispering perhaps some innocuous something, to give the impression of having a close relationship."

Then, after taking his "processing fees" from the farmers, he would just run the applications through the normal procedures and get the work done. So even when an honest official does not take bribes, the middleman walks away with all the money, reinforcing the public impression that nothing gets done unless you pay bribes!

Which is the most efficient way to cut the middleman out of the system, and prevent him from muddying the waters?

Perhaps it is worth replicating the models followed by MEA's Passport Offices and the Motor Licensing Offices in Delhi. In 1994, when I submitted my first application for a passport to the Regional Passport Office (RPO) at Bhikaji Cama Place, the whole building was teeming with middlemen. At every step, you would be urged to hire "facilitation services" for speeding your application through the red-tape. And sure enough, those who did not pay up would have their applications rejected for the flimsiest excuses. The cost of not paying a bribe would be widely offset by the time and money spent on making multiple trips to the RPO.

Then, in 2006, MEA brought in Tata Consultancy Services (TCS) to revamp the entire RPO system. And what a transformation it turned out to be! Now TCS manages more than 77 passport centres, and has created an efficient online system that handles 40,000+ applications everyday, and has already issued more than 13 million passports to citizens who never encountered either a venal passport official, or the hazards of dealing with a middleman.

What does it take to build similar, transparent systems for all citizen-state transactions?

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LINKS & REFERENCES

* Oldenberg, Philip (2016): Why the AgustaWestland bribery scandal reminds me of Miss Marple, Indian Express, 9May16 - http://indianexpress.com/article/opinion/columns/agustawestland-vvip-chopper-scam-agatha-christie-a-crime-and-a-puzzle-2790835/

* TCS Transforms India's Passport Offices - http://www.tcs.com/resources/case_studies/Pages/TCS-Indian-Passport-Office-Ovum.aspx


Tuesday, December 22, 2015

The Cost of a Stadium


How much does it cost to build a stadium?

Over the past one week a controversy has been raging over the cost of building a cricket stadium in New Delhi. The Chief Minister of Delhi claims that his office was raided by the Central Bureau of Investigation (CBI) because his office had been investigating the shell companies behind a controversial "refurbishment" of the Feroz Shah Kotla stadium which cost about ₹ 142 Cr (USD 22 m). He also alleges that the money trail leads up to Arun Jaitley, India's Finance Minister.

Not the one to take things lying down, the country's Finance Minister has now filed a defamation case against the Chief Minister.

As allegations and counter-allegations fly to and fro, here are some figures that put things in perspective:

  • A brand new stadium was contructed at Dharamshala for ₹ 20 Crores (USD 3 million)
  • Prior to the Commonwealth Games 2010, the Jawaharlal Nehru Stadium was refurbished at the cost of ₹ 600 Crores (USD 92 m)
  • The iconic "Birds Nest" stadium built for the Beijing Olympics cost USD 243 million (₹ 2,750 Cr).
  • In Japan, there was a huge controversy over the cost of a new stadium for the Tokyo Olympics 2020. A design created by Zaha Hadid costing USD 2.1 billion (₹ 13,650 Cr), It has now been replaced by a "cheaper" design that costs only USD 1.2 billion (₹ 7,800 Cr)

If we take the Dharamshala stadium as a realistic local reference point, the cost of JLN stadium and FZK stadum certainly seems over the top. But this should not come as a big surprise to any of us because we all know that in the absence of transparent funding to political parties, there is really no incentive towards having projects that have zero kickbacks.

Ultimately, as the old saying goes, "When elephants fight, it is the grass that gets trampled."

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LINKS

* BBC - http://www.bbc.com/news/world-asia-35158004
* Financial Times -- http://www.ft.com/cms/s/0/b5db6708-a874-11e5-955c-1e1d6de94879.html#axzz3v4mJWh9V
* Zahid's Stadium design for Tokyo -- http://www.zaha-hadid.com/architecture/new-national-stadium/

Thursday, May 09, 2013

CBI : From Jain Hawala Scandal to CoalGate



"Parliament (is now) adjourned sine die, without conducting any significant business, as if we elect representatives simply to leave everything in abeyance...The government has no sense of propriety, shame, ethics or common prudence...The responsibility for a culture of corruption, evasion, lying and sheer contempt for institutions lies directly at the door of Sonia Gandhi and Manmohan Singh. Their air of injured innocence has become nauseating..."
The gloves are now off: In his latest op-ed published by the Indian Express yesterday. Pratap Bhanu Mehta, president of CPR has been particularly scathing about the conduct of the present government.

When he writes about "lying and sheer contempt for institutions", he is, of course, referring to CBIs handling of the Coal Report. One thing that keeps coming up in most reports on CBI is the Vineet Narain Judgement.

What is the Vineet Narain Judgement?

This story begins in 1991 when a militant from our friendly neighborhood named Ashfak Lone was arrested by Delhi Police. His interrogation led the CBI to a businessman named Surinder Jain and to his notebooks & dairies containing details of payoffs in meticulous detail. According to the CBI report, "The initials (in the dairies) corresponded to the initials of various high-ranking politicians, in power and out of power, and of high-ranking bureaucrats". When no follow-up action was taken by CBI for nearly three years, a journalist named Vineet Narain filed a public interest litigation (PIL) under Article 32 of the Indian Constitution.

As luck would have it, this PIL case - by now famous as the "Jain Hawala Scandal" - landed at the table of J.S. Verma, one of the most respected judges of in India (now, alas, no more). In his judgment (1997), it was ruled that "superintendence over CBI's functioning" would be shifted from the line ministry to an independent statutory body, the Central Vigilance Commission (CVC).

CVC was now directed to "review the progress of all cases moved by the CBI for sanction of prosecution of public servants which are pending with the competent authorities, specially those in which sanction has been delayed or refused".

Seen in this context, its hardly surprising that the Supreme Court is doubly upset with CBIs and the government's handling of the Coal Scam investigations.

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REFERENCES & LINKS

* Mehta, Pratap Bhanu (2013): PHANTOM DEMOCRACY, Indian Express, 9May13 -- http://www.indianexpress.com/news/phantom-democracy/1113222/0#sthash.mwGBqsLE.dpuf

* Supreme Court Judgement - Vineet Narain Case - http://cbi.nic.in/dop/judgements/excrpts.pdf

* PTI (9May) - Coalgate: CVC seeks report from CBI on Centre's interference in probe --- http://www.thehindubusinessline.com/economy/coalgate-cvc-seeks-report-from-cbi-on-centres-interference-in-probe/article4699127.ece

* Reuters (9May) - Government meddled in CBI probe, says Supreme Court -- http://in.reuters.com/article/2013/05/08/india-politics-cbi-coalgate-idINDEE9470DZ20130508

* http://en.wikipedia.org/wiki/Hawala_scandal
* http://en.wikipedia.org/wiki/Jagdish_Sharan_Verma


Monday, November 07, 2011

Reliance and a Weak State

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I just finished reading Hamish McDonald's acclaimed book, "Ambani & Sons -The Making of the World's Richest Brother's and their Feud". Its an amazing piece of work.

It is surprising that it took an Australian journalist to dig out murky details of corporate India and present it in such an eminently readable form. On the other hand, perhaps this is something only a foreigner could do: cutting through entrenched biases of individuals and holding up a mirror to demolish self-serving myths of an emerging nation; acting like the little boy who shouted, "But the Emperor is naked!"

Yet, the author could hardly be called a neutral observer presenting the facts - he is self-serving too, in his own way. McDonald is meticulous while naming the numerous politicians & bureaucrats who were in cahoots the Ambani's during the period 1977-2009. At the same time, when it comes to folks of his own ilk - journalists - MacDonald is more coy. Instead of naming the Indian journalists who systematically planted stories and subverted the truth for three decades, he repeatedly refers to them as just the "dirty dozen".

In the final analysis, McDonald quotes Gurcharan Das to conclude that -
A large part of the problem might be cultural: a 'bias for thought against action', or that bureaucrats 'value ideas over accomplishment'...The Indian state no longer generates public goods. Instead it creates private benefits for those who control it.

Some of the most important post-1991 reforms succeeded because of the regulatory institutions established by the state. While India needs entrepreneurs like Mukesh Ambani, it also needs a much stronger state to apply rules against any abuse of market power. Businessmen will do what they can get away with...A strong state should devote more resources to relevant and updated policies, better revenue collection and accountability and effective policing of rules, rather than persisting with so much effort in micro-managing affairs. It should strengthen its bureaucracy, not with great powers but with better resources, education and discipline so as to be truly the 'steel framework' that Nehru envisaged, or the rule-keepers prescribed by Hayek.
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LINKS / REFERENCES

Das, Gurcharan (2006): The India Model, Foreign Affairs (Jul., 2006), Reprinted in NYT. URL - http://www.nytimes.com/cfr/world/20060701faessay_v85n4_das.html?pagewanted=all

Cream Weaver: Review in the Outlook (Oct., 2010) URL - http://www.outlookindia.com/article.aspx?267219

Review at CNN-Go, URL - http://www.cnngo.com/mumbai/shop/ambani-sons-available-india-now-sold-out-383418