Governance, T &A

Important aspects of governance, transparency and accountability,

Questions self framed -

1. What? And what is good governance? Is India witnessing Min Govt, Max Governance? What
measures?
a.
2. Best practices
3. Issues in India and why and solutions (reports reco?)
a. Corruption
i. What
ii. Why (PYQ)
iii. Solution
1. Lokpal issues (PYQ)
2. fd
b. Corporate governance in light of xyzzy (PYQ)
c. Transparency international india
i. 81st rank in 2018 report
ii. analysis of the results indicates that countries with the least protection to NGO and Press
have worst rates of corruption
d. Peoples participation vs effectiveness of govt (PYQ)
e. Transparency and Accountability
i. RTI and WBP (PYQ)
ii. PAC role in accountability (PYQ)
iii. RBI or other regulatory body accountability?
4. Model of governance in India
5. WF

Ethics Notes - Governance portion

• Bureaucracy - shortage of personnel, in mid and higher level (Baswan Committee Report (2016))
• ‘’The state comes into existence for the purpose of life and continues for the purpose of good life’’ -
Aristotle
•
 Social contract theorists said state’s existence is due to guaranteee to people more liberties, security
of life and laws made in participation
• Locke said govt is a trustee
• In the darkness of secrecy, sinister interest and evil in every shape has full swing - Bentham

Governance define -

Acc to World Bank - it describes the structures and decision-making processes by which authority in a state or
organization is exercised.

Stakeholders of Government ->

2nd ARC - Good governance means provision of public services in an efficient and equitable manner to
citizens -> basically means creating an environment in which all classes of citizens can develop to their
fullest potential.
Acc to UNDP it has following features -
 [To Learn (TL)] -

News
1. Rajasthan bill to shield public servants
2. Prevention of Corruption act amended
3. E Samiksha portal to monitor self targets of all ministries
4. 360 rating system introduced for bureaucrats
5. RTI changes to dilute CIC

Code of Conduct for MPs

Set of rules outlining proper roles and responsibilities for an individual.
Like RS, for LS also needed

Benefits for good governance -

• Improving productivity of the House by lowering disruption and unruly behaviour
• Better culture of the house restoring the dignity of the temple of democracy
• Appropriate communication - in times of debates etc
• Better legislative process
• Promoting democratic values
• Prevent any conflict of interest
• Increasing accountability and transparency in parliamentary processes
• Curb UnParliamentary conduct such as porn viewing + pepper spray use

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Panchayati Raj

• Art 40, 11th Sched and PESA

• 1993

Historical
• sabhas and samitis of Rig Vedic times followed citizen participation
• Glorious revolution gave power to people from kings - King’s divine right to right of citizens - LEX REX
• Weber concept of bureaucracy - most ideal and indispensable way to govern in modern times - but also feared
an ‘iron cage’ of rules based rigid order

Institutional mesh follows every new scheme!

Policy paralysis

We need more AMULs rather than APMCs (cooperatives rather than centralised)
Citizens anger - Anti corruption movement and Nirbhaya case

Citizen participation -

Push and pull factors -> Citizen in decision making (mohalla sabhas etc) + demanding information and
better services (c charter) + giving suggestions + holding govt accountable (elections etc)

1. Need for institutionalised mechanism

 a. 73rd and 74th C.A - //my suggestion -> have urban participatory bodies on the lines of Gram
Sabha
b. Pre-legislative scrutiny //my suggestion
c. Nagaland’s communitisation program
d. Meghalyas first social audit law
e. SMC in Schools Delhi
2. Physically challenged participation
a. Awareness generation of their rights
b. Make built environment to suit them
c. Persons with Disabilities Act - certain provisions should be made mandatory
d. 100% registration for early detection and care etc - fix responsibility on PHCs
3. Women participation
a. They are major stakeholders for e.g. water access in rural areas, education and health, family
planning
b. Due to socio economic factors they have difficulties in access to govt offices

Social audits

World Bank defines Social Audit as an in-depth scrutiny and analysis of the working of any public
utility vis-a-vis its social relevance

In india -
• Began from MKSS experiment aka Jan Sunwais in 1990s - Civil society - Nikhil Dey and Aruna Roy
of MKSS
• Social audit breakthrough in 2017, Meghalaya became the first State to pass and roll out a social audit
law to cover all departments.
• Office of CAG has formulated Social audit rules - first time in the world
• Scheme like MNREGA and NFS act provisions for social audit

Auto (C#)

Benefits - all communities have diverse needs so..+ funds leakage +

beneficiary identification + prioritises work + quality + x wastage + x
corruption

Importance: as steady devolution via 73rd act

 Limits (//step by step)- first awareness + illiteracy + trained auditors +
fake meetings + vested interests + x information

Local govt role in welfare

• Esp since subjects in 73rd and 74th CA
• Also, 14th FC recommends greater devolution downwards
• Design program acc to local needs
• Eg Social audit in MGNREGA

Information is to be proactively shared amongst people so that they can “ performance audit” a service or
programme, from planning, to implementation and evaluation. This is, however, easier said than done. An
independent facilitation structure needs to be set up, legally empowered. The relationship between the
powerful and the powerless has to shift from patronage to rights, and from inequality to equality

Decentralisation and delegation

• Subsidiarity principle- A principle which states that problems need to be addressed by the smallest local
institutions which can tackle them better than centralised political bodies because ownership of a problem is
believed to be greater. The central authority should only have a subsidiary function.
• Delegation -> entrusting ones authority to others but accountability remains
• Decentralization can be political, administrative and fiscal.

History of decentralisation

1. GoI Act 1919 transferred certain powers and functions to provincial govt
2. GoI Act 1935 more decentralisation
3. Constitution of India - 7th schedule
4. Art 40 paved mandated govt to hold village panchayats and endow them with powers and functions
5. 73rd and 74th were watersheds
a. women to have 1/3rd representation in local bodies. Articles 243A to Q, more than 1.27 mn women
representation due to this. Actual representation now is 43%. This is the fulfillment of Panchayati Raj.
More states are increasing reservation to 50%.

PRI + Lok Adalats - true empowerment

1. Have Lokadalats -> upto certain value cases to be referred here first
2. Time limit on redressal of complaints/put details of pending cases on website
3. Random inspection institutionalised rather than leaving on discretion of officers
Special institutional mechanism ->

NHRC, NBCC, NMC, NCST, NCW, National commission for protection of child rights

1. Single multi role commissions to be formed in smaller states

2. A separate standing committee of parliament to look after the reports by all these commissions
3. A common format to make complaints to various commissions

PRAGATI (proactive governance and timely implementation)

Objectives of grienvance redressal, timely implementation and IT based redressal and monitoring.

It will combine data management analysis, video conferencing and geo spatial application.

3 tier system - PMO, Union secys and chief secys.

Centralized Public Grievance Redress And Monitoring System (CPGRAMS) is an online web-enabled system over
NICNET developed by NIC

Lodha Committee Reforms in cricket became a beacon of hope for reforms in the sports for transprany, ethics and
sportsmen first (rather than politcians/bureaucrats etc). Committee of Administrators (CoA) led by Vinod Rai to
manage BCCI.

It might pave the way for similar reforms across all sports.

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- S.C has held that

• In 2016 it had held that armed forces could not escape investigation for excesses committed even in areas
where they enjoy special powers and that the legal protection given under AFSPA has to yield in front of human
rights.
• Accountability is an essential part of the rule of law - therefore extra judicial killings in Manipur cannot be let
off +
• NHRC has been made a ''toothless tiger'' - grossly understaffed and its guidelines are shown scant respect by
state govts.

Transparency and Accountability

+ vaji notes

2nd ARC
1. Citizen involved in planning, implementation and audit
2. Suggestion box in all offices and follow ups - rewards and incentives
 3. Participation of Women and the Physically Challenged
4. Randomly select units for inspection and put outcomes in public domain

RTI

+ Vaji

In Raj Narain vs Indira Gandhi case, SC laid down its foundation

2015 was 10 years to RTI enactment in 2005 -

50 lakh RTI every yr acc to RaaG

Success - 2G scam, Aadarsh Scams etc

BUT Rafale details have been rejected

Provides info access and sets up CIC/State IC -help against corruption/transparency + bad service delivery mech +
research;

Bad amendments in offing like mandatory RTI application + <90 days + withdrawal of appl.

Problem with RTI - WBP not enacted + Section 4 (proactive disc) + IC slow/no penalty + Pol parties/courts not
covered + Info not under RTI

Enacted to provide citizens access to info in control of public authorities to promote accountability and
transparency. 4-6 mn applications filed each year. It also set up CIC and State Info Commissions. RTI has been one
of the most empowering legislations- helped expose corruption like 2G, Adarsh etc and also address grievances in
the service delivery mechanism like ensuring attendance of teachers in village schools and used to ensure
transparency and carry out research.

Significant provisions:

1. Section 2 (h) defines public authority - In Subhash Chandra case even Political Parties deemed as
Public authority
2. Section 4: For proactive disclosure of imp info
3. Sect 8 (2) allows for disclosure irrespective of prohibitions like fiduciary capacity etc if the public interest is
greater than protected interests.

RTI Amedments in the offing (BAD) -

- Mandatory need of the RTI application to be attached to complain to the CIC (but if the PIO has not registered the
RTI in the first place then how will the RTI be attached to complain?)

- Can only file complains within 90 days of filing the RTI else request for extension and then only admissible.
- Provision of withdrawal of appeals based on written communication by the appellant and closure of proceedings
upon death of applicant- (will lead to PURGE)

Challenges and reco in Vaji

Note: Info not under RTI - National Security/sovereignty/economic interests/relations with foreign states/ law
enforcement and judicial process/cabinet and other decision making docs/trade secrets/individual safety and
privacy.

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Political Parties and Judiciary not under RTI

Pol Parties
• Substantially financed by exchequer under Sec 2(h) of Act
• Unknown sources - 69% (ADR)
• Corporate donation
• Foreign funding - now allowed with Finance Act 2016 earlier prohibited under FCRA
• Election expenses ballooning - election expenditure by parties was 1300 crore acc to ADR in
2014

Bringing Political Parties Under RTI

CIC Order

1. It ruled that political parties are public authorities under RTI.

2. The national parties should appoint mandatory information authorities.
3. They should also disclose information under relevant sections of RTI.
4. The decision would definitely have been encouraged by the trust deficit the general public has with
politicians and the political parties.

The Rationale Behind the Order

1. Political parties perform public duty.

2. Public funding
a. The act states that a non-government organisation substantially financed, directly or indirectly by
funds provided by the appropriate government, is also included in the definition of a public
authority.
b. They receive substantial public funding in the form of subsidised land and building, income tax
exemptions, free airtime on radio and TV.
3. Established by Election Commission
a.
 The Act of states that any institution can be declared a public authority if it is established through
the Constitution, legislative action or by notification by an “appropriate government”.
b. CIC interpreted the term appropriate government as the Election Commission whose registration is
needed for a political party to be recognized as such.
Order is Good

1. Transparency will increase the confidence of the people in public institutions. Citizens should have a
right to know about the political parties which run their government.
2. It will also strengthen intra party democracy.
3. It has been argued that political parties will now have to be accountable to the commission. The RTI is
a citizen empowerment tool, not a commission empowerment one.

Order is Bad

1. Issues in enforcement
a. There is limited scope for the enforcement of the penalty clauses.
b. The person who would be appointed as PIO would hardly be dependent upon monthly salary and
his work as PIO will not determine his career progression in politics.
c. Therefore, a maximum penalty of Rs 25,000 would hardly act as a deterrent. Nor will there be any
fear of jeopardising his career in politics.
d. If persons with criminal records are appointed PIOs, who will dare approach them for accessing
information.
2. Counter action by parliament
a. Parties may bring an ordinance or pass an act to overturn this order.
3. Impractical
a. RTI makes extensive demands on public authorities for not just financial transparency but also
transparency of decision-making and exercise of authority. In the case of political parties, financial
transparency must be separated from decision-making and other processes of a political party.
b. RTI, without accompanying electoral reforms, will adversely affect cash contributions or will further
discourage parties from reporting them.

RTI Ruling as a Window of Opportunity for Electoral Reforms

1. RTI, without accompanying electoral reforms, will adversely affect cash contributions or will further
discourage parties from reporting them.
2. If political parties are so vital to India's democratic functioning that they can be considered public
authorities, then it is only logical that the state should fund them in a befitting manner.
3. State funding will strengthen less wealthy but more worthy activists when they demand party tickets.
4. With regards to costs, state funding cost estimates have ranged from only Rs. 5,000 crores to Rs.
10,000 crores.
5. Further, parties should only be able to receive state funding if they meet some criteria of transparency
and accountability — this will spur them to improve their internal processes including record-keeping
and disclosure.
6. Germany provides parties matching grants, to the extent of the amount they raise from private
sources. It does not limit contributions or expenditure, and requires disclosure of only large donors.
 Over time, this has resulted in parties raising private funds mostly through small contributions and
membership dues.

Whistle Blower Protection Act 2014

whistle blowers - Satyendra Dubey, Manjunath Shanmugham

Act- inquire into public disclosures + broad definition of whistleblower + Conceal and Protect + CVC with civil court
powers + penalty for false complaint

Limitation - no anonymous complaint + only public servants + no incentives + no time limits so can harass + cvc
recommends only +

Also - Govt amendment to remove immunity under Off. Secrets Act + RTI-WBP common line + no enabling
provisions + CVC refers decision to authority

The Act provides a mechanism for receiving and inquiring into public interest disclosures by a competent authority
(CA) against acts of corruption, misuse of power/discretion, or criminal offences by public servants

• Disclosure till 7 years

• Central Vigilance Commission (CVC) is tasked with receiving complaints, assessing public disclosurerequests,
and safeguarding complainants
◦ CVC can seek help of CBI/police etc and has powers of civil court
CVC can only recommend action
• Broad definition of whistle blower going beyond govt officials to include other persons and even NGOs
• Has provisions to conceal the identity of the complainant else high penalty (even in malafide discolour cases)
and gives protection against victimisation to complainant or anyone who is assisting inquiry via police
protection and penalties on harasser -> 65 killed in the last few years for exposing corruption via info through
RTI
• False complaints

Instead of operationlising the act, govt has brought in amendments like -

• Removes immunity afforded to complainant from prosecution under the Official Secrets Act (imprisonment
upto 14 years) for disclosures made under WBP law
• It will bring the WBP in line with RTI but the two laws serve different purpose - Unlike the RTI Act, disclosures
under the Bill are not made public but in confidence to a high level constitutional or statutory
authority. Disclosures relating to corruption can't be made in 10 categories of info relating to economic,
 scientific interests and the security of India; Cabinet proceedings, IP etc. The Statement of Objects and
Reasons of the Bill states that the 10 prohibited categories are modelled on those under the RTI Act, 2005.
• Also, doesn’t contain the enabling provisions of RTI - wrt to 10 areas, can make info available if public
interest better served than protected interests and allowing for a two stage appeal mech against a
decision.
• A Competent Authority is required to refer a prohibited disclosure to a government authority for a final
decision. However, the Bill does not specify the minimum qualifications required or the process of
appointment

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Ashok Khemka

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Hawala - money transfer using brokers or hawaldars based entirely on honour system (no promissory instruments
exchanged)- bypassing of official exchange rates and taxation is a key feature. Its fast and convenient and charges
much lower commission rates than charged by banks.

Can be used to fund illegal activities and therefore it cracks down on it. Eg. On separatists in Kashmir which
received money from terror outfits.

Social Media's Role in Governance

- For interaction, problem solving and knowing issues of the masses. + Most youth on the platform

- Mann Ki Baat? (is it governance)

Accountability

+ Vaji Notes

NCRCW on bill consultation -

• draft bills should be subjected to thoroughand rigorous examination by experts and laymen alike