SAY

NO TO

CORRUPTIONCORRUPTIONCORRUPTIONCORRUPTIONCORRUPTIONCORRUPTIONCORRUPTIONCORRUPTION

AND

PRICE RISEA A A A SamudaayaSamudaayaSamudaayaSamudaaya CampaignCampaignCampaignCampaign

Adarsh, Satyam and Common Wealth!

What virtuous names for vicious scams!

Spate of corruption scandals2G Spectrum : Rs. 1,76,000 cr.Commonwealth : Rs. 58,000 Cr.Mining Scandal : Rs. 22,000 crLand Scams : Rs. 17,000 cr

Spate of questions ? Why so many scams ? Why so frequent ? Why a massive increase in quantum ? Why denials ? Why cover-ups ? Why has it become acceptable? What has brought us this far ? Why the media is ineffective ? Why the silence on corporates ? Why should we take this lying down ?What the corruption has got to do with Price Rise ? What can we do ? Why ?...What ? /.How ?..

India is the only country withAnnual GDP Growth 8 %Dollar billionaires (49 spawned in one decade) 54GDP share of Dollar billionaires 31 %Population below offiicial poverty line 48%Population spending Rs. 20 (half a $) per day 77 %Population chronically hungry Rs. 23 CroresStunted children (under 3 years) 38 %Anemic children (under 3 years) 79 %Anemic pregnant women 58 %

Vegetable Price Rise reminding IPL Auction !Vegetable Price Rise reminding IPL Auction !Vegetable Price Rise reminding IPL Auction !Vegetable Price Rise reminding IPL Auction !

• Vegetable price increase 67% in 9 months • Onion prices jumped from Rs. 80 to Rs.110 this Jan• Petrol prices hiked 7 times since deregulation• Speculation in essential commodities

=1.5 times budget• corporate share in food retailing tripled in past 4

years

“

• Onion symbol of food inflation of 2011, as Sugar in 2010• Waiting for 8th oil price hike for state elections to be over !• Food Price increase at 2011 Jan at 18.32 % above 2010 jan

level (2010 was the worst year for food price increases

• month on month food increase also above 9% most part of 2010 touching 11 in Nov 2010

Retail Price Rise (per kg) in Karnataka (in last one year)

Apr 2010 Max

Onion Rs. 11 Rs. 65 (Dec 10)Tomato Rs 14 Rs. 45 (Dec 10)Potato Rs. 12 Rs. 22 (Dec 10)Groundnut oil Rs. 64 Rs, 80 (Jan 11)Urad Split Rs. 73 Rs, 80 (Dec 10)(GoI data at NIC website)

Corruption has always been around, everywhere !

…….Major Scams since 1947

1948-1991 (in crores of Rs)Mundhra Scandal 1957 1.2Dhamateja Loan 1960 22.0Kairon (Punjab CM) 1963 NABiju Patnaik (Ors CM) 1963 NAKuo Oil Deal 1976 2.2Antulay Trust 1981 30.0HDW Commissions 1987 20Bofors Pay-off 1987 64Bofors Pay-off 1987 64

1992-1998 (in crores of Rs)Harshad Mehta Security 1992 5000

Indian Bank Rip-off 1992 1300Sugar Import 1994 650Vote for Notes - 1 1995 ?00MSShoes Share Price Rig 1994 699Bihar Fodder Scam 1996 950Urea Import 1996 133Hawala Jain Diary 1996 ?00Bhansali Financial Pyramid 1997 1000Harshad Mehta Share Price Rig1997 ?000Sukharam Telecom 1997 1500

Companies Vanishing Post-IPO 1997 330Teak Plantation 1997 2600

And some more! Scams have never been in short supply here

1999-2004 (in crores of Rs)Mobile License Policy Change 1999 46,000

Modern Foods Privatisation 2000 2,050BALCO Privatisation 2001 4,050Ketan Parekh K-10 Scrip Rig 2001 1,250UTI Collapse 2001 4,800

Dinseh Dalmia 2001 595Stock Market collapse 2001 1,15,000Wheat Import 2003 10,000NICE Land Grab 2004 10,000Karnataka Land Scam – 1 2004 1,550Karnataka Land Scam – 1 2004 1,550

2005-2011 (in crores of Rs)IPO-Demat 2005 146

Taj Corridoor 2006 175Satyam 2008 10,000Army Ration pilferage 2008 5,000Rice Export 2009 2,500Madhu Koda Jhrakand Mine Lease 2009 4,000Orissa Mine Lease 2009 7,000Karnataka Illegal Mining 2009 22,000

Operational Lotus 2009 ?,000Karnataka Land Sacm - 2 2009 5,800

Vote for Notes - 2 2010 ??,000Commonwealth Loot 2010 58,000Resort Politics 2010 ??,0002G Spectrum 2011 1,76,000Hassan Ali Tax evasion 2010 89.000

Scams increased in torrents Scams increased in torrents Scams increased in torrents Scams increased in torrents

after Economic Reforms after Economic Reforms after Economic Reforms after Economic Reforms in 1991 in 1991 in 1991 in 1991 Period/

YrsNumber of Scam loot

(in Rs. Crores)Remarks

Resignations

Convictions

Major Scams

Typ Max Tot

1947-199045

5(2+3)

5 8 Tens 64 150 rot reaches PM

1991-19988

3(2+1)

3 13 Hundreds

5,000 25,000 PM is accused

1999-20046

0 2 10 Thousands

1,15Lakh

2lakhs

No arrests

2005-2010 1 1 15 Ten 1,76 4 Denials till FIR;

• Major scam occurances gone up from 1 in 6 years to 1 in 6 months

• Scams are direct result of economic reforms in 1990s unleashed by Manmohan Singh and later accelerated by Vajpeyee and Dr. Singh’s regimes

• Scam size grown in torrents from tens to hundreds, thro’ thousands to lakhs of crores in the 4 phases

• Resignations , arrests and convictions reduced to trickle and cases are delayed indefinitely

• Scam has reached top echelons of Politicos, Bureaucracy, Army, Industrialists and Judiciary too

2005-20106

1(1+0)

1 15 Ten thousands

1,76Lakh

4lakhs

Denials till FIR; Arrests in 4 cases

COMMONCOMMONCOMMONCOMMONWEALTHWEALTHWEALTHWEALTH GAMES GAMES GAMES GAMES LOOTLOOTLOOTLOOT Rs. 58,000 Cr.Rs. 58,000 Cr.Rs. 58,000 Cr.Rs. 58,000 Cr.

• Every Every Every Every concievableconcievableconcievableconcievable trick was used to loot trick was used to loot trick was used to loot trick was used to loot ---- overcharge, fake overcharge, fake overcharge, fake overcharge, fake front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender,

Original Estimate Rs. 617.5 Crores

Cost of Commonwealth Games

2002 (UK) : Rs 2,100 crores2006 (Australia) : Rs 5,000 crores2010 (India) : Rs 60,000 crores!!!2014 (UK,estimated) : Rs 2,200 crores!

Every Every Every Every concievableconcievableconcievableconcievable trick was used to loot trick was used to loot trick was used to loot trick was used to loot ---- overcharge, fake overcharge, fake overcharge, fake overcharge, fake front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender, front companies to cover up nepotism, no or single tender,

• 90% of infrastructure cost was looted90% of infrastructure cost was looted90% of infrastructure cost was looted90% of infrastructure cost was looted• Every Every Every Every concievableconcievableconcievableconcievable item was overcharged item was overcharged item was overcharged item was overcharged –––– from toilet paper, from toilet paper, from toilet paper, from toilet paper, transport to stadiatransport to stadiatransport to stadiatransport to stadia

• Org Com violated all conceivable norms to loot and coverOrg Com violated all conceivable norms to loot and coverOrg Com violated all conceivable norms to loot and coverOrg Com violated all conceivable norms to loot and cover----up the up the up the up the loot and violationsloot and violationsloot and violationsloot and violations

• Consistent bad quality and horrible delays also did not wake up Consistent bad quality and horrible delays also did not wake up Consistent bad quality and horrible delays also did not wake up Consistent bad quality and horrible delays also did not wake up the authoritiesthe authoritiesthe authoritiesthe authorities

• All antiAll antiAll antiAll anti----corruption checks failed to detect, prevent the corruption checks failed to detect, prevent the corruption checks failed to detect, prevent the corruption checks failed to detect, prevent the malafiedmalafiedmalafiedmalafied action of OC and its coterieaction of OC and its coterieaction of OC and its coterieaction of OC and its coterie

• All bodies above OC including Central Govt. denied any All bodies above OC including Central Govt. denied any All bodies above OC including Central Govt. denied any All bodies above OC including Central Govt. denied any wrongdoing till it was impossible to continuewrongdoing till it was impossible to continuewrongdoing till it was impossible to continuewrongdoing till it was impossible to continue

• Investigation, action to Investigation, action to Investigation, action to Investigation, action to presecutepresecutepresecutepresecute is also too less too lateis also too less too lateis also too less too lateis also too less too late

““““ The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased The Commonwealth Games were no showcase, but a mirror of India 2010. If they showcased anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society anything, they showcased Indian crony, casino capitalism at its most vigorous. To build such a society

and then expect The Games won't reflect its warts and sores is high optimismand then expect The Games won't reflect its warts and sores is high optimismand then expect The Games won't reflect its warts and sores is high optimismand then expect The Games won't reflect its warts and sores is high optimism…”P Sainath The Hindu 06 Jun 2010

2G Orgy 2G Orgy 2G Orgy 2G Orgy OfOfOfOf Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000

Why did we decide to audit ?

“In January 2008, Department of Telecommunications

issued 120 new licences for unified access services on the same day. These licences were issued at price which had been discovered in 2001. Issuance of 120 licences in just one day and at a price discovered in 2001 has drawn the attention of Media, Parliament and informed members of the civil society. Questions have been raised regarding the transparency in the allocation process and the failure in maximization of revenue generation from the allocation of spectrum, which is a national asset. This department had

““““Who says there was no auction in 2 G ? Who says there was no auction in 2 G ? Who says there was no auction in 2 G ? Who says there was no auction in 2 G ? There There There There

was in fact a successful auction of spectrum was in fact a successful auction of spectrum was in fact a successful auction of spectrum was in fact a successful auction of spectrum ———— only it was not conducted by only it was not conducted by only it was not conducted by only it was not conducted by the government but by its corporate sector cronies who made a fortune on the the government but by its corporate sector cronies who made a fortune on the the government but by its corporate sector cronies who made a fortune on the the government but by its corporate sector cronies who made a fortune on the deal. deal. deal. deal. Having been gifted that scarce publicHaving been gifted that scarce publicHaving been gifted that scarce publicHaving been gifted that scarce public----owned resource by the owned resource by the owned resource by the owned resource by the government, the cronies then auctioned it privately for astronomical sums of government, the cronies then auctioned it privately for astronomical sums of government, the cronies then auctioned it privately for astronomical sums of government, the cronies then auctioned it privately for astronomical sums of money ..Also auctioned alongside were the government's individual money ..Also auctioned alongside were the government's individual money ..Also auctioned alongside were the government's individual money ..Also auctioned alongside were the government's individual Ministers,postsMinisters,postsMinisters,postsMinisters,posts and integrity. and integrity. and integrity. and integrity. Two auctions for the price of Two auctions for the price of Two auctions for the price of Two auctions for the price of nonenonenonenone..” ..” ..” ..” P Sainath The Hindu Feb 21, 2011

spectrum, which is a national asset. This department had been receiving innumerable references from Members of Parliament and other sources repeatedly, questioning the

allocation process and the price fixed for such allocation/”from Executive Summary of CAG Report on 2G Spectrum

12121212----zero figure from Horse’s Mouth zero figure from Horse’s Mouth zero figure from Horse’s Mouth zero figure from Horse’s Mouth

Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000Rs. 17,60,00, 00,00,00,000

What CAG found on 2G Spectrum

(i) Gaps in policy implementation (ii) Telecom Commission

was not consulted (iii) Views and concerns of Ministry of Finance overruled (iv) Advice of Ministry of Law and Justice were ignored (v) Hon'ble Prime Minister's suggestions were not followed (vi) Arbitrary changes by DoT in the cut-off date. (vii) First Come First Served Policy was not followed (viii) Issue of license to ineligible applicants (ix) Presumptive value of spectrum allocated to 122 new UAS licenceesand 35 Dual Technology licencees in 2007-08 (x) Value of additional spectrum allotted to 13 existing operators beyondcontracted quantities

from Executive Summary of CAG Report on 2G Spectrum

CAG Formula vs. CAG Formula vs. CAG Formula vs. CAG Formula vs. KapilKapilKapilKapil SibalSibalSibalSibal FormulaFormulaFormulaFormula

2G and other Orgy Partners2G and other Orgy Partners2G and other Orgy Partners2G and other Orgy Partners

courtesy : courtesy : courtesy : courtesy : RadiaRadiaRadiaRadia TapesTapesTapesTapes

“The telecom, mining and oil

exploration policies were designed to benefit certain big

business houses and select

corporates. State policy has

brazenly become an instrument in

the process of accumulation of

capital..........The recent revelations

have confirmed the hard truth. The

prime minister presides over a

cabinet in which some are

advocates of certain business

interests and some are

Disclaimer: This maze is an Artist’s impression of 2G and other Orgy parties. Any resemblance with persons partying in public or private not

co-incidental, more likely to be factual.

interests and some are

businessmen themselves. A few are

lawyers who have represented the

very corporates with whom they

have to deal with in the portfolios

they look after. It is illegal money

generated by the corrupt big business-politician-bureaucrat nexus that is flowing into the political system and perverting

politics and democracy. There is a

direct link between this corruption

and the illegal money which is being

used on a large scale in elections..”

Prakash Karat .-CPI(M)

Karnataka Karnataka Karnataka Karnataka LandscamsLandscamsLandscamsLandscams

Land Scam in Karnataka has occurred in this decade in many forms• over – acquisition for development projects (e.g. NICE)• ‘fixed’ auction of govt lands at low prices, to ‘interested’

parties• Using discretionary powers for allocation to ‘interested’ trusts,

education institutions, mutts, companies, political favourites, education institutions, mutts, companies, political favourites, relatives, friends etc.

• De-notification of land • in the name of acquisition for SEZ from farmers• Handing over forest land to companies

• According to AT Ramaswamy committee that investigated first phase of Land scams (upto 2004 ?) about 41,000 acres of land in and around was scandalously grabbed

• NICE over-acquisition scam amonuts to more than Rs. 10,000 crores• Taking a conservative price of Rs. 1000/sq.ft. for land grabbed (41,000 acres)

works out to loot of Rs. 1550 Crores• Value of land grabbed by Yediyurappa family alone in and around Shimoga

alone, said to amount to Rs. 2000 Crores• Yediyurappa Govt has denotified at least 600 acres of prime land in and

around Bangalore, with a value of around Rs. 3800 crores• Lokayukta is investigating 18 cases of Land grab by CM Yediyurappa alone• Lokayukta filed an FIR and Urban Development Minister Katta had to resign

• Any time an FIR may be filed on CM in any of these cases

Karnataka Karnataka Karnataka Karnataka MinescamMinescamMinescamMinescam

Mining scam mainly consist of•Mining without required lease license• Extending license to adjoining areas, state also• Illegal transport, Export of minerals• Extortion from illegal mining companies• Tamper with land records to obfuscate borders and

illegal mining areas•Conduct mining with forged license papers•Using forest areas and free areas as dumping ground•Undervalue exports to a fromt company• Evasion of taxes on mining and exports

• Reddy brothers of Bellary owning Oblapura Mining Company are the major perpetrators

• Used their proximity with former AP CM YSR and current • Used their proximity with former AP CM YSR and current BJP govt to cover-up and carry on all illegal activitis

• 2003-04 to 2009-1010, a total of 304.91 lakh tonnes of iron ore had been exported without valid permits. 71.28 lakhtonnes was illegally exported in 2009-10 alone.

• the nominal value of the illegally exported iron ore from Karnataka comes to Rs 15,245 crore

• CEC appointed by Supreme Court has indicted OMC of Reddy brothers of most suspected scam methods listed above

• CEC has also indicted both state governments of allowing and conniving with illegal activities of mining companies

• ED has estimated IT evasion of at-least Rs. 86 croresusing undervalued exports to a front company

• Total estimated loot in mining scams is Rs. 22,000 crores• Supreme Court has banned mining in 19 mining leases in

Bellary area and exports .

KarKarKarKar((((natakanatakanatakanataka) Circus) Circus) Circus) CircusTAGS our LEADERS have earned us

• Karnataka seen as most corrupt states in India

• State ruled by real estate and mining mafia

• Fixing and toppling of Govt.s by the Mafia

• Operation Lotus to Resort politics, they've done it all

• Average rate of MLA around Rs. 50 crores

“Karnataka is on the path of becoming number one state in the country in corruption….”“Karnataka is on the path of becoming number one state in the country in corruption….”“Karnataka is on the path of becoming number one state in the country in corruption….”“Karnataka is on the path of becoming number one state in the country in corruption….”Prof. G Prof. G Prof. G Prof. G VenkatasbbayyaVenkatasbbayyaVenkatasbbayyaVenkatasbbayya veteran scholar veteran scholar veteran scholar veteran scholar ---- in the Presidential Address of 77in the Presidential Address of 77in the Presidential Address of 77in the Presidential Address of 77thththth Kannada Kannada Kannada Kannada SahityaSahityaSahityaSahitya ParParParParishathishathishathishath

Black Money Black Money Black Money Black Money ---- Swiss Banks, Swiss Banks, Swiss Banks, Swiss Banks, HawalaHawalaHawalaHawala and and and and MuttsMuttsMuttsMutts

• Corruption scams are not the only form in

which we are being looted by the rich and ugly

• Legal/Illegal Tax evasion, Black Money,

Hawala, Depositing black money in - Swiss

Banks and other tax havens, underworld and

religious mutts – are some other forms

• This rich and ugly brigade include politicians,

bureacrats, actors, industry captains, traders,

underworld dons

• Most of such money is earned in shady

activities and dealsactivities and deals

India is first among deposits in Tax havens, • over 3 times the 2nd and 3rd runner-up - UK

and Russia, • 14 times 4th and 5th Ukraine and China• India lost over $ 460 Billion (Rs. 21 Lakh

crores) since 1947 in illegal capital outflows• Losing Rs. 240 crores per day in illegal

outflows• India has a 74th place per Transparency

index even below Pakistan

Subverting Democracy Subverting Democracy Subverting Democracy Subverting Democracy ---- Bribing Voters to Fixing Bribing Voters to Fixing Bribing Voters to Fixing Bribing Voters to Fixing Govt.sGovt.sGovt.sGovt.s“ Electoral corruption has taken several obnoxious forms• funding of parties with black money by corporates

and underworld• Bribing of leaders for party tickets• Overspending on elections• Dubious means (e.g. Paid news) to cover-up

expenditure over legal limits• Bribing of voters in cash or kind (sari, liquor etc.)• Bribing of voters with post-election bounties• Bribing/Horse-trading, offering ministership/other

positions to MLA/MP to defect and manufacture majority

• Bribing for vote of confidence• Auction of ministry/ministers for highest bidder from

corporates

• It is said that • Rs. 50 -100 crores required for a ‘becoming’ a MLA• Rs. 500 crores required for a ‘becoming’ a MP

• In horse-trading for forming and retaining BJP government in Karnataka , price of MLA shot up from few crores to 50 Crores

• In 2009 Lok Sabha Vote of Confidence MPs were offered up-to Rs. 500 crores

• Hence MP/MLAs resort to massive corruption to recoup the expenditure, often even resorting to bribes for asking questions in LA or Lok Sabha and worse

• Upper House (Rajya Sabha) seats are being auctioned to corporate reps (e,g, Anil Ambani, Rajeev Chandrashekhar)

• They often serve in Committees/Task forces that have an impact on their business, in clear case of conflict of interest

corporates• Fixing of governments by likes of Amar Singh on

behalf of corporates like Tata-Ambani

ABC of Indian Media by P ABC of Indian Media by P ABC of Indian Media by P ABC of Indian Media by P SainathSainathSainathSainathThe dominant media are not pro-corporate or pro-big business. They are corporates. They are big business. Some have margins of profit that non-media outfits might envy. Mediacorporations are into hundreds of businesses beyond their own realm......

Advertising

Bollywood

Crime

CricketCelebrity

CORPORATE. . ... The Indian Premier League represents an advanced merger of corporate control, political power and

The media are mostly stenographers to power, not its banana peel. Especially to corporate power. The Radia tapes, whether in origin, content or fallout, do nothing to dampen that dictum..... If the Radia tapes show us anything, they show us again who runs this country. Corporates...... Given this long corporate-media jugalbandhi, should it surprise us that a lobbyist for two giant business groups is able to influence which story will appear on what page of which newspaper and even who will write it?

corporate control, political power and media stenography. The media cover the warts in that enterprise only when forced to by its internal feuds. Corporate bosses own cricket teams. The nation’s most loved sport stands privatised. Media companies own IPL teams too, or are their media sponsors. Political heavyweights are the big bananas in the IPL Republic. These links are structural and not about individuals....

Judiciary aids or abets corruptionJudiciary aids or abets corruptionJudiciary aids or abets corruptionJudiciary aids or abets corruption“

Judicial system that is expected to the watchdog to prevent and punish corruption is aiding or abetting high level corruption in many ways• Long delays in the judicial process• Many loopholes that aids powerful escape• Poor conviction rates, few instances of

powerful going to jail ( 11 Of 46 major cases since 1947)

• Some in judiciary has strong links with politician-bureacracy-business nexus

• Corruption in the judiciary at all levels• Corruption has reached higher echelons

of high and supreme courts also

Some of the instances of corruption at judiciary• A former chief justice of Supreme Court is accused of serous corruption,

apart from “judgement fixing” in many cases of major scams including Karnataka illegal mining scam

• Several High court justices (including Chief Justices) are accused of large scale corruption

• Many Justices have refused to voluntarily disclose their assets• Known Assets of many Justices indicate serious large scale corruption• Some of the cases in which alleged “judgement fixing” has taken place

include – Karnataka MLAs defection/disqualification

On the positive side, in 2G and Commonwealth scams judiciary

has shown exemplary commitment, that shown the possibilities

“...Our Republic will drown if corruption gains control of State power and lucre purchases that most important wing of the State. The judiciary. In these days of graft seeping into every corner of the nation, the risk of the poor perishing and the rich grabbing the nation’s resources is serious. To regain ‘self-rule’, it is not enough to mouth platitudes; a new do-or-die movement must be launched where all rogues, rascals and freeloaders are eliminated..... But in such a time of crisis, the former Chief Justice of India (CJI), KG Balakrishnan, has been accused of horrendous corruption.... Even more disgraceful is his refusal to step down as chairperson of the National Human Rights Commission (NHRC)... ..it is the prime minister’s job to show him the door without delay. ..”

Neo- Liberal(Package-3) :

Polcy fixing (New or Change) - Auction to highest bidder (open to Foreign Business also) – e.g. Telecom,

Sell/Lease Public Assets (Land, Water) – e.g. Landscams

Favored for Privatization of PSUs – e.g. BALCO + Package 2

Neo- Liberal-Accelerated (Package-4) :

Fixing Governments, Minister, PM, Cabinet etc. - Auction to highest bidder (open to Foreign Business and Govt. also) – 2G, Nuclear Deal

Sell/Lease Natural Resources (Mine, Gas/Oil, Forests, Spectrum ) – Landscams, Minescams + Package 3

2005-2011Neo-Liberal (Accelerated)

1999-2004 Neo-liberal

1991-1998Liberalization

Scam Package – 4: Typ scam 10,000s of Cr.s, Max Rs. 1.76 Lakh Cr.s,15 scams in 6 years, 1 in 5 months

Policies beget Scams - Evolution

Pre-Liberalization (Package 1)

Industry License; Exemptions, Incentives, Fiscal/Budget Policies

Govt Purchases, Contracts (e.g. Bofors)

Liberalization (Package-2) :

Fixing Sectoral Policy favorable to a Company (e.g. Import Excise policy on Petro products fixed in favor of Reliance ) + Package 1

Favored for Privatization of PSUs – e.g. BALCO + Package 2

1948-1991 Pre-Liberalization

Scam Package – 1:Typ scam 10s of Cr.s

Max Rs. 64 Cr.s8 scams in 44 years

1 in 6 years

Scam Package – 2 : Typ scam 100s of Cr.s, Max Rs. 5,000 Cr.s, 13 scams in 8 years, 1 in 7 months

Scam Package – 3: Typ scam 1000s of Cr.s, Max Rs. 1.15 Lakh Cr.s, 10 scams in 6 years, 1 in 7 months

Flowchart of Corruption Industry(Disclaimer : This is a picture of only a subset of respective segments. Does not mean whole segment is part of the industry)

Bureacracy

Policy-New/ Change,

Budget, Post Pliant

Offcrs, Remove non-

pliant offcrs,

oversee services

from Bureacracy,

Scam cover-up,

delay action

Deal to Fix Policy :

New/ Change,

Deal toFix Min, CoM, PM,

Black Money

Tax Havens

Electroral Corruption

License, Waivers, Exemptions,

Influence Ministers, Prepare

reqd docs, File pushing, Reveal

info, Sabotage investigation,

Weaken case in court

Party/ election Funds, Buy MPs, Fix Coalition

Pay-off, Kick-backs, Shares, Employ Relatives, Plum Position

delay action

Cabinet ofMinisters

When a person like him makes a statement, I think we should take him seriously," -Sharad Pawar

Banana republics are run on cronyism. People of great power wield great power, but people of lesser power or people who have

fallen out of power go to jail without adequate evidence or their

bodies are found in the trunks of cars. The danger is that you could

degenerate into that kind of atmosphere unless the necessary parts

of government play their role in upholding the law and fine, let no

one be above the law......So I think it can happen, I mean a Banana Republic kind of an environment could emerge, if we don’t put an end to this kind of thing and under the guise of freedom of speech or

the guise of many other numbers of so-called rights of democracy

abused, the luxury of a democracy.

Ratan Tata

It was gratifying to have the head of India’s most

Why Corruption ? Crony Capitalism !Why Corruption ? Crony Capitalism !Why Corruption ? Crony Capitalism !Why Corruption ? Crony Capitalism !

If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by If four public figures across the spectrum are agreeing..It must be true.. Corruption is caused by

NeoNeoNeoNeo----liberal policies liberal policies liberal policies liberal policies driven by and encouraging CRONY CAPITALISM !driven by and encouraging CRONY CAPITALISM !driven by and encouraging CRONY CAPITALISM !driven by and encouraging CRONY CAPITALISM !

Sharad Pawar head of India’s most reputed business house confirm the existence of

crony capitalism in the country. True, others have believed this for 20 years but it carries more weight when Ratan Tata says so. As he put it in a television interview with admirable candour: “Yes, I can see evidence of it. /” Gee whiz! It exists, after all.....Mr. Tata rightly warns us against becoming

a banana republic.....P Sainath

“In fact, every policy decision, or change in policy, in most of these

sectors are being made based on

the money which is handed out by

the consortium of Indian big

business and MNCs. Whole

institutions and state agencies are

suborned by big capital. India is fast

reaching the level of Thailand,

Philippines and Indonesia - all

countries which see the free play of

MNCs and crony capitalism...

Prakash Karat

APL, BPL and IPL APL, BPL and IPL APL, BPL and IPL APL, BPL and IPL incentiVesincentiVesincentiVesincentiVes for The rich and ugly, death Sentence for farmersfor The rich and ugly, death Sentence for farmersfor The rich and ugly, death Sentence for farmersfor The rich and ugly, death Sentence for farmers

• Corruption scams and illegal capital outflow are not the

only form in which the rich and ugly loot

• Govt. gifted away to rich and ugly Rs. 5 lakhs crores in

last budget, under just three heads - corporate income

tax, excise and customs duty by foregoing revenues (=2.5x

the 2G scam losses)

• Rs. 21 lakhs crores (or half a trillion dollars) is the legal

loot of rich in last 5 years (since 2005-06)

• It is also equal to the black money siphoned off since

1948. But this legal loot done in public in budget , has

equalled it in just 5 years

• The same budget cuts Rs. 5568 Crores from Agriculture

• While Food subsidy for the poor is being cut in the name of • While Food subsidy for the poor is being cut in the name of

APL and BPL, Super-rich Scandal-infested IPL is given IT

rebate

“If auctions are not taking place then what is the basis for

you to calculate a loss? ... We have a budget which gives

subsidy for food, Rs.80,000 crores per annum, some

people may say these foodgrains should be sold at

marketplace. Will we say then because they are not sold at

market prices, because you are giving them a subsidy, it is

a loss of Rs. Rs.80,000 crores?

Firstly, he equates plunder with the pathetic subsidies tossed at the world's largest hungry population. We rank 67th out of 84 nations in the Global Hunger Index. Secondly, subsidies for the super-rich soar each year. While food subsidies for hundreds of millions were cut by Rs. 450 crore in the last budget.

““““MeraMeraMeraMera BaapBaapBaapBaap Ka Ka Ka Ka SapnaSapnaSapnaSapna........SabSabSabSab ka ka ka ka MaalMaalMaalMaal ApnaApnaApnaApna””””Ambanis dizzying growth(RIL – primary arm of Ambanisonly, not counting Anil’s empire)

1980 Rs 212 Cr (Tot Inc)1985 Rs 744 Cr (Tot Inc )1991 Rs 1,944 Cr (Net Worth )1995 Rs 8,405 Cr ( Net Worth)2000 Rs 23,024 Cr ( Turnover)2005 Rs 89,124 Cr (Turnover)2010 Rs258,651 Cr (Turnover)Profits of Ambanis grown• 16 times in 1980s• 8 times in 1990s• 7 times in in this decade

Mera baap ka sapnaSab ka maal apna

•Ambanis practised the worst form of crony capitalism and been the prime drivers of Neo-liberal policies that are responsible both for Corruption and Price Rise• UPA and NDA and other regimes have been pliant to Ambanis•Ambanis had a big role in 2G scam, fixing Telecom & Oil ministers•Ambani stranglehold on Energy policy has direct impact on price

rise• Turnover has grown > 10 times in

this decade• Networth increased in 90s 12 times• Total income increased in 80s 9

times• growth in 80s due to ‘fixing’ of yarn

customs, excise, import-export duty policies• growth in 90s due to PSU

Mera Sapna

Sab ka Apna

R”…”…”…”… It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the It wasn’t long ago that a whole session of Parliament went by in just debating the dispute between the AmbaniAmbaniAmbaniAmbani

brothers. A private spat over a publicbrothers. A private spat over a publicbrothers. A private spat over a publicbrothers. A private spat over a public----owned resource called natural gas. Oddly enough, Parliament has never had a owned resource called natural gas. Oddly enough, Parliament has never had a owned resource called natural gas. Oddly enough, Parliament has never had a owned resource called natural gas. Oddly enough, Parliament has never had a

whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas, whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas, whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas, whole session focussed on agriculture. Not even through the sector’s worst crisis in the past decade. Whether it is gas,

spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation spectrum, or mining, luxury private townships or other dubious land deals, the last 20 years have seen the consolidation

of corporate power on a scale unknown in independent India.of corporate power on a scale unknown in independent India.of corporate power on a scale unknown in independent India.of corporate power on a scale unknown in independent India....”...”...”...”

• Handing over a national asset -Krishna Basin – for a song to Ambanis

• combined with therir entrenched position in oil, virtually makes energy sovereignity to Ambanis

• growth in 90s due to PSU Privatization, diversification into oil refineries, telecom• growth in this decade due to growth

in Telecom, diversification into Gas, Retail etc.• In every diversification policies fixed

to Ambanis advantage

Price Rise and Government PoliciesPrice Rise and Government PoliciesPrice Rise and Government PoliciesPrice Rise and Government Policies• Price rise is neither market nor natural

phenemenon• It is caused or affected by delibarate Govt policies• It can also be prevented or fought by right policies

unprecedented price rise in last few years are caused by Neo-liberal policies• Oil Price de-regulation• Allowing Commodity forward trading• Allowing 2.5 times excess stocking in Govt godowns• Dismantling of PDS in the name of targeting • Corporate takeover of retail (including food)• Reducing role of public agencies in commodities

wholesale trade• Import-Export policies of essential commodities• Cut in subsidies to agriculture inputs making it unviable

Policies that can fight and prevent price-rise• Ban speculative and forward trading in essential commodities• Use excess foodgrain stock for universal PDS• Remove Ad valorem tax on petroleum products • restructure tax system and reduce drastically Rs. 30 of indirect

tax on petroleum• Ban corporate and FDI entry in food retail• Import-export policy that encourages production and reduces

domestic prices• Comprehensive policy to make agriculture viable

• Restore subsidies for agriculture inputs• Priority lending at 4 % interest• Procurement prices that encourage producers• Other policies recommended by National Commission on

Farmers in the wake of widespread Farmers suicide

• Cut in subsidies to agriculture inputs making it unviableAlso not fighting following with right policies• Commodity speculation • Hoarding and black-marketing

Corruption, Price Rise and usCorruption, Price Rise and usCorruption, Price Rise and usCorruption, Price Rise and us

• Unprecedented levels of both Corruption and Price Rise - are

caused and encouraged by neo-liberal policies

• Neo-liberal policies are being driven and encouraged by Crony Capitalism that is growing rapidly in the last 20 years of so called ‘Economic Reforms’

• Both are symptoms of a system• need to overhaul of the system to

eradicate them

2G scam losses = 1.76 lakh crores= 2 years of cost of universal PDS= 5 years of RTE implementation

Commonwealth scam = 58,000 Crores= 2 Lakh Primary Health Centers= 12 lakh low-cost houses= 1 lakh PHC + 6 lakh houses

Tax Concessions to Rich in 2011 budget= 1.20 lakh crores= I year of REGA like program + 1 year RTE impl= 2 Loan waiver schemes

Revenues Foregone per 2011 budget= 5 lakh crores (corp IT+ Customs+ excise) = 2 years of (universal PDS + REGA like program + Loan waiver schemes + RTE program)

eradicate them

Instruments to fight CorruptionInstruments to fight CorruptionInstruments to fight CorruptionInstruments to fight Corruption

Our constitution provides for several instruments to fight corruption

CAG : Comptroller and Auditor GeneralCBI : Central Bureau of InvestigationJAC : Joint Accounts CommitteeJPC : Joint Parliamentary CommitteeCVC : Chief Vigilance CommissionerActs like FEMA, Prevention of corruption, Money Laundering

LokayuktaRight to Information ActPublic Interest Litigation

• But most instruments (e.g. CAG, CBI, JAC, JPC) are meant to be used by the Executive to investigate cases

• Hence will of Executive is must to use them• Pressure for Executive to use them have to

come from MP/MLAs or Media• Citizens have very few instruments to fight

corruption (Lokayukta, Right to Information Act, Public Interest Litigation)

• Some of them are not available in all states (e.g. Lokayukta, CVC) or centre (Lokpal)

•

Public Interest Litigation

• Effectiveness of most of the measures have been pathetic in major scams as shown by rate of conviction (6 Out of 38 Major cases since 1991)

• At best, there have been political ‘sanyas’• Bureacracy is rarely even accused and never

convicted or punishedSome of the famous acquittals or no-actions• Bofors, Karnataka Landscam, Karnataka

Minescam, HDW, BALCO privatisation, Vote for Notes-1, Vote for Notes-2, Operation Lotus

Some of the reasons for ineffectiveness• Lack of will, commitment from Executive

Effectiveness of Anti-Corruption Measures

• Lack of will, commitment from Executive • Lack of urgency in taking cognizance of the

scam• Political/Bureacratic intervention in the

investigation and later phases• In-ordinate delay in investigation, proceeding

and prosecution• Witnesses turning hostile due to inducement,

pressure or threat• Destruction of evidence by powerful accused

often in connivance with business-bureacracy-political nexus

• lack of deterrent punishment

“

• Political parties who play a major part in creating pressures on Executive not shown the will to act on corruption and price-rise

• Bofors has been a case that despite its political importance, govt.s of alternative political alliances led by Congress & BJP have not shown political will to take it to its logical conclusion

• Hawala Diary case where politicians from both alliances (led by Congress & BJP) were involved was buried

• Frequent noises at election time about Black Money, Swiss bank deposits similarly has not seen follow-up from both

Political will to fight Corruption

seen follow-up from both

• Radia tapes and wikileaks have exposed the nexus of all political parties (with the exception of left) with Indian & Foreign Business, Foreign Govt,s, Bureacracy

• Similarly published assets and its growth after a term (in govt or opposition) of candidates of various political parties (again with exception of left) have shown the corruption of political parties

• Enthusiastic support to neo-liberal policies (again with exception of left) have shown their lack of will to fight unprecedented levels of corruption and price-rise

Is Jan Is Jan Is Jan Is Jan LokpalLokpalLokpalLokpal Bill beBill beBill beBill be----all of fight against Corruption ?all of fight against Corruption ?all of fight against Corruption ?all of fight against Corruption ?•“ Anna Hazare’s fast for pressing for Lokpal Bill has galvanized the people expressing the frustration against denial, inaction in the face of massive corruption, • Demanding participation of civic society in drafting bills of importance also is a positive development,•But many aspects of Jan Lokpal Bill proposed and the nature of some elements trying to control the movement raises many serious issues

Few other weaknesses also are noteworthy

• Jan lokpal bill as a be-all of anti-corruption measures

• Apolitical and ignoring of all parliamentary institutions

• Narrow definition of corruption

• Lack of understanding of the root of problem – crony capitalism and neo-liberal policies

“.....proposed Lokpal has the makings of a super-monster. By absorbing all existing anti-corruption agencies, the Lokpal will have complete powers of independent investigation and prosecution. It will be an institution with overriding powers — but without anyaccountability. As such, ........ If the Jan Lokpal is to live up to its jan character, its authoritarian and centralised structure should be dispensed with and it should be turned into an instrument of people's empowerment. ..” Prof K N Panikker

We pledge to have We pledge to have We pledge to have We pledge to have

ZERO tolerance for Corruption and PriceZERO tolerance for Corruption and PriceZERO tolerance for Corruption and PriceZERO tolerance for Corruption and Price----RiseRiseRiseRiseWe PLEDGE TOWe PLEDGE TOWe PLEDGE TOWe PLEDGE TO1. Have ZERO tolerance for corruption at high places and price-

rise2. If we see, hear corrupt practices, we will speak out3. Support and protect whistleblowers against corruption in all

organizations including corporates4. Use RTI to expose corruption in all organizations5. Refuse to sell vote for notes or other allurements6. Refuse to vote to a candidate whose assets significantly

increased after a term7. Utilize all avenues to participate in policy-making and

oversseing of public programs

WE DEMAND WE DEMAND WE DEMAND WE DEMAND WE DEMAND WE DEMAND WE DEMAND WE DEMAND 1. A comprehensive effective Lokpal Bill by this August 15

drafted with public consultation2. Teeth to Karnataka Lokayukta including cabinet ministers in

the jurisdiction and suo moto powers3. Resignations of all accused in the recent scams - 2G,

Commonwealth, Karnataka Mine and landscams4. time-bound action and speedy conviction of accused in recent

scams5. RTI to be extended to private organisations including

corporates6. Protection of Whistleblowers Bill 7. Ban on Forward trading of essential commodities8. Reduction of indirect taxes on Petroleum products9. Strict action on Black-marketeers and hoarders of essentials 10. Universalisation of PDS

11. Implementation of Swaminathan Commission recommendations (2005) to make Agriculture viable

If we see, hear

anything about

CORRUPTION, we will speak out

SamudaayaSamudaayaSamudaayaSamudaaya grateful grateful grateful grateful lylylyly acknowldegesacknowldegesacknowldegesacknowldegesQuotes, Resources

Justice V R Krishna IyerProf. K N PanickerP SainathDr. Manmohan Singh Ratan TataSharad PawarPrakash Karat

India TodayOutlookFrontline

Cartoonist Cartoon Publisher

Mahamud Sudha, Prajavani, Deccan HeraldSatish Acharya Sunday MiddaySurendra The HinduKeshavR Prasad Mail TodayUnny Indian ExpressR K Laxman Times of IndiaRavishankar India Today

FrontlinePeoples DemocracyIDEASTransparency International CAGWikileaks

Ravishankar India TodayManjul DNARaghupathy Sringeri

Amul

Produced by Produced by Produced by Produced by Karnataka Raajya Samudaya Samanvaya Samiti , No.162 6th Main, 4th Phase 7th Block BSK 3rd Stage

Bangalore 560085. Ph.No.s 9449528643/9480148963/ 9844109706 http://samudaayacampaign.wordpress.com/

And many other And many other And many other And many other unknown unnamed unsung ones, unknown unnamed unsung ones, unknown unnamed unsung ones, unknown unnamed unsung ones,

including many including many including many including many Whistleblowers , Whistleblowers , Whistleblowers , Whistleblowers , who unearthed the scamswho unearthed the scamswho unearthed the scamswho unearthed the scams

And not to forgetAnd not to forgetAnd not to forgetAnd not to forget

GOOGLE GOOGLE GOOGLE GOOGLE who helped us discover many of themwho helped us discover many of themwho helped us discover many of themwho helped us discover many of them