AntiCorruptionCommAnandDayal18Nov09

8/3/2019 AntiCorruptionCommAnandDayal18Nov09

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AMCHAMANTI CORRUPTION COMMITEE

Anand Dayal, ChairmanNew Delhi, 18 November 2009


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MEETING AGENDA

INTRODUCTION OF COMMITTEE MEMBERS

ANTI CORRUPTION LANDSCAPE IN INDIA

COMMITTEE GOALS SHORTTERM

LONG TERM

PLAN OF ACTION

LOGISTICS FOR CONDUCTING MEETING


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ANTI CORRUPTIONLANDSCAPE IN INDIA

Nature and causes of corruption in India

Areas of risk for US companies

FCPA proceedings involving bribery in India

Trends in India

Anti-corruption laws

Investigation agencies dealing with corruption Efforts to curb corruption

Dealing with extortionist government officials


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NATURE OF CORRUPTIONIN INDIA

Encountered by public in day to daydealings

Reported demands: 50% (under $ 100) 84% (under $ 5000)

General Mindset: bribe giver is victim

Motivation: avoid harm or disadvantage,rather than for gaining an advantage


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CAUSES OF CORRUPTION ININDIA

Administrative delays

Excessive burden of regulatory functions ongovernment

Government officials vested with personaldiscretion

Complex procedures in matters of importanceto citizens

As identified by Santhanam Committee


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CAUSES contd

Political patronage. Corruption in the politicalleadership

Administrative labyrinth. Cumbersome anddilatory administrative procedures

Lack of punishment. Corruption cases handled ina casual and clumsy manner

Social environment. Corruption accepted in thesocial psyche and behavior

As identified by Scholarly Literature


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AREAS OF RISK FOR U SCOMPANIES

Culture of acceptance of corruption

Excessive discretion in exercise of

governmental authority Pervasiveness of public sector in commerce

Compliance challenges due to legal and

regulatory ambiguity and inconsistencies Cash oriented economy


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FCPA PROCEEDINGS IN INDIA

Ten cases involving bribery in India 4 by DOJ Fraud Section

6 by the SEC

Many involve conduct of an Indiansubsidiary

Highest monetary penalty, $ 10 million

Disgorgement of profits and interest

Imprisonment (5 yrs) sought in one case

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TRENDS IN INDIA Transparency in government

Increased public awareness of rights

Emphasis on legal and regulatory compliance

Movement away from business model relyingon undue influence

Increased use of technology in dealing with

government (e-governance) Contract focus vs. relationship focus in business

Implementation of global best practices

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ANTI CORRUPTION LAWS

Prevention of Corruption Act, 1988

Prohibits the taking of a bribe or other gratificationby a public servant

public servant expansively defined

Central Vigilance Commission (CVC) charged withinquiring into and investigating offenses

Prosecution requires prior government approval

Imprisonment and monetary fines

State Lokayukta Acts and Rules


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INVESTIGATION AGENCIES

Central Vigilance Commission (CVC)

Central Vigilance Officer (CVO) at

undertaking level Central Bureau of Investigation (CBI)

Enforcement Directorate

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INITIATIVES TO CURBCORRUPTION

Right to Information Act, 2005

Government Whistleblower Resolution

National e-Governance Plan, May 2006

Transparency Efforts in Public Procurement Integrity pact between government department

and each bidder

E-procurement, listed as initiatives under

National eGovernance Plan CVC guidelines Preventive Vigilance in Public

Procurement

Defence Procurement Policy


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DEALING WITHEXTORTIONIST DEMAND

Positive Deviance Approach Have the courage to say NO and stand by it

Written policy not to engage in bribery Strict compliance with legal and regulatory

requirements

Make representation to higher authorities

Encourage and implement E-governance Reward ethical behavior within government


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GOALS TO ACHIEVE

Help US companies managelegal compliance challenges

Create a level playing field vis--vis local (domestic)

companies & other foreignMNCs


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THANK YOU

ANAND S. DAYAL

KOURA & CO, ADVOCATES

AntiCorruptionCommAnandDayal18Nov09

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