Scenario E: Financial irregularities in infrastructure projects & sub-standard construction

on the contents of the information. 4) The PIO could consult his other colleagues who are party to the decision and take action as per their advice. Also please indicate (without necessarily restricting to the above options) what you would like to advise, giving proper reasons As a senior officer in the Finance Ministry, you have access to some confidential and crucial information about policy decisions that the Government is about to announce. These decisions are likely to have far-reaching impact on the housing and construction industry. If the builders have access to this information beforehand, they can make huge profits. One of the builders has done a lot of quality work for the Government and is known to be close to your immediate superior, who asks you to disclose this information to the said builder. 1)What are the options available to you? 2) Evaluate each of these options and choose the option which you would adopt, giving reasons.

farmhouse. He also suggests that he would facilitate the purchase of a big plot of land in your wife name at the prevailing rate which is very nominal, in and around the proposed mega road project. He also tries to convince you by saying that there is no harm in it as he is buying the land legally. He even promises to supplement your savings in case you do not have sufficient funds to buy the land. However, by the act of realignment, a lot of agricultural lands has to be acquired, thereby causing a considerable financial burden on the government, and also the displacement of the farmers. As if this is not enough, it will involve cutting down of a large number of trees denuding the area of its green cover. Faced with this situation, what will you do? Critically examine various conflicts of interest and explain what your responsibilities are as a public servant. In a modern democratic polity, there is a concept of the political executive and permanent executive. Elected people’s representatives forms the political executive and bureaucracy form the permanent executive. Ministers frame policy decisions and bureaucrats execute these. In the initial decades after independence, the relationship between the permanent executives and the political executives were characterized by mutual understanding, respect, and cooperation, without encroaching upon each other’s domain. However, in subsequent decades, the situation has changed. There are instances of the political executive insisting upon the permanent executives to follow its agenda. Respect for an appreciation of upright bureaucrats has declined. There is an increasing tendency among the political executive to get involved in routine administrative matters such as transfers, posting etc. Under this scenario, there is a definitive trend towards ‘politicization of bureaucracy’. The rising materialism and acquisitiveness in social life has also adversely impacted upon the ethical values of both the permanent executive and the political executive.

Subash is in regular touch with the Minister and is working various modalities of road construction project. Regular meetings, interactions and presentations are made by him to the Minister before a formal public announcement of the project is made by the Minister. Subash’s only son Vikas is in real estate business. His son from his own sources is aware that a mega road project is on the anvil and announcement in this regard is expected anytime. He is very keen to know from his father the exact location of the upcoming project. He knows that there would be quantum jump in the prices of land at the proposed location. Buying land at this stage at cheaper prices would pay him rich dividends. He is pleading with him (his father) day in and day out to share him location of the proposed project. He assured him that he would handle the matter discreetly as it would not attract any adverse notice as he in the normal course, keeps on buying land as a part of his business. He feels pressurised because of constant pleadings by his son.

As Administrative Officer, Rajesh is regularly interacting with his immediate boss, who is his reporting officer for writing his ACR. One day he calls Rajesh and wants him to buy computer-related stationery on priority from a particular vendor. Rajesh instructs his office to initiate action for procuring these items. During the day, the dealing Assistant brings an estimate of Rupees Thirty Five Lakhs covering all stationery items from the same vendor. It is noticed that as per delegated financial powers, as provided in the GFR (General Financial Rules) as applicable in that Organisation, expenditure for office items exceeding Rupees Thirty Lakhs requires sanction of the next higher authority (boss in the present case). Rajesh knows that immediate superior would expect all these purchases should be done at his level and may not appreciate such lack of initiative on his part. During discussions with office, he learns that common practice of splitting of expenditure (where large order is divided into a series of smaller ones) is followed to avoid obtaining sanction from higher authority. This practice is against the rules and may come to the adverse notice of Audit.