Saturday, February 13, 2016

corruption in Railways




                            Corruption in Railways
Union Minister Shri.Suresh Prabhu is very happy that he has introduced  e-tendering in Railway contracts.. When I met him on Dec ember 3rd, he listened to my criticism and at the end  gave me a booklet on his e-tendering initiatives and  said that would   curb corruption. This article is to tell you how misled he was.
          e-tendering will make  the contracts transparent  . Overpricing to cover bribes can be detected. To that extent, yes it is welcome. But corruption in Railways has several dimensions  outside the field of tendering, which cannot be stopped unless surgical measures are resorted to.
Member –staff ( Mahesh Kumar) of the Railway Board was asked to pay Rs.10 crores (  paid advance of   Rs.90 lakhs) to get the “lucrative “ Member Electrical post.  Except Mahesh Kumar’s suspension, and CBI chargesheet, nothing happened. It is business as usual in all departments.  
In the second biggest catch Railway Traffic   official Ravi Mohan Sharma was arrested on Oct.22, 2014  while accepting Rs.5 lakh bribe  from a tour operator for getting coaches for special train on priority. When CBI reached his house for raid, his relatives flushed out in the drain Rs.10 lakhs which CBI re covered.( Oct.25th IBN)
CBI is scanning several top officials. March13, 2014 ToI reports two  CBI enquiries on the Railway Board and  another  on  Rail Tel in giving mobile phones to employees. A multi-crore weighbridges scam  (22nd April IE. 2015).  and. a Rs.300 crore freight scam in  Tiruchirappalli Division (  June 11th, The Hindu,2015) are  being investigated.  While the former relates to under-reporting , the latter refers to fixing cheaper classification.   
. Central Vigilance Commission reports that in 2014 there is an 82% increase in corruption cases from 2013 and most of them were on Railways.( Aug.4th ToI, 2015)   
            Under the dual pricing system introduced in May-July 2008, the freight rate for transporting iron ore for non-domestic consumption was more than three times the fixed rate to transport coal for domestic consumption. Without getting   prescribed documents, the consignment was classified under domestic consumption category
In a report tabled in Parliament on  Feb.12,2014 , CAG said the railways lost revenue of Rs 2,487 crore   on this account, according to its audit conducted between May 2008 and March 2012. Additional loss of Rs.1796 crores was also reported during 2011-12..
The report said about Rs 15,500 crore was to be recovered as penalty and recovery from various iron export companies.
 It said lapses had occurred at all levels, including by the booking staff at loading-unloading points and commercial and account officers at the divisional and zonal levels. The “Railway Board failed to stipulate specific checks and balances for implementing their orders”, the report said.
In January 2007, East Central Railways had purchased 219 acres of land for about Rs 140 crore   without “any clear cut decision on utilisation”, the report said.  Of this, Rs 112 crore  was raised through a loan that resulted in interest liability of Rs 8.8 crore    
The report also  said 65 per cent of overhauled locomotives reported failure within three months of periodic overhauls. Bibek Debroy famously asked the question in his report, “Why do two thirds of locomotives develop problems within 6 months   of periodic overhaul? Why do two thirds of goods trains leave late because the locomotives are not available?”  No answers. There is a corruption story behind these two.  
According to CBI spokesperson   the Railway Board had prescribed that IRCTC shall provide Rail Neer at a rate of Rs 10.50 (approx) per bottle to the private caterers and the private caterers will be paid Rs 15 (approx) per bottle for supplying the same to passengers in premium trains. But the private supplies also procured   local cheap packaged water buying them at Rs. 5.70  to Rs.7  and sold them for Rs.15. Railways lost, supplier and officials gained.
 Despite repeated requests of IRCTC, the accused public servants did not take action against the private parties." .On October 16th, 205, CBI recovered Rs.20 crores in cash in a simultaneous raid  on 13 locations  and  the Rail Neer  scam was bust.
A road inside Tiruchirappalli junction was laid on 30-06-2012  and was  in tatters within 1 year. It is worse now.. It is a standing   testimony  to corruption by the DRMs who gave the  work order  for Rs.62  lakhs , signed the contract and satisfactory completion report.
How can e-tendering detect all these corruption ?  Mr. Prabhu must make the Railway men understand that Railways are not for Railway men and the public are  their paymasters, establish accountability at all levels, reduce the zones from 17 to 6, corporatize them,  appease unions by golden handshake, deflate the bloated bureaucracy, and above  all,   rid the Railway Board of  the Railway- employee Members.
 No Board of management in the World consists only of its employees as our Railways do.
                                                                   S.Pushpavanam consumerpc@rediffmail.com( 817)

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