Decision making

• 1. Decision making Professional hazards R P Saxena Sr Professor EnggIndian Railway Institute of civil Engineering Pune [email protected]

2. DECION MAKING IN GOVT Officer are for Taking decisions Policy decisions Case to case decision Spl cases which are not coming within purview of policy Change in policy Decision to overcome a unforeseen situation 3. DECION MAKING IN GOVT ( CONTD) Stakes are very high in Govt decision at higher level Sanction of Project ,loan , restructuring etc Granting exemption & concessions Disinvestment Industrial houses are benefitted by thousands of crores by just tweaking in Govt policy Intense Lobbying for influencing policy decison Every decision benefit/ Annoy somebody either you or your rival 4. DECISION MAKING Decision making is biggest cause of vigilance complaints Professional hazards for decision maker No decision making ..no complaints .. Dangerous for Govt Policy paralyses So what to do? Do nothing.? 5. DO NOTHING IS VERY DIFFICULT 6. PSYCHOLOGICAL FEARS IN DECISIONS MAKINGAgencies waiting with net to catch Account Vigilance Audit CBI To assist all above agency ,there is RTI - 7. IT MAJOR WIPRO'S CHAIRMANAZIM PREMJI SAID FEW DAYS BACK "complete absence of decision making" in the government is the biggest concern for the country and warned that growth would suffer if prompt corrective action is not taken."I think the biggest concerns are governance issues... complete absence of decisionmaking in the government...", 8. DISADVANTAGE OF DECISION PARALYSIS Environment of fear and suspicion is detrimental to any government efforts to be investor friendly, Investor will be reluctant No new investment .. No growth Paralysis in Govt 9. WHAT DECISION MAKERS WANT If we don't act, we are labelled obstructionist and red tape. If we meet investors and factor in their inputs in our policies or decisions, even without malafide intent, we are labelled corrupt. How can we work like this? Bonafide actions, taken in national interest, even if they are proved incorrect later, must not be questioned unless malfeasance is proved, present situation will bring all decision 10. ENVIRONMENT OF FEAR SUSPICION This environment of fear and suspicion is detrimental to any government efforts to be investor friendly I am Safe ( no longer ) "If I could be dragged out of my retirement by CBI for something I did a decade ago, then Iwill never feel safe from such persecution till the time I die, No agency question indecision orthe cost of not taking decision . "So it's best not to take decisions it's better than my grandchildren seeing me in prison." 11. THE ROLE OF THE CIVIL SERVANT IN CONTROVERSIAL GOVERNMENT DECISIONS. starting with the CBI booking ex-telecom secretary Shyamal Ghosh, then ex-coal secretary HC Gupta and now PC Parakh, Acting on oral instruction of political boss Owning up of responsibility for a decision.(commendable PM in coalgate) Whether any quid pro quo between the decision-maker and the beneficiary, and establish any loss caused to the public exchequer from the decision 12. IMPORTANT ASPECTS IN ANY DECISION whether the Coal Secretary fell in line after he had been spoken to by the PMO, or whether he was coerced. Equally important is whether he had brought on record any oral instruction received from the PMO. , and whether this was a case of the PMO simply overturning the Secretarys recommendation and taking its own decision. whether the Prime Ministers ultimate approval was communicated in the form of a speaking order 13. CONCERN OF HONEST OFFICERS CBI should not draw hasty conclusions Reputation of an officer built over decades is involved when investigating ordered or FIR registered One has to take many decision in his service ..if one decision is considered wrong at later date .? Should he be hanged ? 14. CBI IS FOR DISHONEST PEOPLE DIR CBI sizeable number of officials who are willing to crawl before the political executive for receiving out-of-the way benefits, including a post-retirement job. A few have also been suspected of feathering their own nests, either on their own or in collusion with a minister. This small coterie which has to be scared of the CBI, and not the upright one. 15. NO FEAR FOR HONEST OFFICERS-CBI DIR An honest officer need have no fears. It is the one who does not put down his note in clear language, especially when an improper demand is made on him by his Minister, who usually comes to grief. It is necessary is to leave a note on file why an earlier decision was being replaced or modified. Always place ones stand in writing in a file, however distasteful the opinion, It is the best way to deal with a dishonest Boss and handle any future CBI enquiry with a clear conscience. 16. PROTECTION AVAILABLE FOR GOVT OFFICER No cognigence of any offence under Pc act without prior Govt sanction No investigation under PC act for officer at Joint secy level & above No investigation for Anonymous complaint No investigation for named complaint but could not be verified ( pseudonymous) 17. PROTECTION AVAILABLE FOR HONEST OFFICER Anonymous complaint used to delay promotions Public interest disclosure & protection of informer Resolution 2004 2010-All complaint against Senior officer secretary & above including CEO or directors of PSU should be first referred to cabinet secretary for placing before group of secretary before investigation starts 18. No protection to Retired officer They can be investigated for their action when was in service without protection No one can stop complaints , enquiry & resultant harassment but if you have written rational behind your decision , final out come will be in your favor 19. PROFESSIONAL HAZARDSDuring course of duty , an officer is exposed to situation where several vested intrests are involved & his decision affect adversally some body or other .Such disgrunteled element try to level score with such officer by reporting various action either to vigillence or to CBI This results in many false complaints against officers In enquiry of any decision ,always two views can be taken as only thin line exist between Public intrest & self interestAs such officer is subjected to harrasment 20. COMMON MISTAKES DONE BY MOST OF US In our zeal ,sometime we take out of way decision to expedite some work without recording proper reason in detail on file Very innocent action - depositing license fee by railway staff instead of by licensee resulted in a CBI case on WR & finally conviction . Slackness in ensuring quality in Level xing work resulted in CBI case .all such thing are treated as fraud A fraud case leads to raid & raid leads to another case ie Disproportionate Asset case Asset-having assets is not a crime-We do not keep proper record of our financial assets resulting difficulties in case of problem. 21. GENERAL Most straight forward person can land in problem (if his star are bad) for none of his faults He may be selected for random nationwide raid Programme An enquiry of some of his associate may lead to him2G case This lecture will create awareness about provision of LAW & precaution required in decision making In spite of it , if somebody lands in problem then how to defend in court of LAW Tender & contract is most problematic for civil engineers & their decision in dealing tender cases can create problem for them 22. WHAT NOT TO DO IN TENDER & CONTRACTS Execute work in good faith without sanction or estimate or tender Award the contract on exorbitant rates Execution of substandard work- quality check Payment for works not executed overpayments ,false payments Manipulation in tender such as Exaggerating performance of favorite tenderer & failures of Rivals Projecting artificial urgency time is valuable Doctoring briefing note to project someone as most suitable Bypassing lowest bidder without convincing reasons Call negotiation for reduction of rates but accepting it after negotiation even if no appreciable reduction achieved in negotiation Non application of mind in tender AcceptanceDo a thing for which your conscious is not permitting-Right or wrong conscious will give you 23. CVC INSTRUCTION MARCH 2007 & JAN 2010 As post tender negotiations could often be a source of corruption, it is directed that there should be no post tender negotiations with L1, except in certain exceptional situations.2007 Few great people started post tender negotiation with L2 & L3 as they thought that No ban to negotiate with L2 & L3 Clarification issued in 2010 24. A PRESS REPORT(SOURCE- RAILWAY BOARD VIG DIRECTORATE)HTTP://WWW.DNAINDIA.COM/INDIA/REPORT_OVER-8500-RAILWAY-OFFICERS-BOOKED-FOR-FRAUDULENTPRACTICES_1239563New Delhi: In a drive to check corruption and bring in transparency in its administration, Vigilance Directorate of the Railway Board stated that, 8,638 officials including 117 gazetted ones, were booked for various charges 25. AGREED LIST & SECRET LIST Railways, every year prepare two lists -- Agreed and Secret list --The Agreed List, prepared in consultation with CBI, includes names of officers whose integrity are doubtful. While, the Secret List are of those officers of doubtful integrity on the basis of accepted inquiry reports or proved charges of corruption. "Persons in Agreed and Secret List are not assigned any sensitive posts and their working is kept under constant surveillance, 26. NEWS PAPER HEADLINES OF 2013 CBI raids office, house of DRM Ahmedabad in DA caseTHREE YEARS RIGOROUS IMPRISONMENT TO THEN SENIOR DIVISIONAL ENGINEER OF CENTRAL RAILWAYS, FOR POSSESSION OF DISPROPORTIONATE ASSETS Indian Railways Accounts Service officer K V Brahmananda Reddy, an accused in the alleged disproportionate assets case DEN MGS arrested by CBI TWO YEARS RIGOROUS IMPRISONMENT TO THEN STATION MASTER OF RAILWAYS IN A BRIBERY CASE CBI REGISTERS A CASE AGAINST A RAILWAY OFFICIAL AND OTHERS FOR ISSUING FAKE APPOINTMENT LETTERS CHAIRMAN RAILWAY RECRUITMENT BOARD(N.F RAILWAY) SENTENCED TO THREE YEARS IMPRISONMENT he Special Judge for CBI Cases, Hyderabad has convicted Sri Dandu Ravi, then Welfare Inspector, South Central Railway, Tirupati 27. NEWS PAPER HEADLINES OF 2013 Memberstaff is arrested-bail after 4.5month CBI REGISTERS A CASE AGAINST A SENIOR COMMANDANT OF RAILWAY PROTECTION FORCE FOR POSSESSON OF ALLEGED DISPROPORTIONATE ASSETS TWO YEARS RIGOROUS IMPRISONMENT TO TWO THEN OFFICIALS OF NORTHEAST FRONTIER RAILWAY CBI ARRESTS A SENIOR SECTION ENGINEER(ELECTRICAL) OF CENTRAL RAILWAY AND AN ADVOCATE IN TWO SEPARATE CASES OF BRIBERY CBI ARRESTS A JUNIOR ENGINEER OF RAILWAY FOR ACCEPTING BRIBE OF RS. 40,000/CBI REGISTERS A CASE AGAINST AN INSPECTING ENGINEER OF RITES AND OTHERS FOR ALLEGED LOSS OF Rs. 21.48 LAKH (APPROX) TO RAILWAYS the Special Judge, Mumbai has convicted Shri Amit Kumar Roy, then Inspector, Railway Protection Force, Mumbai 28. CBI CASESFraud cases - complainant is department if decision has caused financial loss to Govt DepartmentDisproportionate Asset case source observation either from vigillence or from way of living.General survey for Nation Raids No arrest in such cases as having assets is not the crimeTrap cases complainant is a person who has a grudge with youAll these case comes under PC act 29. FRAUD CASE The complaint is by department Source information Many time case are based on perception of Agency like CAG Reliance KG basin , 2G , CWG etc Many time executive act out of way in interest of work work but other side perceive it as vested interest Time is not evaluated less time at higher cost -money is evaluated Fraud leads to Raid & raids lead to asset case Our asset management is poor We are careless in keeping records of 30. COMMON MISTAKES DONE BY MOST OF US-ASSETS We conviniently forget to keep proper record of i)Marriage gifts ii)Maturity value of NSC or other financial instruments iii)Sale proceeds of any assets like flats etc iv)Gains from share Market v)Any awards ,honrarium etc vi)Gift received by children or spouse on birthday ,marriage anniversary & their investments All above aspects results unknowingly in converting white money in black money We habitually preserve all cash memo of our expenditure & feel elite in using credit cards on entertainment expenditures 31. MANAGEMENT OF MONEY IS ESSENTIAL Therefore Always keep record of your income & pay your tax so that hard earned money does not get converted in black money for petty saving in tax Always prepare a balance sheet along with tax return even if it is not mandatory Declare your assets(with balance sheet as now tax authority do not accept balance sheet) in annual property 32. WHERE YOU WANT TO BE ? It is true that No case may be initiated against any of Railway officer as 99% of them are straight forward officer But even straight officers suffers a lot because some time their decision go against vested interest of few persons & some of these disgruntled element put a complaint against them . So why not be ready for defense Unfortunately in CBI cases ,investigation starts after Raids & registration of case causing harrasements Raid can happen for any reason . Some of your associate is being investigated & your name crop up kanimozhi case 33. IGNORANCE IS NO DEFENSE Many time ,a man is not able to defend as he is ignorant about provisions of LAW & had not kept proper records (of assets , reasons of decisions etcBetter hire professional like CA or Income tax consultant for keeping up proper financial records .This investment will pay rich dividends Every govt person should know salient provisions of Prevention of corruption act 34. PREVENTION OF CORRUPTION ACT RELEVANT PROVISION- VARIOUSPublic servant taking gratification accepts or obtains or agrees to accept or attempts to obtain from any person, for himself or for any other person, any gratification whatever, other than legal remuneration, as a motive or reward for doing or forbearing to do any official act No demand but agreed to Section 35. Section -8. Taking gratification, in order, by corrupt or illegal means, to influence public servant-Whoever accepts or obtains, or agrees to accept, or attempts to obtain, from any person, for himself or for any other person, any gratification whatever as a motive or reward for inducing, by corrupt or illegal means, any public servant, whether named or otherwise, to do or to forbear to do any official act,Section -9. Taking gratification, for exercise of personal influence with public servant shall be punishable with imprisonment which shall be not less than six months but which may extend to five years and shall also be liable to fine 36. PREVENTION OF CORRUPTION ACT PUNISHMENTS Section10. Punishment for abetment by public servant of offences defined in section 8 or 9 Whoever, being a public servant, in respect of whom either of the offences defined in section8 or section 9 is committed, abets the offence, whether or not that offence is committed in consequence of that abetment, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine. Section14. Habitual committing of offence under sections 8, 9 and 12 -shall be punishable with imprisonment for a term which shall be not less than two years but which may extend to seven years and shall also be liable to fine. 37. PREVENTION OF CORRUPTION ACT 1988 13. Criminal misconduct by a public servant-(1) A public servant is said to commit the offence of criminal misconduct,- (a) if he habitually accepts or obtains or agrees to accept or attempts to obtain from any person for himself or for any other person any gratification other than legal remunerationSection 13(1)d ii - by abusing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or (1)(e) if he or any person on his behalf, is in possession or has, at any time during the period of his office, been in possession property disproportionate to his known sources of income.Section 13(2) Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall be not less than one year but which may extend to seven years and 38. Section 15. Punishment for attempt Whoeverattempts to commit an offence referred to in clause (c) or clause (d) of sub-section(1) of section 13 shall be punishable with imprisonment for a term which may extend to three years and with fine 39. PREVENTION OF CORRUPTION ACT 1988 19.Previous sanction necessary for prosecution (1) No court shall take cognizance of an offence punishable under section 7, 10, 11, 13 and 15 alleged to have been committed by a public servant, except with the previous sanction Such sanction shall be given by that Government or authority which would have been competent to remove the public servant from his office at the time when the offence was alleged to have been committed No finding, sentence or order passed by a special Judge shall be reversed or altered by a Court in appeal, confirmation or revision on the ground of the absence of, or any error, omission or irregularity in, the sanction required under sub-section (1), unless in the 40. PREVENTION OF CORRUPTION ACT 1988 Section 20. Presumption where public servant accepts gratification other than legal remuneration (1) Where, in any trial it is proved that an accused person has accepted or obtained or has agreed to accept or attempted to obtain for himself, or for any other person, any gratification or any valuable thing from any person, it shall be presumed, unless the contrary is proved, that he accepted or obtained or agreed to accept or attempted to obtain that gratification or that valuable thing, as the case may be, as a motive or reward such as is mentioned in section 7 or, as the case may be (. 41. 2) Where in any trial of an offence punishable under section 12 or under clause (b) of section 14, it is proved that any gratification (other than legal remuneration) or any valuable thing has been given or offered to be given or attempted to be given by an accused person, it shall be presumed, unless the contrary is proved, that he gave or offered to give or attempted to give that gratification or that valuable thing, as the case may be, as a motive or reward such as is mentioned in section 7, or, as the case may be, without consideration or for a consideration which he knows to be inadequate. (3) Notwithstanding anything contained in sub-section (1) and (2), the court may decline to draw the presumption referred to in either of the said sub-sections, if the gratification or thing aforesaid is, in its opinion, so trivial that no inference of corruption may fairly be drawn 42. AVOID CASES Prevention is better than cure How Do not indulge in any such activity willfully which can create problem for you in life Do not be there where you should not normally be like contractor residence , contractor car etc Do not talk on phone about money Always record full reason of taking particular decision in file 43. LAST ADVICE FOR HONEST OFFICERS Every Govt officer should read Prevention of corruption actEvery govt officer should be well prepared for CBI knock on any night at his house Keep your accounts in order Have sufficient funds for legal expenses 44. Thanks 45. PART 2 HOW TO DEFEND CRIMINAL CASE