Corruption in PSUs: Inputs Sought on Solutions

Below are the key issues outlined by you in regards to Corruption at PSUs (Public Sector Units). Kindly review the same and help identify very specific solutions that must be implemented to address such corruption.

We look forward to your inputs!

Transparency International India

Corruption issues at PSUs

1.Some senior management gets appointed due to political linkages or paybacks
2.Employees pay bribes to the senior management for getting postings of their choice or stop transfers
3.Major bribes are taken during procurement of materials
4.There is a lot of corruption in the tendering process
5.Bribes are taken for recruitment
6.Corruption occurs during nominations for foreign training or assignment
7.Bribes are paid during inspections and sample passing
8.Commissions are paid during vehicle unloading/loading and false/inaccurate billing is done
9.Projects are prolonged to get commission from the vendors, causing loss to the Government
10.Bribes are sought for getting payments released
11.Officers accept big gifts from clients
12.Misdeeds of the contractors are suppressed and they flout rules after bribing officers
13.Private contractors holding maintenance contracts bribe officers to get their contracts renewed
14. Bribes are openly demanded by officers to grant permission and completion certificates.
more  

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Recruitment in PSUs needs to be streamlined. All CPSEs should have a uniform Recruitment Rules. Presently, each CPSEs have made their own Recruitment Rules. In some of the CPSEs the Recruitment Rules itself allow them to recruit candidates without even advertising the positions. In some CPSE in Oil sector, this has happened even at senior level at the level of GM. Where the candidate was known to the CMD & even when the candidate has not applied against any news paper advertisement, he was selected & initially posted in a JV & then after some time transferred to the CPSE. This is nothing but backdoor entry without following the Govt guidelines on Recruitment in CPSEs. An audit by CVC of all recruitment in Oil sector CPSEs done before 2014 will reveal a lot of scam. Further, recruitment to Group A posts upto the level of Managers should be mandatorily done through written test only. The present Govt has made it mandatory to recruit in Group B posts only through written test. This is a very big step & has removed corruption in recruitment to Group B posts in CPSEs. This same order should be made applicable for recruitment to Group A posts upto the level of Managers. Along with this a uniform Recruitment Rules should be made by Department of Public Enterprise & be made applicable to all CPSEs. more  
Recruitment in only Junior Management level & only through written test should be made mandatory in CPSEs more  
Tenders are being misused. Say the tender opening authority stealthily informs the person to whom he is favoring shares the tender details and also gets tender in another company's name so that the person favored by the officer surely getting the order. Scrap sales are also a good money earner and the company must concentrate proper sale of scrap through fool proof tenders. more  
Corruption can be checked if all tender details & purchase orders are made online. CVC has given a circular in this regard but it is not properly implemented. Details are not published for months to avoid detection. All the Govt Depts should be strictly asked to implement the same. more  
1. Political appointments and any appointment by recommendation at any level, must be reason to debar the specific candidate and simultaneously take punitive action against the recommendee. more  
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