New Delhi :  The CAG, CBI and CVC are not responsible for policy paralysis in the country, Vigilance Commissioner JM Garg said on Tuesday, rejecting criticism of the three agencies during the UPA-II government.

Speaking at a summit on corporate frauds, Garg blamed erosion of values and high ambitions among corporates to join the ‘billion-dollar club’ by taking short cuts for corruption in the country and stressed the need to strengthen the regulatory mechanism. “Three Cs – CAG, CBI and CVC – are representative together. People don’t invite us together. They are taken in the absolutely negative sense and people say that perhaps they are the ones causing policy paralysis in this country. Let me tell you that it is not so,” he said.

Vigilance chief rejects criticism that CVC, CAG and CBI contributed to this malady of the UPA government

Many central ministers have on occasions spoken against the role of CAG, CBI and CVC in auditing and investigating government’s decisions for alleged corruption saying that it was leading to policy paralysis.

Garg said the problem of corporate frauds which was taking place in almost all spheres including education, sports and financial sectors was huge. There was a need for strengthening regulatory mechanism to check it.

“When we look at the reasons, we find that … over the past 50 years, the value system in the society had been eroded. And it is getting reflected in our individual behaviour and corporate behaviour,” he said, addressing the 8th annual summit on corporate frauds organised by industries body Assocham.

Referring to corruption, he said erosion of value had become an accepted norm of the society.

“A corporate that set up a company or industrial unit ten years ago now wants to join the billion-dollar club within a short span. This is the kind of ambition our people are having in the private sector.

“If we give good bye to the value system and badly short circuit the system by bribing the people to get maximum advantage and benefits, I think that is one of the reasons today why we find scams which are being unearthed,” he said.

The Vigilance Commissioner also said that Enforcement Directorate (ED) was making only minor recovery of stolen assets.

“If somebody tries to look at the way fraud is being committed, ultimately the money is not recovered. Nobody knows where the money has gone.

“And even under Prevention of Money Laundering Act (PMLA), the recovery which they are doing in stolen assets is very meagre as compared with the money which is going out of the country, which is nothing but the illegal money,” Garg said suggesting the need to speed up the recovery of stolen assets by such bodies.

Garg said it was because of corruption through evasion of taxes that huge amount of money was going out of the country.

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