VIGILANCEVIGILANCEBULLETIN

(A Government of India Enterprise)

Issue 12 October 2017

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Commencement of work - Ganga Bridge at Ghazipur Commencement of work - Ganga Bridge at Ghazipur

Integrity Pledge

I believe that corruption has been one of the major obstacles to economic, political and social progress of our country. I believe that all stakeholders such as Government, citizens and private sector need to work together to eradicate corruption.

I realise that every citizen should be vigilant and commit to highest standards of honesty and integrity at all times and support the fight against corruption.

I, therefore, pledge:

• To follow probity and rule of law in all walks of life; • To neither take nor offer bribe; • To perform all tasks in an honest and transparent manner; • To act in public interest; • To lead by example exhibiting integrity in personal behaviour; • To report any incident of corruption to the appropriate agency.

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The central theme of this year’s ‘Vigilance Awareness Week’ focusses on the collective responsibility of individuals, organisations and society at large to participate in the fight against the evil of corruption. Such endeavor reflects twin broad aspects namely, one directed at organizational level supported by a pro-active leadership for promoting integrity in the work environment and the other, aimed at creating and inducing general awareness among stakeholders and the public at large for sustaining the momentum.

Preventive vigilance assumes a critical and significant role in the organizational context and RVNL Vigilance has, in the main, laid stress on its preventive role in aiding the Management in enhancing transparency and accountability. RVNL Vigilance has with the able support of Management engaged, during the recent past, the youth in schools and colleges in creative pursuits in an attempt to raise public awareness to fight against corruption in society and reached out to its internal and external stakeholders to join the campaign for promotion of integrity in public life by taking e-pledge designed and launched by the Central Vigilance Commission in 2016.

On the occasion of the release of 12th edition of the RVNL Vigilance Bulletin, I convey my gratitude to the employees of RVNL and the RVNL Vigilance Department, in particular, for their co-operation and best wishes for a successful year ahead.

(R. Rajalakshmi) Chief Vigilance Officer

Message from CVO

On the occasion of the Vigilance Awareness Week commencing 30 October 2017, I convey my heartiest wishes & compliments to all the employees of RVNL & RVNL Vigilance for consistently striving towards excellence in Corporate Governance and promotion of increased transparency in our collective fight against corruption. At RVNL, we recognise that preventive vigilance has a significant role in timely identifying potential system risks and initiating correctional mechanisms to promote better transparency and prevent abuse/misuse of power. As befitting this year’s central theme of ‘Corruption-Free India’, I earnestly appeal to all our staff members and others associated with us in the task of building a robust & safe railway infrastructure, to rededicate their energies towards creating a fair, transparent, just and accountable environment.

(Satish Agnihotri) Chairman & Managing Director

Message from CMD

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Role of

in Managementby P.M. Sharma, E D Electrical/Bhopal

The wealth earned through pious means flourishes and that through dishonest ways brings destruction ultimately.

In the context of an organization, vigilance means keeping an eye on the activities of the personnel or flaw in the system in monetary matters and taking prompt action to promote ethical practices, ensuring integrity and honesty.

Governance is the process of taking decision and implementing them for the betterment of system, delivery of goods and services to the nation, as a whole. Good governance ensures that the entire process of decision making through which citizens receives their services must be of impeccable integrity, fully accountable and transparent. Vigilance is an important way to ensure good governance as it involves keeping a watchful eye on individuals, promoting and preserving integrity and honesty, through element of deterrence and encouragement both. Vigilance in Government organisation is required because:-

a) Decision making process is slow and cumbersome giving room for allurements.

b) There is scope for jumping queues.

c) Possibility of negotiations for personal gain.

d) Delay in providing services is detrimental to system and nation.

Vigilancee) Vigilance is also required to deal with corrupt and

dishonest personnel .

A very simple meaning of vigilance is watchfulness or to bring awareness. But here when we are talking about vigilance, it means we are talking about fighting corruption, which includes misuse of power, money and misuse of government property etc. we want to bring corruption to zero level. This can be ensured by watchfulness, caution and vigilance or we can say in others words that to prevent or minimize the corruption we have to have transparent system. It can be achieved by E-governance, as E-governance provides access to information to empower citizens, enable their participation in governance and enhance the awareness and watchfulness.

But the biggest challenge of deploying E-governance is not technology but energizing management, this is important not only in terms of cultural change but also in terms of changing operations and processes workflow that the automated environment will introduce.

“E-governance, however, is not really the use of IT in governance but as a tool to ensure good governance. E-governance does not mean proliferation of computers and accessories; it is basically a managerial decision which calls for discipline, attitudinal change in officers and employees and massive process re-engineering.

Vigilance in itself is not a process but rather a philosophy that provides ways and means to curb corruption in an organisation. As long as underlying causes like human greed persist, corruption is unlikely to be eliminated altogether. What Vigilance seeks to do is to drive out corruption from major areas of governance, reducing its scope, occurrence and implementing fail-safe mechanism. This can be achieved through following measures:-

a) Identifying complex rules/procedures and simplifying the same

b) Assisting in curtailing the discretions

c) Enhancing transparency and fairness in action

d) Improving accountability i.e. ensuring recording of reasons for deviations

e) Encouraging devotion to duty, high level of integrity and commitment to the organization

f) Facilitating promotion of honesty and ethical culture

g) Identifying major deviations with mala- fides

h) Ensuring severe punishment to such personnel who are found to be using public office for private gains.

All these measure will help to create an atmosphere of trust between organization and client and promote good will.

Why VigilanCe?Why Vigilance? There are individuals who indulge in unethical activities of getting personal gains at the cost of the organization. Such persons not only lead to wastages, losses and economic decline but also infect others and damage the image and goodwill

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of the organization. Hence, to rein in such persons’ mis-endeavours and promote organizational interest, vigilance is required. It helps in:-

a) Disciplining the wrong doers

b) Protecting honest performers

c) Increasing transparency and fairness

d) Ascertaining accountability

e) Reducing wastages/leakages

f) Promoting culture of honesty and integrity

g) Reforming systems for corruption-free delivery

In brief, it helps in striving for near zero tolerance against corruption

WheRe VigilanCe?Vigilance is essential in every organ of the organization and that is why it is stressed that every manager

d) Bringing in fairness, competitiveness and accountability

e) Educating/sensitizing the officials and managers.

2. Reactive Vigilance that incorporates:-

a) Carrying out investigation

b) Surveillance and detective vigilance

c) Conducting surprise inspections

d) Scrutinizing Annual Property Returns; and

e) Cultivating other sources for detecting corruption

hOW is VigilanCe a ManageMenT TOOl?Vigilance is an integral part of the management. It provides important instruments for improving performance of an organization. This includes promoting clean business transactions, professionalism, productivity, promptness and ethical practices. It also assists in systemic improvements in curbing opportunities for corruption. Therefore, vigilance helps in improving efficiency and effectiveness of the personnel as well as the organization.

WhaT Can One DO TO pROMOTe VigilanCe?Management to help vigilance in its mission and vision. Everyone can become vigilant officer by identifying the systems’ umbras and penumbras which provide opportunities for malpractices and corruption and illuminating them. Such actions will not only help in identifying corrupt officials to initiate deterrent action against them but also bring joys and successes to the Authority in creating ethical and healthy work culture.

becomes vigilant. However, a focused attention is required in each unit where:-

a) Officials have high discretions

b) There is scope for jumping the queue

c) Rules and procedures are complex

d) Accountability is low

e) Delay in decision making is detrimental to the clients’ interest

f) Opportunities to negotiate exist

g) Individuals are known to be corrupt

Vigilance set up of the organization needs to identify such pastures of corruption aiming elimination

WhaT is VigilanCe angle?Briefly, it is present in the individual’s acts of : -

a) Demanding and/or accepting gratification for an official act or influencing others

b) Obtaining valuables without consideration/with inadequate consideration from someone in official dealing directly/ indirectly

c) Receiving himself or for others valuables or pecuniary benefits by corrupt or illegal means or by abusing power

d) Possessing assets disproportionate to income

e) Misappropriating, cheating forgery etc

f) Carrying out other irregularities which cast doubt on one’s integrity

Vigilance functions are carried out in mainly two ways:-

1. preventive Vigilance :-

a) Simplifying rules/procedures

b) Curtailing discretions

c) Improving transparency

some of the measures that are suggested to further improve vigilance in RVnl:-

system improvement:-

a) Envisaging E-Tendering in works contract to reduce tender finalization time.

b) EPC contracts in place of unit based contracts to eliminate the long process of sanctioning variations and non-schedule rates/items.

c) Introduction of photographic /video graphic records for critical activities, which can’t be examined at a later stage.

a. availability, adherence to and knowledge about:-

a) Standard RVNL specification for materials

b) Ascertaining that material is procured from approved sources and as per standard specifications (RDSO, CORE, Railways, RVNL)

c) Method statement

d) Quality assurance plan submitted by PMC

e) Insurances as per Contact agreement for execution and PMC contracts

f) Testing records (DPRs, Cube test reports, insulator test reports, SBC reports etc.) of materials used in structures (from recognized lab/Govt. Institution) and proof of royalty payment for material

g) Record of Provision of manpower as per CA by executing agency and PMC with details

h) Deployment schedule of manpower and M&P by PMC & executing agency

B. Documentation and record keeping:-

a) Inspection certificates and test reports of material from agency authorized by RVNL

b) Periodical updating of store ledgers with endorsement by PMC/RVNL officials

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c) Attendance Register, Leave records of PMC personnel

d) Reports of quality test during execution work

e) Scheduled and periodic calibration of tools and plants

f) Proper records of meetings for progress review

g) Records of inspection notes of different officials (mentioning defects, deficiencies and corrective measures)

The former judge of the Karnataka High Court, B. Padmaraj, has said that preventive vigilance could play a crucial role in ensuring good governance, which is required to promote the country’s economic development and citizens’ well-being. The co-operation of all the stakeholders was necessary to create and promote a culture of integrity, transparency and

accountability. Corruption hindered the growth of a nation, reduced its income and created inequalities in distribution of income and wealth and added that corruption needed to be treated like cancer and the focus should be on prevention.

The deep-rooted malaise of corruption is perhaps the biggest challenge that we face. The goals of growth and development that has been set, can only be achieved through fair and efficacious governance. Corruption impedes efficient management. Punishing individuals is no longer sufficient. Prevention is the only effective remedy against the malaise of corruption. What is required is constant and tireless vigilance, the objective is to plug the loopholes in the system and to take effective systemic measures to prevent occurrence of corruption related incidences. One of the major actions would be reduction of human intervention by bringing in technological advancements.

“Rather fail with honour than succeed by fraud as ill-gotten gains work evil”

as part of Corporate Governance in compliance to the Companies Act, 2013

BaCkgROunD anD COnTexT appliCaBiliTy Enterprise risk management was not mandatory according to the Companies Act 1956. However, as per the new Company Act, 2013, there are specific requirements that a company needs to comply with Risk Management Policy as part of Corporate Governance. The Act lays down the framework of

by Rajesh Prasad, ED(Metro)/RVNL

Risk Management

Risk Management, under the authority of the Board

of Directors of the Company. The Board shall define

the roles and responsibilities of the Risk Management

Committee. It seeks to identify risk inherent to any

business operations of the Company and provides

guidelines to define, measure, report, control and

mitigate the identified risks. Such information to be

placed before Board of Directors.

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Why Risk ManageMenT pOliCy is RequiReD?The objective of Risk Management is to create and protect shareholder value by minimizing threats of losses and identifying and maximizing entire opportunities. An enterprise wide risk management framework is applied so that effective management of risk becomes an integral part of every employee’s job.

The basic objectives of Risk Management Policy are:

• Providing a framework that enables future activities to take place in a consistent and controlled manner.

• Improving decision making, planning and prioritization by comprehensive and structured understanding of business activities, volatility and opportunities/threats.

• Protecting and enhancing assets and company’s image.

• Optimizing operational efficiency

pROVisiOns MaDe in The COMpanies aCT, 2013 As per the Company Act. 2013, following compliance to the key requirements are necessary-

section 134: Report of the Board of Directors must include a statement indicating development and implementation of a Risk Management Policy for the company including identification of elements of risk, if any, which in the opinion of the Board may threaten the existences of the company.

section 177 (schedule – iii): Every Audit Committee shall act in accordance with the terms of reference specified in writing by Board which shall, inter alia, include, - (vii) evaluation of internal financial controls and risk management systems.

schedule iV [section 149 (8)]: Role and functions of the independent directors shall:

• Help in the bringing an independent judgment to bear on the Board’s deliberations especially on issues of strategy, performance, risk management, resources, key appointments and standards of conduct

• Satisfy themselves on the integrity of financial information and that financial controls and the system of risk management are robust and defensible

pROVisiOns MaDe in RVnl’s Risk ManageMenT pOliCyThe Risk Management policy shall contain:-

• Constitution of Committees, its roles, responsibilities and function

• Responsibility for framing, implementing and monitoring the Risk Management Plan for the company

• The process for evaluation of RMS including setting up of systems.

• Role of Independent Director on overall Risk Management of the Company and to ensure robust and defensive system of RM

• Procedures to inform Board Members about the risk assessment and minimization procedures

• Board to ensure that systems for risk management, financial and operational control and compliance with the law and relevant standards is in existence

• Board shall develop the mechanism for risk appetite, exposures and the key areas of the company’s focus.

Risk iDenTifiCaTiOn anD DesCRipTiOn(i) Risk identification

(ii) Risk assessment and finally

(iii) Risk control

Risk Management Committee of RVNL has already identified some of the following risk areas:

• project planning: Risk areas are - Land Acquisition, Delays in approval of drawings by Railways, Delay in clearances from State Government and MoEF, Aggressive bidding by contractors leading to unworkable rates resulting in selection of potential non-performing contractors

• project execution: Risk areas are – Non-adherence of safety at worksite, Aggressive bidding by consultant

• Contractor selection

• human Resource

action taken report of RVnl’s Risk Management Committee:

Latest of the Risk Management Committee meeting (25th meeting) of Rail Vikas Nigam Limited was held on 19.09.2017. The Committee deliberated the above identified risk factors and the Committee suggested detailed action taken report on the said risk factors

Risks inVOlVeD in suCCessful iMpleMenTaTiOn Of pROjeCTs

Different stages of a project:RVNL makes endeavours to complete a doubling project in 4-5 years from the date of transfer of the project. The various stages of the project execution are as under:-

• Concept Stage

• Development Stage

• Definition Stage

• Design Stage

• Construction and Procurement Stage

• Commissioning

• Defect Liability period

• Handing over for operation

Risks involvedRisks are involved in all the eight stages as stated above and the role CPM and Project Directors are to mitigate such risks identified.

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Behaviors of Risks and amount at stakeThe risk or amount at stake behave differently during the complete project life cycle. During the beginning, the amount at stake is very low and during that stage uncertainly of success is high as explained below:

scope ManagementClear cut guide lines have been issued by Corporate Office that CPMs/EDs cannot augment any scope of the project w.r.t. the scope sanctioned by Railways. Only CMD/RVNL has got the authority to alter the scope vide RVNL’S letter no. C/Policy/Estimates dated 11.09.2013 copy annexed. This is also to be understood that cost to make changes in the beginning i.e. at the planning and estimate stage is less and that is why the scope has to be frozen in the beginning which includes finalization of ESPs. This is as per the explanation given below:

Role of CpMs and project Directors are to ensure proper scope management and time managementThe Chief Project Managers and the Project Directors must have clear understanding of the scope and provisions made in the agreement.

Time Management:

• Work packages are further broken down to activities that are used to estimate, schedule, assign, implement and control project work.

• A project schedule developed of total work required to be done to plan and control the time.

• Time Buffers/Reserve/Contingency kept in schedule to meet unanticipated delay.

• The CPMs/PDs must use a formal change control process to control any changes in the schedule.

how to reduce the risks and to implement project in faster/smoother manner?• Estimate should be based on actual site data/

drawings.

• Scope of work should be well defined & finalized in consultation with user Agencies and based on the abstract estimate.

• Presumptions should be minimized.

• Realistic time frame to be kept

• Proper Market Survey and proper LARs for estimates

• Proprietary/imported items should be minimized and preferably avoided.

• Timely action for statutory clearances.

• Authority to ensure availability of land.

• Advance/timely actions for diversion of services/obstructions relocation of structures etc.

• Proper selection of consultant & Contract agency.

• Regular monitoring of performance of consultants/contract agency.

• Performance evaluation mechanism for timely action to weed out non-performing contract agencies/consultants.

• Timely issuance of working drawings.

• Proper co-ordination among the disciplines & various functionaries.

• Penalty clause for deficiency in services of Consultant/Contract Agency and also to aim for bonus for timely completion.

• Timely decisions/approvals/sanctions and regular monitoring of projects.

key faCTORs in suCCessful pROjeCT ManageMenTThe goal of smooth Project implementation can be achieved if we have WILL, COMMITMENT, DEDICATION and PASSION.

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The Right signalThe role of Signal & Telecom Department is very critical from the stage of initiation to completion of RVNL projects. Before the project starts, S&T Department is required to remove the infringements of cables coming under the new embankment/location boxes etc. by shifting the circuits on new cables /relocating the location boxes etc. This is essentially required to give way for Civil Engg. Department to start the work without disturbing the existing train working. Similarly, at the final stage of completion of the project, S&T Department has to commission new signalling system for safe and smooth train working and thus enhancing the section capacity. Therefore, it is very important to plan and monitor the work of S&T Department right from the starting.

To ensure the smooth execution of the project, proper field level survey is very important, to access the correct requirement of material at the stage of preparation of estimate. Description of items should be clear, concise and unambiguous .

Engineering Scale Plan (ESP) is the basic document for the subsequent activities for smooth implementation; hence it is most important that proper care should be taken at the time of its preparation such as verification of existing ESP w.r.t. actual field and scope of the work to be executed. Most of the times ESP is not finalized properly and has to be changed during execution of the project. This results in change in many of the items of the Estimate, Schedule and delays the completion of the project. Hence PIUs should lay emphasis on proper checking of the ESP by the Engineering / Traction / S&T, before submitting it for approval to Railways.

Based upon the approved ESP, timely finalisation of Signal Interlocking Plan (SIP) and other related plans should be done; so that ample time is available for execution of the signalling system as per approved plan.

Since in RVNL all the materials are in the custody of Contractor, PIUs should ensure that proper storage facilities are created in field in advance. The procurement of the material should not be done too much in advance and it should be as per the targets. Proper accountal of the material received and used should be ensured. Review of the quantity of material already available to be done. It should also be ensured

by Sanjay Dungrakoti, ED (S&T)/ RVNL

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that signalling material is procured from RDSO approved vendors/sources only with RDSO inspection except items which are specified non RDSO approved items.

PMC is responsible to ensure proper accountal of material with the Contractor. It has to check the book balance, ground balance and proper storage from time to time so that no complications arises at the time of closing of work. This aspect of PMC working should be checked periodically.

S&T Department work involves mainly two type of execution i.e. Outdoor signalling work and Indoor signalling work. Indoor signalling work caters for installation/commissioning of Electronic Interlocking/

Route Relay Interlocking, Integrated Power Supply system, Data loggers, Telecom equipments etc. Detailed instructions regarding installation of equipment issued by RDSO in the form of specifications/ Technical Advisory Notes, and OEMs should be strictly adhered to. Pre-commissioning check list for EI, IPS, BPAC should be jointly signed to ensure the correct installation of the equipments.

Outdoor Signalling work cater for laying of cables, Track circuiting, installation of location boxes /Signals /Lifting Barriers etc. RDSO/Railway Board has issued detailed guidelines for cable laying and other Signalling works; which need to be adhered to. The proper depth of the trench, provisions of the bricks /pipes in the trench as per guidelines issued by RDSO should be adhered to. Being underground, it is all the more essential to exercise proper care during the execution of these works for which the concerned officials need to be properly instructed.

While executing outdoor work , it must be ensured that there is no infringement to Schedule of Dimensions(SOD). All the materials should be installed as per the dimensions permitted in SOD.The Dimensions of the foundations e.g. Signal foundation, Location Box foundation etc. should be as per the drawing. All the required drawings, plans and checklists should be available with the persons responsible for ensuring the quality of work and installation.

Systematic and vigilant working is the greatest tool to ensure that quality work is done following all the norms without compromising the speed and target of work.

“Beware of rashness, but with energy and sleepless vigilance go forward and give us victories.”

- Abraham Lincon

Yes, we can achieve a Corruption Free India, if we are vigilant. Immediately a curiosity arises to know “vigilant of what”, that gleams a person with Good Conduct and keeps corruption free. The answer is “Vigilant about the Arishadvargas”, they are: 6 negative characters – Kama (lust), Krodha (anger), Lobha (Greed), Moha (passion), Mada (proudness), Mastaryam (jealousy), which plays a destructive role in the human life.

And taking utmost control of these 6 dangerous Gunas, lest they over rule the mind, ensures highest honesty and integrity. This should be practiced by each and everybody without any compromise from the lowest to highest cadre to protect the Organisation from the black scars of corruption and to maintain thereby a Good Governance too.

Awareness of the following evil effects of Corruption immediately turns the direction of the mind and checks that he is not a prey to the above 6 negative shades:

Corruption is “the misuse of public power for private benefit”.

In the words of George Bernad Shaw:

“power does not corrupt men; fools, however, if they get into a position of power, corrupt power. “

Transparency International (TI) has published the Corruption Perceptions Index (CPI) since 1996, annually ranking countries “by their perceived levels of corruption, as determined by expert assessments and

Corruption Free India and the Role of Vigilance

by Ch. Naga Sudarsan Rao JGM/Fin/Expert

opinion surveys.” The CPI generally defines corruption as “the misuse of public power for private benefit”.

Corruption is one of the biggest threats in the world. Unfortunately, this threat is found in every country. This global issue establishes bad governance, stops development and undermines the law.

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iT hinDeRs gROWThVarious micro-studies reviewed by the authors unmistakably suggest that the efficiency costs of corruption could be quite severe, as corruption may jack up the marginal tax rate of firms, decrease business activity, raise the marginal costs of public funds and render certain government projects economically unviable

This is due to rent seeking, an increase of transaction costs and uncertainty, inefficient investments and mis-allocation of factors of production.

iT BReeDs injusTiCeThe eruption of corruption issue to the centre-stage is not surprising as the citizens feel helpless even to get their small and routine needs fulfilled from the authorities — be it government or municipal

corporation or local bodies in villages. The corruption ruins the economy in the country which results in high inflation.

The net affect is like the same saying that ‘Poor people become poorer and rich people get richer day by day’. In fact , even the daily needs go out of reach from common people, a situation , actually being experienced today.

iT affeCTs The pRODuCTiViTyThe empirical studies show that the countries with higher approval ratings enjoy longer periods of economic development. Countries suffering from corruption have low approval ratings because of the public’s frustration of their legitimate expectations, impressions of unfair and unequal treatments, which impose a great risk on individual incentive to produce (Efficiency Cost)

iT enDangeRs WORks eThiCs A negative work ethic is a behaviour of a single individual or a group that has led to a systematic lack of productivity, reliability, accountability and a growing sphere of unprofessional/unhealthy relationships (e.g., power politics, lack of social skills, etc.)

A work ethic is a set of moral principles a person uses in their job. People who possess a strong work ethic embody certain principles that guide their work behaviour, leading them to produce high-quality work. It is considered as a source of self-respect, satisfaction, and fulfillment.

iT BlOCks The TRanspaRenCy Corruption opaques the transparency of various decisions, which results in financial loss to the organization and develops distrust. Access to

information increases the responsiveness of government bodies, while simultaneously having a positive effect on the levels of public participation in a country.

To Reiterate, the Vision of Corruption of india will become true by:

• Keeping a watch against the above 6 negative characters, and control the same, in order not to spoil the conduct and character

• Always follow the footsteps of the Officers and Leaders with High Honesty and High Integrity

• Always see Happiness in Honest Living and never aspire for earning through illegal and unlawful means, even in the worst adversaries of life

• Adopting Transparent work environment and following the Rule of Law

• Usage of Technology, which arrests corruption

• Following business Ethics and Rules and Laws of the Organization

• Make the culture of High Honesty and Integrity in every business decision

• Accountability for the decisions being taken at each stage of hierarchy

• always strive to be a Role Model and keep the Organization’s reputation at very high and get laurels to your parents too

/keZ ,o grks gfUr /keksZ j{kfr jf{kr%A rLek)eksZ u gUrO;% ekuks /keksZ grksok/khRk~AA

Dharma, when destroyed, it destroys us; Dharma protects us, when it is protected.

Therefore, Dharma must not be violated, but followed always

Lusgk JhokLro] lfpo ¼eq[; ifj;kstuk izca/kd½ js-fo-fu-fy-] dkuiqj

(Manusmruti)

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A case of corruption can be exposed by a person while keeping his identity secret. For this purpose, a complaint shall be filed under Public Interest Disclosure and Protection of Informers Resolution (PIDPIR) popularly known as Whistle-Blower Provision/Resolution.

by Prashant, DGM(Vig)/RVNL

Complaint under public interest Disclosure and protection of informers Resolution

BaCkgROunDShri Satyendra Dubey, an Indian Engineering Service officer deputed as Project Director in the National Highways Authority of India (NHAI) was murdered while fighting corruption. In Hon’ble Supreme Court during the hearing of the Writ Petition (C) No. 539/2003, there arose a question of a suitable machinery for acting on complaints from whistle-blowers.

puBliC inTeResT DisClOsuRe anD pROTeCTiOn Of infORMeRs (piDpi) ResOluTiOnGovernment of India while implementing directive of Hon’ble Supreme Court in Satyendra Dubey murder case passed the Resolution No 89 (published in the Gazettee of India on 21.04.2004 to be read with corrigendum dated 29.04.2004) commonly known as the Public Interest Disclosure and Protection of Informers (PIDPI) Resolution. The Resolution has been amended by the Government of India vide its Gazette Notification No 190 dated 29.08.2013.

As per this resolution, the Government of India has authorized the Central Vigilance Commission (CVC) as the “Designated Agency” to receive written complaints for disclosure of any allegation of corruption or misuse of office and to recommend appropriate action. It

is essential to keep the identity of whistle blower (complainant) secret and to provide protection to whistle blowers from victimization.

The Resolution was later amended in August 2013 whereby the Chief Vigilance Officers of the Ministries or Departments of the Government of India were also authorized as the Designated Authority to receive written complaint or disclosure on any allegation of corruption or misuse of office by any employee of that Ministry or Department or of any Corporation established by or under any Central Act, Government Companies, Societies or Local Authorities owned or controlled by the Central Government and falling under the jurisdiction of that Ministry or the Department. The amendment also authorizes the Central Vigilance Commission to supervise and monitor the complaints received by the Designated Authority. A report on PIDPI complaints including cases of alleged harassment/victimization received by the CVO of the Ministries or Departments of the Government of India is required to be sent to the Commission by the CVOs of the Ministries/Departments.

salienT feaTuRes Of puBliC inTeResT DisClOsuRe anD pROTeCTiOn Of infORMeRs ResOluTiOn (piDpiR): Salient features of the “PIDPI” Resolution are as under:

• The CVC shall, as the Designated Agency, receive written complaints or disclosure on any allegation of corruption or of misuse of office by any employee of the Central Government or of any Corporation established under any Central Act, Government Companies, Societies or Local Authorities owned or controlled by the Central Government. The Chief Vigilance Officers of the Ministries or Departments of the Government

of India are also authorized as the Designated Authority as mentioned above.

• Any public servant or a person including an NGO can make written complaint to the designated agency. However, the members of the Armed Forces, members of the Forces charged with maintenance of Public order, persons employed in any bureau or other organisation established by the State for purposes of intelligence or counter intelligence and persons employed in or in connection with the telecommunication systems set up for the purposes of any such Force, bureau or organisation as mentioned under Article 33 of the Constitution of India are barred from lodging complaint under this resolution. This has been done to ensure the proper discharge of their duties and the maintenance of discipline among them.

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• The designated authority will ascertain the identity of the complainant. In case, the complaint is anonymous, it shall not take any action in the matter under this resolution.

• The identity of the complainant will not be revealed unless the complainant himself has disclosed his identity to any other office or authority with regard to such complaint.

• While calling for further report/investigation, the Commission/designated authority shall not disclose the identity of the informant and shall also request the Head of the organization concerned to keep the identity of the informant a secret, if for any reason, the identity is revealed.

• The Central Vigilance Commission has been authorized to call upon the CBI or the Police authorities, as considered necessary, to render all assistance to complete the investigation pursuant to the complaint received.

• The designated agency on finding the allegation of misuse of office or corruption substantive, shall recommend appropriate action to the concerned department or organization.

• In case the Commission finds the complaint to be motivated or vexatious, it shall be at liberty to take appropriate steps.

• The Commission will not entertain or inquire into any disclosure in respect of which a formal and public inquiry has been ordered under the Public Servants Inquiries Act, 1850 or a matter that has been referred for inquiry under the Commissions of Inquiry Act, 1952.

pROTeCTiOn Of WhisTle-BlOWeRs:• If any person is aggrieved by any action on the

ground that he is being victimized due to the fact that he had filed a complaint or disclosure, he may file an application before the Commission seeking redressal in the matter, wherein the Commission may give suitable directions to the person or the authority concerned.

• If the Commission is of the opinion that either the complainant or the witnesses need protection, it shall issue appropriate directions to the Government authorities concerned.

• In the event of the identity of the informant being disclosed in spite of the Commission’s directions to the contrary, the Commission is authorized to initiate appropriate action in accordance with the extant regulations against the person or agency making such a disclosure.

hOW TO Make a COMplainT unDeR puBliC inTeResT DisClOsuRe anD pROTeCTiOn Of infORMeR ResOluTiOn The Commission has the responsibility of keeping the identity of the complainant secret. Hence, the public notice was issued by the Commission informing the general public that any complaint which is to be made under the Resolution should comply with certain conditions. These conditions, in brief, are as under:

• The complainant shall send the complaint in a closed/secured envelope through post.

• The envelope should be written on it “Complaint under The Public Interest Disclosure” or “PIDPI” or “Whistleblower”.

• The complainant should not give her/his name & address in the complaint letter. The complainant shall also not give any details or clue in the complaint which can indicate her/his identity.

• The name and address of the complainant shall be given separately on an attached paper or at the beginning or end of the letter so that these can be easily blocked out.

• The Designated Authority will verify from the complainant as to whether she/has made the complaint or not and a certificate shall also be obtained from her that she/he has not made similar allegation to any authority under this resolution.

• In case, the matters are personal in nature or it is very difficult to hide the name/identity of the complainant, a No Objection Certificate (NOC) is also obtained from the complainant. In case, the complainant refuses to give the NOC, the complaint is filed without any action.

• The complaints which have been addressed to other/several authorities are not treated as complaint under PIDPI Resolution.

• Anonymous/pseudonymous complaints found in such envelopes shall not be entertained for further processing.

• In order to protect the identity of the complainant the Designated Authority will not issue any acknowledgement and the whistle blowers shall also not make further correspondence in the matter in their own interest.

• The details required to investigate the matter shall be there along with supporting documents. These details should be specific and verifiable. In case, any further clarification is required, the Commission/Designated authority will get in touch with the complainant.

• The identity of the complainant will not be revealed. The Chief Vigilance Officer of the concerned department/organization will ensure that no punitive action is taken against any person on suspicion of being “whistle blower” or victimized/harassed even if the identity of the complainant somehow becomes known.

• In case the complainant feels that she/he is being victimized for making a complaint or disclosure, an application may be sent to the Commission who would take suitable steps to protect the complainant.

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• The Commission can take appropriate action against motivated/vexatious complaints.

The PIDPI Resolution dated 21.04.2004 and other details regarding the procedure for whistleblower complaints can be seen on CVC’s website www.CVC.nic.in.

pResenT sTaTus Of The WhisTle BlOWeRs’ aCTPublic Interest Disclosure and Protection of Persons making the disclosure bill, 2010 was introduced and

was passed as the Whistle-blowers Protection Act, 2011. The Act has been notified on 12.05.2014. The Resolution No. 371/12/2002-AVD-III dated 21.04.2004 as amended by Resolution of even No. dated 29.04.04 has been repealed by this Act. However, the provisions of the Act have not come into force as some amendments to the Act which are of crucial nature have been proposed and bill to this effect is pending before the Parliament. Rules under the Act can be notified only after the Act is brought into force.

WhisTleBlOWeR pOliCy Of RVnlIn order to ensure greater transparency in its functions, RVNL has also adopted a whistleblower policy. The policy is in addition to the Central Vigilance Commission’s policy/guidelines on Whistle-blower. The policy is applicable to the Directors and all the employees whether permanent, deputationists, part-time, temporary, re-employed, on contractual basis and also to its customers, service providers, vendors etc.

Under this policy, an individual may make disclosure/raise his/her concern to the CMD under a closed/sealed envelope superscribed as “Complaint under the Public Interest Disclosure’ in a similar manner as provided under the PIDPI Resolution. The policy seeks to maintain confidentiality of the Whistle-Blower and provide protection/ safeguard against victimization of the employees who have reported disclosure under the policy. The Whistle-Blower policy of RVNL is available on RVNL’s website www.rvnl.org and it is requested to access the same for details.

Regular internal checks and control mechanism in every organization is essential to keep the organization efficient and growing. Failure of such systems or laxity therein is a cause of serious concern and provides ample opportunity of manipulation and malpractices by wrong doers. Every organization should therefore ensure that (i)System of due checks and controls are there in place (ii) the system is working efficiently and (iii) a regular improvisation of such system is done by continued enhancement and upgradation of such system to align it with changes in organizational functions and practices. The following cases throw some light on how a weak system is detrimental to organisation’s interest: -

In a case investigated in a Railway PSU, it was observed that Group Savings Linked Incentive Scheme (GSLI) claims/death claims were being siphoned off by a Company employee repeatedly without being noticed by the Management. GSLI/Death claim being a payment on back to back basis, it was obligatory for the voucher checking official in finance to ensure that the payment being released to retired employee/nominee of the deceased employee has been duly received from the Life Insurance Corporation of Indian Limited (LIC), the insurance company to the Company, the master policy holder.

Failure of control, failure of Organization - a vigilance perspective

by Aniruddha Thakur, DGM/Vigilance/RVNL

The voucher was being prepared by a Finance official by inserting fictitious names in the list of employees/nominees eligible for payment of GSLI/Death claims, which was checked by voucher checking official without proper scrutiny of names of claimants and receipt of payment from LIC resulting into more than 20 irregular payments amounting to Rs. 20 Lakh (approx..). The modus operandi included insertion

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of fictitious names (abbreviated from of voucher preparing official, his brother’s names and his wife being shown as a widow of a deceased Company employee) and undue amounts being credited to his account/joint account (with his wife)/brother’s account. While Finance officials failed in their duty to check the irregularity, the audit also failed to take note of the irregular drawal of money from Company’s account without the money being received from Insurance Company (LIC).

In another case of the same PSU, it was observed that five employees claimed their TA/DA by submitting false / forged hotel bills and restaurant bills for their meals in the same hotel. The matter came to light as a vigilant finance employee brought to the notice of management that employees were submitting false claims of TA/DA in as much as two employees were claiming room rents as per their entitlements even though they stayed in the adjacent rooms, which apparently carried similar rates. Also, while they claimed vehicle expenses for movement of more than 100 kms in a city, they also claimed to have taken meals in the same hotel restaurant, which did not appear logical although claims were honored by the Company.

The investigation revealed that all the five employees were claiming room rent and meal charges of the same hotel, whereas one stayed for a lesser period, the other did not stay in the same hotel and their hotel bills as well as meal bills were forged and hotel owner confirmed the same being not issued by them. In fact, all the five employees had manufactured the bills and claimed inflated rents as well as meal charges when compared to the tariff rates and menu of the hotel. In the case the meal charges, the same were claimed on photocopied papers of the hotel /restaurant bills prima facie raising doubts about the veracity of the bills, but neither the executive nor finance raised any objection and the employees claimed higher / bogus claims, which was paid by finance.

The above cases make it amply clear that checks and controls are essential to preempt malpractices and wrongdoing. It goes in line with the axiom that ‘a stitch in time saves nine’. That is also the objective of preventive vigilance to act in time so that system does not have to bear the brunt of loss of value in the long run. A strong system of internal checks & controls is thus vital to ensure efficient and effective functioning of an organisation.

fraudulent Drawal of Dearness Relief on pension by absorbed Officials:(Authority: 2016/RVNL/VIG/CO/03 dated 23.02.2017)

During investigation of a complaint by Vigilance Department, it has come to notice that some absorbed officials are drawing dearness relief on pension in violation of guidelines issued by DOPT vide their OM No. 45/73/97-P&PW(G) dated 02.07.1999. To prevent such irregularity in future, it has been advised by Vigilance that whenever an official takes absorption in RVNL, the following measures shall be ensured by HR:

• An undertaking in this regard may be taken, along with a copy of the Life Certificate submitted by them to their pension disbursing banks, from such absorbed officials who are not eligible to draw Dearness Relief on pension.

• A letter may be sent to the concerned bank about ineligibility of the official for Dearness Relief on pension and its acknowledgement may be obtained from the bank.

• It may be checked thoroughly whether PPO has been correctly issued by the PPO issuing authority duly mentioning about re-employment status and ineligibility of Dearness Relief on pension in such cases. A check list may be made in this regard which shall be certified by the dealing officials of both the Personnel and Accounts department that they have checked the PPO with respect to this.

Measurement of steel reinforcement for laps, chairs, spacers etc. not requiring payment:(Authority:C/RVNL/065/2006/3 Pt. 3 dated 03.03.2017)

During one of the CTE/CVC’s examination, it has come to notice that no records of measurement of laps, chairs, spacers were being maintained and only theoretical measurements as per drawing were being recorded. Measurements of laps, chairs, spacers are required to ensure that the same are being provided as per specification.

Recent system improvements adopted in RVNL on Vigilance’s advice

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In view of the above observation, instructions have been issued to all PIUs to ensure that the personnel recording the measurement should certify at the end of measurement of the item each time that required laps, chairs and spacers have been provided.

proper levelling of the surface for stacking of ballast and also to make some checks on this aspect while doing spot-checks:(Authority: 2015/RVNL/VIG/CTE/04 dated 18.10.2017)

As per extent provision of stack measurement “Stacking shall be done on a neat, plain and firm ground with good drainage. The height of stack shall not be less than 1 m except in hilly areas where it may be 0.5m. The height shall not be more than 2.0m. Top width of stack shall not be less than 1.0m. Top of stack shall be kept parallel to the ground plane. The side slopes of stack should not be flatter than 1.5:1 (Horizontal: Vertical). Cubical content of each stack shall normally be not less than 30 cum in plain areas.”

During investigation in a case, it was observed that above criteria for stacking was not followed by PIU. On the advice of Vigilance, instructions have been issued to all the PIUs for ensuring proper levelling of the surface for stacking of ballast and also to make some checks on this aspect while doing spot checks in a project.

sanction of Cash award to RVnl personnel:(Authority: C/RVNL/065/2006/3 Pt. III/Loose dated 27.09.2017)

During a preventive check, it was observed that in one of the PIUs, an official had proposed cash award for 10 officials. Subsequent to the approval and passing of amount by finance, five names were substituted in the approved list of names without recording the reason for such modification.

On the advice of Vigilance, all PIUs have been advised to ensure that the proposals for cash award/merit

certificate duly reflect/incorporate adequate justification thereof. Generally, there should not be any modification after the approval by Competent Authority. However, in exceptional circumstances if it is required to rectify some error, that should be got approved from the authority who approved the original proposal giving necessary reasons for the changes and matter be also brought to the notice of Finance.

Dispensing with tenders (quotations based contracts):(Authority: C/RVNL/065/2006/3 Pt.-III dated 29.09.2017)

As per RVNL policy order, the purchase/work should not be split for the purpose of bringing it within the ambit of dispensation of calling of tenders. Further, a proposal should be mooted for approval of the

Competent Authority (Para 8 of SOP) for dispensing with calling of tenders and calling quotations with details of work, justification, proposed terms and conditions and names of parties on whom enquiry is to be placed. Reason for dispensing with calling of tenders should be recorded and reasonableness of rates should be examined objectively by the Accepting Authority at the time of acceptance of proposal.

During a preventive check, it was observed that a work on quotation was awarded without properly following the prescribed procedure to a fictitious firm at exorbitant rates.

On the advice of Vigilance, Management have advised all PIUs to strictly comply with the instructions contained in the policy order No. C/RVNL/065/2006/3 Pt. III dated 12.11.2015 and SOP Para 8 while calling of quotations.

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Inauguration of Chappra – Allahabad RE Works

Laying of foundation stone and commencement of work of Ganga Bridge at Ghazipur Rail-cum-Road Bridge on Mau-Ghazipur-Tarighat new line over River Ganga at Ghazipur (Under construction)

Operation Theatre Complex and 50 Bedded Intensive Care & Surgical Ward, Haridwar

Roll of Ballast in Tiruvallur Arakkonam 4th Line Br No 22 is with 1x30.5 + 6x89.3 + 5x76.2m Steel Openweb Girder over river Mahanadi near Cuttack in Odisha.

Augmentation of Production Capacity of DLW, VaranasiNew Garia – Airport Metro Corridor

Cable Stayed Bridge at Barddhaman New BG Line from Nabadwip Ghat to Nabadwip- Dham (Under construction)

Free Medical Services Inauguration of Nivedita Nurses Hostel, Vrindavan

Rail Bogie Karkhana, Yadgir (SCR)

Noapara Dakshineswar Metro Section

gliMpses Of sOMe RVnl pROjeCTs

RVNL

Disclaimer: The views expressed in this publication are of the authors and not necessarily that of Vigilance Department of Rail Vikas Nigam Limited. Articles etc., published in the Vigilance Bulletin are not the official views.

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CeleBRaTiOn Of VigilanCe aWaReness Week 2016

RVNL

1st Floor, August Kranti Bhawan,

Bhikaji Cama Place, New Delhi - 110066

Tel.: 91-11-26738299 | Fax: 91-11-26182957

Website: www.rvnl.org ww

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DlW augmentation project (part-ii)DlW augmentation project (part-i)

• Commencement of work at site by Hon’ble PM on 25th December 2014

• Dedicated to nation by Hon’ble PM on 24th October 2016, in less than two years

• Brown field Part-I of the project at INR 235 crore

• PEB sheds with advanced machineries of value Rs 105 crore: ASRS, Paint Booths & Drying Ovens, mechanized work stations, modern tools & plantsRVNL