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UTI's problems are due to lack of corporate governance: Vittal

Kanchana Suggu in Bombay

He is the man who shocked everyone by boldly displaying the names of senior corrupt government officials on the Central Vigilance Commission's official Web site.

He is the one who doesn't mince words while holding forth on the extent of corruption in politics and corporate houses alike.

He is the man who has almost vowed to rid the nation of corruption.

Yet, quite importantly, he is a man who refuses to make large promises.

N Vittal, Central Vigilance Commissioner, would rather show people how to build a corruption-free India.

On August 15, 2001, CVC's official Web site (www.cvc.nic.in) will carry a 'Citizen's guide to fight corruption', which will help citizens beat corruption while making optimum use of bodies such as the Central Vigilance Commission.

"Everyday we read about some scam or the other in the newspapers. First, it was Ketan Parekh, now it is UTI. We are slowly becoming more and more corrupt as a country," said Vittal. He said that the Unit Trust of India's problems are to a large extent because of lack of corporate governance.

He asserted that more and more countries are increasingly emphasising on the need to erase corruption at all levels and adopt the corporate governance mode.

Vittal was in Bombay to speak on 'Corruption in public life: Have we become immune?' at the Annual Lalit Doshi Memorial Lecture.

While lambasting the government's futile efforts in the past to tackle the problem of black money with schemes such as the Voluntary Disclosure of Income Scheme, Vittal suggested that it would be better to have a flat tax rate of 20 per cent for an annual income above Rs 200, 000.

"Even the same tax rate for an (annual) income above Rs 500,000 is acceptable," Vittal added.

He also said that that the government should give a three-month window of opportunity to allow people with 'black money' to declare their wealth and pay tax at a flat rate of 21 per cent.

Loopholes in the Customs and Excise Act provide opportunities for corruption because of the ambiguities in the statute. Vittal said that it would be much simpler if there is an approach of zero-discretion by precisely indicating the rate that is applicable for a particular product or service.

The fact that India stands 69th of 90 countries on the Corruption Perception Index is definitely derogatory to the country's investment climate so far as foreign direct investment is concerned, he said.

Dubbing corruption the 'AIDS of our body politic', Vittal said that if India's corruption level goes down to that of Scandinavian countries, according to the 1999 UNDP report for South Asia, gross domestic product will go up by 1.5 per cent and FDI by 12 per cent.

The Lalit Doshi Memorial Foundation and the State Industrial and Investment Corporation of Maharashtra have instituted an award that is annually given to a Sicom-assisted unit showing outstanding results.

Uttar Pradesh-based Alps Industries Limited and Maharashtra-based Spenta International Limited were the recipients of this award presented by Vittal.

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