CVC for mechanism to check corruption in private sector

Citing instances of corruption in the private sector, Central Vigilance Commissioner KV Chowdary on Tuesday suggested evolving a mechanism to red-flag wrong-doings and check them.

He said there is a need to build an internal audit system, which gives out an alert when a wrong-doing happens in a private organisation.

“The best thing is to go for prevention,” he said, noting that the system should ensure minimum possibility of corruption and even assuming that there are leaks, the leaks should get detected at the earliest or there are alarms. There are alarms or alerts that come to you either before the commissioning of an offence or as the offence gets committed or at least immediately or shortly thereafter,” Chowdary said.

He said a difficulty in the private section is that after detection of a corrupt practice, how to deal with it.

“If it is a serious criminal sort of offence, the government at the Centre gets the matter investigated either by the state police or a central bureau or by some other body. Then there is prosecution,” he said.

But in the private sector, the system to deal with corruption is not so effective, the CVC said, addressing a roundtable discussion with chief vigilance officers of public sector and compliance officers from private sector organised by Confederation of Indian Industry. 

Chowdary cited certain instances of corruption in the private sector. He said in the private sector there are constraints of resources and budgets.