Vigilance Officers Seek Amendments In Cvc Manual

The committee of chief vigilance officers of public sector banks (PSBs) has requested the Central Vigilance Commission (CVC) to effect certain amendments to the special chapter on banking in the commission's manual.

By the amendments, the committee feels only officers in the top management grade will come under the CVC's jurisdiction while vigilance cases pertaining to officers in other grades can be handled internally by the banks.

Top bankers say that as credit is a subjective decision and the commercial judgments can go wrong, the CVC's watch over an officer in case an advance goes bad is hindering them from taking commercial decisions.

In view of the large number of officers in the PSBs, the committee has recommended to the CVC that only executives in the top management grade should fall under the purview of the commission while other officers could be covered by the chief vigilance officers (CVOs), who are anyway on deputation from other PSBs and hence independent.

In the case of bank officers below the top management grade, the CVOs could easily look into vigilance cases against them and initiate disciplinary proceedings. The CVC, by empowering the CVOs, can bring down administrative delays in investigations into cases of frauds.

Another point that was brought to the notice of the central vigilance commissioner, N Vittal, late Thursday at a function in connection with the 'Vigilance Awareness Week' organised jointly by the Indian Banks' Association (IBA) and Industrial Development Bank of India, was the issue of allegations/frivolous/anonymous complaints of corruption against bank officers as this not only demoralised/ damaged their reputation but also caused harassment.

IBA chairman Dalbir Singh pointed out that though the special chapter in the manual lends clarity of purpose and direction to vigilance in the PSBs, when it comes to the issue of false/anonymous complaints against officers, no action so far had been taken under Section 182 of the Indian Penal Code, which deals with false allegations against public sector employees. He requested the CVC to use its statutory powers and take action against in such complaints.

Vittal said that he would be able to come out with the Corruption Perception Index by July 2002. This Index is expected to rate the government-run enterprises depending on perception of entities dealing with the organisations as to the level of corruption in them.

Deputy governor of Reserve Bank of India Vepa Kamesam said in the last financial year frauds amounting to Rs 640 crore were detected in various banks in the country.

Kamesam pointed out that malfeasance in the banking sector occurs when the need and opportunity to defraud co-exist.