Saturday, June 1, 2013

Time to be watchful!

Is this not the right time for large companies to have anti corruption wing like ICC has. We have seen and heard several fraud happening in the large MNCs. 40, 000 fake invoices of sales of field return products. In the one hand it is cheating the customer and government in the other hand by avoiding excise duty. Having product services centre in the same premises where product happens is violation of SEZ rules. MNCs defy this and run illegal operations. 3 times fire incident happen in MNC's factory and all these fires occur on holidays or weekends. No one suspects any thing like insider act. Not only paper based documents get gutted, electronic data and computers and servers are also burnt to destroy any data and evidence.

Corruption is private sector is more than in public sector. Public sector has enough mechanism built within  to   keep check on corruption. People in important positions are transferred every 2 or 3 years so that they cannot build cronies and links of benefits through corruption. Private sector and especially MNCs get mostly cheated in India by it's India employees. Reebok case is a recent example.

MNCs and these private sector companies have legal department that sits isolated and is mostly reactive. Remember they are not watch dogs or investigative agencies. Have you ever heard Advocates acting as investigators or watchdogs? The model in private sector to check internal corruption is faulty. They need both internal and external watchdogs and Anti-Corruption wings like ICC has for cricket internationally and we have CBI and IB in government. 

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