CVC questions NGOs set up by public sector bank officials

The Central Vigilance Commission (CVC) has red-flagged the setting up of NGOs by employees of public sector banks and enterprises to get donations from contractors or other persons having official dealings with them and has warned them of strict action.

The move comes after the commission observed instances of associations and organisations, formed or patronised by employees, their spouses, etc, obtaining donations from contractors, vendors, customers or other persons having commercial relations or official dealings with the public sector banks and enterprises.

Considering that such contributions may lead to unethical practices and misuse of power, the CVC advised the departments of public enterprises, financial services as well as the Department of Personnel and Training to examine the issue of incorporating suitable and specific provision in the rules governing the conduct of officers or issue necessary instructions to curb such practice, it said in new guidelines issued Monday.

Following this, the Department of Financial Services has issued instructions to all public sector banks, insurance companies, financial institutions to stop the practice of obtaining donations. The DFS has said violation of these instructions by any official will be viewed seriously and delinquent officials will be liable for disciplinary action for offence of bribery under Prevention of Corruption Act, 1988. The Department of Public Enterprises has advised all administrative departments to issue necessary instructions to all public sector enterprises under their administrative control to curb the practice, it said. “All Chief Vigilance Officers of public sector banks and enterprises have been asked to take necessary action,” a CVC official said.

The existing rules bar a government servant from giving any contract to a company or a person if any member of his family is employed in that firm.