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LATEST NEWS UPDATES | Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur </title>
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<h1 class="cat-box-title">Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur</h1>
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Published on</span><span class="text-date"> Feb 19, 2015</span>
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<div align="justify">-The Times of India</div><p align="justify"><em>NEW DELHI: </em>The NDA government, which came riding on a huge anti-corruption wave wiping out Congress last year, has dropped crucial amendments to the Prevention of Corruption Act that would have ensured India ratifying the UN Convention Against Corruption (UNCAC).</p><p align="justify">Sources said the government has not considered incorporating Article 12 and 16 of the UNCAC in the proposed amendments to the Prevention of Corruption (PC) Act likely to be brought in during the budget session.</p><p align="justify">The two articles talk about disclosure of beneficial ownership of companies and assets and other interests of such entities and PEPs (politically exposed persons), including bribing of public officials in foreign countries. PEPs are heads of governments, senior ministers, top government, judiciary and military officers, senior executives of PSUs, corporates and important functionaries of political parties.</p><p align="justify">Bringing the private sector within the ambit of the PC Act is the prime focus of the proposed amendment bill. However, the government has addressed this issue partially by incorporating provisions on private entities to be held accused for bribing public servants, but excluded clauses of Article 12 and 16 of the UNCAC from the bill.</p><p align="justify">"Even Great Britain and South Africa have ratified the UNCAC by bringing in enabling domestic legislations that covers all aspects of corruption - whether concerning public servants or private entities," a source said.</p><p align="justify">"The present amendments are not in full compliance with UNCAC," he said. India could have ratified the convention by making appropriate amendments in the PC Act and that would have addressed the concerns raised on its seriousness of joining the global community in tackling corruption.</p><p align="justify">The law is not addressing issues relating to the private sector that should be covered under the UNCAC mandate. For instance, Article 12 of the UNCAC describes how corruption in private sector should be tackled.</p><p align="justify">This relates to the "maintenance of books and records, financial statement disclosures and accounting and auditing standards" to prohibit off-the-books accounts; entry of liabilities with incorrect identification of their objects; use of false documents; intentional destruction of book-keeping documents.</p><p align="justify">Article 16 of the UNCAC enjoins governments to make enough legislative provisions to prohibit bribery of foreign public officials and officials of public international organizations. The PC Act (amendment) bill is silent on this.</p><p align="justify">"Each State party shall adopt such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, the promise, offering or giving to a foreign public official or an official of a public international organization, directly or indirectly, of an undue advantage...in order to obtain or retain business or other undue advantage in relation to the conduct of international business," says Article 16 of UNCAC.</p><p align="justify">Even the Paris-based Financial Action Task Force, of which India is a signatory, had insisted on including provisions such as enhanced scrutiny on domestic PEPs to curb corruption in high places. However, the finance ministry had categorically rejected this demand when it was raised by the Election Commission a few years ago in a written communication. The finance ministry had then stated: "The politically exposed persons (PEPs) of foreign origin are being subjected to enhanced scrutiny by banks, domestic PEPs are not."</p><p align="justify">Interestingly, in amendment to the Prevention of Money Laundering Act, 2002 the government had provided for PEPs being subjected to enhanced scrutiny by banks and financial institutions but its subsequent clarification to the EC shows lack of seriousness on joining the global crusade against black money. </p>
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<br><a href="http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms" class="re" target="_blank">The Times of India, 19 February, 2015, http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms</a><div class="clear"></div>
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<h1 class="cat-box-title">Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur</h1>
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<div align="justify">-The Times of India</div><p align="justify"><em>NEW DELHI: </em>The NDA government, which came riding on a huge anti-corruption wave wiping out Congress last year, has dropped crucial amendments to the Prevention of Corruption Act that would have ensured India ratifying the UN Convention Against Corruption (UNCAC).</p><p align="justify">Sources said the government has not considered incorporating Article 12 and 16 of the UNCAC in the proposed amendments to the Prevention of Corruption (PC) Act likely to be brought in during the budget session.</p><p align="justify">The two articles talk about disclosure of beneficial ownership of companies and assets and other interests of such entities and PEPs (politically exposed persons), including bribing of public officials in foreign countries. PEPs are heads of governments, senior ministers, top government, judiciary and military officers, senior executives of PSUs, corporates and important functionaries of political parties.</p><p align="justify">Bringing the private sector within the ambit of the PC Act is the prime focus of the proposed amendment bill. However, the government has addressed this issue partially by incorporating provisions on private entities to be held accused for bribing public servants, but excluded clauses of Article 12 and 16 of the UNCAC from the bill.</p><p align="justify">"Even Great Britain and South Africa have ratified the UNCAC by bringing in enabling domestic legislations that covers all aspects of corruption - whether concerning public servants or private entities," a source said.</p><p align="justify">"The present amendments are not in full compliance with UNCAC," he said. India could have ratified the convention by making appropriate amendments in the PC Act and that would have addressed the concerns raised on its seriousness of joining the global community in tackling corruption.</p><p align="justify">The law is not addressing issues relating to the private sector that should be covered under the UNCAC mandate. For instance, Article 12 of the UNCAC describes how corruption in private sector should be tackled.</p><p align="justify">This relates to the "maintenance of books and records, financial statement disclosures and accounting and auditing standards" to prohibit off-the-books accounts; entry of liabilities with incorrect identification of their objects; use of false documents; intentional destruction of book-keeping documents.</p><p align="justify">Article 16 of the UNCAC enjoins governments to make enough legislative provisions to prohibit bribery of foreign public officials and officials of public international organizations. The PC Act (amendment) bill is silent on this.</p><p align="justify">"Each State party shall adopt such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, the promise, offering or giving to a foreign public official or an official of a public international organization, directly or indirectly, of an undue advantage...in order to obtain or retain business or other undue advantage in relation to the conduct of international business," says Article 16 of UNCAC.</p><p align="justify">Even the Paris-based Financial Action Task Force, of which India is a signatory, had insisted on including provisions such as enhanced scrutiny on domestic PEPs to curb corruption in high places. However, the finance ministry had categorically rejected this demand when it was raised by the Election Commission a few years ago in a written communication. The finance ministry had then stated: "The politically exposed persons (PEPs) of foreign origin are being subjected to enhanced scrutiny by banks, domestic PEPs are not."</p><p align="justify">Interestingly, in amendment to the Prevention of Money Laundering Act, 2002 the government had provided for PEPs being subjected to enhanced scrutiny by banks and financial institutions but its subsequent clarification to the EC shows lack of seriousness on joining the global crusade against black money. </p>
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<br><a href="http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms" class="re" target="_blank">The Times of India, 19 February, 2015, http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms</a><div class="clear"></div>
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<h1 class="cat-box-title">Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur</h1>
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<div align="justify">-The Times of India</div><p align="justify"><em>NEW DELHI: </em>The NDA government, which came riding on a huge anti-corruption wave wiping out Congress last year, has dropped crucial amendments to the Prevention of Corruption Act that would have ensured India ratifying the UN Convention Against Corruption (UNCAC).</p><p align="justify">Sources said the government has not considered incorporating Article 12 and 16 of the UNCAC in the proposed amendments to the Prevention of Corruption (PC) Act likely to be brought in during the budget session.</p><p align="justify">The two articles talk about disclosure of beneficial ownership of companies and assets and other interests of such entities and PEPs (politically exposed persons), including bribing of public officials in foreign countries. PEPs are heads of governments, senior ministers, top government, judiciary and military officers, senior executives of PSUs, corporates and important functionaries of political parties.</p><p align="justify">Bringing the private sector within the ambit of the PC Act is the prime focus of the proposed amendment bill. However, the government has addressed this issue partially by incorporating provisions on private entities to be held accused for bribing public servants, but excluded clauses of Article 12 and 16 of the UNCAC from the bill.</p><p align="justify">"Even Great Britain and South Africa have ratified the UNCAC by bringing in enabling domestic legislations that covers all aspects of corruption - whether concerning public servants or private entities," a source said.</p><p align="justify">"The present amendments are not in full compliance with UNCAC," he said. India could have ratified the convention by making appropriate amendments in the PC Act and that would have addressed the concerns raised on its seriousness of joining the global community in tackling corruption.</p><p align="justify">The law is not addressing issues relating to the private sector that should be covered under the UNCAC mandate. For instance, Article 12 of the UNCAC describes how corruption in private sector should be tackled.</p><p align="justify">This relates to the "maintenance of books and records, financial statement disclosures and accounting and auditing standards" to prohibit off-the-books accounts; entry of liabilities with incorrect identification of their objects; use of false documents; intentional destruction of book-keeping documents.</p><p align="justify">Article 16 of the UNCAC enjoins governments to make enough legislative provisions to prohibit bribery of foreign public officials and officials of public international organizations. The PC Act (amendment) bill is silent on this.</p><p align="justify">"Each State party shall adopt such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, the promise, offering or giving to a foreign public official or an official of a public international organization, directly or indirectly, of an undue advantage...in order to obtain or retain business or other undue advantage in relation to the conduct of international business," says Article 16 of UNCAC.</p><p align="justify">Even the Paris-based Financial Action Task Force, of which India is a signatory, had insisted on including provisions such as enhanced scrutiny on domestic PEPs to curb corruption in high places. However, the finance ministry had categorically rejected this demand when it was raised by the Election Commission a few years ago in a written communication. The finance ministry had then stated: "The politically exposed persons (PEPs) of foreign origin are being subjected to enhanced scrutiny by banks, domestic PEPs are not."</p><p align="justify">Interestingly, in amendment to the Prevention of Money Laundering Act, 2002 the government had provided for PEPs being subjected to enhanced scrutiny by banks and financial institutions but its subsequent clarification to the EC shows lack of seriousness on joining the global crusade against black money. </p>
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<br><a href="http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms" class="re" target="_blank">The Times of India, 19 February, 2015, http://timesofindia.indiatimes.com/india/Amendments-to-anti-graft-law-soft-on-private-sector-fall-short-of-UN-convention/articleshow/46293658.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur
Amendments to anti-graft law soft on private sector, fall short of UN convention -Pradeep Thakur
Published on Feb 19, 2015
Modified on Feb 19, 2015
-The Times of India
NEW DELHI: The NDA government, which came riding on a huge anti-corruption wave wiping out Congress last year, has dropped crucial amendments to the Prevention of Corruption Act that would have ensured India ratifying the UN Convention Against Corruption (UNCAC).
Sources said the government has not considered incorporating Article 12 and 16 of the UNCAC in the proposed amendments to the Prevention of Corruption (PC) Act likely to be brought in during the budget session.
The two articles talk about disclosure of beneficial ownership of companies and assets and other interests of such entities and PEPs (politically exposed persons), including bribing of public officials in foreign countries. PEPs are heads of governments, senior ministers, top government, judiciary and military officers, senior executives of PSUs, corporates and important functionaries of political parties.
Bringing the private sector within the ambit of the PC Act is the prime focus of the proposed amendment bill. However, the government has addressed this issue partially by incorporating provisions on private entities to be held accused for bribing public servants, but excluded clauses of Article 12 and 16 of the UNCAC from the bill.
"Even Great Britain and South Africa have ratified the UNCAC by bringing in enabling domestic legislations that covers all aspects of corruption - whether concerning public servants or private entities," a source said.
"The present amendments are not in full compliance with UNCAC," he said. India could have ratified the convention by making appropriate amendments in the PC Act and that would have addressed the concerns raised on its seriousness of joining the global community in tackling corruption.
The law is not addressing issues relating to the private sector that should be covered under the UNCAC mandate. For instance, Article 12 of the UNCAC describes how corruption in private sector should be tackled.
This relates to the "maintenance of books and records, financial statement disclosures and accounting and auditing standards" to prohibit off-the-books accounts; entry of liabilities with incorrect identification of their objects; use of false documents; intentional destruction of book-keeping documents.
Article 16 of the UNCAC enjoins governments to make enough legislative provisions to prohibit bribery of foreign public officials and officials of public international organizations. The PC Act (amendment) bill is silent on this.
"Each State party shall adopt such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, the promise, offering or giving to a foreign public official or an official of a public international organization, directly or indirectly, of an undue advantage...in order to obtain or retain business or other undue advantage in relation to the conduct of international business," says Article 16 of UNCAC.
Even the Paris-based Financial Action Task Force, of which India is a signatory, had insisted on including provisions such as enhanced scrutiny on domestic PEPs to curb corruption in high places. However, the finance ministry had categorically rejected this demand when it was raised by the Election Commission a few years ago in a written communication. The finance ministry had then stated: "The politically exposed persons (PEPs) of foreign origin are being subjected to enhanced scrutiny by banks, domestic PEPs are not."
Interestingly, in amendment to the Prevention of Money Laundering Act, 2002 the government had provided for PEPs being subjected to enhanced scrutiny by banks and financial institutions but its subsequent clarification to the EC shows lack of seriousness on joining the global crusade against black money.
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