Vigilance as a Management Function – Leveraging Technology
Vigilance as a Management Function – Leveraging Technology
Vigilance is not a
stand-alone activity. It has to be seen
as part of the overall risk management strategy of an organization wherein the
structures, systems and processes are built in such a manner so as to prevent
leakages which adversely affect productivity and profitability. A number of
organizations both in public and private sector are re-engineering their
processes by leveraging information technology.
It will be in the organizational interest that when they are
reorganizing business processes they should identify the likely risks like
fraud, corruption, other malpractices and build in the required risk management
tools in the new processes. Recently a write-up has appeared in the Economic
Times under the heading “Fuel for e-commerce at HPCL”.
This article explains how HPCL has networked
all its petrol pumps in and around Mumbai for the purposes of inventory control
and supply chain management. The same
process also indirectly helps in curbing adultration and under
measurement. These malpractices are in
turn connected with corruption. The system automatically detects any tampering
with the fuel dispensers. It enables the company to monitor every outlet. Similarly providing global positioning system
on the tankers for transporting fuel, the management can detect diversion of
tankers to dubious destinations. This
technology while providing solution for efficient supply chain management also helps in risk
management thus strengthening the internal vigilance. There is need to integrate vigilance activity
as a part of overall risk management strategy which in turn has to be
integrated in the main stream operations of organizations.
The
Central Vigilance Commission has been wrestling with the idea of identifying
areas where generic solutions to the problems of vigilance administration can
be applied across wide spectrum of government organizations. A number of areas have been identified where
use of information technology can bring efficiency, economy as well as transparency thus curbing corruption. Some of these ideas are as follows:-
E-Procurement
It
has been the experience of a large number of organizations worldwide both in
public and private sectors that e-procurement can bring in economy and
efficiency in the procurement of goods, works and services. Apart from these benefits, the process also
brings in greater transparency, thus reducing opportunities for corruption. Some of the State Governments like Andhra
Pradesh, Karnataka as well as some Public Sector Undertakings like SAIL are
already making use of e-procurement systems.
The Central Vigilance Commission has issued a directive that all Govt.
organizations over which the Commission has jurisdiction should publish their
tenders and complete bid documents along with the application forms on the
website. This is the first step towards
e-procurement and would help in curbing mal-practices prevailing in various Govt.
organizations where competition is sought to be restricted.
E-Payment
Another directive of the
Central Vigilance Commission regarding levarging technology pertains to
introducing e-payment. Here again, the
intention is to bring economy and efficiency, while at the same time, reducing corruption. The banking industry in the last one decade
has made rapid technological advances in India.
The directive of the Central Vigilance Commission for introducing
e-payment is to levarge these technological advances in banking sector for the
benefit of rest of the governmental set up.
This system will help in significantly reducing transaction costs
involved in making payments by way of cheques and sending the payment through
couriers. It will also curb corruption
which accompanies handing over cheques to contractors, suppliers and others
like persons receiving refunds from income tax and other departments.
Apart from the above
mentioned two specific directives which the Central Vigilance Commission has already
issued there are very many other areas where technology can be leveraged
simultaneously for efficiency, economy and corruption control. The key idea being that risk management tools
are made integral part of the main business processes. For example, there are frequent cases of
frauds in availing various employee benefits like medical expenses, LTC, TA/DA
etc. The accounting softwares can be
built in such a manner that the computer system generates ‘exception report’ and gives alerts wherever there are significant deviations from certain benchmarks and
norms. Similarly, the same accounting
software system can make inter unit/inter location comparisons of expenditure
on these items. Similarly, softwares can
be developed with regard to procurement with in built features for making inter
unit/inter office comparisons of rates and consumption patterns.
Extensive use of website can be made both as a tool for communication
with the stake holders as well as for curbing corruption. Right to information and transparency are the
biggest tools for fighting corruption and website as a tool for such
communication can have very extensive application across the entire spectrum of
Govt. activity. Contractors and suppliers
can know where their bills are held up,
applicants for passport can know where their passport application is
held up or whether police is taking abnormally long time in issuing NOC,
beneficiaries of public distribution system can know whether wheat, rice and
sugar is being diverted by the ration shop owner. Municipal corporations and other civic
agencies can get feedback from public whether repairs to roads or drainage
pipes is actually being carried out or only fake bills are being prepared
without actually undertaking the works.
Some Govt. organizations have already taken initiatives in this
direction but the complete potential of website/portal as a tool for fighting
corruption is yet to be made.
In
addition to generic issues pointed out above, there can be a large number of
organisation specific solutions where risk management tools can be integrated
in the business processes. Customs &
Central Excise, Income Tax, Employee Provident Fund Organisation and certain
other organizations are learnt to have already undertaken such exercises in
their computerization projects and business process re-engineering
efforts. The aim is to gradually
integrate preventive vigilance in the business processes and reduce our
dependence on a complaint driven vigilance administration which is the present
scenario.
***
Post a Comment