Coal, banking sectors face CVC flak on frauds and transparency
NEW DELHI: The minutes of another annual review meeting held by CVC with CVOs of banking sector on August 1, 2012, reveal that CVC was concerned about the continuous rise in frauds in public sector banks.
"The RBI report for 2011-12 indicates that while frauds in public sector banks were lesser, the amount involved in the frauds was very high. CVC mentioned about the absence of due diligence while sanctioning loans and the manner in which good governance practices like Know Your Customer norms are given a go-bye. This has resulted in huge financial exposures of the banks without having sufficient collateral assets of the companies to back up in case of loan defaults," the minutes state.
At the annual review meeting with CVOs of the Coal sector on August 8, CVC stated that a number of complaints were being received in this "vulnerable" sector on issues such as procurement of heavy equipments, award of transportation contracts, measurement of coal stock, quality of coal and rotation of persons on sensitive posts and that there was need to creating a "corruption-free environment" in the coal sector.
"Immediate action was called for to improve transparency in coal sector. R Sri Kumar, Vigilance Commissioner, expressed his concern over black money and nature of business in the coal sector. He mentioned about problems of coal block allocation...he emphasised the importance of good governance for putting the house in order and the need for bringing in systematic improvements like CCTV and GPS on vehicles for better surveillance and control of coal movement," the minutes reveal.
"The RBI report for 2011-12 indicates that while frauds in public sector banks were lesser, the amount involved in the frauds was very high. CVC mentioned about the absence of due diligence while sanctioning loans and the manner in which good governance practices like Know Your Customer norms are given a go-bye. This has resulted in huge financial exposures of the banks without having sufficient collateral assets of the companies to back up in case of loan defaults," the minutes state.
At the annual review meeting with CVOs of the Coal sector on August 8, CVC stated that a number of complaints were being received in this "vulnerable" sector on issues such as procurement of heavy equipments, award of transportation contracts, measurement of coal stock, quality of coal and rotation of persons on sensitive posts and that there was need to creating a "corruption-free environment" in the coal sector.
"Immediate action was called for to improve transparency in coal sector. R Sri Kumar, Vigilance Commissioner, expressed his concern over black money and nature of business in the coal sector. He mentioned about problems of coal block allocation...he emphasised the importance of good governance for putting the house in order and the need for bringing in systematic improvements like CCTV and GPS on vehicles for better surveillance and control of coal movement," the minutes reveal.
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