Words of wisdom

In the editorial ‘Words of wisdom’ (Jan 2) you have rightly observed that irresponsible management of public resources and pervasive corruption at all levels require that the “good words of the Prime Minister are followed by better deeds.” In fact, it’s not that the leaders do not take worthwhile decisions in Parliament, assemblies or cabinets. The problem lies in the bureaucratic setup and red tapism purposely perpetuated by those at the helm of affairs. These people care little about public welfare — meant to be brought about through faithful implementation of plans and policies — or the decisions taken by the leaders.

It is suggested that a JPC probe is initiated to examine the financial burden imposed by top-rung bureaucrats vis-a-vis their contribution to national growth. Over-dependence on IAS officers should be shrugged off and technocrats and professionals be made in charge of implementing policy decisions.
—B B Goyal
on e-mail

Media’s role

I read with considerable distress that Indian and Pakistani officials barred journalists from each other’s media briefings at Kathmandu, and I actually felt ashamed that the Indian external affairs ministry spokesperson refused to take a question from a Pakistani television journalist.

This was highly improper on the part of the Indian spokesperson as journalists everywhere, by and large, represent the public and not governments.

The majority of the people of India and Pakistan want peace. It is the leaders of both the governments who are indulging in counter-productive shadow boxing.

The channels of communication between the citizens of both the countries should be kept open at all times, and journalists are in an ideal position to do so. Whether in peace or war, journalists have a positive and healthy role to play and they should not be restricted in discharging their duties.
—N S Venkataraman
on e-mail

Auditor lapses

Who will audit the auditors — this is a general question that is asked every time a scam takes place, may it be the 1992 Securities scam, the failure of Bahrain bank, the ITC imbroglio, the Tata Finance saga or the collapse of Enron.

There is an urgent need to modernise the financial reporting and accounting rules system so that the interest of shareholders can be protected.

Despite strict corporate governance, accounting and auditing standards, and the functioning of regulatory agencies, credit rating agencies, equity research as well as investment banks, investors were not forewarned in all the above mentioned cases. The agencies failed miserably not only with respect to anticipating the downfalls but also in reporting irregularities. It is high time that a foolproof system be developed which can alert investors about the viability of companies before hand.

Although auditors have their own limitations and are subject to ethical standards, these instances highlight the lacunae in the system.
The international body IFAC should devise a system of overall supervision of auditors so that their functioning can be audited. Moreover, disclosure norms should be made more objective and in tune with present times.
—B L Tekriwal
Mumbai