A Transparency International India survey that checked PSUs? adherence to the Integrity Pact has come out with significant findings. The survey found that the pact?signed by PSUs with the international civil society body?has brought transparency in PSUs? procurement process.

The survey, conducted through Management Development Institute (MDI), also found that 100% public sector undertakings, 95% independent external monitors and 90% bidders felt the private sector should also adopt the pact to bring transparency in the procurement process. ?Bribery from the officials of private sector fund is rampant. Government must bring a strong deterrent tool to curb corruption in the private sector?, the report said. It appears that corruption is common to both public and private sectors. Under such a scenario, there is a strong case to bring deterrents and checks and balances in the private sector as well. This will level the playing field for PSUs and benefit corporates.

Governments across the globe have generally allowed transfer of public money to private hands through privatisation. Therefore, when public money has changed hands from public to private, adequate checks and balances have to be put in place to judge the fairness, corruption and transparency aspects between public and private partners.

For the 12th Five-Year Plan, the Planning Commission has envisioned an investment of R41 lakh crore, of which R21 lakh crore for key infra sectors like power, road, bridges, telecom, railways, urban development, irrigation, ports, airports, and petroleum and natural gas. In many of these sectors, public-private partnerships (PPPs) are being promoted by the government. There have been 758 PPP projects in key sectors where a contract has been awarded and projects are under way, according to the ministry of finance. The total projects cost of these is about R3,833 lakh crore.

For the success of any PPP or public-funded infrastructure or service, mutual coordination and cooperation among government agencies are critical. PPPs need to be sustained through regulatory and policy mechanisms that ensure checks and balances. Extending the Right To Information Act and CAG audit to the private sector would bring transparency in PPP projects.

Transparency, credibility and due diligence are today more important than ever before. Large sums of public money have been invested in corporate houses through the stock markets. The fear that such uncontrolled public money can be used for extravagant and conspicuous expenditures by the owners of private corporates is no longer unfounded.

The RTI Act covers only the government sector, including PSEs, based on the premise that the sector uses ?public money?. RTI, which was earlier considered as necessary evil, has been gradually accepted. There is a appreciation that this has enhanced the equity of ?Brand PSEs.?

Today, PSE employees are bold enough to record their reasoned views in decision-making. Further, corporate governance has emerged as a benchmark for judging PSEs? excellence in national and international business practices. It is promoting fairness, transparency, integrity and accountability. Hence, good corporate governance practices are vital for the long-term sustainability of any project or service. Decisions based on ethical practices, reasoned views and judgment on issues keeping in mind the interest of all stakeholders have become the hallmark of governance in the public sector.

The increasing number of PPP projects and the rising public participation in equity issues make a strong case for extending the scope of RTI and some other regulations like CAG audit to large private sector corporations.

Extension of the RTI Act would bring greater transparency and accountability and foster increased responsibility towards citizen welfare. India will not be exception as 19 countries have already brought private sector under RTI.

The writer is director general, Scope