Lessons from the petrol pumps scam

The scam shows how lack of transparency in the functioning of a system can allow those in power to easily manipulate it. THE RECENT disclosures about the manner in which top functionaries of the BJP and their associates have grabbed the bulk of the petrol pumps and gas agencies in the country has left the BJP bereft of even a pretence of integrity about being a party with a difference. In this respect, the only difference between the Congress and the BJP is that the latter achieved in three years what the former could achieve in 40. In its haste to grab as many slices of the power cake as possible, the BJP has systematically tried to subvert and destroy almost all institutions in this country, including investigative agencies such as the CBI, the SEBI, the Enforcement Directorate and the Income Tax Department, and academic institutions such as the ICSSR, the ICHR, the NCERT and the UGC. All kinds of pressure have been brought to bear on even independent constitutional bodies such as the Election Commission. The petrol pumps scam shows that even the Judiciary has not been spared. The Petroleum Minister has tried to hide behind the robes of the Judiciary by saying the selections had been made by panels chaired by retired judges. What he omitted to mention was that these retired judges were handpicked by him and were at his mercy since their appointments were terminable at his pleasure. Several of these judges were replaced shortly after their appointment when they refused to toe the party line. However, the manner in which the bulk of these retired judges made allotments on the dictates of the ruling party shows that it is easy to find any number of judges who are willing to act nepotistically even while holding quasi-judicial posts. It points to the need for urgent reforms in the manner of selection and appointment of judges and also for securing accountability of the Judiciary. The scam shows how lack of transparency in the functioning of a system can allow those in power to easily manipulate it. If the method of the selection of members of the oil selection boards, and the manner of selecting dealers by the boards themselves had been transparent and known to the public, the scam would have been busted long ago. It is only when the powers that be can operate under the cover of secrecy that they can get away with this kind of nepotism and corruption for as long as they have. The draft Right to Information bill that has been prepared is so weak that even when it is enacted it may not serve much purpose. In this bill, file notings, inter-office correspondence etc. will continue to remain classified. Thus the manner in which the oil selection boards selected the allottees, would still be classified as "file notings". Moreover, the bill contains no provision for penalising officers who for mala fide reasons refuse to disclose information. What is even more distressing, however, is that the lesson being sought to be drawn from this scam by some is that this should lead to the disinvestment of oil companies by the Government. The argument is that the Government being incorrigibly corrupt, cannot be trusted to allot petrol pumps, and therefore these scams will continue to happen so long as the Government continues to control them. To examine the validity of this argument, let us go to the root of the problem. The root is the Petroleum Ministry, which is corrupt, according to this argument. Should we then privatise the Petroleum Ministry and indeed the Government itself? Should we privatise the Judiciary, if the judges behave as they have done in this case? Should we privatise the police force, which is said to be one of the most corrupt institutions in the country? Indeed, this is the real sequitur of the argument that is being used to push for privatisation of the oil companies. That was the state of affairs before civil society came together to form Governments and create institutions which would regulate their affairs. Everything was privatised at that time and might was right. That is what it will come to if the privatisers have their way. Monopolistic corporations will then rule the world. Economic might will be right. If infrastructure sectors such as water, electricity and oil, which by their nature are monopolistic and free competition is not possible, are privatised, these basic facilities will be available to only the rich who can afford them and will be denied to the poor. and this is exactly what the privatisers and their international sponsors (read World Bank and IMF) want. This is indeed their real agenda. They want a world where financial muscle will rule. and if the Government itself is corrupt, why would the process of disinvestment be less corrupt than the doling out of petrol pumps and gas agencies. Should we be less concerned about a corrupt Government handing over assets worth00000 of0000000 of rupees of the national oil companies and indeed the entire oil business in the country to a private company? and even if the process of disinvestment is not corrupt, how do we prevent this monopolistic privatised oil company from acting against consumer interests? The privatisers glibly tell us that this problem will be taken care of by having a regulator. Is it reasonable to assume that the regulator will be any less corrupt than the Government itself? Imagine the enormous incentives the private oil companies would have to increase their profits by corrupting the regulator. It is mainly these private companies which are responsible for corrupting public servants and public authorities in this country. Enron is a stark example of how a supposedly efficient private company managed to produce and sell power to the State Electricity Board at three times the cost of power of public sector companies. Enron and WorldCom are merely two well-publicised examples of how dishonestly private companies operate even in the U.S. When the cost of power shot up 10 times in California after the power utilities were privatised, the Governor of the State, in his address to the people, complained about how the regulatory authorities had done nothing to check this rampant loot. Unfortunately, there are no shortcuts in dealing with the problem of corruption in this country. We can't cure it by getting rid of the Government itself, as is suggested by the votaries of privatisation. Privatisation is desirable in sectors where a free market is possible. But privatisation of infrastructure sectors such as electricity, water and oil will lead to the creation of private monopolies and eventually the subordination of all public interest to their interest. Therefore, we have to find a way of tackling corruption in the Government. For that we have to improve the transparency in the functioning of the Government and all public authorities. We must improve the functioning of our judicial institutions. We must have proper institutions for securing the accountability of all public servants including the Judiciary. What the privatisers are suggesting will lead to the dismantling of all institutions of governance, and take us back to Hobbes' state of nature. The only difference now will be that economic might will be right and private global corporations will rule the world. (The writer is a public interest lawyer in the Supreme Court.)