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India among worst in corporate fraud, shows survey

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Washington: India has one of the highest percentages of companies where corporate fraud, corruption and bribery were detected, according to a new survey of large local and multinational companies across the world.

Conducted by the Economist Intelligence Unit and commissioned by New York-based risk consultancy firm Kroll Inc., the survey asked around 770 senior executives if they had discovered any fraud in their companies in 2014.

Around three-quarters of the executives surveyed said that they encountered corruption, bribery and stealing of proprietary information among other things.

The problem is even worse in emerging countries like India, where 80 percent of the respondents said they had come across fraud in their firm.

India was more prone to some types of fraud than any other country. For instance, the survey found that Indian respondents were most likely to report encountering corruption and bribery, regulatory breaches, money laundering and theft of intellectual property.

Globally, 11 percent of all executives surveyed said, they discovered cases of in-house corruption and bribery while 25 percent of respondents from India said that they came across such types of fraud in the past year, according to the report.

In comparison, only around 18 percent of Chinese executives and 20 percent of Russians said they encountered corruption and bribery.

One reason that India’s numbers appear higher than some of its emerging market peers might be because more and more Indian companies have in recent years started reporting and confronting corrupt practices, the Wall Street Journal said.

Even so, fraud in India remains a growing problem, both for Indian companies and investors, the Journal said, citing Reshmi Khurana, head of South Asia for Kroll.

Part of the problem is that accounting standards and financial regulations are not strictly implemented.

Auditing of firm balance sheets, for instance, is supposed to be independent but is sometimes carried out by auditors who are too close to the company’s management.

In addition, the standards for corporate governance within Indian companies are broadly low, according to Khurana as cited by the Journal.

Besides bribery to government officials, one key issue for companies in India is executives taking bribes to give a big order to a vendor, or to hire someone, Khurana was quoted as saying.

According to the fraud report, India’s record on the lack of compliance with regulations is also the worst among the countries surveyed.

A fifth of respondents from India said they had found instances of regulatory or compliance breach, compared to a global average of 12 percent.

India, though, appears slightly better compared to the global average on a handful of matrices, including the theft of physical assets.

While 22 percent of respondents globally reported such theft, only 17.5 percent of respondents from India said they had come across it.

(IANS)

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India Demands Data on UN Staff Misconduct, Use of Immunity

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United nations
India has demanded the secretariat disclose information about misconduct by UN staff. Flickr

United Nations, Oct 7: In an attempt to break the wall of silence around the crimes and UN staff misconduct and those on its assignments, India has demanded the secretariat disclose information about such cases and the immunity invoked against prosecutions.

Yedla Umasankar, the legal advisor in India’s UN Mission, touched a raw nerve here by criticising the UN on Friday for not vigorously following up allegations of serious wrongdoing by its employees who enjoy the equivalent of diplomatic immunity, a prized possession of its staff.

“It appears that the UN system itself may be reluctant to waive immunity even for serious misconduct carried out by its personnel while serving on its missions, so that such cases can be prosecuted by the host governments,” he told the General Assembly’s committee on legal affairs.

“Even a few of such instances or allegations of crimes committed by UN personnel is highly damaging for the image and credibility of the United Nations system and its work around the world,” he added.

His statement also touched on the practice of some countries that protect their wrongdoers at the UN.

Umasankar demanded that secretariat disclose how many cases of serious misconduct by UN personnel were registered and the number of cases where the UN refused to waive immunity to allow their prosecution.

He also wanted to know in how many cases the host country wanted the immunity waived so it can prosecute those accused; the number of times the UN asked the host country or the country that sent them to prosecute them; how many times it consulted countries before waiver of the immunity of their personnel and how many of them refused UN’s request to waive their citizens’ immunity.

The information he wanted does not cover the diplomats sent by member countries to represent them at UN bodies and enjoy diplomatic immunity with the nations hosting the UN facilities.

After scores of serious allegations of sexual misconduct by peacekeepers, especially exploitation of children, the UN vowed to uphold a policy of zero tolerance and began publishing data on such cases in peacekeeping operations including how they were dealt with.

Starting with the year 2015, it began identifying the nationalities of those accused.

However, it has not made public a roster detailing all the allegations and proven cases of serious misconduct across the entire UN.

While the focus has been on sexual exploitation and abuse reported on peacekeeping operations, Umasankar said that “at a broader level, the issue of accountability has remained elusive in some cases”.

He attributed it to “the complexities of legal aspects relating to sovereignty and jurisdiction”, the immunity or privileges that may be necessary for UN operations, and the capability or willingness of countries to investigate and prosecute the accused.

He noted that the UN itself cannot make criminal prosecutions.

While Indian laws has provisions for dealing with crimes committed abroad by its citizens, not all countries have them, he said.

Those countries should be encouraged and helped to implement such measures, he added. (IANS)

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Indo-Pak Peace Talks Futile Unless Islamabad Sheds Links with Terrorism, says Study

A Study by a U.S. think tank calls India and Pakistan talks futile, until Pakistan changes its approach.

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India and Pakistan
India and Pakistan. Wikimedia.

A Top United States of America (U.S.) think tank, Carnegie Endowment for International Peace called the relations between India and Pakistan futile, unless Islamabad changes its approach and sheds its links with Jihadi terrorism.

A report “Are India and Pakistan Peace Talks Worth a Damn”, authored by Ashley J Tellis stated that such a move supported by foreign countries would be counterproductive and misguided.

The report suggests that International community’s call for the India and Pakistan talks don’t recognize that the tension between the two countries is not actually due to the sharp differences between them, but due to the long rooted ideological, territorial and power-political hatred. The report states that these antagonisms are fueled by Pakistani army’s desire to subvert India’s powerful global position.

Tellis writes that Pakistan’s hatred is driven by its aim to be considered and treated equal to India, despite the vast differences in their achievements and capabilities.

Also ReadMilitant Groups in Pakistan Emerge as Political Parties : Can Violent Extremism and Politics Co-exist? 

New Delhi, however, has kept their stance clear and mentioned that India and Pakistan talks cannot be conducted, until, the latter stops supporting terrorism, and the people conducting destructive activities in India.

The report further suggests that Pakistan sees India as a genuine threat and continuously uses Jihadi terrorism as a source to weaken India. The report extends its support to India’s position and asks other international powers, including the U.S., to extend their support to New Delhi.

Earlier in September, Union External Affairs Minister Sushma Swaraj in the United Nations General Assembly (UNGA) slammed Pakistan for its continuous terror activities. She attacked the country by saying that India has produced engineers, doctors, and scholars; Pakistan has produced terrorists.

Sushma Swaraj further said that when India is being recognised in the world for its IT and achievements in the space, Pakistan is producing Terrorist Organisations like Lashkar-e-Taiba. She said that Pakistan is the world’s greatest exporter of havoc, death and inhumanity.

-by Megha Acharya  of NewsGram. Megha can be reached at @ImMeghaacharya. 

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Delhi University Students Win the Enactus World Cup 2017

India wins the Enactus World Cup 2017

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Delhi University
India wins Enactus World Cup 2017. Twitter.

New Delhi, Sep 30: After an extremely tough competition between different students across the world in the Enactus World Cup 2017, Team India, represented by Shaheed Sukhdev College of Business Studies (SSCBS), Delhi University emerged as the winner. The winning projects were project UDAAN and Mission RAAHAT.

Supporting the Government of India’s Digital India and Swachh Bharat Abhiyan mission, RAAHAT strives to effectively eliminate open defecation and provide safe sanitation in the urban slums; whereas, UDAAN aims at narrowing the digital divide between rural and urban India by setting up computer centres.

The Delhi University college team was led by the college’s faculty advisor, Anuja Mathur and student president of SSCBS Student President Aditya Sharma. The winning projects included 34 more members. The Enactus India and Enactus SSCBS were presented the Ford Better World Award of USD 50,000.

Also Read: Three Indian Women on Fortune’s Most Powerful Business Women

President and Global CEO, Enactus, Rachael A. Jarosh congratulated the Indian for winning the world cup and called the projects- RAAHAT and UDAAN, inspirational success stories of Enactus students, who are sowing businesses. She said that the projects address the real world challenges efficiently and innovatively. Enactus India President Farhan Pettiwala said that the two projects created by Delhi University students contribute to the country’s betterment, as they support the Government’s civil and social agenda.

Enactus is an international nonprofit organisation, with 72,000 students from 1,700 universities in 36 countries, which held its annual global event in London from September 26 to 28. A selected group of 3,500 students, business, government leaders and academicians across the globe were present at the event. Participants for the final competition round are qualified from over 72,000 university students. Each team has about 17 minutes to present their projects of entrepreneurial action.

Enactus works to nurture the entrepreneurial skills of students, and to address fundamental, social and economic challenges by developing innovative and experiential learning opportunities for students.

-by Megha Acharya of NewsGram. Megha can be reached at @ImMeghaacharya.