Author
Even as India grapples with the question of whether industrialisation or environment should be given a prominence, getting an environmental clearance from the government for projects is where most frauds occur, according to a report by Deloitte. Also 15 per cent of the total infrastrure investment, totaling billions of dollars, is stuck due to lack of government clearances and that is what is leading to middle men and government extorting bribes from the companies, says the report.Traditional frauds such as procurement fraud, bribery and corruption dominate the sector, the Deloitte Forensic says in the report titled Teething Issues: Managing Fraud and Dispute Challenges in the Infrastructure Sector. According to the report around 70 per cent of the respondents said that streamlining environmental clearances will help reduce fraud in the infrastructure sector. Also more than 65 per cent of respondents suggested that streamlining and improving transparency in environmental clearances could prove to be effective in tackling fraud.“The key reasons for delays pertain to obtaining environmental clearances and acquiring land. While companies do need to focus on strengthening internal controls to mitigate fraud risks, support from the government towards improving the pace of regulatory clearances is necessary,” says Amit Bansal, senior director, Deloitte Forensic.The report also hinted that often infrastructure projects could not be passed unless bribe was paid to the middle men. “Dependencies on several third parties and the government for its operations may nudge infrastructure companies to resort to bribery and corruption, especially to speed up regulatory clearances in order to restrict delays, a view echoed by 50 per cent of survey respondents,” the report states. Sachin@businesworld.insachin581@gmail.com
Read More
