The Central Vigilance Commission has red-flagged the setting up of NGOs by employees of public sector banks and enterprises to get donations from contractors or other persons having official dealings with them and has warned them of strict action.
The move comes as the Commission has observed instances of associations and organisations, formed or patronised by employees, their spouses, etc, obtaining donations from contractors, vendors, customers or other persons having commercial relations or official dealings with the public sector banks and enterprises.
Considering that such contributions may lead to unethical practices and misuse of power, the CVC advised the departments of public enterprises, financial services as well as the Department of Personnel and Training (DoPT) to examine the issue of incorporating suitable and specific provision in the rules governing the conduct of officers or issue necessary instructions to curb such practice, it said in new guidelines issued today.
Following this, the Department of Financial Services (DFS) has issued instructions to all public sector banks, insurance companies, financial institutions to stop the practise of obtaining donations.
The DFS has said violation of these instructions by any official will be viewed seriously and delinquent officials will be liable for disciplinary action for offence of bribery under Prevention of Corruption Act, 1988.
The Department of Public Enterprises (DPE) has advised all administrative departments to issue necessary instructions to all public sector enterprises under their administrative control to curb the practise, it said.
"All Chief Vigilance Officers (CVOs) of public sector banks and enterprises have been asked to take necessary action in case they come across such instances," a senior CVC official said.
The CVOs act as distant arm of the CVC to check corruption in government departments they work with.
DoPT had recently asked all central government employees not to misuse their position to secure job in any company or firm for their family members related to them by blood or marriage.
Existing rules bar a government servant from giving any contract to a company or a person if any member of his family is employed in that firm.
