28 January 2011

CVC: Is Indian Govt Economical With The Truth?

By R Shankar

In the P J Thomas case, the silence of the PM is as good (rather bad) as telling a lie

CVC: Is govt economical with the truth?

Prime Minister Manmohan Singh is known for his silence. When prices of onions, vegetables and food items hit the roof, he remained silent; when former Telecom Minister A Raja thumbed his nose at a PMO directive on 2G spectrum, Singh remained mum; when there was a furore over money stashed in Swiss banks (remember the 100-day promise of Singh?), the PM looked the other way. The only time when Singh mumbled a reaction was when industry honchos were red-faced over the Niira Radia tape leak.

In all these frequent bouts of silence, the PM can be accused of chronic inaction, not lying. But in the case of the stand by the Government (and hence the PM) in connection with the case of the appointment of Central Vigilance Commissioner PJ Thomas, an uneasy shadow of falsehood is directly on the Prime Minister.

Here are the three lies that Manmohan may find it difficult to come clean.

CVC: Is govt economical with the truth?

Lie 1

The government claims that when the name of Thomas figured in the list nominees for the post of next CVC, the panel comprising the PM, the Home Minster and Opposition leader in the Lok Sabha was not aware that the IAS officer was an accused and that a chargesheet was pending against him in the palmolein import scam .

This is what Attorney General G E Vahanvati told the Supreme Court on Thursday: "The fact that he (Thomas) was an accused in a pending case was not informed. The fact that the state government gave sanction under Section 120B was also not informed. The only information was the bio-data, which did not include these matters. The committee goes by what is placed before it,"

This is a lie on two counts: Opposition leader Sushma Swaraj had raised strong objections to the appointment of Thomas. In her words to The Indian Express: "What the government has stated in the Supreme Court today is totally wrong. I brought to the notice of the Prime Minister and the Home Minister that a case is pending against him. I specifically mentioned about the palmolein case."

The government now says that Sushma's objections were not part of the record of the panel's proceedings. But Sushma has an answer. "The Home Minister (P Chidambaram) said he (Thomas) has been exonerated in that case." The PM later said "a decision has to be taken today itself as the new CVC has to take oath on Tuesday."

And the government fig leaf to hide the embarrassment? That Sushma just wrote `I disagree' on the proceedings of the meeting and did not mention why she disagreed with the name of Thomas. Then for what joy did Sushma write her dissent note?

Assuming that the palmolien case was not discussed, was it not the job of the PM and the Home Minister to find out why the leader of the Opposition did not agree with the name of Thomas? Will the Prime Minister and Home Minster clarify if the palmolein case chargesheet was indeed discussed at the meeting? Or will the PM and HM hide behind niceties and say that these discussions cannot be made public?

But you can bet your last shirt on this: That the Prime Minster will continue to remain silent.

CVC: Is govt economical with the truth?

Lie no 2

The Supreme Court was told that the bio-data of Thomas did not mention the chargesheet against Thomas. How can this happen? The names are finalised after due diligence by the Department of Personnel and Training (DoPT). This panel, it seems, gave details about the educational qualifications of Thomas but did not mention his criminal liability as an accused in the palmolein import scam pending prosecution for almost 20 years.

Nor did it mention that the Kerala government, in November 1999, had already granted sanction to prosecute Thomas in the case under Section 120 B (criminal conspiracy) of the IPC.

Will someone in the DoPT stand up and claim responsibility for this? It is hard to believe that the bio-data was cleared without any reference to the pending case. Even when the aam admi applies for a passport, there are a series of enquiries, including a police verification. In Thomas' case, his file must have gone to Kerala for clearance as he was the chief secretary there during the tenure of the late K Karunakaran.

If the fact regarding the chargesheet was deliberately hidden from the panel, it is the duty of the Home Minister to find out why this was done. But all this becomes bunkum when one considers the fact that the leader of the Opposition did point out to the chargesheet at the panel's meeting.

But the government's admission is dangerous. For any appointment to a key post in Delhi, a criminal too can slip through. All it needs is for the DoPT to delete/hide his criminal background and forward the same to the panel headed by the Prime Minister.

CVC: Is govt economical with the truth?

Little wonder that the court asked Vahanvati if the government could consider a person chargesheeted in a corruption case for the CVC's post.

"Yes is the answer. In the light of the fact that he has been cleared in 2007 leaves the chargesheet and sanction without any relevance," said Vahanvati.

"What was the zone of consideration? Was Thomas the seniormost officer?" the court asked, asking what made Thomas "suitable" over the other "eligible" officers.

When the AG replied that there was another eligible officer, Sujit Banerjee, the court asked why he was then kept out of the "zone of consideration".

"If there was a person from an earlier batch, why is he not in the zone of choice?" the court asked, to which Vahanavti said he would "check it out".

Again a case of the government getting caught on the wrong foot.
The bottom line is: How can the Prime Minister be kept in the dark on such an important issue concerning Thomas? Or was it deliberate? Probably only Chidambaram can answer.

CVC: Is govt economical with the truth?

Lie no 3

Assuming that the panel was kept in the dark about the palmolein case, was the government also unaware that Thomas was the telecom secretary when the 2G spectrum scam took place? Were the Prime Minister and Home Minister unaware that the 2G Spectrum case was pending before the Supreme Court and that the CVC will have to deal with it?

It is still a mystery why the PM and HM were bent on appointing Thomas. Was a lobby at work? Thomas does not have any experience in investigation or vigilance work -- experience that the CVC will need to posses.

Justice K S Radhakrishnan, who comprised the SC bench, pointed out that prior experience in vigilance, policy making and police administration was a "statutory requirement" for selection to the post in the CVC Act, 2003.

And the government's response? "Perhaps there should be closer scrutiny." How could the government been so careless? Or did it act in ultra haste in clearing the name of Thomas?

The government would have learnt a lesson or two if it would have cared to flip through the pages on earlier appointments to the post. When Atal Bihari Vajpayee was the Prime Minister, the panel constituted to select the CVC had three names in the order of preference. N Vittal was the top-most name. Vajpayee and his Home Minister did not push for Vittal's name. Instead, Vajpayee pushed the file to the leader of the Opposition Sharad Pawar and told him to take his time, make his own discreet enquiries and select any one from among the list, not necessarily Vittal. Days later, Pawar agreed with Vittal's name.

That is what is called transparency in appointment.

But in the present case, the Prime Minster's series of silences tantamount to telling a lie.

As the BJP put it: "This is a scam that reaches straight to the Prime Minister's door. There is no alibi as in this case like (in the case of) A Raja or Suresh Kalmadi."

Source: India Syndicate

What Are The Future Shocks?

Davos: Shocks come from places where we least expect them. Or so proves economic history. A star-studded global CEO panel came up with an amazing set of worries, from low trust levels to the unknown kind of society arising from the underground world of blogs and tweets, after an hour-long discussion on “The next shock — are we better prepared?”

What are the future shocks?

Is it 'the unknown unknown', asked Fareed Zakaria, CNN, who was moderating the session. Maurice Levy, Chairman and CEO, Publicis, said "What I cannot see, what I cannot expect is my big worry." He is not sure if he understands the kind of society evolving from the world of internet today, or if he will understand even tomorrow.

If there was a common string to what James Dimon of JP Morgan & Chase, Kleinfeld Klaus of Alcoa and Dominic Barton of McKinsey said, then it was about understanding the qualitative aspects of human behaviour - of greed, trust, expectations, right human choices and awareness about unemployment.

Of course, that is not to undermine the dangers that a volatile currency made more volatile by technology and asset price bubbles due to rapid urbanisation in emerging markets or the high indebtedness of Europe, present to the global economy. These can be tackled if right human choices are made by countries and corporations, trust is maintained with consumers and capitalism is practiced with a long-term view, the CEOs said.

What are the future shocks?

For example, Eckhard Codes of Metro Group says, the indebtedness of Greece and Portugal can be or should be taken care of by Germany and, possible France. "Germany gained significantly from the Euro zone. An Euro that did not appreciate much helped Germany's economy that is driven by exports today. So, it is only moral, that it pays back," he said.

Dominic Barton of McKinsey continues to be a votary of capitalism post crisis, but stresses the need for long-term capitalism. "One, shift away from the practice of quarterly results. Unilever, Coke are doing it. This will force investors to think long-term. Two, companies need to think about the broader community. They need to understand underemployment," he says.

Millions lost their jobs, were thrown out of their houses because of the crisis, said Maurice Levy of Publicis. "People don't understand why large companies doing well, but they aren't. Without support of people, there is no way we would be able to grow," he said. According to him, if there had been a crisis, it is because the CEOs have not dealt ethically.

"They felt we have been led by greed and bottomline and sacrificed the workers to please the shareholders," he added. Klaus Kleinfeld of Alcoa said it was true that demand from emerging economies, given their rapid urbanisation, would lead to a rise in commodity prices and may result in a shock. "But, having said this, we are underestimating the human genius. There are lots of stuff we don't know about, and some of this will be good."

Source: Indian Express

Understanding `Systematic Investment Plan’ (SIP)!

Benjamin Graham, the father of value investing, has termed dollar cost averaging as one of the top 3 tenets of investments for a defensive investor. Dollar cost averaging is nothing but the systematic investment plan.
Systematic investment plan is a scheme which allows investors to invest in a mutual fund a certain amount of money over a period. For example, investors can invest Rs 5000 in a mutual fund every month.

Advantage of SIP
Systematic investment plan has many advantages over one time investment. Some of the advantages are mentioned below.

Price averaging: SIP allows you to average the price over long period so that the impact of changing prices of mutual fund is minimized. You can buy more units when the prices drop and buy less when the prices move up. The advantage is that you do not have to worry about price movement.

Discipline: SIP instills in you a sense of discipline towards investment and savings.

Low base requirement: You can start SIP with a much lower investment. Many banks and financial institutions allow investment via SIP as low as Rs 500 a month.

Example:
Let’s see how SIP works.  The table shows the monthly data of a mutual fund by Birla Sun Life. The fund is Birla Sun Life Small & Midcap Fund – GROWTH. The NAV is highest NAV for the month.

Look at the column total investment and investment at current price. You can clearly see that total investment in the case of SIP is almost always lesser than the investment needed to buy the same accumulated quantity at current price.

This may not be true when the prices keep going down continuously. We know, however, that prices of mutual fund or stock do not go up or down straight. The short term ups and downs usually happen one after the other.

SIP moderates the impact of these short term ups and downs of the mutual fund prices.

How to proceed with SIP:
You can ask your bank to allow a mutual fund of your choice debit a certain amount towards investment every month. You have to specify the amount, date of the month when money will be invested, and duration of SIP. For example, if you choose to invest Rs 3000, 10th of every month, for 3 years, the mutual fund will keep debiting Rs. 3000 from your account towards investment in the fund for 36 months.

You can also follow this on your own by investing Rs. 3000 every month. However you need to be very disciplined with your budget to achieve this.

Variants of SIP:  Daily, Monthly
Daily SIP scheme requires investors to invest daily while monthly SIP allows investors to invest monthly. At first glance, daily SIP seems to take care of volatility better than monthly SIP, but there is no empirical evidence that has shown significant difference in returns.

Key aspects:

  1. Daily SIP is not allowed by many mutual funds and hence your options are limited. Monthly SIP options are available in almost all mutual funds.
  2. The most important aspect is to do with our habits. We are used to planning for a month. It is more convenient for us to see income, investment, and expenses in a monthly timeframe and hence we can plan better towards a monthly SIP.
  3. The final aspect is calculation of taxes. Daily SIP makes tax calculation more complex as you have to evaluate the capital gain by comparing the selling price with everyday price for the last 1 year.

Vanessa Hudgens the New Candies Girl 2011

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Italian Playmate Sarah Longbottom (NSFW)

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Mizoram Bodies See Red in Protected Area Permit Relaxation

Mizo Zirlai PawlAizawl, Jan 28 : Several social organisations in Mizoram have perceived the recent relaxation of protected area permit (PAP) in Mizoram as a threat to the social security of the indigenous people of the state.

In the wake of the lifting of PAP from three Northeast Indian states--Mizoram, Manipur and Nagaland, the Mizo Zirlai Pawl (Mizo students' association) today convened a meeting of all major NGOs and political parties of Mizoram on the issue.

All of the representatives of NGOs and political parties, though restrained from speaking on behalf of the organisations they represented, expressed fear that the lifting of PAP would ultimately lead to the lifting of the Inner Line Permit/Regulation that safeguards the tribals of the Northeast state from assimilation.

In a bid to 'woo foreign tourists', the Centre on December 31 lifted the PAP from these three states to allow foreigners to enter into the states without any restrictions for a period of one year.

The order came after a joint delegation of the Manipuri Association of Canada and Local Support Group submitted a memorandum to the home ministry on December 28.

There had been an attempt to lift the PAP in 1994 which invited strong opposition from all political parties and NGOs in Mizoram.

At this juncture, then Union home minister S B Chavan went on a record saying, ''No innerline restriction would be imposed while restricted/protected area permit requirement for foreigners is lifted, as that would mean welcoming foreigners while keeping out Indians.'' While non-Mizo Indians have to get inner line permit (ILP) foreigners are required to get protected area permit (PAP) to enter into Mizoram.

The ILP, in particular, has drawn much criticism from many Indians as it prevented them from entering the state without getting prior permission.

''While many Indians have been complaining about the requirement of a permit to Mizoram, the relaxation of entry permit for foreigners will certainly result in yet another litigation to do away with the Inner Line Permit/Regulation under the Bengal Eastern Frontier Regulation Act, 1873,'' V L Krosshnehzova said in a keynote address.

All of the speakers, except for one, shared the views of the MZP president and expressed fear that the lifting of PAP would be a threat to the social security of the tribals of the Northeast Indians which has been protected since the British time.

''The ILP's aim is not to harass or prevent entry of non-Mizo Indian nationals per se but to secure the future of the natives by protecting the sanctity of their socio-cultural rights, preventing demographic upheaval leading to invasion of their political bastion by the 'outsiders' which has been the case with Tripura,'' said a senior politician.

The meeting also expressed resentment over the Centre making such a crucial decision (to lift the PAP) following a pressure from just two organisations in Manipur, without consulting the people, or for that matter, any organisations in the two other states concerned.

The Mizo organisations also disagreed with the grounds on which the Centre claimed to have lifted the PAP, that was to 'boost' tourism industry.

''Sikkim has emerged as one of the major tourism hot spots in India. Not only the Protected Area Permit, but also Restricted Area Permit is being enforced in Sikkim. Therefore, the Centre's pretext is meaningless,'' Lalmuanpuia Punte, vice-chairman of North East Students' Organisation, said at the consultation meeting.

Under the Foreigners (Protected Areas) Order, 1958, the PAP is enforced in some parts of Uttaranchal, Himachal Pradesh, Rajasthan, Sikkim and the entire states of Nagaland, Mizoram, Arunachal Pradesh and Manipur. Similarly, the RAP, under Foreigners (Restricted Areas) Order, 1963, is enforced in the entire Andaman and Nicobar Islands. In Sikkim, the RAP covers areas uncovered by the PAP.

Average Mizo Eats 14 kg of Meat a Year in Mizoram

open meat stall in mizoramAizawl, Jan 28 : An average Mizo consumes about 14 kg of meat annually, against the national per capita consumption of meat of 7.5 kg.

According to state's animal husbandry and veterinary department, the per capital consumption of meat in Mizoram is 14 kg which is about Rs 191 crores in terms of monetary value.

Pork, the most favourite meat of Mizos, is priced at Rs 180-Rs 200 per kg in the state capital.

Mizoram consumed pork worth Rs 9563.4 lakhs at the rate of Rs 180/kg during 2009-2010.

According to the department's records, during the month of last December about 54158 animals were slaughtered for consumption in the state which has a population of about nine lakhs. Aizawl topped with 20271 animals slaughtered during that month.

The official records further stated that during the period from March 2009 to February 2010, Mizoram produced 1,02,35,000 kgs of different meats which was far from meeting the state's consumption.

The state also produced 371 lakhs of eggs and 10.633 metric tonnes of milk, which again are far from meeting the requirement.

Number of Malarial Deaths Decrease in Mizoram

malaria-mosquitoAizawl, Jan 28 : Mizoram has witnessed a fall in the number of malaria-related deaths in 2010 with only 31 people succumbing to the killer disease, as compared to the counts - 199 in 2009 and 99 in 2008.

According to the record of State Vector-Borne Diseases Control Programme (SVBDCP) of the 322929 blood samples tested during last year 15,130 were found to be positive with malaria, of which 14,189 were malaria pf, more deadly than malaria pv. As many as 15,099 malaria patients were cured.

As many as 9399 people were tested positive for malaria, of which 7387 were malaria pf, during the year 2009. Of these 119 people died, the record said.

In 2008, 7361 people were found to be positive of malaria, including 6172 malaria pf, of which 91 died, the record said.

Among the eight districts of Mizoram, Lunglei district in southern Mizoram topped with 11 malarial deaths in 2010 and Champhai district bordering Myanmar did not have any death due to malaria, the record said.

According to the death investigation report of the health department, most of the malarial deaths happened due to negligence on the parts of the patients that led to delayed treatment.

''In 2009, the malaria patients were on an average four days late when they took treatment. In 2010, they were on an average two days late. There was a sign of improvement due to extensive health awareness campaign through the media,'' officials said.

The health department has set up FTD/ASHA in all towns and villages to help malaria patients get treatment on time.