A Block Development Official (BDO) sits a table in his office in town. On his desk is a handwritten roster of about 1700 names of people in the 250 or so villages in his block who have applied for job cards. Some of the names are fictitious. Others are friends and relatives of the BDO. And still others are real, but they are of people who've no idea what their job card entitles them to, or of people who don't even know they've applied. He writes a receipt for a tent--meant to provide shade for road-construction workers--which he never actually bought. He finishes a report that says 12km of road were completed last month; in fact it was only 2km.*
To his district-level supervisor (whose friends and family are also on the job-card roster) the BDO submits all these documents as records of public works in his jurisdiction, and finally he withdraws the corresponding funds from the government coffers. All in a day's work.
Elsewhere, an Adivasi man is still waiting for his first day of work. But on his job card, which he doesn't yet hold, there is already a fake entry showing 126 days' work. On the report submitted to the state auditor, a figure of INR 5950 (CAD $135) is listed as the wages already paid this man. He has no idea.
National Rural Corruption Guarantee?
All of this is provided for by India's National Rural Employment Guarantee Act (NREGA) of 2005, a law that provides federally funded employment in local development for all willing workers for a minimum of 100 days per year at a minimum wage of 60 Indian Rupees (INR; equivalent to $1.25 Canadian Dollars (CAD)) per day.
It stipulates employment for all adults in poor districts through job cards which should be granted within 15 days of application; employment within 5km of one's home village; equal wages for men for women, with a minimum of 33% of job cards in any given village reserved for women; benefits such as unemployment insurance and water.**
Even in a country known for socialist rural economic policies over the first few decades of its independence, few stimulus plans ever developed by the government of India have been as progressive as NREGA. And few schemes ever dreamed up by the government of India have made corruption this easy.
There is overwhelming evidence of systematic corruption of NREGA in every state of India, but nowhere is this corruption more rampant and--due to its infamous mantle as India's poorest state--more devastating than in Orissa.
Village leaders and middlemen take advantage of illiteracy and desperation among lower-caste and tribal villagers, cooking the books and forging job cards. Workers complete a day of labour building a check dam or a gravel road, and the attendance sheet will say they worked 33 days; 32 days' worth of their wages will go somewhere else. A government auditor doesn't feel like visiting a handful of remote villages; for a bribe he'll accept a BDO's story that all job cards have been properly distributed.
A 2006-07 independent study by the Centre for Environment and Food Security (CEFS) found that of the INR 7.33 billion (CAD $165 million) invested by the federal government in the NREGA scheme in the 6 poorest districts of the state of Orissa, more than INR 5 billion (CAD $112m, or nearly 70% of all funds) were siphoned off in misappropriations and outright peculation by government officials and middlemen.***
"Activists and NGOs spreading awareness about NREGA among rural poor of the state," noted the CEFS study, "are threatened with dire consequences and many have been terrorised into silence by BDOs and other executing officials. Some local activists who accompanied the CEFS research team during survey in Tentulikhunti block in last week of May are being threatened by the government officials and contractors who have misappropriated NREGA funds."
Putting on a Corruption Clinic
* Excerpted from a press release of an NGO in Bihar. A Block is a constituted jurisdiction of governance in India which is comprised of anywhere between 100-250 villages and at least one major town.
** Full text of NREGA 2005 [PDF]
*** The six poorest districts of Orissa are Bolangir, Nuapada, Kalahandi, Koraput, Nabarangpur and Rayagada. Read more on this study and the impact of NREGA corruption in Orissa.
**** Full text of RTI Act 2005 [PDF]