India, Maharashtra, vijay kumbhar, News, Governance, RTI, Transparency, Civic Issues, Real Estate: Secrecy clause

Thursday, July 20, 2017

Pune Citizens to be smart without knowing anything about Smart City Projects....

Critics believe that smart city is just a buzz-phrase that has outlived its usefulness’ it is the wrong idea pitched in the wrong way to the wrong people. Some also believe that, In the end, they will destroy democracy. And that’s what exactly happening in Pune. Lack of Transparency, Confidentiality, one sided agreements, Conflict of Interests and mockery of the democracy are the key issues involved in the smart city projects. Pune Municipal Corporation PMC has resorted to a limited transparency policy by not fully disclosing matters related to the smart city projects.

Initially making governance citizen-friendly was the key objective of smart cities projects, and public participation was said to be core tool to achieve it. However, afterwards instead of transparency, the secrecy became the buzzword for smart cities mission. And Pune city was on the forefront of mission secrecy. The smart city mission had already killed basic principles of the 74th amendment to the constitution of India that was brought to strengthen urban local bodies. The secrecy clause in Smart city Mission has taken the soul out of Right to information act.

There were several irregularities in the process of selection of Consultant & in the preparation of the proposal for participation of Pune Municipal Corporation (PMC) in the Smart Cities Challenge. There were serious violations of the Model Request for Proposal (RFP) and the irregular concessions were granted to Mckinsey against public interest.

Now to keep citizens in the dark from the activities of smart city projects, they have coined new idea of code of conduct for directors and senior management Personnel of the company Pune Smart city Development Corporation Limited (PSCDCL). PSCDCL is the company formed as Special Purpose Vehicle (SPV) under Smart City Mission for implementation of Smart City Projects in Pune. This code of conduct prevents Directors and Senior Management Personnel of PSCDCL from disclosing anything with any member of the Press or Media in the matters connected with the Company or its business unless specifically permitted by the Board of Directors of the Company or the Chairman/Managing Director of the Company.

CODE OF CONDUCT THAT PSCDCL IS SET TO ADOPT

This Code of Conduct is applicable and binding on the Directors and Senior Management Personnel of the Company and other officials of the Company as may be identified

Code of Conduct — The Board Members and Senior Management shall:

(a) Always act in the best interest of the Company;

(b) Adopt highest standards of personal ethics and integrity in their dealings with the Company:

(c) Make disclosures, to the Board of Directors, relating to all material financial and commercial transactions or other dealings in which they have personal interest, and may have a potential conflict with the interests of the Company or are required to be disclosed as per applicable regulations:

(d) Ensure security of all confidential information made available to them in the course of discharge of their duties or otherwise

(e) Follow all prescribed safety and environmental norms:

(f) Not engage with any member of the Press or Media in the matters connected with the Company or its business unless specifically permitted by the Board of Directors of the Company or the Chairman/Managing Director of the Company;

(g) Conduct themselves and their activities outside the Company in such a manner as to not adversely affect the image or reputation of the Company;

(h) Accept and act according to this Code of Conduct and affirm compliance with this Code on annual basis.

In addition to the code of conduct specified above, Independent Directors shall abide by the duties as specified in Schedule IV to the Companies Act, 2013 or any amendments thereof.

This code is subject to review by the Board from time to time.

The code of conduct will be discussed in PSEDCL’s next meeting. The past experience of Smart City mission in Pune is not satisfactory. The democracy was nowhere on the agenda of Pune Smart City Mission and hence this code of conduct will also be passed in the meeting.

Finally, skeletons of real intentions behind smart cities mission have been started tumbling out of the cupboard. Initially making governance citizen-friendly was the key objective of smart cities projects, and public participation was said to be core tool to achieve it. Now instead of transparency, the secrecy has become the buzzword for smart cities mission. The Government of India has issued a model Article of Association (AoA) for the company to be formed under special purpose vehicle ( SPV) for smart cities, that keeps entire functioning of smart city projects behind closed doors.

courtsey https://anticap.files.wordpress.com

There are several clauses that are controversial in this AoA, but secrecy clause has become the matter of concern for transparency activists in India. The smart city mission had already killed basic principles of the 74th amendment to the constitution of India that was brought to strengthen urban local bodies. Now with this secrecy clause, it has taken the soul out of Right to information act.

The preamble of RTI act says “Democracy requires an informed citizenry and transparency of information which are vital to its functioning and also to contain corruption and to hold Governments and their instrumentalities accountable to the governed;”. The smart city mission stands exactly opposite, it says ‘nobody has right to demand and nobody has a right disclose any information with respect to the company formed under SPV.

Reproduced here is secrecy clause in AoA .

(i) Every Director, Manager, Secretary, Auditor, Treasurer, Trustee, member of a committee, officer, servant, agent, accountant or any other person employed in the business of the Company shall, if so required by the Directors, before entering upon his duties, sign a declaration pledging himself to observe strict secrecy respecting all transactions and affairs of the Company with the customers and the state of the accounts with individuals and in matters relating thereto, and shall by such declaration pledge himself not to reveal any of the matters which may come to his knowledge in the discharge of his duties except when required so to do by the Directors or by law or by the person to whom such matters relate and except so far as may be necessary in order to comply with any of the provisions in these presents contained.

Cortsey informationactivism.org

(ii) No member shall be entitled to visit or inspect any works of the Company without the permission of the Directors or to require discovery of or any information respecting any details of the Company's trading, or any matter which is or may be in the nature of a trade secret, mystery of trade, secret process or any other matter which may relate to the conduct of the business of the Company and which in the opinion of the Directors, it would be inexpedient in the interest of the Company to disclose. We, the several persons whose names and addresses are subscribed are desirous of being formed into a company in pursuance of these Articles, and we respectively agree to take the number of shares in the Capital of the Company set opposite our respective names.

In short smart city mission gives all the rights to collect taxes, user charges, sell, lease public properties, take loans, earn profit for the share holders ,to the company formed under SPV and confiscates all the rights conferred upon common citizens by constitution of India

Since the Right to Information act 2005 (RTI) was introduced 10 years back, bureaucracy and politicians made several attempts to kill or dilute its provisions. Several attempts were made to sabotage it. However despite various attacks RTI has made a very small but positive impact on governance. Irrespective of the quantity of impact it has shaken wrongdoers inside out. It seems hence they have introduced “mission smart cities.

courtsey www.cartoonstock.com

As far as Smart City Pune project is concerned there is complete Lack of Transparency in the entire process. The Agreement signed between PMC & Mckinsey has been uploaded belatedly on the PMC website. PMC has resorted to a limited transparency policy by not fully uploading documents pertaining to the award of the contract to Mckinsey. Appendix B – Key experts and Appendix C – Breakdown of the contract price, which is an integral part of the Agreement have not been uploaded. The letters of invitation to the consultants along with the Annexure are not uploaded on the PMC website. Details of the selection process are completely absent. These documents are critical to the award of the contract on which the RFP for the Smart City is based.

Interestingly when asked about whether the amendments given to Pune Smart city project by councilors of Pune Municipal Corporation ( PMC ) will be accepted or not, Union Urban Development Minister Venkaiah Naidu refusing the chances they would have to strictly adhere to the guidelines laid down under the Smart City Mission and that if they refuse to toe the line, they will have to opt out of the project. On the contrary, event though there are serious violations of the Model Request for Proposal (RFP) and the irregular concessions granted to Mckinsey against the public interest, the central government is silent on it.

The would be Chief executive officer of proposed SPV and presently municipal commissioner PMC has already encroached upon a general body and standing committee’s rights.Though he has not revealed any of PMC’s correspondence with whom it has signed so-called nonfinancial nonbinding Memorandum of understanding (MoU) , he has gone further to assure reimbursement of the amount to an institute without knowledge of a general body and standing committee’s. It seems that he has assured reimbursement as CEO of proposed SPV.

In a letter to principal director of symbiosis Kunal Kumar writes

“I welcome our collaboration wherein MBA—IM students from SCMHRD, Symbiosis would work with us as interns for Smart Cities Mission. This is a path-breaking partnership which brings together academia with Government in mission mode in finding solutions for real life issues faced by the city.

Further, with reference to your email regarding budget proposal based on 60 days of engagement, we convey our agreement with the same. We would, however like you to undertake the expenditure up front and thereafter let us reimburse the amount to you.

We believe this engagement will go a long way in enabling the transformation of Pune city under Smart Cities Mission.”

Interestingly SCMHRD’s name doesn’t appear in the list of PMC’s so-called nonbinding nonfinancial MoU’s it has signed. No one knows how many such agreements he has signed on behalf of PMC.However as far as nonbinding nonfinancial MoU’s that PMC has signed are concerned. The commissioner has categorically said that they will be allowed to participate in the tendering process of SPV and there lies the threat of manipulating proposed so-called transparent tendering process.

Thursday, July 20, 2017

Pune Citizens to be smart without knowing anything about Smart City Projects....

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