It’s been a hard day’s night

An exhausted Santosh Singh, a poor wage-earner, has been waiting for more than an hour outside the Block Development Officer's (BDO's) office at Shivpuri in Madhya Pradesh. The BDO promptly questions the reason for Singh's visit. An angry but calm Santosh complains: "We are not being given cards, jobs or due wages while people of the sarpanch's caste are being favoured. Decisions are being taken unilaterally and no members of the panchayat are being consulted. The sarpanch doesn't listen to us and has done everything he can for the members of his own community."

The BDO and other government officers start laughing hysterically. Then they give Santosh a piece of precious advise: Go settle your score with the sarpanch on your own? Why bother the BDO sahib? They categorically warn him that he shouldn't come to the BDO office for such trivial matters. Santosh insists. He wants a probe. The BDO looks enraged, but laughs and asks him to "go meet the district collector (DC)," the big boss in the district. Santosh tries to convince him that this is impossible - "the DC would never meet him" -- but his plea meets deaf ears.

Santosh revealed that in his village jobs are being given only to men of the dominant caste, while they have been asking for jobs for a long time now. There is (corruption) of funds. And he is sure that for the poor of this district, the National Rural Employment Guarantee Act (NREGA) has turned out to be a damp sqib -- more hype than hope.

Madhya Pradesh, which is among the top states in the expenditure list, is apparently deep in corruption. "MP is one of the most corrupt states in the country when it comes to siphoning of NREGA funds. The state has spent one-fifth of the total funds allocated for the country while more than 50 per cent of the funds were systematically siphoned off. Corruption is not only confined to MP. Many other states are showing similar patterns," claims Parshuram Ray, Director, Centre for Environment and Food Security, based in Delhi.

NREGA, perhaps one of world's most ambitious and largest public employment generation schemes, recently completed two years of its implementation amid more derision than applause. The scheme created immense hype when launched by the Congress-led UPA government in 2006 - it was basically show-cased as Sonia Gandhi's ‘gift to the nation'. It was perceived that after the crude, brazenly pro-rich ‘India Shining' policies of the BJP-led NDA regime, the new government will usher in radical reforms for the marginalised , crushed by the onslaught of globalisation and structural adjustment.

The scheme has received flak from several quarters for widespread corruption, lack of efficiency and accountability, cheating the jobless, landless poor, among other reasons. The CAG report for 2006-2007 on NREGA criticised the scheme for its slow progress and lack of accountability. Social audits conducted by civil society groups and individuals across India country have ridiculed the scheme's progress in most states and revealed that funds are systematically being siphoned off while the rural poor live in abject poverty, unemployment and hunger.
However, states with better implementation and public participation have started to deliver the benefits by uplifting the livelihood standards of the rural.

According to the Union ministry of rural development, 12.23 lakh works have been initiated in parts of rural India; but a dismal 1.63 lakh have been completed. The ministry claims that funds in the tune of Rs 24,000 crore have already been spent under NREGA. Reality on the ground seems different.

Centre for Environment and Food Security's survey in Orissa exposed how 75 per cent of the NREGA funds ‘spent' were pocketed by government officials in what was a ‘participatory and organised loot'. The report said: "Our back of the envelop calculations suggest that out of Rs 733 crore spent in Orissa during 2006-7, more than Rs 500 crore has been siphoned off and pocketed by government officials of executing agencies. Less than 25 per cent of the NREGS (Scheme) funds have reached the targeted population. There are thousands of villages in Orissa where more than 80-90 per cent of NREGS funds have been misappropriated by the executing officials."

Other social audits exposed the ‘organised and participatory' loot that is taking place in the name of NREGA. These audits highlighted discrepancies in job cards, muster rolls, assets and infrastructure created, use of contractors and machines, the ‘percentage commission' system.

The Act clearly mentions that every person who asks for a job is entitled to a card and job within 15 days of application. No money should be taken by any individual in lieu of the card and a complete ban should be imposed on the use of contractors and machines. On the contrary, surveys reveal that a large number of poor villagers in many parts of India have still not received cards months after of putting in their applications. People had to pay for the card. Most villagers seemed unaware of the unemployment wages given to them when jobs were not provided within the stipulated 15-day deadline.

Several instances of fake job cards in the name of children, people who have migrated or even dead persons have been reported. Names of family members, especially women, are missing from the cards. Most cards are in possession of the panchayat who make fake entries and pay wages at will. A report by AID India after a survey in Hardoi district in UP states, "There is discrepancy between the number of cards shown to be issued in the block office records and the register which is available with the Gram Panchayat Vikas Adhikari (VDO)... This implies that the official figure of the number of job cards issued in Sandila and Bharawan blocks being reported by the block office is exaggerated by more than two times."

"Discrepancies in job cards and muster rolls are a common trend and reflect that higher amount is being paid to the labourers. This is a common way of embezzlement of funds," says Ray. Surveyors revealed that at several places in UP, MP, Jharkhand, Chhattisgarh, Orissa and other states, payments and measurements have been registered in personal diaries and signatures/thumb impressions were taken on these diaries, private registers, blank sheets or on blank muster rolls.

"Names of people who have not worked are shown on muster rolls and their job card numbers have been entered even though they are not aware of any such document. Some of them are the pradhan's (village chief) men. Fudging of signatures and thumb impressions is done on a large scale. Most of the muster rolls had thumb impressions while when enquired we found out that the panchayats had a fascination for thumb impressions," informs Rajesh Sinha, Project Manager (NREGA), PRIA, an NGO selected by the government to conduct social audits in different states.

Additionally, it was reported that the ratio of labour and material is not being maintained according to the prescribed norms of 60:40. Though the Act bans the use of contractors and machines, driven by lucrative profits, contractors and machines are in operation at numerous sites. These contractors, in collusion with panchayats, use machines and fill the job cards and muster rolls with fake names and entries.

These contractors and their goons threaten the poor villagers with dire consequences if they choose to report against them. In the recent past they have used brute force against several teams conducting social audits in different parts of the country. "Despite the ban, the contractors are thriving in MP. If a road is being constructed under NREGA, then contractors would use their ‘JCBs' and other machines while officials would take measurements and release payment. This would then be distributed among all of them by a percentage system," revealed Asha Singh, a social activist in Morena, to . "So work is being done, assets are being created but the money is not reaching the people who are in need of it," she complains.

Gopi, a local activist working in Palamu district of Jharkhand, explains: "Earlier, these contractors would bribe government officials to grab a contract, but NREGA has no scope for them and this hurts the interests of contractors and government officials. Thus they are in collusion with each other to reap individual profits."

The different audits also uncovered the flourishing ‘percentage/ commission system' in most states whereby government officials took a certain percentage as commission from the total funds allocated for projects. Locals told that in Sonebhadra district of UP, a sarpanch categorically refused to pay the BDO 30 per cent commission, and he told him that. He asked the villagers not to work in any NREGA project -- no one worked in protest. "Many sarpanchs decided to part with 30 per cent in the same district since they were looking forward to their share. All those who know about NREGA are aware of this widespread corruption of the ‘percentage system'" says Mohammad Hanif of the National Forum of Forest People and Forest Workers (NFFPFW) in Sonebhadra.

It has been reported that in Sonebhadra, a Programme Officer would only approve a project if he is bribed or paid. If a cheque of Rs 1,00,000 is cleared then there is an understanding that Rs 20,000 goes to him. In many states, due to lack of manpower, the Junior Engineer (JE) does measurements for more than ‘30 sites'. It's impossible to cover all the sites. Hence, the JE would pay a visit or do measurements if he is bribed. Sometimes he appoints a local contractor to do measurements. "While doing social audit in MP we found that in one block a JE made more than Rs 1 crore in a year," discloses Ray.

The CAG report has revealed that the main deficiency is the lack of administrative and technical manpower at the block and gram panchayat (GP) levels. This lack adversely affects the preparation of plans, scrutiny, approval, monitoring, measurement of works and maintenance of records at the block and (GP) levels. This shortage affected implementation and transparency. This made it difficult to verify the provision of legal guarantee of 100 days of employment on demand. "Each state government was required to appoint a Programme Officer (PO). Most have not appointed the PO, forcing the BDO to take additional charge and dictate terms over the panchayat," says Manoj Rai, Director, PRIA.

The Act mentions the projects will be undertaken by the GP ensuring active participation of community members. However, the GPs been completely sidelined; they played an extremely limited role in identification or implementation. Lack of adequate information, capacities and skills has given undue powers to government officials.

It is also being noticed that areas with female panchayat members have little or no say in the entire project and it is their men who dominate the proceedings. The Act says that men and women must be treated and paid equally. There should be basic facilities like rest area, drinking water and crèche for children. But the ground reality reflects a different pattern.

It has been noticed by surveyors that women are not being provided employment and equal wages as crèches are missing at most work sites. Although assets/infrastructure are being created in the rural hinterland helping the poor with better connectivity, water conservation and harvesting, flood control, irrigation and drought-proofing, audits have revealed that some assets are not durable and do not meet minimum quality standards.

UP Chief Minister Mayawati has said that the state was not being provided with adequate funds and the scheme should be scrapped. Many civil society groups acknowledge this fact and inform that if the entire rural population starts demanding jobs then these funds won't be enough. "In India, at least 5 crore families are in desperate need of such schemes and even the government of India has acknowledged it. So the government needs to concentrate only on these people. This should cost about Rs 80,000 crore while the amount allotted is a paltry sum of Rs 16,000 crore. This amount will not give employment to even one crore individuals; but the government will never say that there is a dearth of money because it is about minimum expenditure and maximum electoral gain," says Parshuram Ray.

Chandrama Goswami of Guwahati, a lecturer in Assam University, did a survey of NREGA districts in Assam. She discovered that job cards and works are being given to immigrants from Bangladesh while locals are being left out. She told : "Job cards are being issued to recently settled illegal immigrants by a particular political party to strengthen their vote-bank. However, despite the small discrepancies, a lot of work is also being done and assets are being created in the rural areas."

Undeniably, inconsistencies have slowed its progress but states with better implementation and accountability and transparency have excelled. Andhra Pradesh and Rajasthan have set examples for other states to follow in bringing the best out of the scheme. In Rajasthan, it was the use of the Right to Information Act that resulted in effective implementation. Corruption was checked. National Advisory Council member Aruna Roy, the MKSS and other activists played a relentless, stoic and decisive role.

"The NREGA experiment was successful in Rajasthan mainly because of the mass awareness campaigns, muster roll verification, periodic social audit, active role of the panchayats etc. NREGA had put a check on migration and steps were initiated to improve the natural resource management -- water conservation and harvesting, drought-proofing, micro irrigation works, provision of irrigation facilities to land owned by the SC/ST, rural connectivity, renovation of water bodies, and pasture land development," informs Manoj Rai.

In Andhra Pradesh, a survey was conducted on 100 families by AC Neilsen. It highlighted the social and economic transformation that the poor has witnessed. Several casual, landless and unskilled labourers who had no source of income and had to migrate to distant places in search of work were now earning enough in their own villages. After working with NREGA, they paid off their debts and never had to sleep on a hungry stomach.

To overcome the scheme's shortcomings, the government then decided to distribute wages through accounts in banks and post offices so that the role of middlemen and corrupt networks can be eliminated. "If the money is deposited in a bank or post office then that would automatically bring down corruption. This is what happened in Andhra where money is being distributed through post offices. It is a huge success," says Bhaskar Rao, Director, Centre for Media Studies, Delhi.

Till May 2008, more than 1 crore, 60 lakh, 4,320 accounts of wage earners have been opened. The banks and post offices have been reluctant in opening accounts in large numbers for paltry sums. People working on the progress of NREGA are optimistic about this step. They welcome it as a positive decision but wonder whether this experiment would be able to totally eradicate corruption from the scheme.

Despite shortcomings, the scheme has given hope to the poorest of poor. Aruna Roy told this reporter: "It has been a huge challenge with its strengths and weaknesses. For the first time any government has responded to people's aspirations of employment as the primary need for better livelihood and this justifies the booming economic growth. For the first time in my life I am witnessing a rational approach to the quantum of work, asset creation, organising of work, supervision, accountability and transparency. People who have been siphoning off money for more than 60 years are now feeling threatened with the accountability factor of NREGA. It's a welcome move for me as this is the only programme, unlike any, that addresses corruption everyday and holds people responsible. The world is watching our social audit process as more and more people are getting interested in the audit process."