CVC ASKS INDUSTRY TO EVOLVE RISK MANAGEMENT SYSTEM TO PLUG FRAUDS: VIGILANCE COMMISSIONER, CVC

CVC ASKS INDUSTRY TO EVOLVE RISK MANAGEMENT SYSTEM TO PLUG FRAUDS: VIGILANCE COMMISSIONER, CVC

CVC ASKS INDUSTRY TO EVOLVE RISK MANAGEMENT SYSTEM TO PLUG FRAUDS: VIGILANCE COMMISSIONER, CVC

No.PR-68
July 16, 2014
New Delhi

CVC ASKS INDUSTRY TO EVOLVE RISK MANAGEMENT SYSTEM TO PLUG FRAUDS: VIGILANCE COMMISSIONER, CVC

Central Vigilance Commission (CVC) on Wednesday asked the private sector industry to put in place a proper corporate risk management system in place to plug all possibilities of corporate frauds in their respective organization just as the public sector undertakings have performed the job.

Addressing the members of the Managing Committee of the PHD Chamber of Commerce and Industry here today, the Vigilance Commissioner Mr. J M Garg said, “in the absence of corporate risk management system in the private sector, if a corporate fraud is performed by an employee of any private industry, it is the promoters of that particular organizations and their directors will be held liable for the fraud committed and subjected to stringent scrutiny of law”.

Therefore, the corporate entities ought to evolve a system as early as possible and put it in place so that no corporate frauds could be committed which would be possible if the management keep strict control on its employees by proper monitoring system in place, especially after the Companies Act 2013 has come into effect which makes corporate governance so transparent with such stringent provisions, added Mr. Garg.

According to him, the medium sized and large companies would be able to comply with the new CSR norms, given the resources and man power at their command but compliance for CSR norms for MSMEs which face resource crunch and man power shortage under the new regime of the Companies Act 2013 would be extremely difficult and could render them non-competitive.

Mr. Garg also told the members that the industry especially PSUs both in central and states domain should not unnecessary fear the CVC as it usually examines cases of procurements of amount exceeding Rs.5 crores out of total Rs.25 lakh crores of annual procurements of such units.

The Managing Committee of the Chamber met under the Chairmanship of President of PHD Chamber Mr. Sharad Jaipuria in which its Sr. Vice President and Vice President Mr. Alok B Shriram and Mr. Mahesh Gupta including the Chamber’s Executive Director Mr. Saurabh Sanyal also participated with host of Managing Committee members of the Chamber.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)