Friday, January 25, 2008

Reforms in Andhra Pradesh.: Are They for True Reform?

Reforms in Andhra Pradesh: Are They for True Reform?

Is there efficient administration in Andhra Pradesh? What is the truth behind the publicity that AP is a trailblazer of reforms particularly of public sector undertakings? There is no denying that a lot of ruthless downsizing took place in the name of reforms. But, are the reforms truly guided by clean objectives? Is Chandrababu Naidu really reform-oriented? My friends in north India used to heap praise on Chandrababu Naidu as an austere and reform-oriented chief minister. My stint with SERIFED as General Manager of SERIFED for seven years and as Marketing Development Officer for 9 years debunk this positive opinion about Chandrababu naidu.

The major damage done by chief ministers of Andhra Pradesh- of whom Chandrababu naidu’s name figures prominently- is in the appointment of chairman and members of the board. The experience, background and their qualifications of the persons appointed to SERIFED as Chairmen and members of the management board are no way relevant to ensuring effective management of SERIFED. The only criteria apparently followed while selecting the candidates were to see if the candidates were recommended by their party office-bearers and if they were active in party work. The paramount interest in appointing a person as a chairman was to see that at least a few active party workers were appeased.

Unfortunately, Andhra Pradesh government so far has not specified a proper skill set and personal profile for chairman’s post. Unfettered freedom is given to the executive, which only resulted in appointing incompetent candidates.

The chief ministers of Congress party too contributed negatively to the inefficient functioning of public enterprises. In 1992, for example, Congress party saw that a farmer of Dharmanvaram was elected as a president for a primary weavers’ cooperative only to be further elected as Chairman of SERIFED. Note the ease with which a farmer could be made a weaver for the sake of election and the weakness of the Andhra Pradesh Cooperative Societies Act in preventing such atrocities. But, quite strangely, he contended that only candidates of Rayalaseema should be appointed to various clerical posts in SERIFED to give jobs to whom he favored while those hailing from Coastal areas were rejected though they were seniors and hard-working. Another shining pointer to the character of the chairman is that after his term was over, he had not returned SERIFED’s furniture which he took away to keep in his residence while in power.

Importantly, the chairman, appointed by chief ministers of both Telugu Desam and Congress party on political loyalty basis, weakened the organization by locating important production projects in their own areas where there was neither raw material availability nor market for the final product nor skilled labor.

In regards to the qualifications possessed by the appointed chairmen, surprisingly, some chairmen did not pass even a bachelor’s degree course, though a chairman’s coordinating function required incumbents with qualifications in sericulture, agriculture, and management. Do you think it is possible for such appointees to contribute to the efficiency of organizations like SERIFED? Leave alone the contribution to efficiency, the chairmen sucked the vitality of the organizations.

In this scenario, the Managing Directors, being from Indian Administrative Service and naturally better-groomed as managers, typically monopolized the decision-making. One chairman, for example, who was holding office in 2003, though a doctor, was an alcoholic (and received de-addiction treatment in Rahul Luther’s Hope Trust). He used to chair board meetings in an inebriated condition, to which I was a witness. The MD handled all the decisions. Such a person could not use his faculties correctly and left all important decisions to an IAS officer- especially the decision-making exercise related to identification of employees for Voluntary (Compulsory) Retirement Scheme. This pointedly led to the identification of persons on the meanest personal and extraneous considerations. But Chandrababu Naidu’s ruthless determination to downsize the public sector undertakings, overpowered the affected employees. To give an example, in the hearing related to petition before of employees numbering as few as six on the issue of retiree identification, Chandrababu Naidu put on job the Advocate General and a retired Advocate General to argue against those few employees. Can employees’ advocate sustain so much pressure!

The chairmen used the infrastructure for personal ends and party work. Major share of expenditure came from air tours and fuel to their cars, which did not contribute in any way to the efficient functioning of the organizations. That apart, staff paid for office work was posted as assistants at the chairman’s home and also as assistants to their political masters. While this being the case with chairmen, the board members too did not prove any different. Their paramount interest was to attend many meetings and get their traveling allowance bill paid. Hungry of travel bills sanction, the board members passed a resolution in 2002-2003 that board meeting should happen every month, regardless of the quantity of issues requiring the resolution by the board.

This reform-hungry state named Andhra Pradesh followed the principle of ‘first spoil to make it eligible for implementation of reforms later’. The public has to understand that Chandrababu naidu, who contributed enormously to the mismanagement of organizations, chose downsizing in PSEs in stead of effective management while power; but he now opts out downsizing when he is out of power. Judge his real motive- power or reform?


No comments: