Besides the criminal justice system, which is another State instrument that is also totally broken? India’s vast and unaccountable public sector companies. In the just-concluded second decade of the 21st century, India’s PSUs have lost over Rs 3 lakh crore of taxpayers’ – ie, yours and mine – money. Their market value has crashed by half even as private stocks have doubled!
Perhaps the primary reason for this sorry performance is the government’s stranglehold. Over a third of all independent directors on PSU boards are political leaders of the ruling party. Most have been defeated in recent polls, so have been given a board position as a palliative, a sinecure. They bring no expertise or vision, but influence contracts and tenders, all the while copiously consuming the enterprise’s resources, whether cars, or guesthouses, or travel perks.
Now guess which cabal runs the politicos a close second in grabbing board seats of private and public sector companies? You guessed…