I’m perturbed

What’s happening to the world? People are running governments, large corporate houses, big industries, and making money by all possible means. But when it comes to taking responsibility when something goes wrong, they use the same money power to avoid it, and even to prevent justice from taking its own course. Unfortunately, the media also take sides with and supports such privileged persons in the most shameful manner. Unfortunately is, perhaps, not the correct word- it should be deliberately, because the Media is run by some of these industry stalwarts, and very often, they depend on the industries for their advertisement revenues.

Take for instance, the recent incident of fire at AMRI, a private hospital in South Calcutta, India, where due to pure negligence of the hospital authorities, nearly 100 ailing persons admitted to the hospital in various critical conditions died. Police have, after due investigations, arrested some promoter Directors of the hospital (other Directors are Professional Doctors/ Nominees of the Government). Lo and behold, the Federation of Indian Chamber of Commerce and Industry (FICCI) vents a fury at the ‘discrimination’ (?) shown by the Police.

Isn’t this undue pressure tactics from a caucus of the wealthy and the privileged few, to save the guilty, whose negligence led to the horrible deaths of these 100 ailing clients. Over and above the hefty remunerations /sitting fees, the promoter Directors enjoy many privileges/ perquisites, etc, details of which are often hidden in the expenses accounts of the Company. But for what? Just for raising hands for voting? Or adding some true value to the company’s activities?

Every business entity faces some risks while carrying its activities. The Promoter Directors are primarily responsible for identifying and managing such risks in the conduct of the company’s business, watch over compliance of statutory and other regulatory matters, for establishing and maintaining internal controls and periodical evaluation of the effectiveness thereof, disclose all deficiencies in the design or operation of internal controls and the steps they have taken or propose to take to rectify these deficiencies, to the Auditors and the Audit Committee.

From the facts revealed in the AMRI case so far, it is very much apparent that the Directors have failed miserably in discharging their duties in so far as compliance of fire safety standards are concerned. The buck must ultimately stop with the responsible members, the Promoter Directors.

There should not be any attempt to find scapegoats only in the lower level employees/ officials of the Hospital. The guilty must be brought to books, so that no Director in any Company keeps on enjoying privileges without adding value to the affairs of the Company.

But the Media is behind the FICCI, and calling the police action NOT FAIR. Is it trying to set up a precedent so that in case any such incident occurs at their premises (which are full of inflammable materials), their Directors/ Top Management are protected?

In the developed world, there are specific regulations/ legal provisions on Directors'/Officers' Liability, jointly and severally, to keep such callous disregard of civic duty in check. Maybe similar regulations are needed here in India too!