Banned but still there

CONTRACTORS are banned for work under the NREGA, but the survey found that they were in fact involved at 27 per cent of the sample worksites. The worst State in this respect was Jharkhand, where contractors were found at more than half (57 per cent) the sample worksites. A common excuse for this is the shortage of staff: gram panchayats, the main implementing agencies for NREGA work, do not exist in Jharkhand. In fact, it is the only State that has not held elections to panchayati raj institutions since the 73rd and 74th amendments to the Constitution.

The survey teams encountered contractors to varying extents in all the States except Rajasthan. Often, they get a foot in the door on account of delays in the flow of funds. When funds are delayed, contractors step in to ensure timely payment to labourers and suppliers. In return, they are given a free hand in forging muster rolls, job cards and other NREGA documents.

Why is the involvement of contractors such a big issue? This question has to be seen in the light of the unscrupulous character of most contractors in rural India. They are there to make money, in a highly competitive environment where cheating and exploitation is the way to get ahead.

The semi-criminal, petty contractor, roaming around on a motorcycle, wearing dark glasses and a scarf and chewing paan, is not a fictitious Bollywood character he is a familiar figure in most Indian villages.

On a more serious note, the survey findings amply confirm that private contractors are best kept at bay. This is so for at least three reasons:

Corruption: Corruption levels tend to be higher where contractors are involved. For instance, in a survey in Orissa in October 2007, we found higher rates of embezzlement of wages at worksites managed by contractors. Worksites with contractors were more likely to have muster rolls with fake names. More than half (55 per cent) of the wages did not reach the labourers concerned, whereas the figure was low (25 per cent) for contractor-free worksites.

Exploitation: Contractors typically thrive by exploiting labourers making them work hard and paying them as little as possible. This often goes hand in hand with harassment. For instance, 35 per cent of the women working at contractor-managed worksites reported being harassed. This figure is much lower (8 per cent) for contractor-free worksites.

At one worksite in Surguja district (Chhattisgarh), women were verbally abused for working too slowly; the contractor made them work for 10 hours a day and turned away those who came late.

At another worksite, also in Surguja, the survey team noted: The women who complained about these work conditions were verbally abused by the contractor, who also threatened to replace them with workers from other gram panchayats. Our team learned from a worker that these workers from other gram panchayats were paid at the rate of Rs.50 a day.

Accountability: It is easier to keep gram panchayats or Line Departments employees on their toes than to hold private contractors accountable. In fact, in our experience, contractors are very difficult to catch even when there is proof of their mischief.

For instance, at Masmohna in Jharkhands Koderma district, the survey team found conclusive evidence that a private contractor had cheated NREGA workers and embezzled their wages. This evidence was presented at a massive public hearing attended by three members of the Central Employment Guarantee Council (on June 18, 2008) and confirmed again in a detailed follow-up by the Koderma Sub-Divisional Officer (SDO).

Yet, in the first information report (FIR) lodged against the culprits, which is supposed to be based on this very inquiry, the contractors name is missing. He apparently has the protection of the local Member of the Legislative Assembly.

Many contractors enjoy the patronage of political leaders (and return this favour by funding election campaigns). This nexus of corruption and crime, which also involves corrupt bureaucrats, has been the bane of public works programmes for many years.

The NREGA seeks to break this nexus and replace it with a transparent and accountable system where panchayati raj institutions are in charge. If this new system is to see the light of day, contractors have to be kept at bay.

Jean Dreze and Reetika Khera