Thousands of early payments uncovered at ONGC
ONGC has unearthed as many as 10,000 more early payments made last year to vendors after an investigation into alleged corruption by a general manager finance.
Former general manager finance and accounts, but now deputy general manager, Rajesh Agarwal, was accused of making early payments before the due date to vendors in Gujarat. Agarwal pleaded guilty without malicious intent, given that he was not the only one who had made early payments.
"In mid-September (2024), Agarwal was penalised with a one-stage demotion from GM to DGM," says a source. "During the process, ONGC found thousands of early payments in the same period as Agarwal's misdemeanour."
On December 6 (2023), ONGC's vigilance department in Ahmedabad began investigating 36 transactions between June and October 2023. Agarwal was suspended in December 2023 after hearings that lasted several months.
According to another source, company records show as many as 10,000 early payments, large and small, made during the same June-October 2023 period. Many were made to vendors for crucial high-value projects with tight completion timeframes.
However, middle management is suspicious of the larger payments on the list. "For example, one multinational company received early payments after calls were made from Delhi," says a well-placed source.
"Some employees are pointing at a former member of management who has a relative employed with the multinational." Directors at state-owned companies must follow government guidelines to avoid conflicts of interest.
"Senior management shall make disclosures to the board relating to all material financial and commercial transactions, where they have a personal interest that may have a potential conflict with the company's interest," says the Guidelines on Corporate Governance for Central Public Sector Enterprises, 2010. Some allege that junior officers like Agarwal receive reprimands, yet senior officers do not, even for the same issues.