Saturday, November 5, 2011




Kiran Bedi’s folly

Kiran Bedi was once nicknamed “Crane Bedi” correctly reflecting the daring way in which she solved illegal parking in Delhi. She now may be renamed “Cunning Bedi” for the innovative manner in which she generated funds for her NGO. In this internet day and age, she preferred the travel agency bullock cart method of presenting a bill to her sponsors. She billed them Rs. 38,000 for business class and booked her economy “cattle-class” seat duly exchanging cash for comfort. Many of her opponents have been gleeful to have caught her with her hand in the cookie jar, thus giving more than just irritation to the proverbial thorn in the side of the government.

So the moralists are out in the streets giving their own interpretation of this heinous act of Ms. “Cunning” Bedi. What, apparently, was questioned is that the sponsors were unaware about this sleight of hand.

Many years ago whilst working with a fast-moving consumer goods multinational company, I learnt a few lessons and maybe some of the ground rules will help us judge this lady activist. Since there was a lot of night travelling involved in my job and that of my colleagues, the recommended class of travel was the highest available on trains – Ist AC. Re-imbursement suggested the attachment of the used ticket. It was also made very clear, with a threat of immediate termination, if the actual mode/class of travel was incorrect.

However, while talking with a close friend from the same Business Management institute, who was then working as a sales manager with a fast-moving consumer goods Indian company, I was given a very practical explanation for the “other side of the coin”. Whilst comparing the salaries of colleagues in the sales force, he proved that his salesmen were getting more cash in hand than mine. This was calculated by what he called sleeper class minus first class difference. This was condoned by senior managers as well as himself. This was “cost to company”. He thought that this was perfectly all right, since it was a legal travelling expense and what the salesmen got was tax-free cash. He convinced me that this was not wrong and was of benefit to both the company as well as the salesmen.

Of course we were both in agreement that what was really wrong was that if we gave excess stock in exchange for money to our distributors, this was clearly a bribe.

My own take on this current controversy is that –

The sponsoring NGO that paid for Kiran Bedi’s business class ticket and following good accounting practices, should have asked for the boarding pass or for the ticket as a necessary measure to re-imburse her for the ticket. Having NOT done so, it seems like they have condoned a practice that is not familiar and is not considered to be immoral in our country.