VIGEYE VANI Quarterly Newsletter Central Vigilance Commission July to September 2015
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VIGEYE VANIQuarterly Newsletter
Central Vigilance CommissionJuly to September 2015
Message
I am happy to be a part of the efforts of the Central Vigilance Commission to connect with its stake
holders on the activities of the Commission through Vigeye.
In the past three months or so, the Commission has initiated several measures to emphasize on the
need for better preventive vigilance with a view to improve the efficiency of the organizations, avoid
complaints and enable delivery of efficient and better services to the citizens. These measures include a
request to the CVOs of various organizations to continuously review the existing processes to remove/de-
bottleneck the irritants to enable efficient delivery of services bringing in transparency etc. Several
suggestions received from the CVOs are under examination for systematic improvement. Some of these
suggestions have to be and have been implemented by the respective organizations by making changes
in the existing processes.
The Commission conducted certain studies of the work relating to vigilance and identified certain
areas wherein delays have rendered the entire investigation and inquiry into misconducts a virtual nullity.
Certain remedial measures, in particular, to expedite the handling of the complaint/inquiry processes
have been initiated.
The Commission has taken up the work relating to preventive vigilance in all earnestness and has in
fact made it a theme for this year’s Vigilance Awareness Week – “Preventive Vigilance as a Tool for Good
Governance”. The Commission has ambitious plans to take the topic of preventive vigilance as a
measure for effective and good governance to large cross section with the help of the CVOs. It is
proposed to take this message to a large number of students by approaching them through their
educational institutions by way of conducting debates, group discussions, lectures, oratory competitions,
etc. I am thankful to the CVOs for their response and I hope we will be in a position to make a substantial
mark in this regard.
The Commission has also for the first time producing certain TV episodes to be telecast with the
associations of various organizations based on real life issues relating to vigilance, integrity, tendering
process etc. I hope that these will be received well and will have the desired effect of improving
governance and reducing corruption. The Commission has been interacting with the CVOs through a
foray of review meetings, Annual Sectoral meetings, Vigilance Study Circles, etc. Similarly, the
Commission has been interacting with its own officers and staff in a more structured manner to bring the
best out of them.
With the involvement of the officers and staff of the Commission, CVOs and their organizations, I
am sure that we can take the preventive Vigilance and efficacy of the Punitive Vigilance to the next higher
level.
K.V. ChowdaryCentral Vigilance Commissioner
1
Shri T.M. Bhasin, VC, Shri Pratyush Sinha former CVC, Shri K.V Chowdary, CVC, Shri Rajiv, VC, and Shri D.K. Sarraf, CMD, ONGC (from right to left) at a seminar organized by Vigilance Study Circle -Delhi NCR
Shri K.V Chowdary, CVC (4th from left) at Vigilance Study Circle (Bengaluru Chapter)
Message
I am happy to be a part of the efforts of the Central Vigilance Commission to connect with its stake
holders on the activities of the Commission through Vigeye.
In the past three months or so, the Commission has initiated several measures to emphasize on the
need for better preventive vigilance with a view to improve the efficiency of the organizations, avoid
complaints and enable delivery of efficient and better services to the citizens. These measures include a
request to the CVOs of various organizations to continuously review the existing processes to remove/de-
bottleneck the irritants to enable efficient delivery of services bringing in transparency etc. Several
suggestions received from the CVOs are under examination for systematic improvement. Some of these
suggestions have to be and have been implemented by the respective organizations by making changes
in the existing processes.
The Commission conducted certain studies of the work relating to vigilance and identified certain
areas wherein delays have rendered the entire investigation and inquiry into misconducts a virtual nullity.
Certain remedial measures, in particular, to expedite the handling of the complaint/inquiry processes
have been initiated.
The Commission has taken up the work relating to preventive vigilance in all earnestness and has in
fact made it a theme for this year’s Vigilance Awareness Week – “Preventive Vigilance as a Tool for Good
Governance”. The Commission has ambitious plans to take the topic of preventive vigilance as a
measure for effective and good governance to large cross section with the help of the CVOs. It is
proposed to take this message to a large number of students by approaching them through their
educational institutions by way of conducting debates, group discussions, lectures, oratory competitions,
etc. I am thankful to the CVOs for their response and I hope we will be in a position to make a substantial
mark in this regard.
The Commission has also for the first time producing certain TV episodes to be telecast with the
associations of various organizations based on real life issues relating to vigilance, integrity, tendering
process etc. I hope that these will be received well and will have the desired effect of improving
governance and reducing corruption. The Commission has been interacting with the CVOs through a
foray of review meetings, Annual Sectoral meetings, Vigilance Study Circles, etc. Similarly, the
Commission has been interacting with its own officers and staff in a more structured manner to bring the
best out of them.
With the involvement of the officers and staff of the Commission, CVOs and their organizations, I
am sure that we can take the preventive Vigilance and efficacy of the Punitive Vigilance to the next higher
level.
K.V. ChowdaryCentral Vigilance Commissioner
1
Shri T.M. Bhasin, VC, Shri Pratyush Sinha former CVC, Shri K.V Chowdary, CVC, Shri Rajiv, VC, and Shri D.K. Sarraf, CMD, ONGC (from right to left) at a seminar organized by Vigilance Study Circle -Delhi NCR
Shri K.V Chowdary, CVC (4th from left) at Vigilance Study Circle (Bengaluru Chapter)
32
From the Editor's Desk
With a spate of Annual Sectoral Review meetings of the Commission with the Chief Vigilance Officers,
numerous initiatives towards preventive vigilance etc. last quarter has witnessed a lot of activity in the
Commission. This news letter brings you a brief overview of some of these.
That the Commission is laying stress on the efficacy of preventive vigilance was highlighted in our last
issue and taking this forward, this issue attempts to bring into focus an area which is highly vulnerable to
manipulation, collusion, and corruption i.e. the area of public procurement. Corruption in procurement
can take place at any stage in the process
Any effective preventive vigilance strategy has necessarily to ensure transparency, fairness, quality,
timeliness and value for money in the public procurement process. These ‘principles’ of public
procurement operate within the broader framework of the law, rules/guidelines/administrative
regulations and the principles of financial propriety. Transparency in public procurement is important as
information on the public procurement process must be made available to all stakeholders: contractors,
suppliers, service providers, and the public at large as it boosts stakeholder confidence and ensures
greater competition and value for money. Value for money underscores the principle of economy and the
need to efficiently manage public funds with care and due diligence so that prices are acceptable and
represent good value for the public funds expended on them. Fairness in the public procurement process
implies unbiased decision making, considering /rejecting offers on the basis of their compliance or
otherwise with the stipulations of the solicitation documents. Ensuring timeliness at every stage of the
procurement process is not only money saved but also reduces scope for wastage, manipulation and
collusive corruption. Over arching all these is the principle of integrity, of the procurement process and of
the persons involved in the process. The importance of efficient public procurement can be gauged from
the fact that it has an impact in almost all areas of our lives including national security, health, quality of
infrastructure and services etc. Efficient public procurement avoids mismanagement and waste of public
funds, maximizes public welfare by providing quality services and products, and spurs economic growth.
It is therefore an issue that concerns us all.
As always we invite you to share your experiences, case studies and system improvement initiatives with
everyone through this newsletter. The Editorial Board is grateful to those who have contributed articles for
this edition.
The Editorial Board would also like to place on record its appreciation for the contribution of Shri Prabhat
Kumar former CVO Pawan Hans, to Vigeye Vani, as a member of the Editorial Board.
Sonali Singh
Chief Editor
Real knowledge is to know the extent of one's ignorance.- Confucius
From the Archives
Source: “The Untiring Eye” published on the Golden Jubilee of CVC
“Setting up of the Commission”
32
From the Editor's Desk
With a spate of Annual Sectoral Review meetings of the Commission with the Chief Vigilance Officers,
numerous initiatives towards preventive vigilance etc. last quarter has witnessed a lot of activity in the
Commission. This news letter brings you a brief overview of some of these.
That the Commission is laying stress on the efficacy of preventive vigilance was highlighted in our last
issue and taking this forward, this issue attempts to bring into focus an area which is highly vulnerable to
manipulation, collusion, and corruption i.e. the area of public procurement. Corruption in procurement
can take place at any stage in the process
Any effective preventive vigilance strategy has necessarily to ensure transparency, fairness, quality,
timeliness and value for money in the public procurement process. These ‘principles’ of public
procurement operate within the broader framework of the law, rules/guidelines/administrative
regulations and the principles of financial propriety. Transparency in public procurement is important as
information on the public procurement process must be made available to all stakeholders: contractors,
suppliers, service providers, and the public at large as it boosts stakeholder confidence and ensures
greater competition and value for money. Value for money underscores the principle of economy and the
need to efficiently manage public funds with care and due diligence so that prices are acceptable and
represent good value for the public funds expended on them. Fairness in the public procurement process
implies unbiased decision making, considering /rejecting offers on the basis of their compliance or
otherwise with the stipulations of the solicitation documents. Ensuring timeliness at every stage of the
procurement process is not only money saved but also reduces scope for wastage, manipulation and
collusive corruption. Over arching all these is the principle of integrity, of the procurement process and of
the persons involved in the process. The importance of efficient public procurement can be gauged from
the fact that it has an impact in almost all areas of our lives including national security, health, quality of
infrastructure and services etc. Efficient public procurement avoids mismanagement and waste of public
funds, maximizes public welfare by providing quality services and products, and spurs economic growth.
It is therefore an issue that concerns us all.
As always we invite you to share your experiences, case studies and system improvement initiatives with
everyone through this newsletter. The Editorial Board is grateful to those who have contributed articles for
this edition.
The Editorial Board would also like to place on record its appreciation for the contribution of Shri Prabhat
Kumar former CVO Pawan Hans, to Vigeye Vani, as a member of the Editorial Board.
Sonali Singh
Chief Editor
Real knowledge is to know the extent of one's ignorance.- Confucius
From the Archives
Source: “The Untiring Eye” published on the Golden Jubilee of CVC
“Setting up of the Commission”
Breach of propriety in Public Procurement: Some case studies
The five canons of propriety in public procurement are Transparency, Fairness, Value for Money,
Timeliness and Quality. These canons of propriety are comprehensive as they cover the process
as well as the quality of procurement. Although there is no law exclusively governing public
procurement of goods, there are rules and guidelines to ensure adherence to canons of
propriety in public procurement. Detailed rules and instructions relating to procurement by
Union Government are contained in General Financial Rules (GFR) and Delegation of Financial
Powers Rules (DFPR) and in addition major Ministries have their own purchase procedures.
Guidelines have been issued by the Central Vigilance Commission to ensure transparency and
objectivity in public procurement.
The following two cases illustrate how the canons of propriety in public procurement had been
flouted by public authorities. Vigilance angle is obvious if there is a deliberate violation of canons
of propriety.
CASE-I
The Vigilance Wing of a major Ministry of the Union Government unearthed large scale
irregularities in the procurement of items in the depot. The irregularities in brief were as follow:
(i) Indenting simple Stock items under disguised Non-stock description: While
generating the requisitions, the concerned indenting officials camouflaged the description
of simple ready to use items in high sounding, technologically complex jargon with inflated
rates. For example, one of these items was a simple “Push Button Telephone” which is a
regular stock item of Stores Depot with well known pricing history maintained in the Stores
office. This item had been describes as “digital point to point communication system” in the
non-stock requisition with an estimated rate which was much higher compared to the stock
item purchase rate.
(ii) Recommending bogus and unworthy sources of supply for procurement: While
sending these non-stock indents to the Store Office, the indenting officials had endorsed
bogus and non-existent firms as “credible source of supply” although the indenting unit
was located at a place where dozens of the credible suppliers /agents were known to be
located. During Vigilance Investigation, when postal communication with these suppliers
were attempted, most of the letters returned to Vigilance as “undelivered” proving that the
recommended sources were not only unworthy but even bogus in nature.
(iii) Making local purchases of materials at exorbitant rates: During preventive check,
Vigilance had unearthed several cases of irregular procurement wherein the Stores Offices
had failed to exercise basic prudence and propriety during the purchase process. In 8 cases
that were checked and analyzed, the concerned Stores Officers had accepted the offer of
Asit Gopal
Director, CVC
4
the lowest Suppliers in 7 cases without verifying the “Reasonableness of rate” from the
indenting Department as is required to be done in accordance with extant rules.
(iv) Certifying bills over and above the Maximum Retail Price (MRP) of the product:
During checks conducted by Vigilance, it was revealed that in all cases, the MRP of the
material was far less than the rate mentioned on the Purchase Orders. As per extant
procedure it was the duty of the Consignee to check the items vis-a-vis the information
contained in the purchase order, a copy of which was already in their possession. It was the
duty of the consignee and other indenting officers to release bills only after exercising such
check.
The above case is not an example of error committed during procurement due to lack of
awareness of rules and guidelines, it is a case of conspiracy to cheat the Government. The
irregularities had been committed in a well planned manner right from the pre-tender
stage to the execution including payment. In this case all the canons of propriety except
timeliness had been flouted. Timeliness is important for committing a fraud! Needless to
say, the Central Vigilance Commission advised initiation of major penalty proceedings
against the conspirators.
CASE-II
A tender had been invited for construction of minor bridges. The tender conditions allowed
participation of group of companies by way of forming a Joint Venture (JV). Six tenders were
received and the tender was awarded to L-4 bidder after rejecting the bids of L-1, L-2 and L-3
bidders. The rates quoted by L-1 bidder and L-4 bidder were Rs. 25 crores and Rs. 29 crores
respectively. L-1 bidder complained that its bid had been wrongfully rejected to favour L-4
bidder.
The tender condition specified that one company cannot be a partner in JV in more than one
bidding JVs. It was revealed that one company was partner in L-2 as well as L-3 JV and therefore,
the bids of L-2 and L-3 were justifiably rejected. However, in the case of L-1 bidder, it appeared
that the Tender Committee had made up its mind to reject the bid and were only looking for
some excuse to justify rejection. The tender document had specified a format for signing of
Memorandum of Understanding (MOU) among partners of JVs. The bid of L-1 was rejected on
the ground that MOU was not in the specified format mentioned in the tender document. The
Tender Committee had also obtained the opinion of the Law Officer of the Organization to
support the rejection. The Vigilance Wing of the Organization had supported the stand of the
Tender Committee and had recommended no action against them. However, the perusal of the
case revealed that the MOU was in the specified format, the Tender Committee had picked up
some typographical errors and minor difference between the address of one partner as
mentioned on the first page and the last page of MOU to reject the bid. The typographical errors
did not alter the intent of the MOU. The basic intention of the MOU was to ensure that the
shareholding pattern of JV is not altered later. The Tender Committee had interpreted the tender
conditions in the strictest possible form to reject the L-1 bid.
The Central Vigilance Commission differed with the recommendation of the Department and
advised initiation of major penalty proceedings against the members of the Tender Committee
because their malafide was evident due to deliberate violation of two canons of propriety –
fairness and value for money.
5
Breach of propriety in Public Procurement: Some case studies
The five canons of propriety in public procurement are Transparency, Fairness, Value for Money,
Timeliness and Quality. These canons of propriety are comprehensive as they cover the process
as well as the quality of procurement. Although there is no law exclusively governing public
procurement of goods, there are rules and guidelines to ensure adherence to canons of
propriety in public procurement. Detailed rules and instructions relating to procurement by
Union Government are contained in General Financial Rules (GFR) and Delegation of Financial
Powers Rules (DFPR) and in addition major Ministries have their own purchase procedures.
Guidelines have been issued by the Central Vigilance Commission to ensure transparency and
objectivity in public procurement.
The following two cases illustrate how the canons of propriety in public procurement had been
flouted by public authorities. Vigilance angle is obvious if there is a deliberate violation of canons
of propriety.
CASE-I
The Vigilance Wing of a major Ministry of the Union Government unearthed large scale
irregularities in the procurement of items in the depot. The irregularities in brief were as follow:
(i) Indenting simple Stock items under disguised Non-stock description: While
generating the requisitions, the concerned indenting officials camouflaged the description
of simple ready to use items in high sounding, technologically complex jargon with inflated
rates. For example, one of these items was a simple “Push Button Telephone” which is a
regular stock item of Stores Depot with well known pricing history maintained in the Stores
office. This item had been describes as “digital point to point communication system” in the
non-stock requisition with an estimated rate which was much higher compared to the stock
item purchase rate.
(ii) Recommending bogus and unworthy sources of supply for procurement: While
sending these non-stock indents to the Store Office, the indenting officials had endorsed
bogus and non-existent firms as “credible source of supply” although the indenting unit
was located at a place where dozens of the credible suppliers /agents were known to be
located. During Vigilance Investigation, when postal communication with these suppliers
were attempted, most of the letters returned to Vigilance as “undelivered” proving that the
recommended sources were not only unworthy but even bogus in nature.
(iii) Making local purchases of materials at exorbitant rates: During preventive check,
Vigilance had unearthed several cases of irregular procurement wherein the Stores Offices
had failed to exercise basic prudence and propriety during the purchase process. In 8 cases
that were checked and analyzed, the concerned Stores Officers had accepted the offer of
Asit Gopal
Director, CVC
4
the lowest Suppliers in 7 cases without verifying the “Reasonableness of rate” from the
indenting Department as is required to be done in accordance with extant rules.
(iv) Certifying bills over and above the Maximum Retail Price (MRP) of the product:
During checks conducted by Vigilance, it was revealed that in all cases, the MRP of the
material was far less than the rate mentioned on the Purchase Orders. As per extant
procedure it was the duty of the Consignee to check the items vis-a-vis the information
contained in the purchase order, a copy of which was already in their possession. It was the
duty of the consignee and other indenting officers to release bills only after exercising such
check.
The above case is not an example of error committed during procurement due to lack of
awareness of rules and guidelines, it is a case of conspiracy to cheat the Government. The
irregularities had been committed in a well planned manner right from the pre-tender
stage to the execution including payment. In this case all the canons of propriety except
timeliness had been flouted. Timeliness is important for committing a fraud! Needless to
say, the Central Vigilance Commission advised initiation of major penalty proceedings
against the conspirators.
CASE-II
A tender had been invited for construction of minor bridges. The tender conditions allowed
participation of group of companies by way of forming a Joint Venture (JV). Six tenders were
received and the tender was awarded to L-4 bidder after rejecting the bids of L-1, L-2 and L-3
bidders. The rates quoted by L-1 bidder and L-4 bidder were Rs. 25 crores and Rs. 29 crores
respectively. L-1 bidder complained that its bid had been wrongfully rejected to favour L-4
bidder.
The tender condition specified that one company cannot be a partner in JV in more than one
bidding JVs. It was revealed that one company was partner in L-2 as well as L-3 JV and therefore,
the bids of L-2 and L-3 were justifiably rejected. However, in the case of L-1 bidder, it appeared
that the Tender Committee had made up its mind to reject the bid and were only looking for
some excuse to justify rejection. The tender document had specified a format for signing of
Memorandum of Understanding (MOU) among partners of JVs. The bid of L-1 was rejected on
the ground that MOU was not in the specified format mentioned in the tender document. The
Tender Committee had also obtained the opinion of the Law Officer of the Organization to
support the rejection. The Vigilance Wing of the Organization had supported the stand of the
Tender Committee and had recommended no action against them. However, the perusal of the
case revealed that the MOU was in the specified format, the Tender Committee had picked up
some typographical errors and minor difference between the address of one partner as
mentioned on the first page and the last page of MOU to reject the bid. The typographical errors
did not alter the intent of the MOU. The basic intention of the MOU was to ensure that the
shareholding pattern of JV is not altered later. The Tender Committee had interpreted the tender
conditions in the strictest possible form to reject the L-1 bid.
The Central Vigilance Commission differed with the recommendation of the Department and
advised initiation of major penalty proceedings against the members of the Tender Committee
because their malafide was evident due to deliberate violation of two canons of propriety –
fairness and value for money.
5
Conclusion
The two cases are in contrast as in the first the malafide is obvious right from the beginning but in
the second case it is veiled. In the second case, the Commission differed from the views of the
Department because the ground of rejection of L1 was not convincing. The opinion of the Law
Officer was also not categorical. It stated that although tender conditions have been violated, the
Tender Committee may take a final view considering the overall interest of the Department. This
suggested that there was scope for accepting L-1 tender and further, considering the substantial
difference in the quotes of L-1 and L-4 bidders, the option of discharging the tender was also
available before the Tender Committee. The overall conduct of the Tender Committee gave rise
to reasonable doubt that they had not acted in a fair manner. A decision based on keeping in
view all the five canons of propriety in public procurement can never go wrong.
6 7
Information and Communication Technology – An Endogenous Element to Reduce Corruption
Transparency International (TI) defines corruption as the abuse of entrusted power for personal
gain or specific group interest. The United Nations points out that corruption can take many
forms that vary in degree, from the minor use of influence to institutionalized bribery, and that
“this can mean not only financial gain but also non-financial advantages” (UN, 2010).One of
the ways to tackle corruption is the use of Information and Communication Technology
appropriately (ICT).
ICT can be defined as technologies that enable recording, processing, retrieving and the
transmission of information or data. Herselman and Hay, describe ICT as technologies that
support the communication and co-operation of “human beings and their organizations” and
the “creation and exchange of knowledge”.
There are several ways in which ICT can contribute positively to changes regarding these factors.
Information Communication Technology can reduce corruption in the public service by
increasing transparency and accountability. Let us discuss some of the points related to this:
Monopolies
Using electronic services also means introducing competition by providing alternative delivery
channels. This way user can choose to avoid agents who are corrupt. The very process of
building an on-line delivery system requires that rules and procedures are standardized across
regions and made explicit so as to make them amenable for coding which reduces the discretion
on part of civil servants and increases the auditability of operations. This means that e-
Governance itself can be used as a starting point for reengineering processes and making them
less corruption prone.
Discretion
The very idea of electronic services is that the user interacts with an electronic system where rules
are strictly specified, rather than with an individual. While the main reason for electronic services
is typically related to cost savings, clearly automation removes the possibility of the individual
acting on personal discretion. The client interacts directly with the principal, rules are followed
without discretion. Wherever the user has direct access to an electronic service, the opportunity
to refuse a service unless paid for, is removed.
Er. Satish Kumar
Superintending Engineer( Rtd),
Government of Bihar
Nitish Kumar
Director, CVC
No legacy is as rich as honesty.- William Shakespeare
Conclusion
The two cases are in contrast as in the first the malafide is obvious right from the beginning but in
the second case it is veiled. In the second case, the Commission differed from the views of the
Department because the ground of rejection of L1 was not convincing. The opinion of the Law
Officer was also not categorical. It stated that although tender conditions have been violated, the
Tender Committee may take a final view considering the overall interest of the Department. This
suggested that there was scope for accepting L-1 tender and further, considering the substantial
difference in the quotes of L-1 and L-4 bidders, the option of discharging the tender was also
available before the Tender Committee. The overall conduct of the Tender Committee gave rise
to reasonable doubt that they had not acted in a fair manner. A decision based on keeping in
view all the five canons of propriety in public procurement can never go wrong.
6 7
Information and Communication Technology – An Endogenous Element to Reduce Corruption
Transparency International (TI) defines corruption as the abuse of entrusted power for personal
gain or specific group interest. The United Nations points out that corruption can take many
forms that vary in degree, from the minor use of influence to institutionalized bribery, and that
“this can mean not only financial gain but also non-financial advantages” (UN, 2010).One of
the ways to tackle corruption is the use of Information and Communication Technology
appropriately (ICT).
ICT can be defined as technologies that enable recording, processing, retrieving and the
transmission of information or data. Herselman and Hay, describe ICT as technologies that
support the communication and co-operation of “human beings and their organizations” and
the “creation and exchange of knowledge”.
There are several ways in which ICT can contribute positively to changes regarding these factors.
Information Communication Technology can reduce corruption in the public service by
increasing transparency and accountability. Let us discuss some of the points related to this:
Monopolies
Using electronic services also means introducing competition by providing alternative delivery
channels. This way user can choose to avoid agents who are corrupt. The very process of
building an on-line delivery system requires that rules and procedures are standardized across
regions and made explicit so as to make them amenable for coding which reduces the discretion
on part of civil servants and increases the auditability of operations. This means that e-
Governance itself can be used as a starting point for reengineering processes and making them
less corruption prone.
Discretion
The very idea of electronic services is that the user interacts with an electronic system where rules
are strictly specified, rather than with an individual. While the main reason for electronic services
is typically related to cost savings, clearly automation removes the possibility of the individual
acting on personal discretion. The client interacts directly with the principal, rules are followed
without discretion. Wherever the user has direct access to an electronic service, the opportunity
to refuse a service unless paid for, is removed.
Er. Satish Kumar
Superintending Engineer( Rtd),
Government of Bihar
Nitish Kumar
Director, CVC
No legacy is as rich as honesty.- William Shakespeare
8 9
Accountability
Accountability refers to the “service guarantee” of a government or agency; the extent to which
its actions are accounted for and corrected if not carried out correctly. Information can be
published online, processes and decisions can be traced for audit and analysis, and there can be
rules for compensation. It requires openness of processes, access by the public, transparency of
rules, processes for complaints handling, etc. There are studies showing that the greater the
access to information, the lower the corruption levels.
Modern ICT platforms can offer participants’ voice and connectivity, which has empowered
many previously marginalized parts of society. Civil Society Organizations (CSOs) and
governments have played a key part in experimenting with ICTs to strengthen networks and
access to information, affecting positively the delivery of public service and good governance.
There are numerous ICT tools that can be used during various phases of combating corruption,
including prevention, detection, analysis, and corrective action. Some of them are presented in
table below:
TABLE : ICT TOOLS TO COMBAT CORRUPTION
DISCUSSION AND CONCLUSION
There is ample evidence that ICT can be an effective tool to combat corruption. The potential of
ICT can, however, only be realized when it is combined with real administrative reforms. One of
the positive findings is that ICT also drives such reform. At last:
(a) More e-Governance is better; the more services online in a country, lesser the corruption.
The effect is considerable.
(b) ICT has a greater positive effect than the traditional anti-corruption factors (e.g.
administrative reform without the development of technological support systems, free
press).
(c) Increased social capital (stronger social bonds) reduces corruption.
(d) Several individual ICT projects are not successful, however the overall balance is positive –
ICT investment in e-Governance pays off in terms of reduced corruption.
Action type Logic to achieve benefits Main target ICT used
Automation Remove human agents and hence corruption opportunities everyday from operations operations
Transparency Remove opportunity for Mobilize the public, Web sites wherediscretion inform users information is
published. Manualor automatic input
Detection in Both details and aggregates Petty bribery as well Log analysis tools,operations from operations can be as large-scale standard as well as
monitored to detect anomalies operations specifically targetedand unexpected performance ones such as Control
functions inprocurementsystems.
Preventive Online social networks and Large – scale Social networkdetection individuals can be monitored corruption, e.g. in analysis and social
to detect preparations for procurement or media analysis tools.corrupt action international trade
Awareness If the public is aware of Petty bribery Any technology, butraising government rules and web sites are most
procedures they are better commonable to resist arbitrary treatment
Petty bribery in Any system
Reporting Mobilizing users/community to report cases will make it media networks, easier to take corrective action Large-scale online newspapers, towards individuals and to operations mobile phones, SMS reorganize systems to avoid for input“loopholes”
Deterrence Publishing information about Petty bribery Web sites, social reported corruption as well as media networksindicators (such as imbalance between income and property) will deter individuals from engaging in corruption.
Promoting Engaging the public by means Public attitude Social media forumsethical of pursuing discussions in change attitudes various online forums
Petty bribery Web sites, social
8 9
Accountability
Accountability refers to the “service guarantee” of a government or agency; the extent to which
its actions are accounted for and corrected if not carried out correctly. Information can be
published online, processes and decisions can be traced for audit and analysis, and there can be
rules for compensation. It requires openness of processes, access by the public, transparency of
rules, processes for complaints handling, etc. There are studies showing that the greater the
access to information, the lower the corruption levels.
Modern ICT platforms can offer participants’ voice and connectivity, which has empowered
many previously marginalized parts of society. Civil Society Organizations (CSOs) and
governments have played a key part in experimenting with ICTs to strengthen networks and
access to information, affecting positively the delivery of public service and good governance.
There are numerous ICT tools that can be used during various phases of combating corruption,
including prevention, detection, analysis, and corrective action. Some of them are presented in
table below:
TABLE : ICT TOOLS TO COMBAT CORRUPTION
DISCUSSION AND CONCLUSION
There is ample evidence that ICT can be an effective tool to combat corruption. The potential of
ICT can, however, only be realized when it is combined with real administrative reforms. One of
the positive findings is that ICT also drives such reform. At last:
(a) More e-Governance is better; the more services online in a country, lesser the corruption.
The effect is considerable.
(b) ICT has a greater positive effect than the traditional anti-corruption factors (e.g.
administrative reform without the development of technological support systems, free
press).
(c) Increased social capital (stronger social bonds) reduces corruption.
(d) Several individual ICT projects are not successful, however the overall balance is positive –
ICT investment in e-Governance pays off in terms of reduced corruption.
Action type Logic to achieve benefits Main target ICT used
Automation Remove human agents and hence corruption opportunities everyday from operations operations
Transparency Remove opportunity for Mobilize the public, Web sites wherediscretion inform users information is
published. Manualor automatic input
Detection in Both details and aggregates Petty bribery as well Log analysis tools,operations from operations can be as large-scale standard as well as
monitored to detect anomalies operations specifically targetedand unexpected performance ones such as Control
functions inprocurementsystems.
Preventive Online social networks and Large – scale Social networkdetection individuals can be monitored corruption, e.g. in analysis and social
to detect preparations for procurement or media analysis tools.corrupt action international trade
Awareness If the public is aware of Petty bribery Any technology, butraising government rules and web sites are most
procedures they are better commonable to resist arbitrary treatment
Petty bribery in Any system
Reporting Mobilizing users/community to report cases will make it media networks, easier to take corrective action Large-scale online newspapers, towards individuals and to operations mobile phones, SMS reorganize systems to avoid for input“loopholes”
Deterrence Publishing information about Petty bribery Web sites, social reported corruption as well as media networksindicators (such as imbalance between income and property) will deter individuals from engaging in corruption.
Promoting Engaging the public by means Public attitude Social media forumsethical of pursuing discussions in change attitudes various online forums
Petty bribery Web sites, social
10 11
Hkz"Vkpkj % dkj.k ,oa fuokj.k
Hkkjr fo”o dk lcls cM+k yksdra= gS vkSj izxfr”khy ns”kksa esa yksdra= dh lQyrk dk lcls cM+k mnkgj.k gSA gekjs lafo/kku us ,d Lora= vkSj lfØ; U;k;ikfydk LFkkfir dh gS rFkk ehfM;k dh Lora=rk Hkh lqfuf”pr dh gSA gekjs ns”k dk lafo/kku fo”o ds loksZRre lafo/kkuksa esa ls ,d gS fQj Hkh vQlksl bl ckr dk gS fd gekjk LFkku fo”o ds lcls de Hkz’V ns”kksa esa 85 ok¡ gSA vk, fnu dksbZ&u&dksbZ cM+k ?kksVkyk mtkxj gksrk jgrk gS] ftlesa gekjs ofj’B jktuhfrK ,oa ukSdj”kkg lafyIr gksrs gSaA
Hkz’Vkpkj lkekU;r% nks rjg dk gksrk gS& mRihM+d ,oa diViw.kZA mRihM+d Hkz’Vkpkj oSlk Hkz’Vkpkj gS ftlesa Hkz’V vf/kdkjh ;k jktusrk ,d lgh dke ds fy, Hkh vke turk dks fj”or nsus ds fy, etcwj djrk gS ;k viuh rkdr dk Hk; fn[kkdj tcju olwyh djras gSaA bl rjg ds Hkz’Vkpkj dk mnkgj.k izek.k&i= cukus gsrq fj”or dh ekax] iqfyl }kjk fdlh izdj.k esa funksZ’k O;fDr dks vkjksih u cuk;s tkus gsrq olwyh fd;k tkuk gSA ,sls Hkz’Vkpkj ls vke turk =Lr gksrh gS rFkk mUgsa ckj&ckj izrkfM+r gksuk iM+rk gSA diViw.kZ Hkz’Vkpkj esa fj”or ysus okys rFkk fj”or nsus okys] nksuksa dh feyhHkxr gksrh gSA ,sls Hkz’Vkpkj esa fj”or ysus okyk rFkk fj”or nsus okyk nksuksa gh Qk;ns esa jgrs gSa] uqdlku ljdkj rFkk vke turk dk gksrk gSA diViw.kZ Hkz’Vkpkj mRihM+d Hkz’Vkpkj ls de la[;k esa gksrs gSa ijUrq budk iSekuk cM+k gksrk gSA ,sls Hkz’Vkpkj ls vke turk lkekU;r% vufHkK jgrh gS tc rd ;g fdlh ds }kjk mtkxj ugha fd;k tkrk gSA diViw.kZ Hkz’Vkpkj ls vke turk izR;{k :i ls izrkfM+r ugha gksrh gS ijUrq bldk nq’ifj.kke mUgsa gh Hkqxruk iM+rk gSA
Hkz’Vkpkj ds dbZ dkj.k fxuk,a tkrs gSa tSls& tfVy fu;e&dkuwu tks ,d vklku dke dks Hkh my>k nsrs gSa] Hkz’Vkpkj ds fo#) l[r dkuwu dh deh] lsokvksa dh miyC/krk de rFkk ekax T;knk] vke turk ds chp tkx:drk dh deh] iz”kklu esa ikjnf”kZrk dk vHkko] ykyp bR;kfnA vuqHko ;g crkrk gS fd Hkz’Vkpkj esa “kkfey yksx ,d nwljs ds cpko esa ,dtqV gks tkrs gSa tcfd Hkz’Vkpkj ls ihfM+r yksx buds fo:) laxfBr ugha gks ikrs gSaA dbZ ckj ,d bZekunkj O;fDr Hkh NksVs ykHk ds fy, Hkz’Vkpkj esa lg;ksxh cu tkrk gS tSls& ;krk;kr fu;eksa dk mYy?kau gks tkus rFkk idM+s tkus ij tqekZuk nsus ds ctk; og iqfyldehZ dks iSls nsdj tqekZus ls cpuk pkgrk gSA
Hkz’Vkpkj ds c<+us dk lcls cM+k dkj.k uSfrd ewY;ksa dk gkzl gSA Hkz’Vkpkj gekjs lekt esa igys Hkh Fkk ijUrq yksxksa eas yksdykt Fkk] idM+s tkus ij Hkz’Vkpkjh lekt esa flj mBkdj ugha th ikrk FkkA vc fLFkfr ;g gS fd Hkz’Vkpkjh idM+s tkus ij Hkh “keZ eglwl ugha djrk gS rFkk ;g dgdj fd Hkz’Vkpkj esa rks lHkh fyIr gSa] vius dqdeZ dks lgh Bgjkus dh dksf”k”k djrk gSA lekt Hkh ,sls yksxksa dk vc cfg’dkj ugha djrk gSA bl rjg dh lksp gekjs uSfrd ewY;ksa ds gkzl dk ifj.kke gSA uSfrd ewY;ksa ds gkzl dk dkj.k yksxksa dh lQyrk dk vkdyu flQZ muds /ku ls djuk] lQyrk ds fy, dksbZ Hkh
jkLrk viukus dks rS;kj jguk] mHkjrk O;fDrokn] f”k{kk Kku ugha cfYd /ku dekus dk lk/ku cuuk] vlfg’.kqrk bR;kfn gSaA
dbZ ckj gekjs lkeus nqfo/kkiw.kZ fLFkfr fufeZr gks tkrh gS tSls& nksLr@fj”rsnkj dks cpk ysuk ;k U;k; dk lkFk nsuk] vijk/kh }kjk vius ifjokj dh [kjkc gkykr dk gokyk nsdj n;k dh Hkh[k ekaxuk bR;kfnA ,slh fLFkfr esa dBksj gksuk gh lgh fu.Zk; gksrk gSA
gekjs ns”k esa c<+rs ?kksVkyksa dks ns[kdj fujk”kk dh fLFkfr mRiUu ugha gksuh pkfg,A ?kksVkyksa dk mtkxj gksus ls ;g rks fl) gksrk gh gS fd gekjh dqN laLFkk;sa lgh dk;Z dj jgh gSa ojuk ;s ?kksVkys Hkh Qkbyksa esa ncs jg tkrsA foxr dqN o’kksZa esa Hkz’Vkpkj ds fo:) tkx:drk dkQh c<+h gS rFkk ljdkj us Hkh Hkz’Vkpkj ij yxke dlus ds fy, dbZ mik; fd, gSaA lwpuk dk vf/kdkj vf/kfu;e ykxw gksus ls iz”kklu esa ikjnf”kZrk dks c<+kok feyk gSA flVhtu pkVZj ds rgr lsok,a iznku djus ds fy, Hkh le;&lhek fu/kkZfjr dh xbZ gSA iz”kklu esa rduhdh rFkk izkS|ksfxdh ds mi;ksx ds pyrs Hkh Hkz’Vkpkj de gqvk gSA vkt ge vius vk;dj dk fjVuZ dEI;wVj ls Lo;a nkf[ky dj nsrs gSa vkSj blds fy, gesa vk;dj vkfQl ds pDdj yxkus ugha iM+rs gSaA igys ukSdjh dk vkosnu&i= izkIr djus ds fy, Hkh dk;kZy;ksa ds pDdj yxkus iM+rs Fks rFkk lacaf/kr ckcw blds fy, vyx ls iSls Hkh ys fy;k djrs Fks tcfd vc ge vkosnu&i= lh/ks baVjusV ls MkmuyksM dj ysrs gSaA
Hkz’Vkpkj ds fuokj.k ds fy, n.M dk Hk; rks t:jh gS gh ijUrq lkFk esa ,slh O;oLFkk fufeZr djus dh t:jr gS fd Hkz’Vkpkj ds volj gh mRiUu u gkasA lrdZrk nks rjg dh gksrh gS& n.MkRed ,oa fuokjdA n.MkRed lrdZrk ls Hkz’Vkpkj ij T;knk vaadq”k ugha yx ik;k gS D;ksafd T;knkrj Hkz’Vkpkj mtkxj ugha gks ikrs rFkk mtkxj gksus ij Hkh izek.k ds vHkko esa Hkz’Vkpkjh NwV tkrk gSA vr% dsUnzh; lrdZrk vk;ksx }kjk vc fuokjd lrdZrk ij T;knk cy fn;k tk jgk gSA fuokjd lrdZrk dk mn~ns”; ,slh O;oLFkk dk;e djuk gS fd dksbZ O;fDr Hkz’Vkpkj dj gh uk ik;sA fu;eksa dk ljyhdj.k] izR;sd Lrj ij mRrjnkf;Ro dk fu/kkZj.k] dk;ksZa ds laiknu gsrq le;&lhek dk fu/kkZj.k] dk;ksaZ esa ikjnf”kZrk rFkk rduhdh ,oa izkS|ksfxdh dk T;knk&ls&T;knk mi;ksx dj vke turk dk dk;kZy;ksa esa tkus dh vko”;drk gh u gksuk rFkk fu;eksa ls vyx gVdj dk;Z djuk laHko gh u gks ikuk bR;kfn fuokjd lrdZrk ds mik; gSaA
Hkz’Vkpkj ds fuokj.k gsrq lekt esa uSfrd ewY;ksa dks iqu% LFkkfir djuk vR;Ur vko”;d gSA blds fy, gesa viuh f”k{kk i)fr esa lq/kkj ykuk gksxk rFkk Ldwyksa ds ikB~;Øe esa lnkpkj ,oa uSfrdrk ds egRo dks “kkfey djuk gksxkA bldk gesa rqjar dksbZ ifj.kke ugha feysxk ijUrq vkus okys le; esa bldk nh?kZdkfyd ykHk gksxkA vc gekjs ns”k esa Hkz’Vkpkj ds fo:) tkx:drk c<+h gS ftldk lh/kk ladsr Vªkalijsalh baVjus”kuy }kjk tkjh lwph esa bl o’kZ gekjk LFkku fiNys o’kZ dh rqyuk esa csgrj gksuk gSA ijUrq geas Hkz’Vkpkj fuokj.k ds fy, vHkh vkSj iz;kl djuk gS rkfd gekjh fxurh vkus okys le; esa MsuekdZ] U;wthyS.M tSls lcls de Hkz’Vkpkj okys ns”kksa ds lkFk gksA
ujsUnz dkSjfuth lfpo
dsUnzh; lrdZrk vk;ksx
10 11
Hkz"Vkpkj % dkj.k ,oa fuokj.k
Hkkjr fo”o dk lcls cM+k yksdra= gS vkSj izxfr”khy ns”kksa esa yksdra= dh lQyrk dk lcls cM+k mnkgj.k gSA gekjs lafo/kku us ,d Lora= vkSj lfØ; U;k;ikfydk LFkkfir dh gS rFkk ehfM;k dh Lora=rk Hkh lqfuf”pr dh gSA gekjs ns”k dk lafo/kku fo”o ds loksZRre lafo/kkuksa esa ls ,d gS fQj Hkh vQlksl bl ckr dk gS fd gekjk LFkku fo”o ds lcls de Hkz’V ns”kksa esa 85 ok¡ gSA vk, fnu dksbZ&u&dksbZ cM+k ?kksVkyk mtkxj gksrk jgrk gS] ftlesa gekjs ofj’B jktuhfrK ,oa ukSdj”kkg lafyIr gksrs gSaA
Hkz’Vkpkj lkekU;r% nks rjg dk gksrk gS& mRihM+d ,oa diViw.kZA mRihM+d Hkz’Vkpkj oSlk Hkz’Vkpkj gS ftlesa Hkz’V vf/kdkjh ;k jktusrk ,d lgh dke ds fy, Hkh vke turk dks fj”or nsus ds fy, etcwj djrk gS ;k viuh rkdr dk Hk; fn[kkdj tcju olwyh djras gSaA bl rjg ds Hkz’Vkpkj dk mnkgj.k izek.k&i= cukus gsrq fj”or dh ekax] iqfyl }kjk fdlh izdj.k esa funksZ’k O;fDr dks vkjksih u cuk;s tkus gsrq olwyh fd;k tkuk gSA ,sls Hkz’Vkpkj ls vke turk =Lr gksrh gS rFkk mUgsa ckj&ckj izrkfM+r gksuk iM+rk gSA diViw.kZ Hkz’Vkpkj esa fj”or ysus okys rFkk fj”or nsus okys] nksuksa dh feyhHkxr gksrh gSA ,sls Hkz’Vkpkj esa fj”or ysus okyk rFkk fj”or nsus okyk nksuksa gh Qk;ns esa jgrs gSa] uqdlku ljdkj rFkk vke turk dk gksrk gSA diViw.kZ Hkz’Vkpkj mRihM+d Hkz’Vkpkj ls de la[;k esa gksrs gSa ijUrq budk iSekuk cM+k gksrk gSA ,sls Hkz’Vkpkj ls vke turk lkekU;r% vufHkK jgrh gS tc rd ;g fdlh ds }kjk mtkxj ugha fd;k tkrk gSA diViw.kZ Hkz’Vkpkj ls vke turk izR;{k :i ls izrkfM+r ugha gksrh gS ijUrq bldk nq’ifj.kke mUgsa gh Hkqxruk iM+rk gSA
Hkz’Vkpkj ds dbZ dkj.k fxuk,a tkrs gSa tSls& tfVy fu;e&dkuwu tks ,d vklku dke dks Hkh my>k nsrs gSa] Hkz’Vkpkj ds fo#) l[r dkuwu dh deh] lsokvksa dh miyC/krk de rFkk ekax T;knk] vke turk ds chp tkx:drk dh deh] iz”kklu esa ikjnf”kZrk dk vHkko] ykyp bR;kfnA vuqHko ;g crkrk gS fd Hkz’Vkpkj esa “kkfey yksx ,d nwljs ds cpko esa ,dtqV gks tkrs gSa tcfd Hkz’Vkpkj ls ihfM+r yksx buds fo:) laxfBr ugha gks ikrs gSaA dbZ ckj ,d bZekunkj O;fDr Hkh NksVs ykHk ds fy, Hkz’Vkpkj esa lg;ksxh cu tkrk gS tSls& ;krk;kr fu;eksa dk mYy?kau gks tkus rFkk idM+s tkus ij tqekZuk nsus ds ctk; og iqfyldehZ dks iSls nsdj tqekZus ls cpuk pkgrk gSA
Hkz’Vkpkj ds c<+us dk lcls cM+k dkj.k uSfrd ewY;ksa dk gkzl gSA Hkz’Vkpkj gekjs lekt esa igys Hkh Fkk ijUrq yksxksa eas yksdykt Fkk] idM+s tkus ij Hkz’Vkpkjh lekt esa flj mBkdj ugha th ikrk FkkA vc fLFkfr ;g gS fd Hkz’Vkpkjh idM+s tkus ij Hkh “keZ eglwl ugha djrk gS rFkk ;g dgdj fd Hkz’Vkpkj esa rks lHkh fyIr gSa] vius dqdeZ dks lgh Bgjkus dh dksf”k”k djrk gSA lekt Hkh ,sls yksxksa dk vc cfg’dkj ugha djrk gSA bl rjg dh lksp gekjs uSfrd ewY;ksa ds gkzl dk ifj.kke gSA uSfrd ewY;ksa ds gkzl dk dkj.k yksxksa dh lQyrk dk vkdyu flQZ muds /ku ls djuk] lQyrk ds fy, dksbZ Hkh
jkLrk viukus dks rS;kj jguk] mHkjrk O;fDrokn] f”k{kk Kku ugha cfYd /ku dekus dk lk/ku cuuk] vlfg’.kqrk bR;kfn gSaA
dbZ ckj gekjs lkeus nqfo/kkiw.kZ fLFkfr fufeZr gks tkrh gS tSls& nksLr@fj”rsnkj dks cpk ysuk ;k U;k; dk lkFk nsuk] vijk/kh }kjk vius ifjokj dh [kjkc gkykr dk gokyk nsdj n;k dh Hkh[k ekaxuk bR;kfnA ,slh fLFkfr esa dBksj gksuk gh lgh fu.Zk; gksrk gSA
gekjs ns”k esa c<+rs ?kksVkyksa dks ns[kdj fujk”kk dh fLFkfr mRiUu ugha gksuh pkfg,A ?kksVkyksa dk mtkxj gksus ls ;g rks fl) gksrk gh gS fd gekjh dqN laLFkk;sa lgh dk;Z dj jgh gSa ojuk ;s ?kksVkys Hkh Qkbyksa esa ncs jg tkrsA foxr dqN o’kksZa esa Hkz’Vkpkj ds fo:) tkx:drk dkQh c<+h gS rFkk ljdkj us Hkh Hkz’Vkpkj ij yxke dlus ds fy, dbZ mik; fd, gSaA lwpuk dk vf/kdkj vf/kfu;e ykxw gksus ls iz”kklu esa ikjnf”kZrk dks c<+kok feyk gSA flVhtu pkVZj ds rgr lsok,a iznku djus ds fy, Hkh le;&lhek fu/kkZfjr dh xbZ gSA iz”kklu esa rduhdh rFkk izkS|ksfxdh ds mi;ksx ds pyrs Hkh Hkz’Vkpkj de gqvk gSA vkt ge vius vk;dj dk fjVuZ dEI;wVj ls Lo;a nkf[ky dj nsrs gSa vkSj blds fy, gesa vk;dj vkfQl ds pDdj yxkus ugha iM+rs gSaA igys ukSdjh dk vkosnu&i= izkIr djus ds fy, Hkh dk;kZy;ksa ds pDdj yxkus iM+rs Fks rFkk lacaf/kr ckcw blds fy, vyx ls iSls Hkh ys fy;k djrs Fks tcfd vc ge vkosnu&i= lh/ks baVjusV ls MkmuyksM dj ysrs gSaA
Hkz’Vkpkj ds fuokj.k ds fy, n.M dk Hk; rks t:jh gS gh ijUrq lkFk esa ,slh O;oLFkk fufeZr djus dh t:jr gS fd Hkz’Vkpkj ds volj gh mRiUu u gkasA lrdZrk nks rjg dh gksrh gS& n.MkRed ,oa fuokjdA n.MkRed lrdZrk ls Hkz’Vkpkj ij T;knk vaadq”k ugha yx ik;k gS D;ksafd T;knkrj Hkz’Vkpkj mtkxj ugha gks ikrs rFkk mtkxj gksus ij Hkh izek.k ds vHkko esa Hkz’Vkpkjh NwV tkrk gSA vr% dsUnzh; lrdZrk vk;ksx }kjk vc fuokjd lrdZrk ij T;knk cy fn;k tk jgk gSA fuokjd lrdZrk dk mn~ns”; ,slh O;oLFkk dk;e djuk gS fd dksbZ O;fDr Hkz’Vkpkj dj gh uk ik;sA fu;eksa dk ljyhdj.k] izR;sd Lrj ij mRrjnkf;Ro dk fu/kkZj.k] dk;ksZa ds laiknu gsrq le;&lhek dk fu/kkZj.k] dk;ksaZ esa ikjnf”kZrk rFkk rduhdh ,oa izkS|ksfxdh dk T;knk&ls&T;knk mi;ksx dj vke turk dk dk;kZy;ksa esa tkus dh vko”;drk gh u gksuk rFkk fu;eksa ls vyx gVdj dk;Z djuk laHko gh u gks ikuk bR;kfn fuokjd lrdZrk ds mik; gSaA
Hkz’Vkpkj ds fuokj.k gsrq lekt esa uSfrd ewY;ksa dks iqu% LFkkfir djuk vR;Ur vko”;d gSA blds fy, gesa viuh f”k{kk i)fr esa lq/kkj ykuk gksxk rFkk Ldwyksa ds ikB~;Øe esa lnkpkj ,oa uSfrdrk ds egRo dks “kkfey djuk gksxkA bldk gesa rqjar dksbZ ifj.kke ugha feysxk ijUrq vkus okys le; esa bldk nh?kZdkfyd ykHk gksxkA vc gekjs ns”k esa Hkz’Vkpkj ds fo:) tkx:drk c<+h gS ftldk lh/kk ladsr Vªkalijsalh baVjus”kuy }kjk tkjh lwph esa bl o’kZ gekjk LFkku fiNys o’kZ dh rqyuk esa csgrj gksuk gSA ijUrq geas Hkz’Vkpkj fuokj.k ds fy, vHkh vkSj iz;kl djuk gS rkfd gekjh fxurh vkus okys le; esa MsuekdZ] U;wthyS.M tSls lcls de Hkz’Vkpkj okys ns”kksa ds lkFk gksA
ujsUnz dkSjfuth lfpo
dsUnzh; lrdZrk vk;ksx
Vigilance unit in MCL has been making constant efforts at systemic improvements through
leveraging of Technology. The endeavor of vigilance unit has been to bring about efficiency and
efficacy in the traditional mining operations and official transactions by bringing in a number of
e-initiatives as an integral part of the management activities which also serve as a tool of
preventive vigilance for combating corruption. Following initiatives have proved to be very
successful.
Stabilization of Coalnet:
Coal net is a comprehensive network in CIL with applications running for different purposes.
Real Time Monitoring of Contractual Bills through the Coalnet has led to Payment of ̀ 5386.41
Cr. of contractual bill on first in first out basis so far. Prior to year 2012 the delay was up to 3
months which has now come down to 15 days. This has resulted in drastic reduction in number
of complaints with respect to contractual bill payments. The Sales and Marketing Module on the
Coalnet has enabled Online Monitoring of issuance of DO. On an average coal sale value of
`138.36 Cr. in a year has been refunded to 2130 consumers within one month from expiry of
DO.
Introduction of In-motion Road Weighbridges with RFID and its
connectivity to Coalnet:
In-Motion weighbridges with RFID/IP cameras have ensured weighment of more than 800
tippers in one shift as against 200 tippers through electronic static weigh bridges. This has
resulted in drastic increase in Coal weighment percentage from 10-15% to 90-95%, thereby
reducing the chances of adjustment and manipulations in coal production figures on daily basis.
The use of RFID tags and RFID reader has ensured entry of authorized coal tippers only inside the
mine boundaries. IP Cameras in Electronic and In-motion weighbridges have led to increased
surveillance on all the coal tippers for cross checking the entry of RFID tag installed Coal tippers.
CoalNet connectivity has ensured Real Time transmission of coal weighment data to the Central
Server. This has further reduced the chances of fudging of coal production figures on day to day
basis.
Installation of GPS based Vehicle Tracking System(VTS) & Geo-fencing
of Mining Areas to prevent Pilferage of Coal:
There have always been apprehensions in the mind of public at large about the coal
theft/pilferage in the coal industry. It is a fact that chances of illegal diversion of coal do exist as
the system is controlled by human intervention at various levels.
Leveraging Technology for Systemic Improvements in Mahanadi Coalfields Limited
Deepak Srivastava
Chief Vigilance Officer
Mahanadi Coalfields Limited
12
Taking a cue from the success of “GPS based Vehicle Tracking System” in the supply of drinking
water to the peripheral villages in the year 2012, an idea of “Geo-fencing” emerged due to out
of box thinking. Thereafter, the Geo-fencing of all the ten Mining areas under the domain of
MCL was carried out. System based alerts on Geo-fence violation is also being monitored
through e-Surveillance & Monitoring units at the HQ and Area level, has resulted in reduction in
Geo-fence violations from 2127 in January 2015 to 1821 in February to 1385 in March 2015
and 314 in April 2015 and is showing a fluctuating trend and the necessary interventions are
being taken from time to time to keep the geo-fence violations under check.
1800 Coal carrying tippers operating in the mining areas of MCL have been fitted with
GPS/GPRS and a dedicated portal i.e. www.mclvts.in has been developed for monitoring of
Vehicle Tracking System (VTS). Also System driven reports have been designed to get number of
trips, path travelled by the tippers (lead), route violation report contract-wise and tipper-wise.
“Geo-fencing” of mines area have been done in the said web-portal to prevent coal theft. The
installation of GPRS based VTS has enhanced transparency & effective monitoring of Coal
transportation as also is ensuring correct payments made to the transport contractors based on
the leads (distance) recorded by the dedicated portal. The other advantages of this e-initiative
have been online monitoring of movement of coal carrying tippers thereby increasing the
efficiency of transportation of coal.
13
Geo Fencing of Mine
On-line auto-refund of EMDs to unsuccessful bidders:
Recognizing the fact that the delay in refund of Earnest Money Deposit (EMD), was adversely
affecting the morale of the supplier/tenderer, auto-refund of EMDs was thought as an
everlasting solution to ensure “system driven EMD refund” to the clients. The system driven
refund mechanism has enabled the refund amount to be redirected to the supplier/tenderer
account in an auto-mode once the e-tender portal declares the unsuccessful/rejected bids. As a
forward linkage of e-procurement, Online Auto Refund of EMD has been introduced, during
November2013.
Vigilance unit in MCL has been making constant efforts at systemic improvements through
leveraging of Technology. The endeavor of vigilance unit has been to bring about efficiency and
efficacy in the traditional mining operations and official transactions by bringing in a number of
e-initiatives as an integral part of the management activities which also serve as a tool of
preventive vigilance for combating corruption. Following initiatives have proved to be very
successful.
Stabilization of Coalnet:
Coal net is a comprehensive network in CIL with applications running for different purposes.
Real Time Monitoring of Contractual Bills through the Coalnet has led to Payment of ̀ 5386.41
Cr. of contractual bill on first in first out basis so far. Prior to year 2012 the delay was up to 3
months which has now come down to 15 days. This has resulted in drastic reduction in number
of complaints with respect to contractual bill payments. The Sales and Marketing Module on the
Coalnet has enabled Online Monitoring of issuance of DO. On an average coal sale value of
`138.36 Cr. in a year has been refunded to 2130 consumers within one month from expiry of
DO.
Introduction of In-motion Road Weighbridges with RFID and its
connectivity to Coalnet:
In-Motion weighbridges with RFID/IP cameras have ensured weighment of more than 800
tippers in one shift as against 200 tippers through electronic static weigh bridges. This has
resulted in drastic increase in Coal weighment percentage from 10-15% to 90-95%, thereby
reducing the chances of adjustment and manipulations in coal production figures on daily basis.
The use of RFID tags and RFID reader has ensured entry of authorized coal tippers only inside the
mine boundaries. IP Cameras in Electronic and In-motion weighbridges have led to increased
surveillance on all the coal tippers for cross checking the entry of RFID tag installed Coal tippers.
CoalNet connectivity has ensured Real Time transmission of coal weighment data to the Central
Server. This has further reduced the chances of fudging of coal production figures on day to day
basis.
Installation of GPS based Vehicle Tracking System(VTS) & Geo-fencing
of Mining Areas to prevent Pilferage of Coal:
There have always been apprehensions in the mind of public at large about the coal
theft/pilferage in the coal industry. It is a fact that chances of illegal diversion of coal do exist as
the system is controlled by human intervention at various levels.
Leveraging Technology for Systemic Improvements in Mahanadi Coalfields Limited
Deepak Srivastava
Chief Vigilance Officer
Mahanadi Coalfields Limited
12
Taking a cue from the success of “GPS based Vehicle Tracking System” in the supply of drinking
water to the peripheral villages in the year 2012, an idea of “Geo-fencing” emerged due to out
of box thinking. Thereafter, the Geo-fencing of all the ten Mining areas under the domain of
MCL was carried out. System based alerts on Geo-fence violation is also being monitored
through e-Surveillance & Monitoring units at the HQ and Area level, has resulted in reduction in
Geo-fence violations from 2127 in January 2015 to 1821 in February to 1385 in March 2015
and 314 in April 2015 and is showing a fluctuating trend and the necessary interventions are
being taken from time to time to keep the geo-fence violations under check.
1800 Coal carrying tippers operating in the mining areas of MCL have been fitted with
GPS/GPRS and a dedicated portal i.e. www.mclvts.in has been developed for monitoring of
Vehicle Tracking System (VTS). Also System driven reports have been designed to get number of
trips, path travelled by the tippers (lead), route violation report contract-wise and tipper-wise.
“Geo-fencing” of mines area have been done in the said web-portal to prevent coal theft. The
installation of GPRS based VTS has enhanced transparency & effective monitoring of Coal
transportation as also is ensuring correct payments made to the transport contractors based on
the leads (distance) recorded by the dedicated portal. The other advantages of this e-initiative
have been online monitoring of movement of coal carrying tippers thereby increasing the
efficiency of transportation of coal.
13
Geo Fencing of Mine
On-line auto-refund of EMDs to unsuccessful bidders:
Recognizing the fact that the delay in refund of Earnest Money Deposit (EMD), was adversely
affecting the morale of the supplier/tenderer, auto-refund of EMDs was thought as an
everlasting solution to ensure “system driven EMD refund” to the clients. The system driven
refund mechanism has enabled the refund amount to be redirected to the supplier/tenderer
account in an auto-mode once the e-tender portal declares the unsuccessful/rejected bids. As a
forward linkage of e-procurement, Online Auto Refund of EMD has been introduced, during
November2013.
A sum of ̀ 14.22 crore has been refunded to 5282 unsuccessful/ rejected suppliers/ bidders till
date on auto-mode in hassle free manner, thereby reducing the number of complaints
regarding corrupt practices. Bidders participation has gone up and the Vendor base is also
improving.
Electronic Surveillance by CCTV
To insist close monitoring in loading and transportation activities in the mine areas and to ensure
transparency, electronic surveillance in mine areas have been the focal point. For this purpose,
51 nos. of CCTV and 92 nos. of IP Camera have been installed in the Mining Areas. 8 Nos. of
Control rooms have also been started at Area level for monitoring of e-initiatives and centrally
an e-Surveillance & Monitoring Unit has been set up at MCL HQ. This has started showing
positive outcome in terms of transparency and effective way of loading of rakes at the Railway
Sidings avoiding Demurrage Charges paid very often
by the MCL to the Railways. This has also resulted in close monitoring of Coal quality & quantity.
The loading time of railway wagons have been reduced from 5-6 hours to 3-4 hours thereby
avoiding demurrage charges to the company to the tune of ̀ 88.03 Lakhs to ̀ 18.25 Lakhs in the
last quarter.
The aforementioned e-initiatives have brought in tremendous savings and has a huge impact on
reducing theft and manipulation. This could not have been possible without the able guidance
and continuous support from the Central Vigilance Commission, New Delhi, Ministry of Coal,
GoI and Chairman-cum-Managing Director, MCL.
14 15
Rajesh Ranjan
CVO, GAIL
The potential areas of corruption vary from one organization to other, however, there are many
areas of corruption which are common to all organizations and procurement/tendering is one
such area. Therefore, rules and guidelines have been laid down to minimize scope for
corruption but unscrupulous elements have scant regards for rules and guidelines. Therefore,
the Vigilance Wing of an organization should develop its own sources of information and also
carry out regular inspections to unearth corruption.
The Vigilance Wing of GAIL has unearthed many cases of irregularities in procurement and
details of two such cases are being discussed for the benefit of readers of ‘Vigeye Vani’.
CASE – I : Securing contracts on the basis of forged documents
There was source information from a reliable source that a contractor (M/s ABC) has flourished
extraordinarily during 5 years with the help of insiders. It was also intimated that eligibility
documents submitted, in order to secure the work orders from GAIL, were forged. Discrete
verification in the matter revealed that M/s ABC was awarded more than 80 work / service
contracts in the last 4 years. As such, it was decided to conduct CTE type inspection of 3 tenders,
at random.
Scrutiny of the relevant files was undertaken during the CTE Type inspection of the works which
revealed as under:
In terms of the BEC, the cumulative requirement of working capital in respect of two works was
Rs.48.5 million as on 31.03.2010(Rs.4.85 Crores). M/s ABC, in order to meet the aforesaid
working capital requirement, submitted a copy of the Balance Sheet as on 31.03.2010. The
Balance Sheet contained signature of Mr. X, Chartered Accountant on the letter head of CA Firm
M/s XZY & Company.
The balance sheet indicated the ‘Net Current Assets’ as Rs.6, 96, 78,064.00 (Working Capital
in terms of tender). The offer of M/s ABC was considered meeting the requirement, on the basis
of said document, for having working capital of more than Rs.4.85 Crores.
In order to verify the documents, an authenticated copy of the Balance Sheet for the year
2009-10 was obtained from Registrar of Companies (ROC), Ministry of Corporate Affairs. The
Balance Sheet, as on 31.03.2010, submitted with the ROC, indicated that the same had been
signed by Shri Y, Chartered Accountant and was on the letter head of CA firm, M/s EFG and
Associates Chartered Accountants. Further, the figures of Balance Sheet, as on 31.03.10 were
not matching with the figures in the Balance Sheet submitted along with the bid. The Balance
Case Studies on irregularitiesin award of contracts
Corruption is authority plus monopoly minus
transparency.- Unknown
A sum of ̀ 14.22 crore has been refunded to 5282 unsuccessful/ rejected suppliers/ bidders till
date on auto-mode in hassle free manner, thereby reducing the number of complaints
regarding corrupt practices. Bidders participation has gone up and the Vendor base is also
improving.
Electronic Surveillance by CCTV
To insist close monitoring in loading and transportation activities in the mine areas and to ensure
transparency, electronic surveillance in mine areas have been the focal point. For this purpose,
51 nos. of CCTV and 92 nos. of IP Camera have been installed in the Mining Areas. 8 Nos. of
Control rooms have also been started at Area level for monitoring of e-initiatives and centrally
an e-Surveillance & Monitoring Unit has been set up at MCL HQ. This has started showing
positive outcome in terms of transparency and effective way of loading of rakes at the Railway
Sidings avoiding Demurrage Charges paid very often
by the MCL to the Railways. This has also resulted in close monitoring of Coal quality & quantity.
The loading time of railway wagons have been reduced from 5-6 hours to 3-4 hours thereby
avoiding demurrage charges to the company to the tune of ̀ 88.03 Lakhs to ̀ 18.25 Lakhs in the
last quarter.
The aforementioned e-initiatives have brought in tremendous savings and has a huge impact on
reducing theft and manipulation. This could not have been possible without the able guidance
and continuous support from the Central Vigilance Commission, New Delhi, Ministry of Coal,
GoI and Chairman-cum-Managing Director, MCL.
14 15
Rajesh Ranjan
CVO, GAIL
The potential areas of corruption vary from one organization to other, however, there are many
areas of corruption which are common to all organizations and procurement/tendering is one
such area. Therefore, rules and guidelines have been laid down to minimize scope for
corruption but unscrupulous elements have scant regards for rules and guidelines. Therefore,
the Vigilance Wing of an organization should develop its own sources of information and also
carry out regular inspections to unearth corruption.
The Vigilance Wing of GAIL has unearthed many cases of irregularities in procurement and
details of two such cases are being discussed for the benefit of readers of ‘Vigeye Vani’.
CASE – I : Securing contracts on the basis of forged documents
There was source information from a reliable source that a contractor (M/s ABC) has flourished
extraordinarily during 5 years with the help of insiders. It was also intimated that eligibility
documents submitted, in order to secure the work orders from GAIL, were forged. Discrete
verification in the matter revealed that M/s ABC was awarded more than 80 work / service
contracts in the last 4 years. As such, it was decided to conduct CTE type inspection of 3 tenders,
at random.
Scrutiny of the relevant files was undertaken during the CTE Type inspection of the works which
revealed as under:
In terms of the BEC, the cumulative requirement of working capital in respect of two works was
Rs.48.5 million as on 31.03.2010(Rs.4.85 Crores). M/s ABC, in order to meet the aforesaid
working capital requirement, submitted a copy of the Balance Sheet as on 31.03.2010. The
Balance Sheet contained signature of Mr. X, Chartered Accountant on the letter head of CA Firm
M/s XZY & Company.
The balance sheet indicated the ‘Net Current Assets’ as Rs.6, 96, 78,064.00 (Working Capital
in terms of tender). The offer of M/s ABC was considered meeting the requirement, on the basis
of said document, for having working capital of more than Rs.4.85 Crores.
In order to verify the documents, an authenticated copy of the Balance Sheet for the year
2009-10 was obtained from Registrar of Companies (ROC), Ministry of Corporate Affairs. The
Balance Sheet, as on 31.03.2010, submitted with the ROC, indicated that the same had been
signed by Shri Y, Chartered Accountant and was on the letter head of CA firm, M/s EFG and
Associates Chartered Accountants. Further, the figures of Balance Sheet, as on 31.03.10 were
not matching with the figures in the Balance Sheet submitted along with the bid. The Balance
Case Studies on irregularitiesin award of contracts
Corruption is authority plus monopoly minus
transparency.- Unknown
16 17
Sheet submitted in GAIL by M/s ABC was showing the Net Current Assets, as Rs.6,96,78,064/-
whereas the value in the authenticated copy of ROC was only Rs.3,01,22,974/-.
In other work, two out of three Balance sheets submitted by M/s ABC were signed by Mr. X, CA.
Various balance sheets signed by CA, Mr. X and submitted by M/s ABC were sent to Mr. X, CA for
verification. Mr. X clarified that the Balance Sheets were not signed by him and he also disowned
any connection with M/s ABC. Further, Mr. X also lodged a complaint at the Police Station, New
Delhi.
It was proved beyond reasonable doubt that the Balance Sheets submitted in GAIL by M/s ABC
were forged and figures were manipulated in order to grab the work orders. Thus, M/s ABC
misrepresented to GAIL and fraudulently obtained the work orders.
Further, Verification also revealed that the Net Current Asset of M/s ABC, in terms of Balance
Sheet, as on 31.03. 2006, was only Rs.7, 770/- and as on 31.03.2011, it increased
exponentially to Rs.8.52 Crores. Also, during the last 07 years, M/s ABC have been awarded
more than 150 contracts in GAIL, the approximate value of which is around Rs.280 Crores and
all the balance sheets submitted in GAIL by M/s ABC for FY 2006-07, 2007-08, 2008-09,
2009-10 are signed by Mr. X, CA and hence are forged.
Most of the works executed by M/s ABC have been executed in either GAIL of its JVs.
Consequently, based on the recommendation of Vigilance, the work orders were cancelled and
party has been banned. However other penal actions such as forfeiture of PBGs, review of
forged documents submitted by M/s ABC in other tenders and appropriate action thereon etc.
are still pending with administrative Departments.
CONCLUSION: Submission of forged documents by a contractor repeatedly in various tenders
of GAIL could have been avoided at appropriate time if the concerned authorities were vigilant
towards unexplained exponential growth of the contractor as the contractor was executing jobs
mainly in GAIL and its Jvs.
CASE-II- Award of order to a firm without submitting bid
A tender was floated under two bid system for procurement of fire hose boxes for a plant.
Being a small procurement there was no BEC, Financial Criteria and applicable EMD in the
subject tender. However, based on the list of competent vendors who could supply the items, RFQ
was issued to 10 vendors. In response, bids were received from 04 vendors.
As per evaluation of bids, 03 bidders came out to be techno-commercially acceptable whose
price bids were opened & work was awarded to L1 bidder. Interestingly, this L1 bidder, while
submitting their credentials, had mentioned in the bid that if their bid is selected for placement of
order, the order may instead be placed in the name of their sister concern whose name closely
resembled the name of L1 bidder. This fact was also brought out in the Commercial Bid Analysis
(CBAs) prepared during evaluation of bids but no Commercial Query was raised to clarify the
matter & it was ignored. The matter was further not brought out in the note sheets seeking
approval of priced bid opening of techno commercially acceptable bidders and further in award
recommendations.
Subsequent to award, the L1 bidder requested the dealing C&P officer for placement of order on
their sister concern whose name was similar to the L1 bidder. The dealing C&P officer issued a
revised PO on sister concern without seeking approval from Competent Authority. This enabled
the L1 bidder to successfully offload awarded PO to their sister concern who had not submitted
any bid and whose credentials were also not known.
Vigilance investigated the case on the basis of source information & disciplinary action against
responsible officers is under way.
Source : cartoonstock.com
16 17
Sheet submitted in GAIL by M/s ABC was showing the Net Current Assets, as Rs.6,96,78,064/-
whereas the value in the authenticated copy of ROC was only Rs.3,01,22,974/-.
In other work, two out of three Balance sheets submitted by M/s ABC were signed by Mr. X, CA.
Various balance sheets signed by CA, Mr. X and submitted by M/s ABC were sent to Mr. X, CA for
verification. Mr. X clarified that the Balance Sheets were not signed by him and he also disowned
any connection with M/s ABC. Further, Mr. X also lodged a complaint at the Police Station, New
Delhi.
It was proved beyond reasonable doubt that the Balance Sheets submitted in GAIL by M/s ABC
were forged and figures were manipulated in order to grab the work orders. Thus, M/s ABC
misrepresented to GAIL and fraudulently obtained the work orders.
Further, Verification also revealed that the Net Current Asset of M/s ABC, in terms of Balance
Sheet, as on 31.03. 2006, was only Rs.7, 770/- and as on 31.03.2011, it increased
exponentially to Rs.8.52 Crores. Also, during the last 07 years, M/s ABC have been awarded
more than 150 contracts in GAIL, the approximate value of which is around Rs.280 Crores and
all the balance sheets submitted in GAIL by M/s ABC for FY 2006-07, 2007-08, 2008-09,
2009-10 are signed by Mr. X, CA and hence are forged.
Most of the works executed by M/s ABC have been executed in either GAIL of its JVs.
Consequently, based on the recommendation of Vigilance, the work orders were cancelled and
party has been banned. However other penal actions such as forfeiture of PBGs, review of
forged documents submitted by M/s ABC in other tenders and appropriate action thereon etc.
are still pending with administrative Departments.
CONCLUSION: Submission of forged documents by a contractor repeatedly in various tenders
of GAIL could have been avoided at appropriate time if the concerned authorities were vigilant
towards unexplained exponential growth of the contractor as the contractor was executing jobs
mainly in GAIL and its Jvs.
CASE-II- Award of order to a firm without submitting bid
A tender was floated under two bid system for procurement of fire hose boxes for a plant.
Being a small procurement there was no BEC, Financial Criteria and applicable EMD in the
subject tender. However, based on the list of competent vendors who could supply the items, RFQ
was issued to 10 vendors. In response, bids were received from 04 vendors.
As per evaluation of bids, 03 bidders came out to be techno-commercially acceptable whose
price bids were opened & work was awarded to L1 bidder. Interestingly, this L1 bidder, while
submitting their credentials, had mentioned in the bid that if their bid is selected for placement of
order, the order may instead be placed in the name of their sister concern whose name closely
resembled the name of L1 bidder. This fact was also brought out in the Commercial Bid Analysis
(CBAs) prepared during evaluation of bids but no Commercial Query was raised to clarify the
matter & it was ignored. The matter was further not brought out in the note sheets seeking
approval of priced bid opening of techno commercially acceptable bidders and further in award
recommendations.
Subsequent to award, the L1 bidder requested the dealing C&P officer for placement of order on
their sister concern whose name was similar to the L1 bidder. The dealing C&P officer issued a
revised PO on sister concern without seeking approval from Competent Authority. This enabled
the L1 bidder to successfully offload awarded PO to their sister concern who had not submitted
any bid and whose credentials were also not known.
Vigilance investigated the case on the basis of source information & disciplinary action against
responsible officers is under way.
Source : cartoonstock.com
19
b) Boundary wall: Instead of removing the existing MS grill fencing and constructing a
boundary wall with brick masonry, the whole length of boundary wall (approx. 1700 m)
was cast in M-25 grade RCC even ‘encasing’ the existing MS grill fencing.
c) Storm water drain: Storm water drain with M-25 grade RCC concrete has been provided
though a brick drain could have easily served the purpose.
– Value for money compromised
Case 2:
It pertains to work for the construction of a hospital complex, valuing more than Rs. 250 Cr., of
an apex healthcare institute-
In view of sloped terrain of the area, the hospital building complex was envisaged to be
constructed with a lower ground floor (LGF) area having G+4 floors and upper ground floor
(UGF) area having G+3 floors. However during execution, a decision was taken to provide an
additional slab at UGF level to create an additional floor. Accordingly, a slab with 1200 Sqm
(approx.) area was cast. However, later it was observed that the floor space so created had no
functional utility as the available floor height was much less(4- 5 ft. at several locations) having
no ventilation. As such, the whole expenditure had become infructuous.
– Value for money compromised
Sanctioned cost of the work was Rs. 267.55 Cr. out of which Rs. 220 Cr was expended till Oct
2014, whereas the progress achieved was mere 70%. The extended date of completion had
already expired more than 15 months ago.
– Timeliness not observed
Provision of bricks manufactured by GHOL process (first class table moulded) was specifically
kept in the agreement for brick work. However, fly-ash bricks/ FPS clay bricks were being used at
site (without any approval of the competent authority). Payments were made as per the BOQ rate
for the item of GHOL bricks only.
– Quality compromised
Men are more often bribed by their loyalties and
ambitions than money.- Unknown
Mukesh Saxena
Technical Examiner
The cardinal principle of any public procurement is to obtain works/materials/services of the
‘specified’ quality within the ‘specified’ time at the most competitive prices in a fair, just and
transparent manner.
Several instances of malpractices in the award and execution of works/contracts, financial
imprudence on the part of the officials resulting in infructuous expenditure, etc. are generally
observed during Intensive Examinations conducted by the Chief Technical Examiner’s
Organization.
Two case studies, emanated from Intensive Examinations, demonstrating sheer callousness and
disregard to the basic tenets of public procurement i.e. transparency, fairness, value for money,
quality and timeliness are presented as below–
Case 1:
It pertains to award of work for the construction of residential and academic buildings, valuing
more than Rs. 100 Cr., of a premier management institute-
For the selection of the Architectural Consultant, no objective selection criteria were pre-decided.
Selection was made on the basis of a design competition only. No deliberations/reasons were
recorded for the selection either. As such, selection was done in an arbitrary and subjective
manner. Further, for the consultancy fee, competitive financial bidding was not done as the fee
was pre-decided @ 5% of the project cost.
– Non transparent and Unfair
During prequalification of the Contractor, qualifying/evaluation criteria were not laid down.
Definition of ‘similar work’ was vague and not specific to the work. Out of 25 applications
received, only 10 were pre-qualified. Further, 4 pre-qualified bidders were further eliminated on
flimsy grounds and bid documents were issued to 6 bidders only. Financial bids were received
from two bidders only. Work was awarded to the L1 bidder @ 22.75% higher than the estimated
cost. Bid justification was not prepared. Rather, the estimated cost was enhanced on account of
inadmissible factors to justify high tender rate of L1.
– Non transparent, Unfair, & value for money compromised
During construction stage several instances of infructuous expenditure were observed, viz.
a) Watch Towers / Surveillance Towers required to be made of brickwork but were constructed
in RCC.
Violation of the Canons of Propriety in Public Procurement : Case Studies
18
CTEO’sCorner
19
b) Boundary wall: Instead of removing the existing MS grill fencing and constructing a
boundary wall with brick masonry, the whole length of boundary wall (approx. 1700 m)
was cast in M-25 grade RCC even ‘encasing’ the existing MS grill fencing.
c) Storm water drain: Storm water drain with M-25 grade RCC concrete has been provided
though a brick drain could have easily served the purpose.
– Value for money compromised
Case 2:
It pertains to work for the construction of a hospital complex, valuing more than Rs. 250 Cr., of
an apex healthcare institute-
In view of sloped terrain of the area, the hospital building complex was envisaged to be
constructed with a lower ground floor (LGF) area having G+4 floors and upper ground floor
(UGF) area having G+3 floors. However during execution, a decision was taken to provide an
additional slab at UGF level to create an additional floor. Accordingly, a slab with 1200 Sqm
(approx.) area was cast. However, later it was observed that the floor space so created had no
functional utility as the available floor height was much less(4- 5 ft. at several locations) having
no ventilation. As such, the whole expenditure had become infructuous.
– Value for money compromised
Sanctioned cost of the work was Rs. 267.55 Cr. out of which Rs. 220 Cr was expended till Oct
2014, whereas the progress achieved was mere 70%. The extended date of completion had
already expired more than 15 months ago.
– Timeliness not observed
Provision of bricks manufactured by GHOL process (first class table moulded) was specifically
kept in the agreement for brick work. However, fly-ash bricks/ FPS clay bricks were being used at
site (without any approval of the competent authority). Payments were made as per the BOQ rate
for the item of GHOL bricks only.
– Quality compromised
Men are more often bribed by their loyalties and
ambitions than money.- Unknown
Mukesh Saxena
Technical Examiner
The cardinal principle of any public procurement is to obtain works/materials/services of the
‘specified’ quality within the ‘specified’ time at the most competitive prices in a fair, just and
transparent manner.
Several instances of malpractices in the award and execution of works/contracts, financial
imprudence on the part of the officials resulting in infructuous expenditure, etc. are generally
observed during Intensive Examinations conducted by the Chief Technical Examiner’s
Organization.
Two case studies, emanated from Intensive Examinations, demonstrating sheer callousness and
disregard to the basic tenets of public procurement i.e. transparency, fairness, value for money,
quality and timeliness are presented as below–
Case 1:
It pertains to award of work for the construction of residential and academic buildings, valuing
more than Rs. 100 Cr., of a premier management institute-
For the selection of the Architectural Consultant, no objective selection criteria were pre-decided.
Selection was made on the basis of a design competition only. No deliberations/reasons were
recorded for the selection either. As such, selection was done in an arbitrary and subjective
manner. Further, for the consultancy fee, competitive financial bidding was not done as the fee
was pre-decided @ 5% of the project cost.
– Non transparent and Unfair
During prequalification of the Contractor, qualifying/evaluation criteria were not laid down.
Definition of ‘similar work’ was vague and not specific to the work. Out of 25 applications
received, only 10 were pre-qualified. Further, 4 pre-qualified bidders were further eliminated on
flimsy grounds and bid documents were issued to 6 bidders only. Financial bids were received
from two bidders only. Work was awarded to the L1 bidder @ 22.75% higher than the estimated
cost. Bid justification was not prepared. Rather, the estimated cost was enhanced on account of
inadmissible factors to justify high tender rate of L1.
– Non transparent, Unfair, & value for money compromised
During construction stage several instances of infructuous expenditure were observed, viz.
a) Watch Towers / Surveillance Towers required to be made of brickwork but were constructed
in RCC.
Violation of the Canons of Propriety in Public Procurement : Case Studies
18
CTEO’sCorner
20 21
lThe Commission convened Annual Sectorial Review Meetings with the Chief Vigilance
Officers of Railway Sector on 19.08.2015, Power Sector on 26.08.2015 and Social Sector
on 02.09.2015 at CVC New Delhi.
lSimilar meetings were held for Banking & Insurance Sector on 10.09.2015, Petroleum
Sector on 11.09.2015 at Mumbai, Port & Shipping Sector on 18.09.2015 and Banking &
Insurance Sector on 24.09.2015 at CVC, New Delhi.
Important activities in the Commission
Railway Sector Power Sector
Workshop for the CVOs of Banking & Insurance Organizations on 07.08.2015
Social Sector Banking & Insurance Sector
lA full day Workshop was held on 07.08.2015 exclusively for the CVOs of Banking &
Insurance Organizations. Central Vigilance Commissioner and Vigilance Commissioners
dwelt on the need for strengthening the Preventive Vigilance mechanism to address the
challenges being faced by Financial Sector. During the course of the meeting, various
suggestions emanated to strengthen the Vigilance Administration in the organizations. Dr.
Hasmukh Adhia, Secretary, Department of Financial Services, Smt. Arundhati
Bhattacharya, Chairman, State Bank of India & Shri R K Dutta, Spl. Director, CBI also
addresses the participants and dwelt on the challenges being faced by the Financial Sector
and also the measures required to be initiated to address the concerns.
lA delegation from the United States Of America, Department of Commerce, office of the
General Counsel interacted with senior officers of the Commission on 11.08.2015.
Delegates from the US in interaction with officers of the Commission
20 21
lThe Commission convened Annual Sectorial Review Meetings with the Chief Vigilance
Officers of Railway Sector on 19.08.2015, Power Sector on 26.08.2015 and Social Sector
on 02.09.2015 at CVC New Delhi.
lSimilar meetings were held for Banking & Insurance Sector on 10.09.2015, Petroleum
Sector on 11.09.2015 at Mumbai, Port & Shipping Sector on 18.09.2015 and Banking &
Insurance Sector on 24.09.2015 at CVC, New Delhi.
Important activities in the Commission
Railway Sector Power Sector
Workshop for the CVOs of Banking & Insurance Organizations on 07.08.2015
Social Sector Banking & Insurance Sector
lA full day Workshop was held on 07.08.2015 exclusively for the CVOs of Banking &
Insurance Organizations. Central Vigilance Commissioner and Vigilance Commissioners
dwelt on the need for strengthening the Preventive Vigilance mechanism to address the
challenges being faced by Financial Sector. During the course of the meeting, various
suggestions emanated to strengthen the Vigilance Administration in the organizations. Dr.
Hasmukh Adhia, Secretary, Department of Financial Services, Smt. Arundhati
Bhattacharya, Chairman, State Bank of India & Shri R K Dutta, Spl. Director, CBI also
addresses the participants and dwelt on the challenges being faced by the Financial Sector
and also the measures required to be initiated to address the concerns.
lA delegation from the United States Of America, Department of Commerce, office of the
General Counsel interacted with senior officers of the Commission on 11.08.2015.
Delegates from the US in interaction with officers of the Commission
2322
dsUnzh; lrdZrk vk;ksx esa fgUnh lIrkg (14 flrEcj ls 20 flrEcj) euk;k x;k
lShri K.V. Chowdary, Central Vigilance Commissioner and Shri T.M. Bhasin, Vigilance
Commissioner attended 12th Anniversary Celebrations of Vigilance Study Circle in
Hyderabad on 07.07.2015. On this occasion, CVC said that the focus of the Commission
was undergoing a transformation into preventive vigilance and early detection of
corruption cases so that they could be taken to their logical conclusion faster.
lShri K.V. Chowdary, Central Vigilance Commissioner, Shri Rajiv, Vigilance Commissioner,
Shri T.M. Bhasin, Vigilance Commissioner and Smt. Nilam Sawhney, Secretary, Central
Vigilance Commission attended a seminar on Preventive Vigilance organized by Vigilance
Study Circle Delhi-NCR Chapter on 18.08.2015.
l Shri K.V. Chowdary, Central Vigilance Commissioner and Shri T.M. Bhasin, Vigilance
Commissioner, chaired separate sessions in an International Conference on Integrity Pact
and Probity in Public Procurement, organized by Transparency International India
on17.09.2015.
Visits
Shri K V Chowdary, CVC at Vigilance Study Circle in Hyderabad
Shri K.V Chowdary, CVC at a workshop organized by Vigilance Study Circle (Mumbai Chapter) on “Tendering and Procurement Process’ on 21.08. 2015
Seminar on Preventive Vigilance organized by Vigilance Study Circle- Delhi NCR on 18.08.2015
To make your children capable of honesty is the
beginning of education.- John Ruskin
2322
dsUnzh; lrdZrk vk;ksx esa fgUnh lIrkg (14 flrEcj ls 20 flrEcj) euk;k x;k
lShri K.V. Chowdary, Central Vigilance Commissioner and Shri T.M. Bhasin, Vigilance
Commissioner attended 12th Anniversary Celebrations of Vigilance Study Circle in
Hyderabad on 07.07.2015. On this occasion, CVC said that the focus of the Commission
was undergoing a transformation into preventive vigilance and early detection of
corruption cases so that they could be taken to their logical conclusion faster.
lShri K.V. Chowdary, Central Vigilance Commissioner, Shri Rajiv, Vigilance Commissioner,
Shri T.M. Bhasin, Vigilance Commissioner and Smt. Nilam Sawhney, Secretary, Central
Vigilance Commission attended a seminar on Preventive Vigilance organized by Vigilance
Study Circle Delhi-NCR Chapter on 18.08.2015.
l Shri K.V. Chowdary, Central Vigilance Commissioner and Shri T.M. Bhasin, Vigilance
Commissioner, chaired separate sessions in an International Conference on Integrity Pact
and Probity in Public Procurement, organized by Transparency International India
on17.09.2015.
Visits
Shri K V Chowdary, CVC at Vigilance Study Circle in Hyderabad
Shri K.V Chowdary, CVC at a workshop organized by Vigilance Study Circle (Mumbai Chapter) on “Tendering and Procurement Process’ on 21.08. 2015
Seminar on Preventive Vigilance organized by Vigilance Study Circle- Delhi NCR on 18.08.2015
To make your children capable of honesty is the
beginning of education.- John Ruskin
25
Shri Praveen Sinha, joined as Additional Secretary, Central
Vigilance Commission on 21.09.2015
Shri Sanjay Agarwal, joined as Director,
Central Vigilance Commission on 23.07.2015
Shri Sombir has joined commission as LDC on 10.08.2015
Shri Sonu Kharalia has joined commission
as MTS on 06.07.2015
Welcome Corner
We wish them all a happy innings in the Commission.
Farewell Corner
Shri K.P. Saroha, Director, Central Vigilance Commission retired on
31.08.2015
Shri Keshav Rao,Director was relieved from the Commission
on 31.08.2015 on being posted as CVO of Pawan Hans
Helicopters Ltd.
We wish them all the best.
24
Even when there is no law, there is conscience.- Unknown
Source : cartoonstock.com
25
Shri Praveen Sinha, joined as Additional Secretary, Central
Vigilance Commission on 21.09.2015
Shri Sanjay Agarwal, joined as Director,
Central Vigilance Commission on 23.07.2015
Shri Sombir has joined commission as LDC on 10.08.2015
Shri Sonu Kharalia has joined commission
as MTS on 06.07.2015
Welcome Corner
We wish them all a happy innings in the Commission.
Farewell Corner
Shri K.P. Saroha, Director, Central Vigilance Commission retired on
31.08.2015
Shri Keshav Rao,Director was relieved from the Commission
on 31.08.2015 on being posted as CVO of Pawan Hans
Helicopters Ltd.
We wish them all the best.
24
Even when there is no law, there is conscience.- Unknown
Source : cartoonstock.com
27
Important Circulars Issued by Commission
1. CIRCULAR No. 09/07/15 dated 30th July 2015
Sub: Misuse of user ids and passwords in organisations-preventive vigilance measures
2. CIRCULAR No. 10/08/15 dated 17th August 2015
Sub: Pendency of cases with CVO’s – regarding
Note: For details of Circulars, refer to the Commission’s website www.cvc.gov.in
26
Congratulations !
Congratulations to Mr. Nand Kumar for qualifying Clerk Grade Limited
Departmental Competitive Examination, 2015 conducted by Staff Selection
Commission and being appointed as LDC on regular basis in the Commission.
Earlier he was working as MTS in the Commission.
We wish him a bright future and success in his new assignment.
Source : cartoonstock.com Source : cartoonstock.com
27
Important Circulars Issued by Commission
1. CIRCULAR No. 09/07/15 dated 30th July 2015
Sub: Misuse of user ids and passwords in organisations-preventive vigilance measures
2. CIRCULAR No. 10/08/15 dated 17th August 2015
Sub: Pendency of cases with CVO’s – regarding
Note: For details of Circulars, refer to the Commission’s website www.cvc.gov.in
26
Congratulations !
Congratulations to Mr. Nand Kumar for qualifying Clerk Grade Limited
Departmental Competitive Examination, 2015 conducted by Staff Selection
Commission and being appointed as LDC on regular basis in the Commission.
Earlier he was working as MTS in the Commission.
We wish him a bright future and success in his new assignment.
Source : cartoonstock.com Source : cartoonstock.com
28
A Tribute to Dr. APJ Abdul Kalam
l“If you want to shine like a sun, first burn like a sun.”
l“Don’t take rest after your first victory because if you fail in second, more lips are
waiting to say that your first victory was just luck.”
l“Confidence and hard work is the best medicine to kill the disease call failure. It
will make you a successful person.”
l“Thinking should become your capital asset, no matter whatever ups and downs
you come across in your life."
l“All Birds find shelter during a rain. But Eagle avoids rain by flying above the
Clouds.”
(15 Oct 1931 – 27 July 2015)
Source: from the websites-http://izquotes.com, successstory.com; indiacurrents.com
If a country is to be corruption free and
become a nation of beautiful minds, I strongly
feel there are three key societal members who
can make a difference. They are the father, the
mother and the teacher.
(Abdul Kalam)
You cannot changeyour Future.
But, you can change your habits.
And surely your habits will change your Future.
– Dr. Abdul Kalam
Disclaimer: The views expressed in the articles/poems are those of the authors and do not necessarily reflect the policy or position of the Commission. In order to ensure brevity and readability, some articles may be abridged.
Members of the Editorial Board:
Smt. Sonali Singh
Additional Secretary, Chief Editor
Shri Ramesh Chandra
Chief Technical Examiner
Shri Asit Gopal
Director
Shri Keshav Rao
CVO, Pawan Hans Helicopters Ltd
28
A Tribute to Dr. APJ Abdul Kalam
l“If you want to shine like a sun, first burn like a sun.”
l“Don’t take rest after your first victory because if you fail in second, more lips are
waiting to say that your first victory was just luck.”
l“Confidence and hard work is the best medicine to kill the disease call failure. It
will make you a successful person.”
l“Thinking should become your capital asset, no matter whatever ups and downs
you come across in your life."
l“All Birds find shelter during a rain. But Eagle avoids rain by flying above the
Clouds.”
(15 Oct 1931 – 27 July 2015)
Source: from the websites-http://izquotes.com, successstory.com; indiacurrents.com
If a country is to be corruption free and
become a nation of beautiful minds, I strongly
feel there are three key societal members who
can make a difference. They are the father, the
mother and the teacher.
(Abdul Kalam)
You cannot changeyour Future.
But, you can change your habits.
And surely your habits will change your Future.
– Dr. Abdul Kalam
Disclaimer: The views expressed in the articles/poems are those of the authors and do not necessarily reflect the policy or position of the Commission. In order to ensure brevity and readability, some articles may be abridged.
Members of the Editorial Board:
Smt. Sonali Singh
Additional Secretary, Chief Editor
Shri Ramesh Chandra
Chief Technical Examiner
Shri Asit Gopal
Director
Shri Keshav Rao
CVO, Pawan Hans Helicopters Ltd
CENTRAL VIGILANCE COMMISSIONSatarkata Bhavan, A-Block
GPO Complex, INA, New Delhi - 110 023
EPABX :- 011- 24600200 (30 Lines)
FAX : 011- 24651010/24651186
Email : [email protected]
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