Vigilance Awareness-for tackling corruption and deficit in governance

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Vigilance Awareness-for tackling corruption and
deficit in governance

• PRESENTATION
• BY
• M.P.JUNEJA
• Former
• ADDITIONAL MEMBER
• RAILWAY BOARD
• EX-CTE/CVC

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CORRUPTION

• In laymans language corruption is defined as
  misuse of official power for personal benefits.
• By TI (Transparency International) Corruption is
  operationally defined as the misuse of entrusted
  power for private gain.

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GOVERNANCE

• Exercise of political authority and use of
  institutional resources to manage societys
  problems and affairs (WB).
• Use of power and authority by the govt. to
  realize peoples aspirations.
• Laws, procedures practices that determine the
  cos ability to take decisions in the interest of
  stakeholders.

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Corruption and Governance

• Root cause of poor/deficit in governance lies
  in corruption.
• Bane of the society
• One of the most corrupt as per TI
• Poor governance in Govt. organizations affects
  the productivity, efficiency and image of the
  org.

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EFFECTS OF CORRUPTION

• Corruption affects everybody.
• Its effects are four-fold
• Political Economic
• Social Environmental
• POLITICAL
• In a democratic system, offices and institutions
  lose their legitimacy, when misused for private
  advantage.
• ECONOMIC
• Economically corruption leads to depletion of
  national value.

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EFFECTS OF CORRUPTION

• SOCIAL
• It also damages the social fabric of society.
  People lose faith in the political system and its
  leadership.
• ENVIRONMENTAL
• Environmental degradation is another effect of
  corrupt system.

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Ethics and Moral Values

• Truthfulness
• Honesty
• Integrity
• Lack of these corrupts and corrodes the society

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Secular and Spiritual

• Highly Religious but one of the most corrupt as
  per Transparency International

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Contradictions

• Compassion vs Brutality
• Sacred rivers polluted
• Corruption in religious institutions
• Worship of Women vs cruelty and neglect

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Reasons for Corruption

• Low risk High profit activity
• Lack of Transparency and accountability
• Red tapism
• Black money trap
• Patronage-system

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VIGILANCE

• Watchfulness-Oxford
• Every officer is vig. Officer for his area of
  jurisdiction.
• Not a police function.
• Friendly critic and part of the management.
• Punitive vs preventive vigilance.

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Preventive Vigilance

• Prevention is better than cure
• Check systems which breed corruption
• Delay in decision making
• Sensitive Post- identification
• Citizens Charter
• Black mailers vs Whistle blowers
• Role and extensive use of IT

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Volumes and Challenges

• 25 of GDP -400b
• Likely to increase manifold with 7-8GDP growth
• Need to de-mystify and simplify the procurement
  procedures
• Total transparency,equity and fairness
• Maximise the use of IT

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Main Objectives of PSUs

• To achieve planned targets /output with optimum
  utilisation of available resources
• Resources- 3 Ms-Men, Materials, Money
• 3Ps-Productivity, Profit, Planned Growth
• Mismanagement of contracts- results in leakage
  of revenue and affects image and
  productivity/profitability

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Way -ahead

• Prompt and Exemplary Punishment
• Transparency
• E-governance
• Admn.Reforms
• Role-models

Contd.
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Contd.

• Recent initiatives to promote transparency and
  accountability
• RTI Act 2005
• Integrity Pact
• Introduction of Lokpal bill.
• Expected reforms electoral and judicial.

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Fear vs greed

• No need to fear-follow procedures
• Be firm and upright in conduct
• Be content
• Be vigilant
• Dont be a part of a herd

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MAJOR AREAS OF CORRUPTION

• Over centralization of power, non transparency in
  government functions and lack of accountability
  are the major reasons of corruption.
• Areas are
• Works Contract
• Supply Contracts
• Services to internal customers
• Services to external customers

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ROLE OF CVC / CTE

• Organization
• Status
• Jurisdiction
• Inspections and
• Follow-up
• CVOs to conduct CTE type inspections.

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CVC Guidelines-on contracts

• Use of IT- transparency
• Eligibility criterion
• Sufficient time
• No changes/amendments- post facto
• Negotiations-only with L1
• Non restrictive non discriminatory bidding

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GUIDELINES OF CVC TO CURB CORRUPTION

• CVC guidelines for curbing corruption are
  available in official site of CVC i.e.
  www.cvc.nic.in
• One of the major circulars by CVC to curb
  corruption is on banning negotiations with firms
  other than L-1. Circular dated 18.11.1998. CVC
  letters\181198 nego.pdf

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PURCHASE

• Two Categories
• Govt. Purchase
• Non-Govt Purchase
• Govt. Purchase is otherwise called public buying
  or Public Procurement.

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PUBLIC BUYING DEFINITION

• Covers the procurement of MATERIALS/WORKS/SERVICES
  by all government ministries, departments,
  public sector undertakings under the Central
  Govt. and the States, Municipal Corporations and
  other agencies using public fund.

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CARDINAL PRINCIPLES OF PUBLIC BUYING

TO PROCURE MATERIALS/ WORKS/ SERVICES OF THE
SPECIFIED QUALITY WITHIN THE SPECIFIED TIME AT
THE MOST COMPETITIVE PRICES IN A FAIR, JUST
TRANSPARENT MANNER.
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Principles of Public Buying. (As per GFR-2005)

• 1. Efficiency, Economy, Transparency, Fairness
  Equitability and Competition in Procurement.
• 2. Clear and complete specifications in the
  tenders free of any ambiguity, deficiency
• 3. Correct Quantity Estimations.
• 4. Well publicised tendering and bidding
  procedures.
• 5. Well recorded deliberations in decision
  making- No arbitrariness .

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Contd..
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DEFICIENCIES IN PUBLIC BUYING

• CAUSES
• NO MANUAL/ OUTDATED MANUAL
• LACK OF STANDARDISATION IN CONTRACT CONDITIONS,
  SPECIFICATIONS etc.
• LACK OF KNOWLEDGE IN EXECUTIVES OF THE PUBLIC
  PROCUREMENT PROCESS
• CASUAL APPROACH
• MALAFIDE INTENTIONS

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PREVENTIVE MEASURSES SUGGESTED

• GENERAL
• GET THE MANUAL UPDATED SUITING TO THE REQUIREMENT
  OF FAST TRACK PROJECTS, IF REQUIRED (PREPARE FAST
  TRACK PROCEDURE).
• ARRANGE ADEQUATE TRAINING TO TECHNICAL STAFF TO
  SENSITISE THEM TO GOOD CONSTRUCTION PRACTICES /
  CONTRACT MANAGEMENT ETC.

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PREVENTIVE MEASURES IN THE ORGANISATION

• Proper manual.
• Uniform procedure through out organization
• Dedicated organization. i.e. manned by
  professionals of fixed tenures so that
  accountability can be fixed.
• Transparent open system.
• Smoother faster decision.
• Training
• Rotation of sensitive posts.
• Extensive use of IT-E-procurement.

Contd..
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PREVENTIVE MEASURES

• Examine the existing organisation
• Regular inspections surprise visits
• Identify sensitive posts/points
• List of officers of doubtful integrity
• Blacklisting of unscruplous contractors
• Conduct rules, Complaint redressal
• Cut delays,simplify procedures

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PREVENTIVE MEASURES IN PUBLIC BUYING

• STAGES IN PUBLIC BUYING
• 1. PRE-TENDER STAGE
• 2. TENDER STAGE
• 3. TENDER FINALISATION STAGE
• 4. POST TENDER STAGE

Contd..
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PREVENTIVE MEASURES IN PUBLIC BUYING

• 1. PRE-TENDER STAGE
• i.Estimation of requirements and financial
  sanction / Project Formulation, Appointment of
  Consultants.
• Check on Excess/Inflated, Artificial generation
  of demand
• ii. QUANTITY REVIEW / DPR, Estimates / Design
  etc.
• Annual provisioning of items having constant
  demand.
• Zero based budgeting.
• Associating user in quantity review.
• Clubbing of demands for non-standard items.
• TODAYs PROBLEMS ARE DUE TO
• YESTERDAYS SHORT-SIGHTED SOLUTIONS

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Contd..
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APPOINTMENT OF CONSULTANT

• Transparent selection through tendering.
• Fair opportunity to all.
• Clear evaluation criteria.
• Consultant is just an expert adviser and should
  not be the decision maker.
• Executive should not escape his responsibilities
  taking the cover of consultant.

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PREVENTIVE MEASURES IN PUBLIC BUYING

• TENDER STAGE
• TENDER DOCUMENT-
• Unambiguous, complete easily understandable.
• Prequalification Criteria
• Specification Functional based.
• Neither too rigid nor too sketchy.
• Specification size of general items should be
  standard .
• INVITING OPENING OF TENDERS
• Best form of tendering like GT, AT, BT
  sometimes LT.
• Non acceptance of late/delayed tenders.
• Opening in Public.
• Non acceptance of any change from firms during
  tender opening

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PREVENTIVE MEASURES IN PUBLIC BUYING

• TENDER FINALISATION STAGE
• Evaluation Procedure To be transparent.
• Check for reasonableness of rate and other
  evaluation criteria including Delivery period
• Proper distribution of quantity among firms in
  the zone of consideration
• Recording convincing reasons for passing over
  cheaper offers
• Avoid single quotation against Limited tender
• Negotiations with L-1 that too as an exception
  to rule
• Non acceptance of major deviation with financial
  implications after tender opening
• Non acceptance of corrections in the offer
  without attestation by tender opening officials

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PREVENTIVE MEASURES IN PUBLIC BUYING

• TENDER FINALISATION STAGE Contd.
• Non acceptance of conditional discount.
• Finalization within validity.
• Contract to be issued as per the firms offer- so
  that it is legally binding.
• Ensure agreement is signed and sealed properly in
  time.
• 4. POST TENDER STAGE
• Monitoring contract execution.
• Ideally no amendment after contract.
• Avoiding granting extention of DP in routine
  manner.
• Independent confirmation of BG by bank
  monitoring its validity.
• Be vigilant for request for change in inspection
  clause, place of delivery, payment conditions,
  etc.

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PREVENTIVE MEASURES IN PUBLIC BUYING

• 4. POST TENDER STAGE contd.
• Ensure that payment made is commensurate with the
  quantum of work done.
• Ensure recoveries as per the contract.
• Maintain proper record of hindrances.
• All the conditions of contract are satisfied.
• Be vigilant about payment on PVC (Price Variation
  Clause) account.
• If there is any performance guarantee clause see
  that same is complied with.

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• Continued
• vii. Time and Cost over-runs to be avoided and
  penal clauses enforced as per the contract.
• Watch deviations especially in abnormally high
  rated and high value items.
• Carry out all mandatory tests and maintain
• proper records.
• Ensure compliance of conditions regarding
  licenses ,insurance policies and deployment of
  technical staff.

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Thank You
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