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Vigilance Awareness-for tackling corruption and deficit in governance

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Title: Vigilance Awareness-for tackling corruption and deficit in governance Author: HITESH Last modified by: webca-HCL Created Date: 8/16/2006 12:00:00 AM – PowerPoint PPT presentation

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Title: Vigilance Awareness-for tackling corruption and deficit in governance


1
Vigilance Awareness-for tackling corruption and
deficit in governance
  • PRESENTATION
  • BY
  • M.P.JUNEJA
  • Former
  • ADDITIONAL MEMBER
  • RAILWAY BOARD
  • EX-CTE/CVC

1
2
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.

2
3
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.

4
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.

5
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.

5
6
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.

6
7
Ethics and Moral Values
  • Truthfulness
  • Honesty
  • Integrity
  • Lack of these corrupts and corrodes the society

7
8
Secular and Spiritual
  • Highly Religious but one of the most corrupt as
    per Transparency International

8
9
Contradictions
  • Compassion vs Brutality
  • Sacred rivers polluted
  • Corruption in religious institutions
  • Worship of Women vs cruelty and neglect

9
10
Reasons for Corruption
  • Low risk High profit activity
  • Lack of Transparency and accountability
  • Red tapism
  • Black money trap
  • Patronage-system

10
11
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.

12
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

13
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

14
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

15
Way -ahead
  • Prompt and Exemplary Punishment
  • Transparency
  • E-governance
  • Admn.Reforms
  • Role-models

Contd.
16
Contd.
  • Recent initiatives to promote transparency and
    accountability
  • RTI Act 2005
  • Integrity Pact
  • Introduction of Lokpal bill.
  • Expected reforms electoral and judicial.

17
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

17
18
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

18
19
ROLE OF CVC / CTE
  • Organization
  • Status
  • Jurisdiction
  • Inspections and
  • Follow-up
  • CVOs to conduct CTE type inspections.

20
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

21
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

21
22
PURCHASE
  • Two Categories
  • Govt. Purchase
  • Non-Govt Purchase
  • Govt. Purchase is otherwise called public buying
    or Public Procurement.

22
23
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.

23
24
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.
24
25
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 .

25
26
Contd..
26
27
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

27
28
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.

28
29
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..
29
30
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

31
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..
31
32
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

32
Contd..
33
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.

33
34
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

34
35
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

35
36
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.

36
37
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.

37
38
  • 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.

39

Thank You
39
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