CVC Guidelines on selection and employment of consultant

Press release from CVC

CVC -Metrics to measure Vigilence awareness

New Initiatives taken by the CVC

1.    National Anticorruption Strategy

The Central Vigilance Commission has taken the initiative of formulating a National Anticorruption Strategy which would serve as a concerted and coordinated approach to fighting corruption in India.  The strategy recognises that corruption cannot be reduced by mere governmental action unless the citizens and private business entities refrain from indulging in corrupt practices.  Corruption is a form of human behaviour which is reflective of the  decline in professional ethics and social values.  Anticorruption efforts over the last five decades were largely focussed on the demand side of corruption ignoring the equally culpable supply side.  The proposed strategy therefore prescribes a participative and holistic approach to address corruption from all sides.  The draft strategy has been forwarded to the government and all other stakeholders for their comments and suggestions.  After obtaining the response and endorsement of the stakeholders, the final strategy would be recommended for adoption.

2.    Leveraging Technology to Prevent Corruption

Corruption in the delivery of public services occurs due to the exercise of discretionary powers and the need for the citizens to approach public officials.  Therefore the use of technology and e-governance to minimise discretion and human intervention is the most effective means of preventing corruption in the delivery of public services which effects the ordinary citizens the most.  The Commission had therefore adopted the strategy of “Leveraging Technology to Prevent Corruption” since 2004, wherein organisations are persuaded to adopt e-governance measures and computerise on priority all those activities which are vulnerable to corruption.  The progress of various organisations in this regard has not been very assuring.  The commission proposes to recommend to the government to adopt a mission mode approach towards computerising all delivery of public services.

3.    Integrity in Public procurement

Public procurement being the government activity most vulnerable to corruption,  has been a priority concern of the commission.  The commission has adopted the following measures to mitigate corruption in public procurement:

a.         Issuing guidelines to promote integrity in public procurement.

         b.      Persuading organisations to adopt e-procurement.

c.         Since 2007, Commission has been promoting the concept of Integrity Pact developed by the Transparency International. It involves the signing of a pact between the procuring organisation and the bidders that they will not indulge in corrupt practices in the tendering, award and the execution of the contract. Only those bidders who sign the pact can participate in the bidding process. An independent external monitor is nominated by the commission to monitor the adherence to the pact by the two sides.  More than 50 organisations including the ministries conducting major procurements have adopted the Integrity Pact so far and the experience has been satisfactory.

4.    Awareness Campaign

The Commission has initiated a project to create awareness and educate the public on anti-corruption. The aim is to reduce people’s tolerance for corruption and reduce its social acceptability. Media agencies are being engaged to create the campaign in the electronic and print media besides various outreach activities. The campaign is slated to start from January, 2011.

5.    Provision for Whistle Blowers

The provision for whistle blowers and their protection is already in place since 2004 under the Public Interest Disclosure & Protection of Informers’ Resolution (PIDPIR) wherein CVC is the designated authority to handle the “whistle blower complaints” and provide protection to the “whistle blowers”. Commission has been paying especial attention to complaints received under this Resolution to investigate them in a time bound manner with due protection to the complainants. A bill has been initiated in the Parliament to convert the Resolution into an Act which would further empower the CVC in protecting the whistleblowers.

6.    Improving the Standard of Vigilance Work

To make the work of vigilance more objective and scientific the Commission is developing and adopting various standards to regulate vigilance investigations and reporting.  While the reporting standard was adopted in August, 2009, a standard procedure for conduct of vigilance investigation has been developed and would be adopted shortly. 

7.    Computerisation of Commission’s Work

A project for workflow automation and IT enabling of the functioning of the Commission has been completed on 31^st August, 2010 and is in the process of full roll out.  The project is targeted to be fully operational by November, 2010. This would enhance the efficiency of the Commission  in handling complaints and processing of investigation reports. 

8.    Modern Preventive Vigilance Framework

Anti-corruption efforts consist of a two pronged approach – punitive and preventive. While the vigilance efforts so far were largely punitive and reactive, Commission is now focussing on prevention which is a more efficient and effective means of checking corruption.  Much of the prevailing preventive vigilance practices were developed in the 1970s which need to be reviewed in the present day context. A new preventive vigilance framework is being developed by the Commission which aims at aligning the vigilance work with the modern day approach of risk management and corporate governance. Standing Conference Of Public Enterprise (SCOPE) has been assigned the task of developing a new framework on pilot basis.

9.    International Cooperation

The Commission gives due importance to international cooperation in anti-corruption which also helps in exchange of best global practices as well as capacity building of the personnel involved in anti-corruption work.  The important developments pertaining to international cooperation are listed below:

a.         Though India  had   signed   the   United Nations    Convention against Corruption in 2005, it has not been ratified till date. The CVC had  recommended the ratification of the Convention.

b.         As a result of the interaction between the Commission and the Anti-Corruption Division of the Organisation for Economic Cooperation and Development (OECD),  India has been granted the ‘Observer’ status in the Anti-Bribery Working Group of OECD. The Commission is in the process of studying the implications of the Convention for India.

c.         The Central Vigilance Commissioner of India has been a member of the Executive Board of International Association of Anti Corruption Agencies (IAACA) since 2007.

d.         The anti-corruption commissions of various countries and multilateral anti-corruption bodies have shown keen interest in the working of the Commission.

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CVC to join hands with NGOs to check corruption

New Delhi, Feb 19 (PTI) The Central Vigilance Commission has decided to involve non-government organisations (NGOs) to check corruption in government offices and departments.
"We are interacting with civil society organisations across the country and planning their roles and responsibilities to fight corruption," Chief Vigilance Commissioner Pratyush Sinha said.
These NGOs will be roped in to work in coordination with Chief Vigilance Officers of different organisations to get information about unfair practices, he told PTI.
The Commission has asked offices to use the latest software for accounts, manpower and logistics-related work.
The probity watchdog, CVC, is mandated to advise and guide central government agencies to draft and implement different measures to check corruption in government offices, departments and Public Sector Units (PSUs).

CVC gist of circulars issued during the year 2009

Central Vigilance Commission Website: A Bold Anticorruption Experiment

CVC update on Negotiation with L1

Posting of details on award of tenders/contracts on websites., CVC OM Dt 14/07/2009

Sensitizing the Public about corruption – display of standard notice board by Departments/Organizations - reg.

Adoption of Integrity Pact-Standard Operating Procedure- CVC OM Dated 18/05/2009

CVC released its standard operating procedure reagrding adoption of Integrity pact during major purchase by Government Departments/PSU/ Autonomous Oragnisation.
Integrity Pact (IP), a vigilance tool conceptualized and promoted by the Transparency International. The Commission has, through its Office Orders No. 41/12/07 dated 04.12.07 and 43/12/07 dated 28.12.07 and Circulars No. 18/05/08 dated 19.05.08 and 24.08.08 dated 05.08.2008 , recommended adoption of Integrity Pact and provided basic guidelines for its implementation in respect of major procurements in the Government Organizations.

Details can be found here

GOI resolution on Public Interest Disclosure & Protection of Informer

CVC questions global watchdog on corruption in India

Stung by Transparency International’s report showing India unexpectedly slip from 72 to 85 in the list of world’s corruption-plagued countries, the Central Vigilance Commission (CVC) has sought a clarification from the global watchdog, disputing the claim and level of transparency in arriving at the conclusion.

“The 2008 survey came as a surprise to us. Since India's corruption index had shown a marginal improvement in previous years, the latest report left us wondering how could we suddenly slip to such a level and a perception was created that we have become more corrupt,” said a top CVC official.

Though the Commission formally sought a reply from the global watchdog on the methodology adopted in grading a country “more corrupt and less corrupt”, the official informed that the Commission did not get any convincing reply. “They said they follow certain methodologies but didn’t tell us which are those.”

Chief Vigilance Commissioner Pratyush Sinha, when contacted, confirmed that the CVC had strongly taken up with the matter with the Transparency International. "Immediately after the report was out, we took up the matter with their top officials. However, they didn't have proper answers. They were quite uncomfortable when we went into the specifics," the CVC added.

Another CVC member told HT: "After our efforts, what we got was just a vague reply — more in the realm of speculation. They told us that open display of currency notes by MPs in the Parliament might have affected the perception," another vigilance commissioner said. “But we aren’t convinced.They can't go by just one incident,” he added.

However, the officials rule out a deliberate attempt to malign India, though they say investor sentiment can be influenced by such rankings.

Asked how Transparency International (India) reacts to the CVC’s concern, its vice chairman S. K. Agarwal said its processes were transparent and considered various factors including perception of multinational executives.

A few months back, the Transparency International said India's integrity score had fallen from 3.5 in 2007 to 3.4 in 2008, indicating that corruption has further increased in the country. The watchdog said that Corruption Perception Index was prepared on the basis of surveys conducted in 180 countries by 13 international agencies associated with it.

© Copyright 2007 Hindustan Times

Rites Signs MoU for Integrity Pact (PIB)

RITES Ltd, a Government of India Enterprise under the Ministry of Railways entered into a Memorandum of Understanding (MOU) with Transparency International India (TII) to maintain complete transparency in major contracts and procurements. The MOU was signed by Mr.V.K.Agarwal, Managing Director (RITES) and Admiral (Retd) R.H.Tahiliani, Chairman Transparency International India in the presence of Mrs. Ranjana Kumar, Vigilance Commissioner, Central Vigilance Commission (CVC).

Integrity Pact model is being followed by the Corporates worldwide as it binds a company and its suppliers to ethical conduct in contracts and implementation of projects. CVC has recommended adoption of this pact in respect of all major procurements. The pact will be monitored by the Independent External Monitors (IEM) who will provide an in-process integrity audit and conflict resolution mechanism to address to timely confusions, complaints and communication gaps.

For RITES, business ethics is the foremost among the set of its core values which form a component of the employee evaluation and promotion criterion.

CAT comes to aid of whistleblower

Hiral Dave, Rajkot

Says Central Vigilance Commission bowed to influence, failed to protect officer who blew the cover

In a strongly worded order, the Central Administrative Tribunal (CAT) has slammed the Central Vigilance Commission (CVC) for bowing to the “influence of the powers that be”, and for failing to protect an officer who blew the whistle on a multi-crore land scam at the Kandla Port Trust (KPT).

The whistleblower, Manoj Ranjan Kumar, an IES officer, was deputy chairman at KPT. He had to fight a year-long legal battle after he prepared a confidential report exposing a land scam involving top KPT officials.

It related to 1,000 acres of land belonging to KPT, given free to private companies for use without charging any amount as lease. At the heart of the controversial deal was a salt company operating from the KPT land without paying a penny to the government. The total loss suffered by KPT on this account was estimated to be over Rs 190 crore per annum, which, interestingly, exceeded even the port trust’s annual turnover of Rs 180 crore.

With the lid off the scam, Kumar was ordered to go on leave for three months in January 2008, along with the then chairman Janardhan Rao and three other senior officers. The shipping ministry ordered a CBI inquiry but Kumar, on his part, moved the CVC with his report and documents. The CVC did nothing.

In August 2008, the CAT ordered Kumar to be repatriated to KPT, but the shipping ministry issued no orders to enable him to join back. So, Kumar approached the CAT again. Since then, he has been without a posting, and no salary.

In its 113-page order, the CAT has now asked the shipping ministry to pay a token fine of Rs 25,000 and compensation of Rs 25,000 to the officer, while indicting it for harassing Kumar.

The CAT order says that removing the officer from KPT by the ministry was done as ‘a substantial number of people, wielding power, felt threatened and insecure on account of the reports he had made of the scam’.

Now the CBI is investigating the scam, but three important files prepared by Kumar that are considered capable of leading to the prosecution of the higher ups are missing. A police complaint was filed on this account by the KPT but no one was arrested.

A saga of harassment, injustice; says CAT
“None of the reports submitted by the applicant is false, yet the ministry had the audacity to state that instead of devoting his time to the development of the port, he was making frivolous complaints. In our view, he has been meted great injustice. Facts of the case do clearly reveal his agony, harassment and humiliation. We are of the view that he deserves cost which we here by quantify at Rs 25,000. Even this cost may not compensate him in view of marathon litigation forced upon him,” the CAT order says.

The CAT's indictment of CVC
“If the reply would have been filed by the CVC, we are of the view that it would have no choice, but to support the case of the applicant. We may also draw an inference that it is because of the influence exerted by the powers that be that CVC has not filed a reply. We are distressed to note that the applicant, because of his bold stand exposing misdeeds, corruption and irregularities, instead of being protected by the system, had in fact been victimised. The applicant, in our view, required the protection of CVC. If the system may not protect the applicant, in our considered view, the court must come to his rescue. Otherwise, no whistleblower will ever dare to expose corruption. A whistleblower without protection, where higher ups may be involved, may always be a victim himself,” the CAT order said.

Bidding not an end in itself: Allow single bid projects

Government is considering a proposal to permit single-bid road projects to go through. Earlier, the railways had thought of seeking Central

Vigilance Commission (CVC) protection before awarding diesel and electric engine manufacturing projects to sole bidders, but eventually decided to do it in-house.

Clearly, these instances indicate the process of awarding projects seems to have become more important than getting the project started quickly. The basic idea behind competitive bidding for any project is to give an opportunity to everyone and, through a market mechanism, obtain the least cost solution.

Clearly, to the extent there is an open bidding the first purpose of giving an opportunity to everyone has been served. If only one bidder chooses to participate in such a bidding, then so be it. The second issue is more important. In a single-bidder situation, the lack of competition would mean the quoted price may not be the best from the perspective of the one inviting the bids or awarding the project.

In such an event, there are two choices, both entailing some costs. One, the entire process can be aborted and bids called again. There is direct calculable costs of this action, escalation in project cost through delay and the loss of opportunity; there is a also the lesser cost of the bid process itself. As opposed to this, if the project is awarded to the sole bidder, the only cost is the possibility of a better price discovery, if there were more bidders. However, there is no way of knowing if in a multiple bid situation the price discovered would have been lower.

Therefore, it makes sense to award a project even if there is only a single bidder. However, the government must make an internal assessment of costs or tariff, depending on the nature of the project, and set a sort of reserve price. If the single bid betters the reserve price then the projects should be awarded.

In the current environment when investment sentiment is extremely poor, the priority should be to facilitate projects and not get too caught up in procedures. The bid documents should provide for the possibility of projects going to a single bidder and the CVC would do well to ensure that such awards do not become controversial.
Courtesy: Economic Times

Integrity Pact

PSUs may have to exercise stronger vigilance

New Delhi: Public Sector Undertakings (PSUs) may be asked to follow stronger vigilance procedures after Satyam’s accounting fraud came to the fore. The central vigilance commission has suggested a technical audit of all purchases and procurements made by all PSUs and Government departments every year under the aegis of the CVC. In fact, the commission is on course to ask the department of public enterprises (DPE) to include integrity as an essential component for calculating the performance score of various PSUs at the end of every fiscal.

“We are working on these proposals and will soon write to the department of public enterprises. We have already held meeting with chairmen and managing directors of various government owned entities,” central vigilance commissioner Pratyush Sinha told The Indian Express.

Technical audit will assess whether an equitable, transparent and fair procurement policy was followed by PSUs while awarding contracts and tenders. “So far what we have is a vigilance audit dealing with how a complaint is handled and what punitive actions are taken. Technical audit will be aimed at making the processes more preventive than curative,” he said.

Courtesy : Indian express

CVC Circular on need for self contained and reasoned order