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INTEGRITY PACT1. A vigilance tool conceptualized and
promoted by Transparency International.
2. Central Vigilance Commission recommended adoption of the pact and provided guidelines for the Government organizations.
3. It envisages and agreement between the prospective vendors and the buyer not to resort to any corrupt practices in any aspect / stage of the contract.
Ingredients of the Pact Promise by the Principal not to seek any illegal
benefit. Promise by the bidders not to offer any benefit
to the employees of the principal. Bidders not to enter into any understanding
with other bidders regarding prices etc. Bidders not to pass any information. Foreign bidders to disclose the details of its
agent in India. Indian bidders to disclose their foreign associates.
Bidders to disclose payments to be made to agents /intermediatery.
Operative time For a particular contract, pact would be
operative from the stage of invitation of bids till the completion of contract.
Any violation would entail disqualification and exclusion from future business dealings.
Implementation procedure Covers all tenders above a specified value. Complicated or serious issues could also be
covered. Appropriate provision to be made in the
contract that IP is deemed as part of the contract and binding on the parties.
Implemented through Independent External Monitors (IEM).
IEM would review independently and objectively compliance of the pact.
Information related to the tenders to be shared with IEMs on monthly basis.
Functions of IEM Have access to all contract documents. Have meetings with the executives of
organization on monthly basis. Examine all complaints and give
recommendations to the CEO/ CVO. At least one IEM be cited in the NIT. Recommendations of IEM are advisory and
not binding. Advice once rendered would not be reviewed.
Role of CVO remain unaffected.
Appointment of IEMs Eminent personalities of high integrity and
reputation. CVC would approve the names of IEMs out of the
panel suggested by the organization. Two to three IEMs would be appointed. One IEM can serve for two organizations only. Remuneration equivalent that of independent
Director. Term of appointment is for three years. Age at the
time of appointment should be less then 70 years.
Miscellaneous A copy of pact which the SAIL got vetted by the
Additional Solicitor General has been made available by the CVC for the guidance which may be used in original or may be suitably modified.
Major PSUs like ONGC, HPCL, CIL, GAIL, BSNL, BPCL, AAI, MTNL have implemented the IP.
Eminent persons like J.M. Lyngdoh, P. Shankar, Justice A.K. Chakrabory, Arvind Pandey, Pratyush Sinha, Arindom Mukherjee, Debabrata Bandopadhyay have been appointed IEMs in some organizations .
IP IN CPWD Condition in NIT that Integrity Agreement
part of tender document Failure will disqualify from tendering process Execution of IP shall be separate and distinct
from main contract IP agreement is to be signed before award
of work To be signed by bidder and competent
authority of CPWD to sign main contract.
ARTICLE-1, Commitment of CPWD Measures to prevent Corruption (a) No employee personally or through
his family member demand or accept for self or third person any material or immaterial benefits
(b)All bidders to be treated equally (c) Exclude any person from tendering
whose conduct was biased in the past.
Article-2,Commitment of Bidder Adhere to higher ethical standards. Report all suspected acts of
fraud/corruption/coercion/collusion which it has knowledge/becomes aware
Take measures to prevent corruption (a) not to give any material benefit or
other benefit for advantage (b)no undisclosed agreement or
understanding with other bidders
Continued (Commitment of Bidder) (c) not to commit any offence under relevant IPC/PC Act.
Not to pass any information or documents to others (d) foreign bidders to disclose Indian agents. Indian
bidders to disclose foreign agents. (e)disclose payment made to agents/brokers/other
intermediateries. Will not instigate third person to commit offence Not to make misrepresentation, ommission ,forgery of
documents or indulge in fraudulent practice Not to use coercive means directly or through any other
person /firm
Article-3 Consequence of breach Disqualification from the tender
process/determine the contract/terminate the contract.
Banning from future contracts(forever or limited period depending upon Transgression)
Forfeiture of EMD/PG/SD Criminal liability under IPC
Article-4, Previous Transgression Declaration that-no previous
transgression during last five years with any company/central government/state government.
May be disqualified for incorrect statement
Principal /owner may revoke exclusion on recoupment of damage
Article-5 Equal treatment Equal treatment of all bidders
/contractors/subcontractors Bidder will demand from
subcontractor to confirm IP IP with all contractors/bidders Disqualification on not signing
the PACT along with tender
ARTICLE -6 Duration of IP12 months after completion of work or defect liability period whichever is later
For other bidders till the work is awarded
ARTICLE -7 Other Provisions
Subject to Indian lawJurisdiction-HQ of the Division
IP not subject to arbitration
ARTICLE -8 OVER-RIDING
IP provisions to take precedence over the other provisions of tender /contract documents
IEM OF PRASAR BHARATI Sh SUNIL KRISHNA (IPS RETD), 9868211020 [email protected] IP is to be Adopted in PRASAR BHARATI
for All contracts above Rs 2 Crores
THANK YOU
