Tender and Central Vigilance Commission
The managerial administration deal the issues relating to proper procurement of goods and services. The public sector organizations have strong governance mechanism to deal with issues of corruption. Before the year 2000, every file of public sector organizations was considered as confidential secret document and at that time, it was very difficult to detect the financial irregularities.
The committee on prevention of corruption recommended to set up Central
Vigilance Commission (CVC) in 1964 and in 2003, the bill passed in Paliament
and ‘the Central Vigilance Commission Act’ is enacted. The CVC inquires and
investigates the cases of corruption. As per financial rules of Government, the
procurement of goods is required to be justified on three parameters directly
related to prudent use of public money i.e. (i) Economy, (ii) Efficiency, (iii)
Effectiveness. These three parameters are known as 3 Es for the authorities to
be look into, before taking decision to use the public money.
Why use Tender in procurement?
The first and most important cause of using tender system for
procurement is ‘ensuring transparency and efficiency in procurement’. A tender
provides equal and fair treatment to vendors and service providers. It promotes
the competition and the chances of getting goods at lowest prices increased. The tender process is very difficult to be cracked by the corrupt people. The tender in itself is designed particularly to ensure no room for corruption. There are a lot of guidelines issued by the Central Vigilance Commission to carry out procurement related activities properly.
Precautions before proceeding to award Tender:
The tender process is required to be followed strictly in order and a single mistake can lead to financial irregularities. There are a lot of tenders in which the competent authorities face the litigation from the suppliers’ side
and sometimes auditors point out the irregularities. Before proceeding to award
a tender, the procurement authorities should reflect the following upon file
with a justification pointing out true and fair position of the authorities:
(i) Specifications in terms of quality and
quantity should be justified.
(ii) Procurement of excess quantity of goods
should always be avoided.
(iii) The tender procedure should be notified
to the committee constituted to supervise and implement the tender system. The
procedure should be fair and transparent, in other words, full-proof in
awarding tender to a good vendor.
(iv) Procurement of goods should only be
done as per the actual requirements of the office.
(v) Provision should be made to keep proper
records of procurement stages so that the procurement cannot be challenged as
faulty.
In next article, it is studied how the procurement is done in Government.
In next article, it is studied how the procurement is done in Government.
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