Integrity pact

INTEGRITY PACT

1. INTEGRITY PACT
1.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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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 .

8. 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.

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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

15. ARTICLE -6 Duration of IP
12 months after completion
of work or defect liability
period whichever is later
For other bidders till the
work is awarded

16. ARTICLE -7 Other Provisions
Subject to Indian law
Jurisdiction-HQ of the
Division
IP not subject to
arbitration

17. ARTICLE -8 OVER-RIDING
IP provisions to
take precedence
over the other
provisions of
tender /contract
documents

18. 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

19. THANK YOU