Frequently Asked Questions

Vigilance Department

Frequently Asked Questions

Vigilance Department

Knowing what’s right Knowing what’s right

doesn’t mean much unless doesn’t mean much unless

you do what’s rightyou do what’s right

Theodore Roosevelt

Foreword

The Vigilance Department has made constant eff orts to educate the offi cers of the company and keep them up-dated through various means viz. ‘Intouch’ magazine (being published quarterly), special publications viz. Compendium of CVC Circulars/Offi ce Orders/Guidelines, Dos and Don’ts, Common Lapses, e-mails, SMSs, Circulars etc.

Continuing the good work the Vigilance department has now compiled the frequent queries asked during the ‘Sensitization Program’ conducted by them at the departmental level and queries raised during vigilance presentations in the ‘Keep in touch’ programs in the form of ‘Frequently Asked Questions’ (FAQ).

It has references to various issues related to Purchase & Contract which offi cers dealing with purchase/contracts and execution of orders/contracts tend to overlook due to ignorance or lack of knowledge. This compilation would defi nitely bridge this knowledge gap and will serve as a ready reference and help offi cers take informed decisions.

I appreciate the eff ort put in by the Vigilance team under the guidance of CVO, Shri Amit Mohan Prasad, IAS for coming up with this initiative. I hope that the Vigilance department will continue to provide such meaningful support to strengthen the management function.

(Sunil Kumar Srivastava) Chairman & Managing Director

5

1. What do you mean by “Jumping the queue”?

Ans. Jumping the queue is mainly related to making payment to vendors. First-in-fi rst-out (FIFO) policy may be adopted while making payment to the vendors to avoid ambiguity.

2. What is a “Sensitive Post”?

Ans. Posts where jobs of sensitive nature are dealt with are classifi ed as “Sensitive Posts”. Based on the CVC guideline, CVO identifi es the “Sensitive Posts” in the departments. Offi cers working in Sensitive Posts are to be rotated after they have completed 3 years in a Sensitive Post. This is done to maintain objectivity in decision making which may be aff ected if a person is allowed to continue in a Sensitive position for a longer period of time owing to development of familiarity.

3. It is seen that, some executives holding sensitive

post in diff erent departments have not been

rotated even after completion of 3 years. What

action is taken by Vigilance Department in this

regard?

Ans. Sometimes it may so happen that, an executive holding a sensitive post could not be rotated by the concerned HOD immediately after completion of 3 years because of his/her involvement in urgent project/work in hand.

Frequently Asked Questions (FAQ)

Vigilance Department

6

Vigilance Department obtains data regarding offi cers working in sensitive posts from time to time and continuously reminds the Personnel dept. to rotate the offi cers who have put in more than 3 years in a sensitive post.

4. How Vigilance Department is related to property

return of employees?

Ans. As per DPE guideline, it is mandatory for all the public servants to disclose their property. As per DPE OM No. 15(6)/98(GL-

008)/GM dated the 1st September, 1998, Vigilance Department is supposed to carry out scrutiny of 20% of the property returns every year, so that, within a cycle of 5 years all the employees are covered.

5. Is the submission of Annual Property return

mandatory?

Ans. Yes, As per DPE guideline, it is mandatory for a public servant to disclose his and his dependent’s property.

6. Whether data in the Annual Property Return

should tally with that of Income Tax Return?

Ans. It is expected that, the data given in the Annual Property Return also should tally with the Income Tax Return (ITR). Generally Vigilance is not concerned about the ITR. However, during Special Scrutiny of Property Return, scrutiny of ITR can also be carried out.

7

7. What is “Special Scrutiny of Property Return”?

Ans. Special Scrutiny of Property Return is carried where preliminary scrutiny reveals assets disproportionate to the known sources of income of the offi cer.

8. What is “Agreed List” and “List of Doubtful

Integrity”?

Ans. “Agreed List” contains the names of the employees against whom investigation is in progress or CBI has any information regarding integrity of the employee.

“List of Doubtful Integrity” contains the names of the employees against whom disciplinary proceeding is in progress or against whom disciplinary action has already been taken. Such names, remain in the list for 3 years and is dropped if no new complaint/information is received regarding integrity of the employee.

Both the lists are signed annually by CVO and SP/DIG of CBI.

9. Is negotiation allowed with L1 bidder?

Ans. Since post tender negotiations could often be a source of corruption, it is directed that there should be no post-tender negotiations with L1 bidder except in certain exceptional situations. Refer to CVC’s Circular No. 4/3/07 issued vide ref. 005/CRD/012 dated 3rd March’2007. Circular No. 01/01/10 issued vide ref. 005/CRD/012 dated 20th January’2010 and Circular No. 12/10/11 issued vide ref. 98/ORD/001 dated 28th October’2011 may also be referred to.

Vigilance Department

8

10. Is negotiation with L2 bidder permitted if L1

bidder backs out?

Ans. As per CVC guideline, in case L1 bidder backs out, there should be a re-tender.

11. Does Vigilance Department entertain anonymous

complaint?

Ans. No, anonymous/pseudonymous complaints are not entertained by the vigilance dept. However, if a complaint contains verifi able facts, then CVO may obtain permission from CVC for registering the same for investigation.

12. During technical scrutiny, can we deviate from

NIT specifi cation, if we think that, the off er (with

deviated specifi cation) will not hamper our

operation?

Ans. No, we should not deviate from the NIT specifi cation, because it may provide undue advantage to some parties. In case deviations appear to be unavoidable they should be brought to the knowledge of competent authority. For details, you may refer to Purchase and Contract Manual of OIL.

13. After vigilance investigation, if a complaint is

found to be false, is there any provision to take

action against the complainant?

Ans. Yes, action can be initiated as per para 26 of ‘Special Chapter on Vigilance Management in Public Sector Enterprises’.

9

14. Can we obtain clarifi cation from the bidders

while doing technical scrutiny in relation to BRC/

BEC provisions on techno-commercial off ers?

Ans. Clarifi cation can be obtained as per provision of the Purchase and Contract Manual of the company. However, such opportunity should be provided to all the vendors and their replies should not be entertained after the time limit fi xed for such submission of their replies

15. Should deviation from NIT conditions be

entertained after the order is placed?

Ans. No, this would be viewed as post tender modifi cation.

16. Can there be delay in the submission of

Performance Bank Guarantee (PBG)?

Ans. The vendor who gets the purchase order/contract should be asked to submit the Performance Bank Guarantee (PBG) within the specifi ed time mentioned in the contract/purchase order agreement. If the vendor is unable to submit PBG in time appropriate action should be initiated against him as per the provisions of the purchase/contract agreement.

17. Is it necessary to maintain the Hindrance Register

at work site?

Ans. Yes it is necessary to maintain Hindrance Register at the work site. This information will help the offi cer while taking decision on whether to entertain or not the claim of contractor for time extension with or without imposing LD.

Vigilance Department

10

18. Can the BEC/BRC conditions be changed after

the opening of the bids.

Ans. No, the BEC/BRC should not be changed after opening of the bids.

19. Precautions while executing Purchase Order/

Contract?

Ans. The following precautions should be taken while processing Purchase Orders/Contracts:

i. The vendor should be asked to submit the PBG as per the terms of the purchase order/contract within the time limit prescribed for it failing which action should be initiated as per the terms of the purchase/contract agreement.

ii. The delivery schedule should be monitored and in case there is delay in delivery, action should be initiated as per the terms of the purchase/contract agreement.

iii. The delivery should be aff ected by the vendor as per the terms of the purchase order and no changes in the NIT stipulations should be entertained later.

iv. The delivery schedule should not be altered without imposing LD unless there are valid reasons for the same.

v. Hindrance register should be maintained at the work site.

vi. The terms and conditions of the contract should be strictly adhered to. Any extraordinary situation should be immediately brought to the notice of the competent authority.

(the list mentioned above is indicative not exhaustive)

11

20. Action to be taken after the Contract/Purchase

Order is completed.

Ans. i. PBG should be returned as per the terms of the contract.

ii. Contract/Purchase Order should be formally closed.

21. What precautions should be taken while

preparing the BEC/BRC?

Ans. The terms of BEC/BRC should be carefully made so that the company is able to enforce them and need does not arise for changing them at the time of evaluation of off ers. The conditions stipulated should be unambiguous and commensurate with the requirement to enable maximum competition.

22. Under what circumstances Company should

award contracts on nomination basis or on

private negotiations?

Ans. In rare and exceptional cases cited below:

• During natural calamities and emergencies declared by the Government

• where the procurement is possible from a single source only,

• where the supplier or contractor has exclusive rights in respect of the goods or services and no reasonable alternative or substitute exists;

Vigilance Department

12

• where the auction was held on several dates but there were no bidders or the bids off ered were too low,

the normal rule may be departed from and such contracts may be awarded through ‘private negotiations’. (On Nomination Basis)This is extract from a recent Supreme Court of India judgement in the case of Nagar Nigam, Meerut Vs Al Faheem Meat Export Pvt. Ltd. [arising out of SLP(civil) No.10174 of 2006] (refer CVC Offi ce Order No. 23/7/07 issued vide ref. No.

005/CRD/19 dated 5th July’2007)

23. Can Mobilization advance be paid in one

installment?

Ans. The mobilization Advance should not be paid in less than two installments except in special circumstances for the reasons to be recorded. This will keep a check on contractor mis-utilizing the full utilization advance when the work is delayed considerably.

24. How much Bank Guarantee etc. should be taken

for security of ‘Mobilisation Advance’?

Ans. The Bank Guarantee etc., taken towards security of ‘Mobilization Advance’ should be at least 110 % of the advance so as to enable recovery of not only principal amount but also the interest portion if so required.

25. Can interest free mobilization advance be given

and who is authorized to grant it?

Ans. Yes interest free mobilization advance can be given but “Decision to stipulate interest free mobilization advance in

13

the tender document should rest at the level of Board (with concurrence of fi nance) in the organizations. However, in case of interest bearing mobilization advance, organizations may delegate powers at appropriate levels such as the CMD or Functional Directors.” (refer CVC Circular No. 5/2/08 issued vide ref. 4CC-1-CTE-2

26. What are the CVC guidelines for interest free

mobilization advances?

Ans. A clause in the Tender enquiry and the contract of cases providing for interest free mobilization advances may be stipulated that, if the contract is terminated due to default of the contractor, the ‘Mobilization Advance’ would be deemed as interest bearing advance at an interest rate of ________%, (to be stipulated depending on the prevailing rate at the time of issue of NIT) to be compounded quarterly. (refer CVC Circular

No. 02/02/11 issued vide ref. 01-11-CTE-SH-100 dated 17th

Feb.’2011)

27. What is vigilance Angle?

Ans. “Vigilance angle is obvious in the following acts: -

• Demanding and/or accepting gratifi cation other than legal remuneration in respect of an offi cial act or for using his infl uence with any other offi cial.

• Obtaining valuable thing, without consideration or with inadequate consideration from a person with whom he has or likely to have offi cial dealings or his subordinates have offi cial dealings or where he can exert infl uence.

• Obtaining for himself or for any other person any valuable thing or pecuniary advantage by corrupt or

Vigilance Department

14

illegal means or by abusing his position as a public servant.

• Possession of assets disproportionate to his known sources of income.

• Cases of misappropriation, forgery or cheating or other similar criminal off ences.

There are, however, other irregularities where circumstances will have to be weighed carefully to take a view whether the offi cer’s integrity is in doubt. Gross or willful negligence; recklessness in decision making; blatant violations of systems and procedures; exercise of discretion in excess, where no ostensible/public interest is evident; failure to keep the controlling authority/superiors informed in time. (refer CVC

Offi ce Order 23/04/04 issued vide ref. 004/VGL/18 dated 13th

April’2004 and Offi ce Order No. 74/12/05 issued vide 004/

VGL/18 dated 21st December’2005)

28. What is the procedure for Lodging of Complaints?

Ans. Complaints can be lodged by addressing the letter/e-mail directly to the CVC/CVO, giving the specifi c facts of the matter relating to corruption. The complaints can also be lodged directly on CVC’s web-site.

29. What is a Whistle Blower Complaint (Public

Interest Disclosure and Protection of Informer’s

Resolution)?

Ans. If a complainant while exposing a case of corruption wants his identity to be kept secret, he/she should lodge a complaint under Public Interest Disclosure and Protection of Informers

15

Resolution (PIDPIR)- popularly known as Whistle Blower Provision. Commission is mandated not only to maintain the secrecy of the complainant’s identity but also provide protection to the complainant against any physical threat, harassment or victimization.

30. What is the Procedure of lodging complaint

under Public Interest Disclosure and Protection

of Informer Resolution (PIDPIR)?

Ans. The system of lodging complaints under Public Interest Disclosure and Protection of Informer Resolution (PIDPIR) is given below:

• Complaints under “Public Interest Disclosure and Protection of Informer” Resolution can be made only by post. The envelope should be superscribed “PIDPI” or “Whistle Blower”. The complainant should refrain from giving his name on the body of the letter. The personal details should be separately given or given at the top or end of the letter so that they can be easily blocked out.

• If any person is victimized due to the fact he had fi led a complaint under the Whistle Blower provisions, he may fi le an application before the Commission seeking redressal in the matter. Commission would then intervene suitably to protect the complainant.

• The complainant can use the complaint number provided by the Commission to see the status of action on complaints which have been forwarded to the authorities concerned for investigation and report by clicking on the “Complaint Status” displayed on the Commission’s website- www.cvc.nic.in.

Vigilance Department

16

31. Can a consultant who was appointed by the

organization for preparation of project report/

provide consultancy services participate in the

implementation of the project.

Ans. No, a fi rm which has been engaged by the PSU to provide goods or works for a project and any of its affi liates will be disqualifi ed from providing consulting services for the same project. Conversely, a fi rm hired to provide consulting services for the preparation or implementation of a project, and any of its affi liates, will be disqualifi ed from subsequently providing goods or works or services related to the initial assignment for the same project.

Consultants or any of their affi liates will not be hired for any assignment, which by its nature, may be in confl ict with another assignment of the consultants. (refer CVC

Offi ce Order 75/12/04 issued vide ref. 98/DSP/3 dated

24th December’2004)

32. Are CVC guidelines available for selection and

employment of Consultants?

Ans. Yes, CVC has issued Circular No. 08/06/11 vide ref. 011/VGL/063 dated 24th June’2011 for selection and employment of Consultants.

17

33. Do the members of the Tender Committee have

to give an undertaking that none of them has

any personal interest in the Companies/Agencies

participating in the tender process?

Ans. Yes, CVC’s Offi ce Order No/71/12/05 issued vide ref. 005/VGL/66 dated 9th Dec. 2005 has dealt with the subject of “Undertaking by the Members of Tender Committee/Agency".

34. Does the clause in the NIT “the tender applica-

tions could be rejected without assigning

any reason”, mean that the tender accepting

authority is free to take decision in an arbitrary

manner?

Ans. No, the inclusion of the clause in the “the tender applications could be rejected without assigning any reason” in the NIT does not mean that the tender accepting authority is free to take decision in an arbitrary manner. The tender accepting authority is bound to record clear, logical reasons for any such action or rejection/recall of tenders on the fi le. (refer CVC

Offi ce Order No. 15/3/05 issued vide ref. OFF-1-CTE-1 (Pt) V

dated 24th March’2005).

Corporate Offi ce:Plot No. 19, Sector-16A, Noida, Distt. G.B. Nagar, U.P.-201301

Tel: 0120-2488333-47, Fax: 0120-2488310www.oil-india.com