Supporting Activities of Integrity Pact Cell
Citizens Against Corruption Programme
ORGANISATION NAME: Transparency International India
Mr Ashutosh Kumar Mishra
Director (IP & CSF)
TRANSPARENCY INTERNATIONAL INDIA
Project Office : 37 National Park
Lajpat Nagar IV,
New Delhi - 110024
Mobile No. +919990786823
TABLE OF CONTENTS
1. Executive Summary 3
2. About the Implementing Organisation 8
3. Project Context 11
4. Project Goal 13
5. Project Objectives 13
6. Project Strategies to Attain Objectives 14
7. Project Activities 14
8. Geographical Area of work and Time Frame 24
9. Expected Results and Targets 26
10. Organisational Team and Roles 29
11. Role of Community Organisations in Objective Achievements 32
12. Activities in Constructive Engagement 33
13. Activities to promote peer learning 34
14. Initiatives for Sustainability 34
15. Monitoring & Evaluation 36
16. Summary of Budget 37
17. Risks and Assumptions 37
• Organisational Details
• Logical framework
• Project Planning Matrix
• Detailed Map of the Project Area
CMD: Chairman-cum-Managing Director.
CVC: Central Vigilance Commission.
CVO: Chief Vigilance Officer.
IEM: Independent External Monitor
PSU: Public Sector Undertaking.
TII: Transparency International India .
TI : Transparency International
RTI: Right to Information .
MoU: Memorandum of Understanding
1. Executive Summary
Integrity Pact is a corporate governance programme at TII that is
focused on reducing corruption within the sphere of public
procurement. It is a contract that neither side will pay, offer, demand or
accept bribes, nor will bidders collude with competitors to obtain the
contract, or bribe the representatives of the
governmental/governmental agencies whilst carrying it out. It was
initiated in India in 2006 and till date 44 PSU’s have signed the Integrity
Pact. Since its inception, TII has received unconditional support from
the Central Vigilance Commission of the Government of India in its
effort to encourage public sector units to sign the Integrity Pact.
IP is a model for transparency in public procurement and contracts. It
enhances public trust in government contracting and contributes
towards improving the credibility of contracting procedures and
administration, in general. The benefits of adopting IP by the various
stakeholders are as follows:
For the bidding companies
Increased chance of fair selection as a supplier and enhanced
access of the markets
Protection from legal penalties
Saving of costs, formerly paid as bribes
Employees and competitors behave ethically and responsibly
For the PSUs
Enhanced competition in bidding process – most efficient, not
best connected bidder wins bid
Avoid time consuming lawsuits / blocking points after decision on
Focus of business relationships on quality and reliability of goods
For the Government
Incentives to be transparent
Strengthened rule of law, increase in credibility and political
Higher investment levels from domestic and foreign investors
Improved image of country
Effective governance mechanisms enabling more efficient
For Civil Society/Non-governmental Organizations
Improved access to essential resources, such as health care ,
education and better socio-economy development, if monies are
Increased trust and confidence in business engagements and
Consistent and fair enforcement of regulations
Greater traction for the proclaimed objective in working towards
a more transparent environment and strict conforming action on
TII with support from Partnership for Transparency Fund (PTF) has
been actively involved in advocacy and monitoring of IP at central and
state level. The second phase of the program will be guided by the
findings of the Impact Assessment Survey conducted by TII.
TII has set forth three objectives that will be of great assistance in
accomplishing the goal of having corruption free procurement :
(1) To increase the influence of Integrity Pact through the
inclusion of more PSU’s as well as governmental and
private sectors within the programme.
(2) To strengthen the effectiveness of Integrity Pact by
monitoring Public procurement of IP signatories Public Sector
Undertakings (PSUs) and other organizations and also fine-
tuning of IP program .
(3) Fine tuning of IP program , in order to achieve desired
results as being highlighted in the in the assessment report
published after phase I .
TII envisions the continuation of the IP cell’s role in encouraging more
PSU’s to sign the IP, but it also seeks to include other bodies such as
governmental departments, state organizations, municipal corporations
as well as corporations within the private sector that are all part of the
public contracting process. Furthermore, TII would like to take on a
more active role to strengthen the IP programme by monitoring the
activities of different principal stakeholders who have signed the IP
contract. Only through effective implementation of IP through the
inclusion of all bodies that are involved in public contracting as well as
regular interaction with the signatories to IP, can the programme be
TII will also engage effectively with different stakeholders , in achieve
desired result as being published in the survey report.
(1) To increase the influence of Integrity Pact through the inclusion
of more PSU’s as well as governmental and private sectors within
Status at the end of Phase I :
The five Public Sector Undertakings (PSUs) namely SJVNL (5
Jan2011), Numaligarh Refinery Limited (26 September 2011),
Engineers India Ltd (7 November 2011), Pawan Hans Helicopters(9
November 2011) and Orissa Power Generation Corporation (OPGC)
20 December 2011 have adopted Integrity Pact (IP) by entering MoU
In this phase we achieved a major breakthrough when OPGC became
first state PSU to adopt IP.
Jindal Power and GMR has shown interest in IP , preliminary talks
has been done.
TII has three rounds of meeting with representatives from
Confederation of Indian Industries (CII), for advocacy of IP among
Department of Expenditure (Ministry of Finance) and Department of
Public Enterprise (Ministry of Heavy Industries) have issued office
memorandum recommending adoption of Integrity Pact .
TII will continue advocating IP to Central PSUs and we expect
at least 4 more PSUs adopt IP in phase II
State PSUs is an unexplored area , we will also advocate IP to all
state government and Union territories Administrators .
We are sure that at least one or two big private sector companies
will come upfront and adopt IP in phase II.
Till date only PSUs have adopted IP , in phase II we will also
focus on adoption of IP by Governmental Departments.
Objective 2) To strengthen the effectiveness of Integrity Pact by
monitoring public procurement of IP signatories Public Sector
Undertakings (PSUs) and other organizations and also fine-tuning
of IP program.
Status at the end of Phase I :
During this phase , complaints received were forwarded (with
feedback from TII)to Monitors and vigilance officer for necessary
In case of one of the Coal companies Central Coalfields Limited(CCL)
TII convened meeting of Officers , Bidders and Independent External
Monitors ( IEM) , issues related to petition of Bidders Revathi
Equipment and Altas Copco were discussed & TII forwarded its
recommendation to Chairman CCL
Complaints related to procurement in Damodar Valley Corporation
(DVC ) ,corruption in recruitment in Bhilai plant of Steel Authority Of
India Ltd. (SAIL) were also received and forwarded to CVC ,
complaints have been registered and enquiry is going on.
The survey carried out by TII to measure effectiveness of IP , has
indirectly helped a lot in monitoring of IP as being implemented in
Unlike Central PSUs where monitors are appointed by CVC , in the
state PSU , TII has started appointing IEMs, so a civil society like TII is
directly involved in the monitoring of public procurement.
TII will continue receiving complaints from aggrieved parties
and will follow up with concern authorizes.
TII will also continue with his role as facilitator to the PSUs and
In this phase TII with help of monitors will randomly scrutinize
some of the IP implemented projects , to evaluate impact of
Integrity Pact in the execution stage of the project.
TII will conduct a survey to study impact of cartelization and
collusive corruption on the public procurement , in selected
sectors and will submit it findings and recommendation to the
Government of India.
TII will also engage national and international experts to train
officials and CSOs member, on identification of red-flags in the
3) Fine tuning of IP program , in order to achieve desired results
as being highlighted in the in the assessment report published
after phase I .
This additional objective has been added in phase II .Based on the
findings of the Impact Assessment Report , TII will carry out follow up
activities for effective implementation of IP.
2. About the Implementing Organisation
Transparency International India (TII) came into existence in 1997 as a
non-governmental, non-party and not-for-profit organization for Indian
citizens with professional, social, industrial or academic experience
seeking to promote transparent and ethical governance and to eradicate
corruption in India. It is an accredited national chapter of Transparency
International (TI), an international civil society organization based in
Berlin that has turned to fight against corruption into a worldwide
movement. It is registered in India as a Non-Governmental Organization
under Societies Act 1860 (Registration No. S-32570 of 1998) of NCT of
Delhi. The organization is part of the Asia Pacific forum comprising 20
nations including China, Sri Lanka, Bangladesh, Pakistan, and
Maldives among others.
TII is working on various anti-corruption tools to reduce corruption to
make a robust and developed India. Since its inception, TII has initiated
three programmes in India, namely:
Integrity Pact (IP): An effective and successful anti-corruption tool
of TII in the field of public contracting. After an effective advocacy
initiated by TII, the Central Vigilance Commission (CVC) adopted
it in 2007. The process includes an agreement between a
governmental /governmental department and all bidders for a
public sector contract. The IP sets out its rights and obligations to
the effect that neither party will pay, offer, demand or accept
bribes, or collude with competitors while trying to obtain the
contract, while carrying it out and/or after its completion. If
violations occur, then sanctions will apply. Companies and
governments alike stand to benefit from IPs. The IP has shown
itself to be adaptable to many legal settings and flexible in its
application. Since its inception, 44 Public Sector Units (PSUs) have
signed the Memorandum of Understanding (MoU) and are actively
implementing the Integrity Pact in their respective units. Recent
memorandum from Ministry of Finance and Ministry of Heavy
Industries have given impetus to advocacy of IP.
Pahal, Shaasan Sudhar ki Ore: This initiative was a logical step
taken after TII’s India Corruption Study 2008, which was
enunciated to measure the extent of bribes paid by the rural
below poverty line (BPL) households to avail the eleven basic
(PDS, Hospitals, School Education, Electricity, Water Supply) and
need based services (Land Records, Housing, Forest, NREGS,
Banking & Police). The key objective behind this initiative is to
work towards transparent and accountable governance structures
along with the rural masses, village leaders, government officials
and civil society groups to empower the poor and marginalized
rural people, to demand and access their entitlements and public
services. It is expected that with knowledge about tools of good
governance like RTI, social audit, revived gram sabhas, there
would be an increased usage of these tools in accessing
information and entitlements. TII has implemented this initiative
in three states – Chhattisgarh, Orissa and Jharkhand – since April
2009 with further plans for expansion.
Development Pact: It is an instrument developed by TII, designed
to help disadvantaged groups, to increase their participation and
oversight in development processes and to monitor the
performance of their elected representatives and administrative
officials. It is a tool to mobilize and sustain political will by
facilitating mutually beneficial pacts between local authority,
elected representatives, and community including its vulnerable
groups. The final beneficiaries are vulnerable groups,
communities and civil society organizations, who benefit from
pro-active disclosure of information and increased spaces for
participating in policy consultations. This initiative is in its
planning stage and has yet to be implemented.
Advocacy and Legal Advice Centre (ALAC): TII with support from
TI-S has established these centre in Delhi, Ranchi ,Bhubaneswar ,
Jaipur Patna nd Chennai, to take up cases of individual corruption
TII is governed by 15 members Board of Management which
internally elects the Chairman, Vice Chairman, and Treasurer. The
Executive Director is answerable to the Board. TII has a team of
15 paid staff and national network encompassing 547 individuals
in the field of administration, law, social work, industries and
TII is associated with important issues in relation to political and
electoral reforms (Enactment of legislation for Parliamentary
Ombudsman, Ratification of UNCAC, preventing criminals from
contesting elections, transparency in political finance,
development pacts), governance reforms (India Corruption
Studies, national and regional seminars and people’s movement in
rural areas), corporate reforms (Integrity Pacts with CVC and
public sector units for transparency in public procurement), etc
The proposed initiative builds on this work as well as derives
experiences from the global movement of other TI Chapters for social
3. Project Context
Corruption is defined by Transparency International as “the abuse of
entrusted power for private gain”. Although India has made
considerable progress in its growth and development, it is yet a victim
of corruption. Corruption pervades every aspect of society and hinders
its progress within its borders. According to the Corruption Perception
Index of Transparency International from 2011; India ranks 95th
amongst 180 countries
India’s importance cannot be denied in the global economy. It is one of
the fastest growing countries with a growth rate of around 8%. The
investment market has been booming with large flows of FDI into India
since the economic policies adopted by the Government in the early 90s,
calling for liberalization and deregulation of its economy. But such a
drastic and fast paced growth rate does not come without its share of
problems. Corruption pervades every aspect of society when dealing
with governmental bodies. With this in mind, the Parliament launched
the Right to Information Act (2005) allowing citizen’s access to records
of the central government as well as the state government. Under the
provisions of the Act, any citizen (excluding the citizens within J&K)
may request information from a "public authority" (a body of
Government or "instrumentality of State"), which is required to reply
expeditiously or within thirty days. To ensure effective implementation
of this Act, the assistance of civil society organizations are pertinent in
assisting ordinary citizens for their rights to receive information and to
ensure efficient provision of government services.
TII has worked closely with the important stakeholders, state and
national policy makers, vigilance bodies, civil society and political
leadership to facilitate reforms in various sectors for the past 13 years
and has succeeded in transforming them into concrete policies and
actions on ground.
The adoption of Integrity Pact of TII by Central Vigilance Commission,
the Ministry of Defence in 2007, the Ministry of Personnel & Training
for all the States, its endorsement by the Prime Minister of India in
2009, adoption of citizen’s charters by the Delhi government in 2006
and its revision in 2009, etc are a few examples of evidence-based
advocacy works of TI India for policy reforms to fight corruption.
Till date 44 big Public Sector Undertakings (PSUs) have signed MoU
with TII, to implement IP in their public procurement. TII has played an
important role in advocacy of IP. By organizing workshops, meeting and
Focus Group Discussions, it has highlighted various grey areas in
effective monitoring of public procurement. TII has also prepared
guidelines to help various stakeholders of IP and these guidelines were
derived based from the outcome of many recommendations and
suggestions through various meetings and discussions.
Defence Minister, Central Vigilance Commission and other stakeholders
of IP have appreciated the efforts of TII. In case of complaints related to
IP, TII has actively intervened and helped the aggrieved party. By
institutionalizing activities of IP under IP cell, TII believes the cases of
violation of IP can then be pursued more effectively and in turn,
enabling to monitor public procurement more rapidly.
Currently, the TII network is one of the best positioned and credible
civil societies to advocate the wants for reforms favouring open public
budgeting, social audits, legislation for the universal adoption of
citizen’s charters and establishment of local self-government in all
WE have received mixed results from the survey done to assessment
impact of IP in making procurement system more transparent . There
are certain key issues that need to be addressed this phase will focus on
4. Project Goal
To improve the effectiveness, credibility and sustainability of the
Integrity Pact as a means for increased transparency and accountability
on public contracting processes and systems
5. Project Objectives
The objectives of this goal are three-folds:
To increase the influence of Integrity Pact through the inclusion
of more PSU’s as well as governmental and private sector within
To strengthen the effectiveness of Integrity Pact by monitoring
public procurement of IP signatories Public Sector Undertakings
Fine tuning of IP program , in order to achieve desired results as
being highlighted in the report published after phase I .
6. Project Strategies to Attain Objectives
To achieve these objectives, TII ‘s IP cell will focus on
2) Monitoring and Evaluation
Apart from the internal staffing, TII also engages resourceful individuals
and volunteers from time to time to achieve these objectives. TII has
also been widely supported by Central Vigilance Commission, Anti-
Corruption Agency of Government of India, in advocacy of IP, and we
remain positively hopeful for the continuation of such support.
TII will also partner with civil society organizations, anti – corruption
units of state government and media in states, for effective
implementation of this project. TII will also rope in experts from TI’s
secretariat to enhance capacities of monitors to identify red flags in
We will also submit our findings to various departments,
ministries , confederation of Industries members of Parliament ,
members of Legislative Assemblies for policy level interventions.
7. Project Activities
Objective 1: To increase the influence of Integrity Pact through the
inclusion of more PSU’s as well as governmental and private
sectors within the programme
IP cell will perform the following activities effectively in line with the
implementation of the objectives that has been set forth within the IP
cell, in achieving its goal towards eradication of corruption within
Within the public sectors, the activities to be carried out shall
encompass the following:
Inclusion of more PSU’s into the programme to increase the
impact of a corruption free environment within public
procurement. IP cell will be responsible for widening the IP
base and to include different government organizations
such as state, municipal corporations, etc within IP.
Capacity building and information dissemination for the
purpose of providing knowledge to different stakeholders
within the programme to enable them to tackle corruption.
This initiative will be possible through trainings sessions,
focus groups discussions and workshops of Independent
External Monitors, Central Vigilance Officers and nodal
officers which will take place on a regular basis, enabling
one to maintain contact with the different stakeholders in
order to learn and to share insights derived from their
experiences through the implementation of IP and this
indirectly serves as a learning and communication tool, the
cheapest and most convenient way, which only TII can
Within the private sector, the following are to be carried out by
the said department:
Inclusion of the involvement of private sectors within the
ambit of IP by way of rendering invitations to the
companies from the private sectors to sign the IP. For a long
time, the private sectors have shown great interest to be a
part of the Integrity Pact. TII has, up to date, outpoured its
effort within the region of public sectors only. The process
of including the private sector seems to be the next logical
step now. In public procurement, a great number of private
sectors are seen to be involved and in order to achieve the
goal of reducing corruption in public procurement, it is
imperative to have all parties who are affected by this
process to come on board and be part of the Integrity Pact
programme. In the first phase Jindal steel &Power, GMR
have shown interest in adopting IP. We are also in touch
with Confederation of Indian Industries (CII) for advocacy
of IP among private sector.
Collaboration with civil society organizations, the media and any
other like-minded organisations, in working towards preventing
corruption in public procurement and in the process of doing so,
learning to understand the mechanism and the role played by
these different entities in preventing corruption and to work
jointly with these entities to organize events and conduct
independent studies, etc.
Creation and distribution of reports , latest findings & newsletters
to all stakeholders and individuals/ organizations working within
the sphere of public procurement. These deliverables shall serve
as an information provider and as a base measurement on the
effectiveness of the implementation of IP and shall forthwith
address the following issues:
Experiences of Independent External Monitors in the
performance of their functions as outlined in the IP contract
Best and worst practices of different PSU’s, bidders and
other stakeholders in the implementation of the Integrity
Work of IP cell in its activities to strengthen the IP
Objective 2: To strengthen the effectiveness of Integrity Pact by
monitoring public procurement of IP signatories Public Sector
MONITORING AND EVALUATION
From the outset, it has been expected that civil society in the respective
country would play a key role in overseeing and monitoring the full
implementation of the IP correctly. A strong monitoring mechanism will
lead TII to obtain all the information, which will help towards creating a
credible and fair governance system of public procurement within India.
Monitoring of the IP programme is essential in order to reach the
objective of its overall goal. If executed properly, it shall be a useful tool
for good management, acting as a useful base provider for evaluation.
Therefore, the monitoring and evaluation department within the IP cell
will be a responsible for strengthening the impact of the IP programme.
This unit is accountable in monitoring the public procurement activities
of the existing PSU’s who have marked their signatures on the IP
contract as well as monitoring the activities of the future signatories of
the IP contract. This department shall thus implement the following:
Address complaints to the IP, based on the primary issues raised
by the parties to TII. With regards to complaints, the advice of a
panel of learned experts will be sought, whose experience are
encapsulated from various diversified background collectively
with domain and profound tendering knowledge of the thorough
workings of those industries in which the signatories to the
Integrity Pact are professionally engaged in. Beyond this, the
panel shall also consist of corporate lawyer whose base of
expertise is strictly planted within the field of public procurement
contracts. The panel of experts shall provide advice on a voluntary
basis within this unit of IP cell and such advises will be provided
in line with the complaints received and in tackling the issues, the
panel will work together with the concerned PSU.
To determine the impact of IP, TII will have review meeting with
all IP compliant PSUs.
Preparation of an impact assessment on a yearly basis of the
overall IP programme will be enunciated by IP cell. It will be
based on the information received from the various review
meetings as well as from other sources through focus group
discussions, meetings held with the principal IP stakeholders,
complaints received by this department and as well as
information received from bidders etc.
The Phase I survey report talks about collusive corruption and
presence of cartels in many IP complaint PSUs, we will also carry
out a survey to assess their presence , and also submit our
recommendation to various ministries in order to address
cartelization and collusive corruption.
CVC has issued Standard Operating Procedure , for all IP
compliant PSUs , we will also through, our review meeting , will
try to find out , how far the SOP is being properly implemented in
these PSUs and report it to CVC.
Objective 3: Fine tuning of IP program , in order to achieve
desired results as being highlighted in the in the assessment
report published after phase I .
The activities will be guided by the observations and findings of
Assessment survey done in Phase I.
GENERAL OBSERVATIONS AND SUGGESTIONS
1) Sub-contractor must be a part of IP process and program
2) In case of any default in various provisions of IP including bribery
by sub-contractor, the contractor has to be held responsible and
3) Every IP compliant PSU should also sign IP document of Principal
while participating in bidding process.
4) There are various instances, where bribes are routed through
sub-contractors, big bidder companies, including MNCs.
5) No cases of Bribery have been reported.
6) Almost all respondents feel that there is a need of IP like tool in
India, and this tool is to be further fine tuned by taking feedback
7) Almost all respondents feel satisfied with role played by CVC and
TII. Major chunk of the bidders feel that TII has to be more
proactive in terms of advocacy of IP and complaint redressal.
8) Almost all PSUs feel that they are not overburdened with
expenses on IEMs.
9) No PSU and CVO feels that IEM(s) is/ are duplicating the work of
10) Some PSUs are changing nomenclature of External independent
Monitor for Independent External Monitor (IEM), TII suggest a
common nomenclature of Independent External Monitor should
be used by all.
11) Interactive meetings with IEMs should be conducted more
frequently and at regular intervals for speedier review of cases
Minutes of IEM-Management meeting, annual report submitted by
IEMs, action taken report on complaints be uploaded on the PSUs
Since maximum IEMs are retired bureaucrats, there is a need to
diversify them among persons of impeccable integrity and having
domain knowledge. They may be from private sector, academics,
NGOs, Media, PSUs etc.
IEM must submit annual report pertaining to implementation of
IP to the concerned CMD, with a copy to CVC and TII.
Private sector is no more victim of corruption. Instead they
are instrumental and hand-in-gloves with public officers.
Bribery among officials of private firms is rampant. They
pay bribes to others to get deals successfully done.
Government must bring a strong deterrent tool to curb
corruption in private sector.
Multinational and World Bank:
A few PSUs have reported that World Bank doesn’t allow its
funded project to be a part of IP program. TII and TI-S can
take up this matter with WB Officials.
List of all bidding companies which are not signing IP, must
be displayed on concerned PSUs’ and TII’s website. In case
of a foreign multinational, TII may raise and pursue this
matter with their counterparts located in the countries
The findings of this report have provided considerable insight into the
beliefs of IEMs etc. as they relate to meaningful involvement in
consulting service acquisition processes. While these views have some
limitations, they may be considered as a basis for improving the way
that public organizations make purchases. These findings also
contribute to the development of the public purchasing field by filling
some considerable gaps in the procurement. These results can also be
used to improve organizational effectiveness and as a foundation for
ACTION POINT FOR STAKEHOLDERS
Central 1) Address issues raised by BHEL, OIL and other PSUs.
Vigilance 2) Designate an official for IP related work.
Commission 3) More constructive engagement with IEMs.
(CVC) 4) Convene a meeting of stakeholders from CIL and its
subsidiaries for effective implementation of IP.
5) Coordinate with other anti-corruption organizations
to promote IP in other sectors.
6) Suggest a uniform mechanism for complaint
Transparency 1) Effective engagement with CVC, PSUs , IEMs and
International Bidders .
India 2) Organize more workshop and meetings to educate
(TII) stakeholders about IP.
3) Engage constructively with private sector, for
advocacy and implementation of IP.
IP Compliant 1) Regular interaction with IEMs
PSUs 2) More frequent bidders meet.
3) Quantify results from IP.
4) Share all relevant documents on IP, including
minutes of the meeting with TII.
IEMs 1) More frequent interaction with stakeholders.
2) Share their findings with TII, so that it can circulate
among all stakeholders for effective peer learning.
Dimensions of procurement process that have been taken care by
while implementing IP in an organization.
1. Finding the proper balance between over- and under-
centralization: A centralized procurement function fosters
economies of scale in purchasing, eases enforcement of
procurement rules, and makes for a more transparent process to
vendors. However, a hyper-centralized function may be too slow
and unresponsive to unique needs of organizational sub-divisions.
Effective procurement finds the happy medium between the two
2. Maintenance of an ethical operating environment. All actors
(government employees, vendors, and elected officials) must be
aware of the legal-ethical environment in which they operate. This
requires constant training as well as clear guidelines for what
constitutes legal procedure;
3. Benchmarks for success and practice. Those in charge of the
procurement process need to know what is the “good”
procurement. Is “good” procurement based on cost? On quality?
How long should procurement take? These are but a few of the
questions that should be addressed on an on-going basis if one is
to determine the success or failure of the procurement function.
4. Maintaining a transparent operation: A frequently mentioned
attribute of a “good” procurement process is transparency. All
actors in the system should know what is expected of them in
terms of procedures and outcome. Where ever there is a doubt,
procedures should be in place to clarify to the vendors what is
expected from them. Government employees should understand
how they must behave in contractual specification and award.
5. Emphasizing the importance of on-going training:
Procurement is a highly specialized profession. Like any other
profession, it requires training and commitment to professional
norms. There is a need for participation in professional
conferences and continuing education as sine quo non.
6. Adoption of e-Procurement while understanding its
limitations. The internet has tremendous potential for
procurement. It can broaden the bidding pool while speeding up
the bidding process. It can also foster a more transparent process
by virtue of the speed and ease by which information can be
disseminated. On the other hand, recent experience suggests the
e-procurement is not without its shortcomings. Implementation
is expensive, particularly if advanced automated bidding software
is adopted. Procurement personnel and vendors need training
prior to implementation. e-procurement may bring out-of-
jurisdiction (or even foreign) vendors, creating potential conflict
with current procurement rules. Hence, it is recommended that a
roll-out should be tested in one or two functions before
organization-wide implementation; the upshot is that the internet
and procurement is a potent match but start-up can be time-
consuming and costly. Smaller cities and organizations may find
that e-procurement is limited to posting of Request of Proposal
(RFP)’s and the like.
7. Relationship management with vendors must be on-going.
Successful procurement, particularly in contracting and
outsourcing, requires ongoing contact with vendors to assess
results and outcomes. Successful procurement requires weeding
out of low quality vendors and constant outreach to those that
satisfy the cost and outcomes associated with the benchmarks
established before the award of contract. Maintenance of sound
relationship with vendors is not only defined in “letter-of-the-law”
aspects of procurement; actors must also realize the import of
partnering with vendors as a means of achieving strategic
organizational goals. This requires a high degree of
professionalism and strong interpersonal skills.
Adopting 1st April 2012 as reference for the initiation of the project, the
Time Frame for all activities is seen as follows:
Sl No. Activity Time limit
1. Address complaints received from IP 15 April 2012 to 14
stakeholders April 2013.
2. Monitoring of Public Procurement in 15 April 2012 to 14
the PSUs. April 2013.
3 Regional workshop at Lucknow , for
Advocacy of IP at state level. Capacity 30 June 2012
building of nodal officers, monitors and
CVO’s and collaboration with civil
society organizations and other like-
minded individuals / organizations
4. Regional workshop at Bengaluru , for 30 July 2012
Advocacy of IP at state level. Capacity
building of nodal officers, monitors and
CVO’s and collaboration with civil
society organizations and other like-
minded individuals / organizations
5. Regional workshop at Mumbai, for 15 November 2012
Advocacy of IP at state level and
Private Sector. Capacity building of
nodal officers, monitors and CVO’s and
collaboration with civil society
organizations and other like-minded
individuals / organizations
6. Orientation session for Independent 15 January 2013
External Monitor , CSO representative
Delhi , to identify red flags in public
7 Inclusion of more PSU’s/ government 1 April 2012 to 30
departments/ municipal corporations March 2013
and expansion of the program to
include private sector actors within the
ambit of public contracting
8 Creation and distribution of a quarterly 1July 2012, 1 October
newsletter. 2012, 1 January 2013,
1 April 2013
9 Conduct an evaluation study to assess 1 June 2012 -30
presence of cartels and collusive September 2012
corruption in Coal Oil and Gas sector.
10 Report writing and its release 1 October -15
11. Management of staff, finances and 15 April 2012 to 14
other logistics of the IP cell April 2013.
12. Quarterly monitoring of progress of the 15July 2012, 15
project October 2012, 15
January 2013, 14 April
8. Geographical Area of work and Time Frame
The Geographical area will cover almost all parts of India, as TII will
be focusing on all the PSUs who have signed IP MoU. The area shall
be divided into four zones and our activities will be carried out in
these zones. Please find the reference list of PSUs and their locations
for your easy reference, as attached.
9. Expected Results and Targets
Activities Targets Result
Inclusion of more Public and More Public and Private
PSU’s/ government Private sector sector companies are within
departments/ companies, we the ambit of IP
municipal corporations are expecting
and expansion of the 4 PSUs and at
program to include least one big
private sectors within Private
the ambit of public companies to
contracting adopt IP
Capacity building of 1) Increase the domain
nodal officers, monitors Independent knowledge of IEM’s and
and Chief Vigilance External their capacity to identify
Officers (CVOs )through Monitors red flags within the
organization of training (IEMs). tendering process
and workshops and 2) Chief Dissemination of
collaboration with civil Vigilance knowledge to nodal officer
society organizations Officer of IP within the
and other like-minded (CVO). organization
individuals / 3) Nodal With respect to CVO’s, it
organizations Officers of will enhance the role of
the PSUs. vigilance department to
4) Civil curb corruption in public
Organization Pool in resources with
s (CSOs). CSO’s/like minded
5) Individual individual etc to work
citizen together to achieve the
Creation and 6)Independen Information dissemination
distribution of a t External & creating awareness of IP
newsletter, reports , Monitors
Monitoring & Evaluation:
Address complaints IP Satisfaction of aggrieved
received from IP stakeholders party.
stakeholders like bidder,
Review meeting with PSUs, IEMs, Measure the effectiveness
stakeholders Bidders of the IP program
individual IP principal
Level of satisfaction from
the different stakeholders
Evaluation of the some
tender contracts from the
pre-bidding stage to the
successful completion of
the bidding process
Conduct an evaluation PSUs and Policy level interventions
study to assess presence of Private from Govt to tackle
cartels and collusive bidders. cartelization in PSUs.
corruption in Coal Oil and Stringent Laws to tackle
Gas sector. corruption in private
Manage the staff, Internal Level of satisfaction of staff
finances, and other staff members of IP cell.
logistics of the IP cell Ensure smooth functioning
of the IP cell within TII
10. Organisational Team and Roles
The work of TII would not be made possible without the expertise,
learned input and contribution from the board of directors, staff as well
as its members. The organizational team can thus be divided in two
a) Paid Staff; and
Project Director – IP Cell: The Project director is in-charge of the
effective functioning of the IP cell and the staff within the cell will be
under his charge. His responsibilities will include:
Supervise the functioning of IP cell within TII
Raise funds for activities of IP cell
Represent IP cell at various events including internal as well as
Ensure that the various departments are performing their work as
per the responsibilities assigned
Represent the IP cell at meetings with the TII board
Will coordinate with PTF on all issues.
Maintain relations with existing PSU’s and work towards inviting
more PSU’s as well as state departments and municipal
corporations to sign the IP
Organization, preparation and logistics of workshops, meetings,
seminars etc on a regular basis to enhance capacity building and
knowledge management for the different stakeholders within the
Create and build relationship with companies within the private
sector for the purposes of inclusion within the IP programme
Collaboration with civil society organizations, like-minded
organizations and media to work jointly on events and organize
studies with the purpose of creating awareness about the anti-
corruption movement within public contracting
Creation and distribution of a quarterly newsletter highlighting
the activities of the IP cell as well as the different IP stakeholders
Attend to complaints as and when they arise from different
stakeholders of IP and seeking the advice of panel of experts on
Work with an external agency or internal staff whose services will
be sought to evaluate presence of cartels and collusive corruption
in Core sector (Mining and Oil& Gas)
Conduct an independent assessment of the effectiveness of the IP
programme on a yearly basis to determine the effectiveness of the
Assistant Project Coordinator:
He will assist Project Director in carrying out various activities as
Perform any other activities as assigned by the IP Cell within TII
Manager – General Administration and Finance:
The incumbent will be in-charge of handling the effective functioning of
the IP cell and to that extent her/his duties will include:
Prepare and monitor annual budget of the project
Prepare vouchers and maintain books of accounts
Manage cash and bank transactions
Prepare monthly bank reconciliation statement
Prepare periodic financial reports
Assist in the procurement of goods and services
Manage store and fixed assets of the project
Provide support to internal and external auditor
Manage the logistics of the functioning of the office
Follow up on the attendance of staff
Maintain and update personal files of the staff
Conduct performance evaluation of project staff
Collaborate with members of other units within IP cell
Perform any other relevant tasks assigned by the Project Director.
Will assist Project Director in all desired activities.
Will maintain official website and will keep it updated.
Manage follow up activities of IP cell.
Will maintain database of journalist, civil society organizations,
and other important stakeholders.
Perform any other relevant tasks assigned by the Project Director.
Panel of Experts: It consists volunteers who can be member of TII or
from outside and TII will also engage resource persons who have
domain knowledge and experience of the subject. Resource person will
be entitled for stipend. Project Director will convene meeting of the
Panel of Experts, the various issues that will be discussed by panel of
experts will include:
1) Complaints related to Integrity pact
2) Analysing results from various surveys and discussions
3) Monitoring of Public Procurement
4) Liaison with Private sector, media and other civil society
State Chapters: TII will also engage state chapters (U.P., Orissa and
Tamil Nadu) and members from rest of India, in order to monitor public
procurement. These members will also help in advocacy of IP for both
Public and private companies.
11. Role of Community Organisations in Objective Achievement
TII will collaborate with different civil society organizations working in
different states and outside India also for effective advocacy and
monitoring of IP:
Role of CSOs can be seen at two levels.
1) Advocacy of Integrity Pact (IP) :
a) CSOs will play a vital role in dissemination of knowledge related
Integrity Pact (IP) by holding meetings , and they will liaison with
officials , politicians , media and other civil society members making
case for adopting IP , TII will provide all desired assistance in forms of
training to volunteers by organizing orientation sessions, providing
reference material on Integrity Pact.
2) Monitoring of Integrity Pact: CSOs will act as watchdog of Integrity
Pact in their respective areas, in case of any irregularities in
implementation of Integrity Pact with in IP compliant Public Sector
Undertaking (PSUs), State PSUs, any other governmental, private
organizations and Municipal Corporation, the CSO concerned will
report it to TII.
In phase one we have collaborated with Youth for Social Development ,
a Orissa based NGO , we have also invited representatives from various
CSOs in our workshops meeting etc. We feel that there is a need to train
the representatives of CSOs.
We will also be in touch with various other CAC program partner NGOs.
Many of the IP complaint PSUs are operating in different countries and
many of their bidders are Multinationals (fig 2) , we will also collaborate
with different TI chapter especially Nepal Srilanka , Bangladesh
Germany, UK, Canada and USA for effective monitoring of IP and also
addressing issues raised by these companies.
12.. Activities in Constructive Engagement
TII has been actively supported by Central Vigilance commission (CVC)
in advocacy of Integrity Pact. We have received support from Second
Administrative Reform Commission , Department of Personal and
Training , State Govt of Orissa.
. The MoU signed between TII and 44 PSUs dwells on periodic review,
and it gives a legitimate power to TII, to know about actual
implementation of Integrity Pact.
Many Independent External Monitors, who are actual monitors of this
pact, have shown their willingness and determination to assist TII to
carry out such a project.
Presence of CVC officials CVOs, Monitors and representatives of the
PSUs in various TII’s workshop and meetings , is an active sign of
constructive engagement .
The stories related to IP , report release has got wider coverage from
Media both print and electronic and we are confident of getting same
support in our second phase.
13. Activities to promote peer learning
TII strongly supports and will initiate several further activities to
promote the peer learning. Workshops , orientation sessions and Focus
Group Discussion will not only help target audiences like IEM, CVO,
nodal officers but it will enlighten intelligentsia , academicians, students
and other civil society organization , to know about nitty-gritty of
corruption in public procurement. National conferences and workshops
will be a great help factor in the sharing of experiences. In the first
phase we have organized four workshop and many review meetings , it
has helped a lot in promoting peer learning and we will continue doing
Furthermore Transparency International and Transparency
International India publicize a lot of booklets, guidebooks and flyers
each year to present the newest scientific background of the issue of
corruption in public procurement. These publications provide scientific
basics as well as acting incentives and supports for the grass line in the
fight against corruption.
TII’s website will play an important role in peer learning by keeping
citizens abreast on the latest development in field of Integrity Pact.
TII will update all activities related to IP cell on its website. We will also
use social networking site like Facebook, for advocacy of IP.
14. Initiatives for Sustainability
Institutional Sustainability: Monitoring is an important part of
Integrity Pact. Appointment of Independent External Monitors (IEMs) is
one of the Prerequisite for adopting IP, so once IP’s Memorandum of
Understanding (MoU) is signed by the organization with TII; IEMs will
act as watch dog for monitoring. Apart from this provision, there is a
clause in MoU which talks of periodical review of Integrity Pact by TII.
A Nodal officer is to be appointed in the organization who will deal with
all issues related to Integrity Pact.
All these provisions will help in Institutional sustainability.
Technological sustainability:. Domain knowledge (public
procurement) of staff and TII members will further spread out the
accomplishment in carrying out the project. TII also is equipped with
the formation of a group of experts, who are aptly able to provide their
services as and when required.
In summary, the knowledge base of this project encompasses a field of
wide variety, containing experts with long running experience, who
adopt the tag as volunteers with pride.
Financial Sustainability: A portion of the total project costs will be
managed by TII, having its own corporate support form funds, used in
cases of emergency. Ancillary to this, CSO administers part of the
expenditures, to reach a financial sustainability. For Bihar related
activities we are getting support from The Asia Foundation. In Phase I
we have raised additional funds from other sources also and will
continue doing same in the Phase II.
Social Sustainability: An ongoing interest of the government is to solve
issues of corruption. The corruption in India has already reached an
alarming level, as the last TI Corruption Perception Index 2011 shows
(placed at 95 of 180). This project fights against the corruption in public
procurements. It highlights the issues of corruption within the realm of
business sectors, vociferously awakening the executives. Corruption
hurts the poorest most. Corruption prevents an effective and lucrative
work within the private and public sectors. Due of Corruption, the
reputation of the public and private sectors has taken a serious downfall
.The mechanism of the invisible hand can’t work, in short, it simply
means that the crime of bribery does not only waste the resources of
the country but it also dissemble the basements of the free market
system. To ensure that the economical improvement of India can glide
through, we have to lower the corruption level in our society. This
project basically propagates this.
In wanting to provide the highest social sustainability, TII will strictly
focus on advocacy as well as on its achievement in monitoring of public
The result and feedback from stakeholders received during Phase I
makes this project a socially sustainable project.
15. Monitoring & Evaluation
The activities of the project will be monitored by the Project Director;
he will provide an executive report about the fulfilment of the targets
and aims, the problems in the ongoing processes. To make sure that no
information got lost, the executive auditing should also be controlled by
an external trustworthy authority. This external authority can be a
department of Transparency International India or a committee of
Monitoring and Evaluation of the project will be done at two levels.
Level one will consist of internal monitoring. TII will form a committee
of experts who will monitor the functioning of IP cell. The achievements,
outcome and financial details will be monitored. Project Director will
provide all desired assistance. Apart from monitoring of activities,
performance of the paid staff will evaluated by Project Director, who
will in turn submit it report to the committee of experts.
On completion of project TII will engage external auditors to audit
accounts of IP cell. TII will also rope in External experts to evaluate
activities and functioning of IP cell. Quality, vitality and feasibility,
relevance and effectiveness will be one of the few parameters for
Periodicity of Monitoring:
1) Internal monitoring:
a) By Project Director: It will be throughout the year.
b) By Committee of Experts: Quarterly.
2) External Monitoring: Once in year, after completion of the
16. Summary of Budget
The total budget needed is calculated by INR 16,69,000.00 The main
part of this amount (75%) will be provided by the Partnership for
Transparency Fund(PTF), they administer INR
12,51,750.00($25,035.12). The remaining, INR 4,17,250 is to be
managed by TII.
The budget covers all relevant expenditures. Human resources cost,
office expenses and the costs of the activities are included in the
calculation. The activity expanses are in detail the expenses for three
regional workshops, the expenses for an orientation session, field visits
to PSUs, a survey, printing of communication and the cost of the
monitoring of the project.
17. Risks and Assumptions
1) Threats from corrupt government officials and coal mafias.
2) Issues related to corruption in public procurement may not
generate expected interest in the public, so there is fear of losing
social relevance of the project.
3) Integrity of Volunteers and staff.
4) There is a possibility that bidders form a cartel and don’t report
violations of Integrity Pact.
1) IP cell may not receive active support from anti- corruption
2) Monitors may not cooperate with TII.
3) Public Sector Undertaking’s official may not provide all desired
4) Project cost may exceed beyond the budget.