New Delhi, Apr 17: Oil and Natural Gas Corporation Ltd. (ONGC) has become one of the first company in the country to institutionalise transparency in its public procurement practices by formally entering into an MoU with 'Transparency International', (TI) India.
The MoU was signed today by Chairman and Managing Director, ONGC Subir Raha and Admiral R K Tahliani, former Chief of Naval Staff, who is spear-heading TI, India in the presence of Central Vigilance Commissioner (CVC) P Shankar.
ONGC is the first corporate in the country, public and private combined, to adopt the Integrity Pact (IP) in its procurement and contract practices. While the pact has been adopted in ONGC contract system since July- August 2005, the MoU was formalized in a brief function, held here today.
Under this MoU, ONGC is committed to implement the Integrity Pact Programme in letter and spirit; and TI pledges to support ONGC and provide it with advice and resources to ensure successful implementation of Integrity Pact and achievement of its objectives.
Integrity Pact (IP) is a tool devised by Transparency International (TI) worldwide to fight corruption in public contracting, thus contributing to improve credibility of public procedures and administration. The model of this document is based on the Berlin Airport reconstruction project and meets the legal criteria for a multinational bidding project.
The Integrity Pact (IP) would begin when a bidder submits an _Expression of Interest (EoI) or purchases the bid document (ONGC countersigns the IP) and would end after the execution of the contract when all payments are made to the satisfaction of both the contacting parties.
The Independent External Monitor would be chosen upfront and will be involved from day one and all complaints by any party would be directly referred to the Monitor.
The Independent External Monitors will be drawn from a panel of eminent people chosen by the Central Vigilance Commissioner (CVC). A list of Independent External Monitors has already been drawn up for ONGC.
ONGC has spent more than 2 billion US dollars in the last one year on major contracts, and will be spending 3.5 to 4 billion US dollars in the near future, apart from the revenue contracts, which add up to another Rs. 4000 Crore rupees annually.
Speaking on the occasion Mr. Subir Raha said that ONGC incurred capital expenditure of about Rs. 40, 000 Crore in the last five years. Adoption of the Integrity Pact, along with assiduous follow up of existing guidelines would further strengthen the existing system to improve performance of the company and the image of the country.
The CVC, Mr P Shankar, commended Mr Raha, for adopting the Integrity Pact (IP) in ONGC, the Most Valuable Corporate of India.
He said, there is a strong imperative to bring large infrastructure driven Government and Public Sector Organisations under its umbrella to enhance the national image.