In a recent development, the Central Vigilance Commission (CVC) has updated the Standard Operating Procedure (SOP) on the adoption of “Integrity Pact” in government organizations related to procurement activities. This new order modifies the SOP which was previously issued in January 2017. Additionally, the CVC has put a limit on the maximum tenure of Integrity External Monitors (IEMs) to three years within an organization.
Understanding the Integrity Pact
The Integrity Pact is a tool used for maintaining vigilance, involving an agreement between potential vendors/bidders and the buyer. This pact is designed to prevent any corrupt influence on any part of the contract by either party involved. Furthermore, it promotes transparency, equity, and competitiveness in public procurement.
Role of Integrity External Monitors
The IEMs independently assess documents to ensure that all parties have complied with their obligations under the pact. In cases where serious irregularities are found, potentially violating the Prevention of Corruption Act, 1988, the IEMs can submit a report to the chief executive of the concerned organization or directly to the Chief Vigilance Officer (CVO) and the CVC.
New Provisions for Choosing an IEM
According to the amended provision, the selection of an IEM should be limited to retired officials from government and Public Sector Undertakings (PSUs). This includes those who have held positions equivalent to the Secretary to the central government or equivalent pay scale, as well as retired Chairman and Managing Directors (CMDs) of PSUs – Schedule ‘A’ companies, and CMD/Managing Director and CEO level in Public Sector Banks, insurance companies and financial institutions. The preference should be given to individuals who have worked outside their sector or have previous experience as a Chief Vigilance Officer (CVO) in any organization.
Amended Appointment Process for IEMs
The amended provision outlines that to appoint an IEM, the concerned Ministry, department or organization must submit a panel of suitable individuals to CVC, consisting of individuals already on CVC’s panel.
Changes to the Tenure of IEMs
According to the revised provision, an IEM will be appointed for a term of three years in an organization. The previous provision had allowed for an extension of up to two years on request by the respective organization.
About Central Vigilance Commission (CVC)
The CVC is the top vigilance institution, independent of any executive authority control, monitoring all vigilance activity within the Central Government. It advises various authorities within Central Government organizations on planning, execution, reviewing, and reforming their vigilance work. Established in February 1964 per the recommendations of the Committee on Prevention of Corruption led by K. Santhanam, the CVC only answers to the Parliament. The CVC was granted statutory status under the Central Vigilance Commission Act, 2003.