Background: The Central Vigilance Commission (CVC) has introduced the concept of Integrity Pact in order to ensure transparency, equity and competitiveness in public procurement. The Integrity Pact is applicable for all government organisations, CPSEs, Public Sector Banks, Insurance Companies other Financial Institutions and Autonomous Bodies.
Concept and Features:
The Pact essentially envisages an agreement between the prospective vendors/bidders and the buyers, committing the persons/officials of both sides, not to resort to any corrupt practices in any aspect/stage of the contract. Only those vendors/bidders, who commit themselves to such a Pact with the buyer, would be considered competent to participate in the bidding process.
Any violation of the Integrity Pact would entail disqualification of the bidders and exclusion from future business dealings.
Integrity Pact would be implemented through a panel of Independent External Monitors (IEMs), appointed by the organization. The IEM would review independently and objectively, whether and to what extent parties have complied with their obligations under the Pact on receipt of any complaint by them from the bidder(s).
The Integrity Pact is a deemed part of the contract itself, therefore, the parties concerned are bound by its provisions.
Threshold Limit : In line with the Standard Operating Procedure (SOP) in force, the Jute Corporation of India Limited has stipulated that all contracts / agreements of the value of Rs. 25 lakhs and above will be covered under the purview of Integrity Pact. This effectively means that vendors / contractors entering into an agreement of contract for supply of goods or rendering of services having value of Rs. 25 lakhs and above will have to compulsorily sign the Integrity Pact.