Central Vigilance Commission
Minutes of the Annual Zonal Review Meeting with the
CVOs held on 23rd January 2009 at Chennai.
The
list of participants is at Annexure-A.
1.
CVC in the
Chair. The meeting started with introductory
remarks by CVC and the Vigilance Commissioners. This was followed by presentation by CTE on the inadequacies
observed in the CTE examination of the works and procurement contracts of the
organizations present in the meeting.
Copy of the CTE presentation is at Annexure-B. This was followed by presentation from
the participating organizations on the agenda items (Annexure-C). During the
presentation by participating organizations, the Commission intervened and made
some observations. Such of those
observations needing follow up action are indicated in the minutes later.
2.
Introductory Remarks:
3.1 CVC:
CVC requested the CVOs to stick to the sequence of
the agenda items and raised the following issues:
i)
In spite of
codification of rules recently regarding procurement procedures in the Defence
Ministry, few deviations are still noticed like the tendency to favour a single
tender;
ii)
There are a few cases
indicating breakdown in communication between the CVO and CMD. Vigilance being a management tool primarily,
there should be attempt at achieving cohesion rather than division.
iii)
It should be remembered
that short cuts do not help anyone and departments need to be proactive in a
positive sense and towards this work in close rapport with the CVOs;
iv)
Monthly reports
continue to be sketchy and last part of the report, i.e. Point No.12, requiring
greater application of mind on the part
of the CVO are not detailed enough;
v)
Vigilance in most
organizations has become complaint driven and reacts to situations after the
events take place rather the adapt a systematic approach in a preventive
vigilance mode.
3.2. VC(S):
i)
There is a general
feeling that the work of vigilance is restricted to ensuring proper procedure
for procurement leading to a neglect of the rest of the financial
discipline.
ii)
The Inquiry Reports
have a tendency to point out procedural irregularity, often without indicating
whether the violation was deliberate or willful;
iii)
Delays as well as
inadequate or incomplete response to characterize the reports of the CVOs.
3.3.
VC(R):
i)
There should be a
complaint handling policy in place ensuring that the CVOs have access to all
complaints;
ii)
There should be some system in place to
ensure that the recruitment processes are not vitiated;
iii)
Apart from attending to
complaints there should be system study approach with a view to reviewing the
systems and identifing the changes needed to minimize violations;
iv)
It is also important
for the CVOs of Defence PSUs to meet and share their experiences.
4.
Presentation by the Participants:
4.1.
Leveraging Technology:
4.1.1. Most of the companies completed the exercise
and will be integrating it with ERP or SAP work in progress except for some
minor items. In GRSE the second phase
is not complete. So is the case with
MIDHANI.
4.1.2. All the CVOs will report the progress in the
monthly report to be received in the Commission in April 2009.
(Action: ALL CVOs)
4.2.
Monthly meetings with CVOs and CMDs:
Despite a direction given by the
Commission in the last Annual Zonal meeting with all the CVOs, the system is
yet to commence in most of the PSUs except MIDHANI. It was requested by one of the PSU to write a letter to all the
CMDs in this regard.
(Action: All CVOs)
4.3. JS
& CVO, DODP stated that in OFB several cases of lacuna in procedures were
observed and OFBs draft Manual/Procedure would be finalized in two months. He also observed that CVOs should have
access to Board papers of the PSUs.
DODP would issue instructions for regular structured meetings by CVOs
with CMD.
5.
Action Points:
i)
The Commission will write a letter to all
the CMDs regarding the need for monthly or quarterly meetings as the case may
be, with the CVOs with proper agenda and minutes issued;
(Action:
Commission)
ii)
CTE type
inspections. MDL, BDL, GRSE, HAL, OFB
and MIDHANI have reported that they have conducted CTE type inspections. The Commission directed all the CVOs who conducted
CTE type inspection, to send a copy of their report to the Commission. The CVOs who have not conducted inspections
should do so in the next four months and report to the Commission.
(Action:
All CVOs)
iii)
CVC directed CTE team
of the Commission to do a system audit on the e-procurement in BEML;
(Action:
CTE)
iv)
CVC requested
Department of Defence Production to issue guidelines on recruitment in the next
two months;
(Action:
DODP)
v)
CVC requested DODP to
issue PSU-wise guidelines regarding information on contracts including
nomination items that will be put up on the website. The CVO of BEL who raised the point was of the view that once
orders have been placed it should be put on the website. CVC held that whatever information one
cannot withhold from the Parliament should be put on the website;
(Action:
DODP)
vi)
CVC directed the CVOs
to do periodic vigilance inspections, report the same in the monthly reports
and share the reports with the Commission.
(Action:
All CVOs)
vii)
In GSL/MDL it was
reported that company has resorted to walk-in-interview. The Commission directed the Ministry to
intervene.
(Action:
DODP)
viii)
CVC observed that the
tendency to appoint ex-employees as “Consultants” on the same terms, conditions
and facilities as in-service employees is rampant in the PSUs. Such appointments need to be streamlined and
made only on need basis through advertisements and interviews in a transparent
manner.
(Action:
All CVOs)
Most of the
organizations wanted to know the threshold limit for bringing the purchases
under the purview of Independent External Monitors. The Commission replied saying that all the organizations should
do an ABC analysis and ensure that the threshold value for any work or purchase
is fixed in such a way that 90-95% of the total procurement of the organization
is covered.
(Action:
All CVOs)
Annexure-A
List of the CVOs for the meeting dated 23/1/09 (Group 2,South Zone-I, Chennai)
1 Shri V.Somasundaran,
Joint Secy. & CVO,
D/o Defence Production,
96Z, Ground Floor,
South Block, New Delhi
2 Smt. Kalyani Gopal,
Chief Vigilance Officer,
Bharat Earth Movers Ltd.,
BEML, SOUDHA,
23/1, 4th Main,
S.R. Nagar, Bangalore-560027
3 Shri Syed Kabir Ahmed,
Chief Vigilance Officer,
Bharat Electronics Ltd.,
Regd, Office, Outer Ring Road,
Nagavara, Bangalore- 560045
4 Shri J.R. K. Rao,
Chief Vigilance Officer,
Bharat Dynamics Ltd.,
Kanchanbagh,
Hyderabad- 500058
5 Shri B.R.Balakrishnan,
Chief Vigilance Officer
Goa Shipyard Ltd
Vasco-Da-Gama
Goa-403802
6
Smt Sujata
Ray,
Chief Vigilance Officer,
Garden Reach Shipbuilders & Engineers Ltd.,
43/46, garden Reach Road,
Calcutta- 700024.
7 Shri V.H. Deshmukh,
Chief Vigilance Officer,
Hindustan Aeronautics Ltd.,
Corporate office,
15/1, Cubbon Road,
Bangalore- 560001.
8 Shri B.R. Balakrishnan,
Chief Vigilance Officer,
Mazagon Dock Ltd.,
Dockyard Road, Mazagon
Mumbai-400010
9 Shri P.Ravi,
Chief Vigilance Officer,
Mishra Dhatu Nigam Ltd.,
P.O.Kanchanbagh,
Hyderabad- 500058
10 Shri R.K.Sharma,
Chief Vigilance Officer,
Ordnance Factory Board,
10 A, Shaheed K. Bose Road,
Kolkata- 700001