Friday 14 December 2012

Corruption on......single tender procurement

Stop single tender procurement, CVC tells govt departments, PSUs
TNN | Dec 14, 2012, 04.10AM IST
NEW DELHI: The Central Vigilance Commission has asked departments and public sector units to immediately stop single tender procurement, and to make public all such purchases made in recent times.
In a circular issued on Tuesday, CVC said it had been receiving several complaints about the practice of single tender procurement being rampant in government agencies. The CVC's latest circular said it had been receiving a large number of complaints about arbitrary purchases by PSUs and government departments without a transparent tendering.

"Irregular purchase of Transmission Electron Microscope (TEM) valuing Rs. 432.98 lakh at NIPER"

The Department of Science and Technology, Ministry of Science and Technology, Govt. of India sanctioned first installment of 250.00 lakh as financial assistance to the project “Facility for Toxicity Screening on nano Particle used for Drug ……Its mechanism of action” for purchase of Transmission Electron Microscope (TEM). Quotation for the same was much higher.
Institute took up the case with GOi for release of additional grant of 1.92 crore. GOI sanctioned 92.13 lakh
Rest of the cost of the equipment approx 1 crore was met by NIPER from its own sources.
Equipment was purchased from M/s EFI Company Europe through their agent M/s Analytical equipment Pvt. Ltd, Mumbai, only and only one party responded to NIPER tender notice (Custom made specification against the Competition Commission of India Rule?)

Para 4 Irregular purchase of imported equipment valuing Rs. 432.98 lakh

In this regard following observation were made by CAG,

1.     Why the purchase procedure mentioned under General Finance Rules, 2005 e.g. regarding inviting global tender was not followed in purchase of imported equipments in all the cases
2.     Reason for delay in installation may be apprised to audit.
3.     Why the NIPER admitted to fund the purchase of equipment from its own sources and detailed of sources from which the equipment was funded, may be furnished to audit
4.     What benefits the institute has envisaged from the TEM laboratory.

In response: NIPER kept mum about point no 1, 2 & 3 and in response to point no 4 wrote “the equipment is installed recently, therefore it is too early to assess its utility for the purpose other then teaching and research”

CAG: the reply is general one, Para stands

Question remains from where Rs. 1 crore came? Who is the beneficiary of single quotation purchase of 432.98 lakh?
           The indenter? Purchase committee? Director? or somebody above?

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