R.C.PUNETHA, IRSS

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VIGILANCE AWARENESS

• R.C.PUNETHA, IRSS
• Deputy Chief Vigilance Officer (STORES)
• South Central Railway

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The Wonder that is India !!!

• Ranked 70th with score-3.3,among 163 countries -
  Corruption Perception Index (2006)
• a study by Transparency International
• Ranks First among 30 leading exporting countries
  which have the propensity to bribe abroad
  Bribe Payers Index (2006)
• One of the most pessimistic about the
  elimination of corruption in the future Global
  Corruption Barometer (2006)

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CPI (Corruption Perceptions Index)-

• Ranks countries in terms of degree to which
  corruption is perceived to exist among public
  officials and politicians. Reflects the views of
  Business people and Analysts from around the
  world, including experts who are locals in the
  countries evaluated.
• 2007- Survey was done in 180 countries. Nzl.
  tops the rank with 9.4 score. India ranks 72
  with the score of 3.5. The rank is shared by
  China, Brazil, Mexico Peru.

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GCB (Global Corruption Barometer)-

• A public opinion survey that is administered
  around the world each year since 2003.
• How corruption affects the daily life of the
  ordinary persons.
• Public attitude towards corruption.
• Extent to which they believe C pervades public
  institutions.
• How fight against C will fair in future.

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GCB 2007-

• 60 Countries involved
• Poors- biggest victim, more in South Asia
  Pecific, 1/10 pace bribery, Police/Judiciary
  ranks the top.
• More than 32-Pak. 18-32 India (25),
  Indonesia. LT 2-Sweden, Japan, Switz.
• Future-54 (90) increase 20 (7) decrease 26
  (3) same.
• Steps to check C India - 68 ineffective 25
  effective.

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BPI (Bribe Payers Index)-

• Ranks leading exporting countries in terms of
  degree to which International Companies with
  their Hdq. in those countries are likely to pay
  bribes to senior public officials.
• Measures the supply side of bribery in countries
  where the bribes are paid.
• Question asked to indicate how likely companies
  from the following countries are to pay or offer
  bribes to win or retain business in this country.

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Corruption in India-

• TII has recently made survey on the basis of
  which major Indian states are kept under
  following category-
• Alarmingly corrupt- Bihar, UP, MP JK
• Very Highly corrupt- Karnataka, Rajasthan TN.
• Highly corrupt- Delhi, Gujarat, Kerala, Orissa,
  Chattisgarh Jharkhand.
• Moderately Corrupt- AP, HP, WB, Maharashtra,
  Punjab, Haryana Uttarakhand.

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Corruption in India (Contd.)-

• 833 Cr. was paid by BPL familes as bribe to avail
  public facilities. Out of 833, 215 Cr. was paid
  to Police.
• Police, Forest, Land Revenue/Registration
  Housing are found to be most corrupt Departments.

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ANALYTICAL STUDY OF VIGILANCE CASES
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VIGILANCE ORG.-

• CVC-
• Apex Body at National level having jurisdiction
  over central Govt. Ministries and PSUs.
• Manned by Chief Vig. Commr. and to Vig. Commrs.
• Issues directives to various Ministries which in
  turn issue procedure orders for their own
  Departments.

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VIGILANCE ORG. (Contd.)-

• Railway Board-
• Headed by Adviser Vigilance
• Assisted by various EDs followed by Joint
  Directors, Directors, Dy. Dir. IIs.
• JD (P) undertakes cases of Sr. officials of
  Railways.
• Co-ordinates between CVC various Railways and
  also various Directorates of Railway Board.

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Objective of Vigilance

• Prevention of corruption.
• Promotion of Integrity.
• Promotion of Vigilance consciousness,
  amongst Railway men.
  
• Effecting system improvement.
• Advise suitable administrative or disciplinary
  action.

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Vigilance Angle What is it ?

• Demanding and/or accepting gratification other
  than legal remuneration.
• Obtaining anything of value without consideration
  or with inadequate consideration from those with
  whom official dealings are likely, either
  directly or by exerting influence.
• Obtaining for self or for any other person,
  anything of value or pecuniary advantage by
  corrupt or illegal means or by abusing the
  position as a public servant.
• (contd)

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Vigilance Angle (contd)

• Disproportionate Assets vis-à-vis known sources
  of Income
• Misappropriation, Forgery, Cheating or similar
  criminal offences
• Gross or willful negligence, reckless decision
  making, blatant violation of systems and
  procedures and excessive exercise of discretion
• Other irregularities where circumstances will
  have to be weighed carefully to view whether the
  government servants integrity is doubtful

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Complaint Handling Policy
No authenticated complaint (i.e. a signed
complaint with the name and address of the
complainant which is acknowledged having been
sent by complainant) involving a Gaz Officer can
be closed by the Railways without consultation
with the CVC even though, no irregularities are
substantiated against any of the officials
involved in the case.

( Contd.)
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• No action, as a general rule, is taken on
  Anonymous Complaints (i.e. complaints that do
  not bear name and address of the complainant) and
  Pseudonymous Complaints (i.e. complaints which do
  not bear the signature of the complainant or
  which on verification is not owned by the person
  in whose name it is made).
• However, verifiable facts alleged in such
  complaints may be looked into with prior
  concurrence of CVC.

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Public Interest Disclosure and Protection of
Informers

• Resolution passed by GOI on 21.04.04
• Popularly called Whistle Blower Policy
• CVC is the designated authority to receive
  written complaints or disclosure on any
  allegation of corruption or misuse of office by
  government employee
• Complaint should be in a sealed envelope super
  scribed Complaint under the Public Interest
  Disclosure and addressed to Secretary, Central
  Vigilance Commission
• (contd)

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Whistle Blower Policy (contd)

• Name and address of complainant either in the
  beginning or end of the complaint or in an
  attached letter
• No clues about the identity of the complainant
  in text of the complaint
• Complaint to be Specific and Verifiable
• No acknowledgement by CVC but instructions sent
  to Vigilance wing of the organization for
  investigation

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CVCs Directive on use of Website

• There are instances in which allegations have
  been made regarding inadequate/no
  publicity/non-availability of tender documents.
• Therefore, in order to bring about greater
  transparency and curb the mal-practices, it has
  been made mandatory to publish the complete bid
  documents along with application form on the
  website of the organization (Rly.Bd.s
  ltr.No.2003/V-1/CVC/1/21Dt.19-07-2004).
• (contd.)

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CVC Guidelines-

• Already implemented by Railways.
• These guidelines aim to improve the
  system-working i.e. improves transparency,
  reduces public interface, minimizes discretionary
  powers of the Executives simplifies the rules
  regulations/procedures.
• Controls corruption at macro level.

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CVC Guidelines (Contd.)-

• All OTs must be put in the website in
  downloadable form.
• All OTs must include the eligibility criteria in
  the Tender Schedule.
• In contracts, negotiation with L1 only.
• In case L1 withdraws the offer, case to be
  retendered.

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CVCs Directive on use of Website
Post on the website, summary every month,
of all the tenders/works contracts of value more
than One Crore Rupees of Engg./Mech/Elec/ST/
Medical department, Rs.50 Lakhs for Commercial
Dept. and all the purchases of value more than
Rs.20 Lakhs done through Stores contract
(Rly.Bds Lr. No.2004/V-1/CVC/1/18
Dt.13-04-2005).
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Booking of Vigilance Case (Non-Gazetted)-

• Case can be booked with the approval of Dy.CVO
  concerned.
• Punishment advice is also decided at Dy.CVO level
  Draft Chargesheet with relevant documents is
  forwarded to DA.
• Adequacy of punishment is confirmed by SDGM.

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Clearance of Vigilance Case (Non-Gazetted) (Minor
Penalty)-

• Vigilance clearance would be given once the DA
  has finalized the DAR and NIP issued.
• No consultation with Vigilance even if DA differs
  with vigilance advice.
• In case of inadequacy vigilance can seek a
  revision through RA.

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Clearance of Vigilance Case (Non-Gazetted) (Major
Penalty)-

• Vigilance case will get closed once DA has
  imposed any of the Major Penalties and NIP is
  issued.
• No consultation with Vig. is necessary where
  penalty imposed is as per Ist stage advice of
  Vig.
• If still considered inadequate revision is sought
  through RA.

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Clearance of Vigilance Case (Non-Gazetted) (Major
Penalty)- Contd

• When DA proposes to exonerate or impose a Minor
  Penalty, consultation with Vig. is necessary. DA
  has to first record his provisional views giving
  reasons for disagreement.
• Even after this consultation if DA is at variance
  with the views of Vig., he is free to proceed and
  pass speaking order.
• Vig. Case will get cleared on the issue of copy
  of NIP/exoneration speaking order. Vig. may seek
  revision through RA.

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Booking of Vigilance Case (Gazetted)-

• If convinced, SDGM will approve to record the
  statement of Gaz. Officer. The case is deemed to
  have been booked.
• Investigation report will be put up to GM though
  PHOD SDGM.
• Preliminary report to be put up to SDGM
  indicating the involvement of Gaz. Officer.
• GM will record speaking orders duly recommending
  the penalty.

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Booking of Vigilance Case (Gazetted)- Contd

• Case will be referred to Rly. Bd. Vig. Upto
  Asst. level, Adviser Vigilance is the ultimate
  authority to confirm the penalty. Above Asst.
  level, all cases will be referred to CVC and
  final penalty advice will be decided with their
  consultation.
• This CVCs Ist stage advice is communicated to
  the Zonal Vig.
• In case of Minor Penalty if punishment proposed
  to be imposed by DA is in line with CVC advice,
  no consultation is required.

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Booking of Vigilance Case (Gazetted)- Contd

• In case of deviation, case is required to be sent
  to CVC for reconsideration along with provisional
  views of DA and Vig. Comments thereon.
• DA free to pass speaking order and issue NIP if
  he is still in disagreement with CVC reconsidered
  advice.
• Copy of the NIP along with reasons of
  disagreement should be promptly sent to Vig. for
  onward transmission to CVC.
• CVC can include in its annual report which is
  submitted to Parliament.

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Booking of Vigilance Case (Gazetted)- Contd

• In Major Penalty cases, all are required to refer
  to CVC for 2nd stage advice after completion of
  enquiry along with IOs report, provisional views
  of DA and Vig. Comments.
• Vig. Case is closed once DA imposes penalty in
  accordance CVCs 2nd stage advice and furnishes a
  copy of NIP to Vig. for onward submission to CVC.

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Booking of Vigilance Case (Gazetted)- Contd

• If DA differs with CVCs 2nd stage advice, case
  is again required to referred to be CVC for
  reconsideration along with reasons for
  disagreement by DA and Vig. Comments. If DA
  still differs with CVCs reconsidered 2nd stage
  advice, he can pass speaking orders and issue
  NIP. The case is deemed to have been closed.
• A copy of NIP along with reasons of disagreement
  is required to be sent to Board for submission to
  CVC who can include it in Annual Report.

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Key Thrust Areas

• Traffic Undercharges
• Fraudulent payment to the staff
• Scrap Disposal
• Contracts Engg, Stores, Electrical, ST and
  Commercial
• Medical Stores

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Sensitive areas of working

• Execution of Works Procurement of Supplies
• Tendering
• Open/ Advertised
• Limited/Special Limited (Restrictive)
• Single (Proprietary)
• Quotations
• Spot purchase
• Passing of bills
• Selections and Recruitment

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Open Tenders Common Irregularities

• Inadequate tender notice
• Inadequate time for participation
• Inadequate publicity
• Late availability of tender documents
• Tender box not available in advance
• Deviations in eligibility criteria

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Limited Tenders Common Irregularities

• Arbitrary selection of firms.
• Firms with better experience ignored and firms
  with dubious credential selected.
• Inadequate time given for participation in
  tender.
• Tender notice not sent to all the firms.
• Bogus firms selected to inflate the number.
• Rates can be reasonably higher since the
  competition is restricted.

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Single TenderCommon Irregularities

• Projecting undue/artificial urgency
• Selecting unsuitable tenderer based on
  exaggerated credential ignoring his past
  failures.
• Accepting exorbitant rates on the grounds of
  urgency then merrily giving extensions with token
  penalty or without penalty.

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Scrap Disposal

• THE IRREGULARITIES OBSERVED IN THE CHECKS
• SHORTAGE, EXCESS, UNACCOUNTED SCRAP
• MIXING OF NEW ARISING IN SOLD OUT LOTS
• PICK AND CHOOSE DURING DELIVERY
• IMPROPER FIXATION OF RESERVE PRICE
• SELLING BELOW RP W/O RECORDING
• REASONS
• FORGED CASH RECEIPT

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Scrap Disposal

• THE IRREGULARITIES OBSERVED IN THE CHECKS
• COMBINING LOTS OF DIFFERENT MATERIAL
• EXTRACTING MONEY DURING DELIVERY
• MANIPULATION IN WEIGHBRIDGES
• ASSESSING THE QUANTITY WITHOUT WEIGHMENT
• ACCEPTING THE CREDIT FOR MUCH LESSER QUANTITY
  THAN DESPATCHED.

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Scrap Disposal

• VIGILANCE CHECKS CANNOT SUBSTITUTE EXECUTIVE
  INSPECTIONS.
• EXECUTIVES ARE LIABLE TO BE QUESTIONED IN CASE OF
  FAILURE IN SUPERVISORY RESPONSIBILITY.
• LAID DOWN TENURE TO BE FOLLWED IN RESPECT OF
  SCRAP DISPOSAL POSTINGS

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Accountal of receipts of scrap

• Materials received without documents to be
  accounted through stock sheet within 14 days.
• Ensure all DS-8s are entered promptly in DS-8
  register and RO Nos are assigned within
  reasonable time.
• Check the material for quality and quantity
  received alongwith DS-8s.

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Accountal of receipts of scrap

• Try to indicate the location of dumping of
  received material in the receipt register.
• Ensure proper inventory is taken for the lines
  whenever proposed for disposal on as is where is
  basis.
• Do not allow fresh arising to get mixed up with
  lots already surveyed and ready for sale.
• Do not allow purchaser to carry fresh receipt
  while taking delivery

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Inspection of Lots before inclusion in auction

• Every lot to be tried out individually at the
  first instance.
• Do not form too big or too small lots, which
  hamper competition.
• Do not allow the scrap merchants or other
  unauthorized persons to enter the scrap yard
  except strictly on business and under proper
  authorization.

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Inspection of Lots before inclusion in auction

• Ensure that lots of distinct nature are made as
  separate lots to avoid picking and choosing at
  the time of delivery.
• Ensure that Lot inspection is properly done and
  lot No. is painted on the lot before inclusion in
  the auction.
• Ensure filling up of all the columns in lot
  inspection certificate without leaving any
  blanks.
• Ensure that lots are maintained in such a way
  that they cannot be changed by unauthorized
  persons before the delivery is completed.

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Fixing of Reserve price

• Ensure reserve price is fixed for each lot before
  auction.
• Ensure reserve price is well guarded.
• Ensure Reserve Price is fixed considering past
  rates, other information and the condition of the
  material being sold.

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Fixing of Reserve price

• Ensure that whenever lots are accepted below
  reserve price under the powers of COS, the same
  are put up for Competent Authoritys approval
  immediately.
• Ensure that the bids are competitive before
  giving acceptance.
• Do not accept bids below reserve price unless
  reasons are recorded.

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Delivery of scrap to purchasers

• Ensure that the Delivery Order is properly
  released in all respect i.e. quantity, payment of
  balance sale value, free delivery period etc.
• Ensure that the interest and ground rent are paid
  wherever necessary before effecting the delivery.
• Ensure delivery is effected in presence of all
  witnessing officials.
• Ensure all weighments and deliveries are
  correctly recorded in the relevant registers.
• Ensure that material being delivered is exactly
  the same as sold in the auction.
• Ensure that no other material other than sold is
  delivered to the purchaser.

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Delivery of scrap to purchasers

• While giving installment delivery, ensure that
  the quantity being delivered is in proportion to
  the amount paid and that no extra material is
  delivered.
• Progress of the delivery should be entered on
  daily basis on the reverse of delivery order.
• Ensure that all the excluded items are collected
  from the purchaser, before giving delivery of
  condemned rolling stock.
• Bring to the notice of Depot Officer if the
  contents of lot to be delivered are found to be
  significantly different from the description
  shown in the delivery order.
• Ensure that delivery is made in the permitted
  hours of working.

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Delivery of scrap to purchasers

• Do not allow delivery of different lots by same
  batch of witnessing officials simultaneously at
  the same time.
• Do not club different lots having different
  materials while making delivery on the pretext
  that transportation is convenient.
• Do not allow purchasers to pick and choose while
  arranging delivery of the sold materials. The
  delivery should start from one end.
• Do not allow sold materials to get out of the
  Railway premises except under proper issue notes
  and gate passes.
• Do not allow purchaser to disturb the nearby
  material while taking delivery of sold lot.

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Shortage and refund after the deliveries

• Ensure that shortage of material at the time of
  delivery is genuine.
• Ensure that the excess/savings of material at the
  time of delivery of material is promptly taken
  into ledgers for on line lots.
• Ensure that lots are promptly cancelled
  forfeiting the EMD wherever the purchasers fail
  to pay the balance sale value in time.
• Ensure that large variations in the quantities
  are properly investigated.

50
Shortage and refund after the deliveries

• Do not delay refunds in genuine cases of
  shortages.
• Do not adjust the shortages from other lots or
  from fresh receipts.

51
Case study INon-acceptance of Material as per
P.O. Conditions
In a COS purchase order for supply of
Main Bearings FP Diesel, the firm has supplied
material as per part number which is different
from what was mentioned in the COS P.O.
Therefore, the material was rightly rejected by
DME/AME, however the same material was
subsequently accepted with warranty, after
conducting fitment tests, without
modification/amendment to the Purchase Order.
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Case study - IIDeviations in a Coach Cleaning
Contract at Coaching Depot

• ISI branded chemical and cleaning materials were
  not in use.
• Trained manpower was not employed.
• Measurement of work done was not being recorded
  in M.Book. Even then payment was made on the
  basis of some documentary evidence.
• Penalty was not imposed despite contractor failed
  to carry out the work as per agreement.
• 
  

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Case study - IIIMisrepresentation of the Lot

• 3 Lots of MG ST.SL.Appeared in May auction.
• Rejected at the highest bid of Rs.400/- each.
• Lots withdrawn in February and reintroduced in
  the next auction as clubbed new lot, deleting
  the complete history of the lot.
• Weight of the ST.SL. was also reduced from 28.5
  kg. to 24.5 kg.

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Case study IVDelivery of Scrap

• 4 Under truck bogies weighing 60 T sold on the
  basis of PMT.
• D.O. was issued for handing over the lot w/o
  being specific to cutting permission.
• Firm started gas cutting the lot
  indiscriminately.
• Custodian apprise the auction conducting officer
  about this cutting when almost full lot was cut.
• Del. was given in the presence of all witnessing
  officials recoding a shortage of appx. 30 T

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Do not overlook negative actions merely because
they are small however small a spark may be, it
can burn down a haystack as big as a mountain
Lord Buddha
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Thank You