The Central Vigilance Commission (CVC) on Tuesday asked all central government departments to put online details of tenders awarded on nomination basis.
Tendering process or public auction is a basic requirement for award of contract by any government agency, it said.
“Any other method, especially award of contract on nomination basis would amount to a breach of Article 14 of the Constitution guaranteeing right to equality which implies right to equality to all interested parties,” an order issued by the anti-corruption watchdog.
The award of contracts/projects/procurements on nomination basis without adequate justification amounts to restrictive practice eliminating competition, fairness and equity, it said.
Hence, award of contracts through open competitive bids should remain the most preferred mode of tendering, the CVC order said.
“Details of all tenders awarded on nomination basis shall be posted on website of the organisation concerned, in public domain, along with brief reasons for doing so,” it said. However, in some exceptional and inevitable circumstances, the contracts may be awarded on nomination basis; for instance, during natural calamities and emergencies declared by the government; where procurement is possible from a single source only and where the supplier or contractor has the exclusive rights in respect of the goods or services, among others, the CVC said.
“But, it has been observed that in some cases, the guidelines issued by the Commission are not being adhered to by the organizations,” it said in the order issued to secretaries of all central government departments and chief executives of public sector banks/insurance companies among others.
Therefore, the Commission would reiterate that all works/ purchase/ consultancy contracts awarded on nomination basis should be brought to the notice of the Secretary, in case of the ministries/departments and the Board of Directors or equivalent managing body, in case of public sector undertakings, public sector banks, insurance companies, etc., said the order seeking “strict compliance”.
“The report relating to such awards on nomination basis shall be submitted to the Secretary/Board/Chief Executive/equivalent managing body, every quarter,” it said, adding that the audit committee or similar unit in the organisation may be required to check at least 10 per cent of such cases.