Date:19/05/2005 URL: http://www.thehindubusinessline.com/2005/05/19/stories/2005051902940300.htm

Back Independent external monitors for ONGC contracts from July

Our Bureau

Mumbai , May 18

INDEPENDENT external monitors will screen Oil and Natural Gas Corporation's contract initiatives from July.

Mr Subir Raha, ONGC's Chairman and Managing Director, made this announcement on the `Integrity Pact' at the company's fourth vendors meet, attended by over 70 companies, held in Mumbai on Wednesday.

The Integrity Pact may be made mandatory for ONGC contracts from July 1, the company said in a release.

The pact is a tool devised by Transparency International in the 1990s to fight corruption in public contracting. It contributes to improving the credibility of public procedures and administration.

The independent external monitors will be drawn from a panel of eminent people, chosen by the Central Vigilance Commissioner.

The Integrity Pact will begin when a bidder submits an expression of interest or buys the bid document (ONGC countersigns the pact) and will end after the execution of the contract, when all payments are made to the satisfaction of both the contacting parties.

In case of any allegation, the independent external monitor — who is involved from day one — can call for the file from the management, take his view on the tender committee's decision and advise the management, the release said.

The model of the pact is based on the Berlin Airport reconstruction project and meets the legal criteria for a multinational bidding project, the release said. If a bidder does not sign the Integrity Pact while submitting the bid, ONGC will not consider it.

Nineteen countries have so far committed to this pact.

Last week, the Chief Vigilance Commissioner discussed the concept with some of the chairmen of public enterprises.