GAIL India Ltd signed an agreement with global corruption watchdog, Transparency International India, on Monday for 'zero tolerance of corruption' by enhancing operational transparency in its contracts and procurement process.
The 'Integrity Pact' was signed by GAIL Chairman and Managing Director U D Choubey and TII Chairman R H Tahiliani.
"GAIL is among the first few Indian corporates to introduce 'Integrity Pact' in procurement and contracts. Integrity Pact is a tool devised by TII worldwide to fight corruption in public procurement," Choubey said.
GAIL has projects worth over Rs 30,000 crore (Rs 300 billion) for laying pipelines, expanding petrochemical capacity and setting up city gas distribution networks, he said.
"This document will enable us to be a system oriented procurement system with set process and timelines that tolerate zero corruption,"
"It will also equip us to defend against outside interference (in contracts). This document will take out external pressures," he said, adding independent external monitors will be appointed to look at tendering process and delays in awarding contracts.
Under the pact, GAIL will enter into a pact with those firms submitting a tender for a specific activity. An undertaking will be given by GAIL that its officials will not demand or accept any bribes or gifts with appropriate disciplinary or criminal sanctions in case of violation.
A statement will be given by each bidder that it has not paid and will not pay any bribes. Bidders face cancellation of contract in case they fail to implement the the pact. Tahiliani said Integrity Pact is being implemented in 20 countries as it not only speeds up procurement process but also improves bottomline by 15-20 per cent.
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