Oil and Natural Gas Corporation has become the first Indian firm by formally entering into a memorandum of understanding with Transparency International India to institutionalise transparency in its public procurement practices.
The MoU was signed by ONGC chairman and managing director Subir Raha and Admiral R K Tahliani, former chief of naval staff, who is spear-heading TI, India, in the presence of central vigilance commissioner P Shankar.
"ONGC is the first corporate in the country, public and private combined, to adopt the Integrity Pact in its procurement and contract practices," a company release said in New Delhi.
While the pact had been adopted in ONGC contract system since July-August 2005, the MoU was formalised on Monday.
Integrity Pact is a tool devised by Transparency International worldwide to fight corruption in public contracting. The model of this document is based on the Berlin Airport reconstruction project and meets the legal criteria for a multinational bidding project.
Independent External Monitor, drawn from a panel of eminent people chosen by the CVC, would be appointed tooversee all contracting.
A list of Independent External Monitors has already been drawn up for ONGC, the release said.
ONGC spent more than $2 billion last year on major contracts, and would be spending $3.5 to $4 billion in near future, apart from the revenue contracts, which add up to another Rs 4,000 crore (Rs 40 billion) annually.
Speaking on the occasion, Raha said ONGC incurred capital expenditure of about Rs 40,000 crore (Rs 400 billion) in the last five years.
Adoption of the Integrity Pact, along with assiduous follow up of existing guidelines, would further strengthen the existing system to improve performance of the company and the image of the country.
P Shankar, CVC, commended Raha for adopting the Integrity Pact in ONGC.
He said there was a strong imperative to bring large infrastructure driven Government and public sector organisations under its umbrella to enhance the national image
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