Corruption in Procurement - Inputs on Root Causes

Below are some of the key issues related to procurement as highlighted by you. Kindly review them and share root causes for these issues in procurement. We will then have a seperate dicussion on solutions for them.

We look forward too your inputs!
Transparency International India

Corruption in Procurement - Key Issues

1. Procurement tender tech specs are intentionally made vague
2. Later during clarification stage these are manipulated with preferred vendors
3. Later on Inspection department also follow corrupt practice by granting concession to agreed specifications & get benefitted
4. Many times, wrong indent value is shown on indent which allows change in type of tender i.e. limited, open, single or propriety
5. Relaxations given are detrimental to specs & two identical parts do not remain interchangeable
6. As per norms, purchases are to be made on calling competitive quotations at least from three suppliers and the firm quoting the lowest price has to be selected. Hence the suppliers to be favoured are asked to submit 3 quotations, 2 of which used to be in fictitious names and one of them quoting the lowest price is selected and orders are placed
7. In the event of declaring bonus by the local government on a particular crop, the farmers purchase crops from nearby states at lower prices and sell it to the local cooperative societies who purchase it knowing that the crop was not grown in the fields of the sellers. Thus making the farmers eligible for bonus, a portion of which goes to the officials of the societies
8. In all government departments and schools & colleges (irrespective of states), inferior quality furniture are in use. Their records will indicate purchasing of standard quality furniture. The difference in prices between the inferior & standard quality furniture is being used by the suppliers in paying commission to the concerned officials
9. Major corruptions prevails in defence procurement and tendering
10. Government departments have local approved suppliers who charge 30 to 40% extra
11. Many times, the material is never received in the department/office of the procurer, only bills/cash memos are received and paid for
12. In some Government facilities half supply and full billing also happens. Material enters the warehouse, a receipt is made and it leaves from other gate, only to re-enter the warehouse and re-receipted.
13. Higher rates are approved for lower quality goods received
14. Syllabus in schools & colleges are frequently changed to favour the particular publishers from whom the books are procured
15. Government agencies intentionally procure crops beyond their storage capacity. The excess crops are declared rotten and the cost is written off. A major portion of such procured crops remain intact and parted by officials and political leaders
16. Another grey area of corruption is the procurement of Drugs, Medical Equipment, Health products in Public Health. more  

View all 42 comments Below 42 comments
Sir you are working very will through a NGO which fight against corruption.I want to join your NGO. Before one month I registered a complain against corruption on ur land line number but you give no responce. Sonu Tewatia Palwal Haryana Phone number 09467242726 On 3/3/16, Transparency Intl India wrote: > more  
Various posts by honourable members are all corrupt. We all know that corruption is so deep in our country, because almost all, barring a few, politicians are corrupt and immoral and busily grabing as much wealth as possible, in all ways, for their future generations. Without active support of politicians no bureaucratic can engage corrupt practices. The dilemma is that any measures to stop corruption, in our country, is to be finally decided by politicians. What we can do is bringing every incidents of corruption from the part of politicians should be made public and let the voter know the true face of the politician who approach for vote once in five years. Measures to eradicate black money, such as bringing transactions by liquid cash to the minimum and transactions above a fixed limit should be by recorded means. more  
1. Govt. tenders are prepared on the basis of a particular manufacturer's specification. 2. Tenders are executed on the basis of lowest price irrespective of the quality. 3. Out of state manufacturers are able to quote lower price as they can quote on CST @2%. The above should be looked in to. more  
The following points should be incorporated in the procuring process:- 1. The tender process should be as per best practices proposed by TII for transparency and maximum competition. 2. Price list of products with specifications of all major brands should be mandotorily displayed in their website for ethical pricing and to deter kleptocracy. 3. Tender evaluation process of each tender should be displayed in the homepage of tendering party. 4. On site acceptance test(OSAT) of the items of the purchase orde, their installion and commissioning dates should be displayed on their website. more  
It is a fact that corruption rampant in all government departments. It can be arrested, only, if there is any dedicated method of procurement. Al through the3re is on line tendering and procurement in many departments, how far corruption free is the procurement to be seen. more  
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