Corruption in Procurement - Key Issues

Today, we would like to seek eveyone's inputs on who corruption takes place in procurement departments of Government, Private Organizations and even Non Profit organizations.

Please list all that you have experienced/know. Our objective is to understand all the issues and then develop solutions to such corruption.

The discussion will also be utilized to augment our Integrity pact which is currently utilized by over 50 PSUs in India.

We look forward your inputs!
Transparency International India more  

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1. Procurement tender tech specs are made vague. 2. Technical tech specs being complicated are made vague. Later during clarification stage thses are namipulated with preferred vendors. Vendors are asked to quote extra price for these , which is manipulated later. 3. These extra proces are quoted knowing price quoted by other vendors so that they are always in run. As such preferred vendors were L1 initially, get first preference & manipulate price with help of technical group, who are major beneficiary of this corruption. They arte assisted by purchase wing in this process & hence purchase & Finance also get partners in this. 4. Later on Inspection department also follow corrupt practice by granting concession to agreed specifications & get benefitted. 5. Many times, wrong indent value is shown on indent which allows change in type of tender i.e. Limited, open, single or propriety. 6. Relaxations given are detrimental to specs & two identical parts do not remain interchangeable. 7. These are some major lacunas in tendering but there are hundred such practices followed for high value technical jobs especially in power plants & may be similar practices adopted in complicated technical projects. I can list out hundred such mal practices separetely which is not possible here. Should you need more help, please revert back with separate email ID. more  
1. 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. 2. 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. 3. 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. 4. Corruptions prevailing in defence procurement is any body's guess. more  
Defence Procurement. They have local approved suppliers who charge 30 to 40% extra and corrupt the officials. 2) If any supplier supplies direct, the dept make them run for 3/4 months with petty queries and complicates the matter, hence nobody supplies direct. 3) Even in quotes they are only bothered about L1 and least bothered about quantity. 4) The suppliers should be paid direct as per terms & conditions of order. 5) Needed documents can be listed for Bill submisssion. more  
Procurement is the biggest source of corruption. Various issues that can be made out are:- 1) Defined quantity not given initially and wherever given, quantity is arbitrarily increased and decreased without adequate reasons 2) Ambiguities in the tender document in regard to defined qualification criteria for product and vendor selection 3) Technical specifications not clearly defined 4) Absence of Standard Operating Procedures in case of Bid Evaluation processes 5) Absence of defined check list and Inspection protocols 6) Non availability of a clearly defined procedure of sampling wherever required 7) Suspect role of testing agencies in analysis of products according to laid down standards. 8) Suspect role of Warehouse officials in receipt of products according to terms and conditions laid in the tender document 9) Delaying process of payment to the vendors without adequate reasons more  
This is a common practice in all offices from top to bottom.Where the supplier and purchaser is united no body can do any thing.This is my practical experience as I was in government service for a period near 40years. more  
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