India: Probity in Public Procurement, Transparency, objectivity and competition in Public Private Partnership projects in line with the United Nations Convention against Corruption

2013 | United Nations Office on Drugs and Crime

This report presents the findings of two research initiatives carried out under the ‘PublicPrivate Partnership for Probity in Public Procurement’ project. The first is an assessment of Indian legislation to assess compliance with the UNCAC. The second is a survey of current practices, grassroot challenges and training needs to identify gaps in practice. Furthermore key insights and practical experiences were shared during the meeting of six working groups which brought together high level
officials from the government, private and civil society sectors. Both mechanisms provided valuable information on the legal framework as well as its practical implementation. The first study i.e. assessment of Indian legislation, indicates compliance of the Public Procurement Bill 2012 and Draft Rules for Public Private Partnerships 2011 with the UNCAC.
With this legislation, India is well on the way to achieving comprehensive legislative coverage for probity in public procurement in India. The Government of India has also set up the Procurement Redressal Committee. A bidder aggrieved by actions of the procuring authority can appeal to this committee. Furthermore the Draft Rules for PPP contain many good practices that strengthen their compliance with the UNCAC. The PPP rules address bribery, collusion and to some extent, money laundering. There is also a separate legislation for money laundering in India. The PPP rules provide for measures against procurement officials who may be originators of corruption, code of conduct for private sector and debarment policies for defaulting bidders. It addresses both the procurement stage as well as contract management and project implementation stages providing rules for contract management. It necessitates maintenance of records of every procurement. It also lays down obligations for the government in case the private sector is unable to meet its commitments as per the PPP contract so that provision of facilities to the citizen is less affected.

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