Vigilance Compedium - CCL

Case Study -02
BRIEF OF ALLEGATION
On source information, the Vigilance Department took up an investigation into irregularities
committed in the matter of award of contract for preparation of CCL’s Tableau for its display
on the occasion of Republic Day Parade.
OUTCOME OF INVESTIGATION
Investigation revealed the following irregularities as having been committed by the Head of
Public Relations Department of the Company:
1. While issuing Notice inviting Tenders, he failed to call quotations from reputed and
experienced agencies. Instead, he called offers from non-proven and new firms without
obtaining any competent approval for inclusion of those firms. The Civil Engg. Manual
and Purchase manuals of the Company stipulate calling tender only from reputed and
registered suppliers. Further, as per provisions contained in the said manuals if new firms
are to be included for calling tenders, competent approval to this is required to be
obtained.
2. While finalizing the TCR, he in the capacity of technical member, failed to consider the
last awarded rate for the similar work executed in the previous year. Further, he
recommended the award of work to L-1 party without deciding the reasonability of rate
quoted by L-1 bidder.
3. He did not associate other members of the Tender Committee while holding further
negotiations with the L-1 party. Therefore the so-called negotiation proved to be an empty
formality.
4. With a view to extend undue favour to the said L-1 Party, he projected a false and
misleading information to higher authorities inasmuch as he projected an inflated figure
of last year’s expenditure.
5. The aforesaid irregularities resulted into issuance of work order to the L-1 party of his
choice.
PUNITIVE ACTIONS
Appropriate punitive actions were taken against the officials responsible for the above
irregularities.