DISCUSSION: P. Shankar, Central Vigilance Commissioner (centre), having a word with N. Soundararajan, president, Institute of Internal Auditors, Madras Chapter and Conference Chair (left), at the 30th all India conference on internal audit in Chennai . Dave Richards, international president, IIA, looks on. — Photo: R. Ragu

CHENNAI: The Central Vigilance Commission prescribes a set of norms to be followed during the tendering process by organisations coming under its purview, including posting all the tenders, their outcome, and award of the contract to the lowest bidder (L-1).

The apex vigilance commission was against the organisations, which include the central public sector undertakings and banks, entering into negotiations with the bidders. They should also set a timeframe for finalising the tenders, the Central Vigilance Commissioner P. Shankar said here on Friday.

He was inaugurating the 30th all India conference on internal audit organised by the Institute of Internal Auditors (IIA), Madras chapter.

Apart from the initiatives to ensure competitive bidding, the Commission had advised the Chief Vigilance Officers in the organisations to monitor the process of awarding tenders whose contract value was above a set limit. Noting that details regarding "big tenders" were sometimes published only in local vernacular newspapers, making it appear like "a sort of set up," he said the officers have been asked to look at their systems and procedures.

The Commission, he added, had told the officers not to wait for a complaint, but concentrate on preventive vigilance. "Fraud perception is our role," Mr. Shankar said while hinting that personal and home loans (extended by the banks) were also under the scanner of the Commission. Noting that the competition was fuelling such practices, he said in one case 30 home loans were provided for the same property, including three by the same branch of the bank.

Underscoring the need for the internal auditors and the Commission to work together, particularly to achieve the goal of corporate governance, he favoured grant of more powers to the Commission. It included access to the reports of the Comptroller and Auditor General, before it is made public, to detect the fraud. Out of the average 12,000 to 13,000 complaints received, the Commission was able to act on only a few hundred in a year. Mr. Shankar called for joint meetings of the auditors and officers of the commission "to integrate the function."

The national president of IIA, Shantanu Ghosh, agreed to the suggestion. The role of internal auditors, he added, had enlarged with the emphasis on corporate governance. However, to manage the demand, professionals must constantly update their knowledge.

The international president of the IIA Dave Richards said the professionals added value to the organisation and played a pivotal role in corporate and organisational governance. India, he added, was way ahead in terms of corporate governance. Technical chair P.R. Loganathan gave an overview of the two-day conference and its theme `beyond assurance - enhancing enterprise value.'

Printer friendly page  
Send this article to Friends by E-Mail