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Ordnance Factory Board to go in for e-procurement

Special Correspondent

CAG recommends that Defence Ministry install further checks
CBI recommended blacklisting of six companies

NEW DELHI: To inject greater transparency in the procurement process, following allegations of corruption against its former top official, the Ordnance Factory Board has decided to launch e-procurement, even as the Defence Ministry promised increased checks.

The e-procurement system would be introduced towards October-end for procurement of raw materials, components, plant and machinery and civil works with an estimated value of Rs. 10 lakh and above by ordnance factories.

In its latest report on the Procurement of Stores and Machinery in Ordnance Factories, the Comptroller and Auditor General (CAG) had recommended that the Defence Ministry install further checks, including rechecking the credentials of all registered vendors, so as to weed out ghost firms, and publish details about the registered firms on the OFB website.

Last year, the Defence Ministry asked the CAG to carry out a special audit of all the procurement contracts between 2006 and 2009 after the CBI registered a case against the former Director-General of Ordnance Factory, Sudipta Ghosh.

The CBI recently recommended that the Ministry blacklist six companies — Singapore Technology Kinetics, Israeli Military Industries, Rheinmetall Air Defence, Zurich; Cooperation Defence, Russia; T.S. Kisan and Company Pvt Ltd, New Delhi; and R.K. Machines Tools Ltd., Ludhiana.

The Ministry accepted several recommendations of the CAG, including the one that the OFB be expanded to include senior representatives from the Department of Defence Production, Integrated Finance, DRDO and the Army Headquarters.

The CAG also said the OFB should function similar to a Board of a company. It should oversee the functioning of the 40 Ordnance Factories, than taking decisions relating to procurement and day-to-day functioning of the factories. It also made recommendations on tightening both the procedures and controls at various levels.

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