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Para 5 - Integrity Declaration | KartavyaDesk

Consultancy Manual

Original Rule Text

Section 5 – Previous transgression 1) The Bidder declares that no previous transgressions occurred in the last three years with any other Company in any country conforming to the anti-corruption approach or with any Public Sector Enterprise in India that could justify his exclusion from the tender process. 2) If the Bidder makes an incorrect statement on this subject, the Principal shall act like para 2) of Section 4 above.

What This Means

This rule applies to all bidders participating in tenders for consultancy services under this manual. It affects companies, firms, and individuals seeking to provide consultancy services to the government. If a bidder provides false information about their past transgressions, they will face consequences similar to those outlined in Para 2 of Section 4, which likely involves disqualification from the tender process and potential blacklisting. The goal is to maintain transparency and accountability in government procurement and ensure that only ethical and trustworthy entities are engaged for consultancy work.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • Bidders must declare any past transgressions related to anti-corruption in the last three years.
  • The declaration covers transgressions with any company adhering to anti-corruption principles globally.
  • The declaration also covers transgressions with any Public Sector Enterprise (PSE) in India.
  • Providing false information will result in disqualification and potential blacklisting.
  • The rule aims to ensure ethical conduct and prevent corruption in consultancy procurement.

Practical Example

ABC Consultants is bidding for a consultancy project with the Ministry of Urban Development for a smart city initiative. As part of the tender process, ABC Consultants must declare any past transgressions. During the declaration, the company's legal team discovers that three years ago, their subsidiary in the United Kingdom was found to have violated anti-bribery laws in a minor contract with a private firm. Although the violation was minor and resolved with a fine, ABC Consultants must disclose this information. If they fail to disclose it and the Ministry later discovers the transgression, ABC Consultants will be disqualified from the tender and potentially blacklisted from future government projects. Conversely, if they disclose the transgression, the Ministry will evaluate the severity and relevance of the transgression to determine if it warrants disqualification.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What constitutes a 'transgression' under this rule?
A 'transgression' refers to any violation of anti-corruption principles, including bribery, fraud, and other unethical practices, as defined by relevant laws and regulations.
Does this rule apply to transgressions outside of India?
Yes, the rule specifically mentions transgressions with any company in any country conforming to the anti-corruption approach, so it has a global scope.
What is the consequence of making an incorrect statement?
Making an incorrect statement, such as failing to disclose a relevant transgression, will lead to consequences as outlined in Para 2 of Section 4, which typically includes disqualification from the tender process and potential blacklisting.
What if the transgression was minor and unintentional?
Even if the transgression was minor or unintentional, it must still be disclosed. The procuring entity will then evaluate the severity and relevance of the transgression to determine its impact on the bidder's eligibility.
What is the time period considered for previous transgressions?
The rule considers transgressions that occurred within the last three years from the date of the bid submission.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 5 of the Manual for Procurement of Consultancy Services, for how many years prior to the bid submission must a bidder declare any transgressions related to anti-corruption?

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