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Para 5 - Anti-Corruption Declaration | KartavyaDesk

Goods 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

Para 5 of the Manual for Procurement of Goods, 2017, focuses on ensuring integrity in the bidding process. It requires bidders to declare whether they have been involved in any corrupt practices or transgressions in the past three years. This applies to dealings with any company globally that adheres to anti-corruption standards, as well as with any Public Sector Enterprise (PSE) in India. Essentially, the government wants to know if a company has a history of unethical behavior that could disqualify them from being awarded a contract.

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.
  • The declaration covers the past three years.
  • Transgressions include those with any company adhering to anti-corruption standards globally.
  • Transgressions also include those with any Public Sector Enterprise (PSE) in India.
  • Incorrect statements can lead to disqualification from the tender process, as per Para 2 of Section 4.

Practical Example

Imagine 'Sunrise Technologies' is bidding for a contract to supply computers to the Ministry of Education. As part of the tender process, Sunrise Technologies must declare if they've had any issues related to corruption in the last three years. Let's say that two years ago, Sunrise Technologies was found to have bribed an official in a foreign country to secure a contract. This transgression, even though it occurred outside India, must be declared. If Sunrise Technologies fails to disclose this information and the Ministry later discovers it, Sunrise Technologies could be disqualified from the tender and potentially blacklisted from future government contracts.

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 act of corruption, bribery, fraud, or unethical behavior that violates anti-corruption principles or laws.
What happens if a bidder makes a false declaration?
If a bidder provides an incorrect statement, the consequences are the same as outlined in Para 2 of Section 4, which typically involves disqualification from the tender process and potential blacklisting.
Does this rule apply to transgressions outside of India?
Yes, the rule explicitly covers transgressions with any company in any country that conforms to the anti-corruption approach.
What is the purpose of this rule?
The purpose is to ensure transparency and integrity in government procurement by preventing companies with a history of corruption from being awarded contracts.
How far back do I need to check for transgressions?
You need to check for any 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 Goods, 2017, for how many years prior to the tender process must a bidder declare any transgressions related to anti-corruption?

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