Para 5 - Anti-Corruption Declaration | KartavyaDesk
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 Non-Consultancy Services deals with 'Previous Transgressions' related to anti-corruption. Essentially, it asks bidders to declare whether they've been involved in any corrupt practices in the past three years. This applies to dealings with any company, anywhere in the world, that follows an anti-corruption approach, or with any Public Sector Enterprise (PSE) in India. The goal is to ensure that companies with a history of corruption are not awarded government contracts. This rule affects all bidders participating in tenders for non-consultancy services.
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.
- •This applies to dealings with any company globally adhering to anti-corruption standards.
- •It also includes dealings with any Public Sector Enterprise (PSE) in India.
- •Incorrect statements regarding previous transgressions can lead to disqualification.
- •The 'Principal' (the procuring entity) will take action similar to that outlined in Section 4, Para 2 if a false declaration is made.
Practical Example
ABC Solutions, a company bidding for a cleaning services contract for a government hospital, declares that it has no previous transgressions. However, it is later discovered that two years prior, ABC Solutions was found guilty of bribing an official at a private company in the United States to secure a similar contract. This private company had a strict anti-corruption policy. Because ABC Solutions made an incorrect statement, the Principal (the hospital administration) can disqualify ABC Solutions from the tender process and potentially take further actions as outlined in Section 4, Para 2, such as blacklisting them from future tenders.
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?▼
What happens if a transgression is discovered after the contract is awarded?▼
Does this rule apply to transgressions that occurred more than three years ago?▼
What is the 'anti-corruption approach' mentioned in the rule?▼
What actions can the 'Principal' take according to Para 2 of Section 4?▼
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 Non-Consultancy Services, for how many years prior to the tender process must a bidder declare any transgressions related to anti-corruption?
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