Adopt integrity pact to check graft: CVC tells banks, Financial Institutions

New Delhi: Citing increase in procurement activities, the Central Vigilance Commission (CVC) has asked public sector banks, insurance companies and financial institutions to adopt integrity pact by April 30 and appoint independent external monitors to check corruption.

The concept of Integrity Pact (IP) envisages an agreement between the prospective vendors or bidders and the buyer committing the persons or officials of both the parties not to exercise any corrupt influence on any aspect of a procurement contract.

"Over the years, it has been observed that public sector banks, public insurance companies and financial institutions are increasingly undertaking major procurement activities. "It has, therefore, become imperative for public sector banks, insurance companies and financial institutions also to now adopt integrity pact and appoint independent external monitors (IEMs) to make their procurement and contracting process fair and transparent," an order issued by the CVC said.

The probity watchdog has asked the banks, insurance companies and FIs to send it a panel of four or five names of eminent retired persons who may be appointed IEMs, it said. All public sector banks, insurance companies or financial institutions may, therefore, ensure that the integrity pact is adopted and all the formalities are completed by April 30, 2015, the CVC said.