The Government is proposing to mandate prison terms of up to 5 years for bureaucrats caught accepting bribes or otherwise vitiating the Government's procurement process.

The proposals are contained in the new Public Procurement Bill, which was introduced in Parliament on Monday.

Finance Minister, Mr Pranab Mukherjee, who introduced the Bill in the Lok Sabha, said the Bill was being moved with the object of ensuring transparency, accountability and probity in Government contracts.

The Bill will also ensure fair and equitable treatment of bidders, promote competition, enhance efficiency and economy, and maintain integrity and public confidence in the procurement process, he said.

The provisions of the Bill will apply to procurement of goods and services exceeding Rs 50 lakh by central ministries, autonomous organisations, central public sector enterprises (CPSEs) and companies in which the Central Government, directly or indirectly, holds more than 51 per cent equity.

The Bill, according to statement of objects and reasons, will codify the basic norms to regulate public procurement and provide for debarring bidders found engaged in corrupt practices.

It also provides for a jail term ranging from six months to five years for public servants found guilty of demanding and accepting bribes from bidders of Government contracts.

Code of integrity

Currently, there is no overarching legislation governing public procurement by the central Government and central public sector enterprises. The General Financial Rules, 2005, govern procurements made by the Centre.

Major countries in the world, the statement said, had well codified legal provisions governing public procurement. , Tamil Nadu and Karnataka had enacted laws relating to transparency in public procurement.

The Bill will lay down a code of integrity to be followed the procurement entities, as well as the bidders.

It will also prescribe general principles with a view to prevent corrupt practices. The code of integrity would seek to check practices like offering of bribes, rewards or gifts, bid rigging and anti-competitive behaviour.

It has also provided for setting up of a central public procurement portal by the central government and establishment of a system to redress grievances.

The Bill is based on the recommendations of a committee on public procurement headed by former bureaucrat Mr Vinod Dhall. These were accepted on February 22 by a Group of Ministers, headed by Mr Mukherjee.

>shishir.s@thehindu.co.in

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