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Best Initiatives & Practices

Certificate Programme in Public Procurement (CPPP) & Certificate Programme in Contract Management (CPCM)

With the objective of inculcating professionalism and building up the capacities of personnel’s involved in Procurement Management/Supply Chain Management(SCM), World Bank has developed the Certificate Programme in Public Procurement (CPPP)&Certificate Programme in Contract Management (CPCM), which is first ever free Procurement and contract management Certificate delivered as Massive Open Online Course (MOOC). NALCO as an organization has encouraged its employees for taking up the World Bank’s “Certificate Programme in Public Procurement” & “Certificate Programme in Contract Management”. These Programs enable the participants to get an overview of Public Procurement and contract management.

NALCO Vigilance Department has examined the contents of the program and noted that the course is suited for NALCO. Further during the investigation of Complaints and Source information, the vigilance department observed that most of lapses and violation are observed due to lack of awareness on various aspects involved in Public Procurement, Contract Management and the Government guidelines relating to these two fields. It is observed that CPPP & CPCM help the employees working in Procurement, Contract and related activities to understand the intricacies involved in Public Procurement, Contract Management and to comply with the Government guidelines.

Corporate Vigilance has issued a letter on 26.05.2017 advising all the employees to make use of this learning Opportunity for the benefit of the Organisation. Also the Corporate HRD had issued a circular on 11th August 2017 to encourage the employees to take up these courses. As per the circular, those who will complete these online courses, one mark will be added to their Annual Appraisal Rating (AAR) for the year 2017-2018. As on 31.12.2018, approx. 500 nos. of employees successfully completed these courses.

The candidates were given facility to learn and write the test from the office after Office hours. Unit heads started monitoring the progress and Corporate Vigilance Department has kept tracking the individual efforts being made.

Development of NALCO Learning Portal

To facilitate and create an e-learning atmosphere in NALCO, the Corporate Vigilance Department has selected some purposeful and career relevant online courses (in the field of HR, Finance, Procurement, Project, ethics, etc.) and developed the web portal named “NALCO Learning Portal” in association with Corporate Systems Department. This web portal was inaugurated by the CMD, NALCO during Vigilance Awareness Week-2017. The employees from different units, enrolled in different course through this website.

Development of Integrity Index

Central Vigilance Commission is the apex body for exercising general superintendence over vigilance administration in Government. The institutional frame work for addressing the issue of corruption has been progressively strengthened over the years and legal framework also has been extended.

The Commission has felt the need to make a shift in its role making it more thought provoking, interacting and nurturing in organization. With a view to implement, its mandates the commission wishes to adopt the strategy which will ensure Transparent, Accountable and Efficient governance. One such tool is Integrity Index for public organization which will be based on bench mark of Government for internal and external stake holders. The long term sustainability, profitability, good governance, transparency are closely linked and can help public organization to achieve excellence. Accordingly CVC has decided to develop a tool for measuring Integrity Index to ensure transparent, accountable and efficiency in governance.

The Commission has appointed Indian Institute of Management, Ahmedabad as a consultant to develop Integrity Index. It has selected 25 CPSEs and Central Government Departments that are to be covered in developing the Integrity index and NALCO is one of the CPSEs identified for this purpose. The index of Integrity of NALCO is considered to be high and its position is among the top few CPSEs.

The various parameters of evaluation of Integrity index and weightage are indicated below:-

Integrity Perception – 10%

  • Survey based perspectives of stakeholders viz., shareholders, customers, vendors and employee

Enabling Environment – 10%

  • Code of conduct
  • Whistle Blower Policy
  • Integrity Pact
  • Right to Information Act
  • Others

Compliance – 10%

Audits (Internal, Statutory, CAG)

  • GFR
  • Grievances, compliances and suggestions
  • Corporate governance

Transparency – 10%

  • Automation
  • Webpage content
  • Fraud prevention initiatives

Performance – 10%

  • Commercial performance
  • Social Impact

Key Process Management – 50%

  • Standard processes: 60% (purchase, capital decision, scrap and asset disposal; HRM: Recruitment, performance appraisal, promotion, transfer)
  • Customized process: 40% Business processes; the focus is to examine effectiveness in decision-making.

An Organization with high Integrity is expected to have a Structure with definite lines of authority, responsibility, accountability and segregation of duties, Lines of communication to various stakeholders, Independent Vigilance Organization. The key processes are marketing, procurement, contracting, CSR, audits, grievances handling etc.

Processes drive the organization. Well designed and monitored processes can avoid avenues for malpractices and corruption. In order to improve the level of Integrity, processes must be transparent with minimal discretion and powered by IT enabled services.

Customer’s perception is important for the survival of the organization.Vendors are important partners for the business. Vendor interactions provide scope for corrupt practices. Therefore, vendor processes need to be monitored constantly.Employees are the backbone of the organization. Their perception of the Integrity of the organization will mould their behavior. Similarly Govt., statutory authorities and societies for perception are very important indicator of Integrity of the organization.

After the development of the module, periodic assessment of the integrity index of various organizations will be done in a continuous basis. An Organization with high integrity score is more process dependent, which is automated, very minimum manual intervention for decision making, very high regards by all the stake holders and very high statutory and legal compliances. An Organization will be judged based on its score of Integrity Index which will facilitate for future growth and smooth business. High indexed company can easily attract foreign institutional investors, longer credit period by the Vendor, best man power etc.

Whistle Blower Policy

NALCO Management has introduced Whistle Blower Policy which is already uploaded in NALCO vigilance website. Whistle Blower Policy is made available internally to all employees through Intranet communication system and externally through NALCO- website satisfying the Company’s code of conduct and ethics, and particularly assuring that business is conducted in transparent manner. This policy encourages everyone to report to the company any suspected violation of any law that applies to the company and any suspected violation of the Company’s code and ethics.

Administering Integrity Pledge

Integrity Pledge has been administered in different functions viz., Vendor’s meet, Vigilance Awareness Week, Directors of the company along with employees, vendors, contractors evidencing the strong commitment in Leadership of the Organization to fight corruption. Also Online Integrity Pledge was also administered by all NALCO employees promulgating further to the family members of NALCO. Apart from this, students of NALCO schools administered the integrity pledge showing a way in their commitment to anti-corruption. NALCO also involved in outreach activity in the name of e-integrity pledge and physical integrity pledge drives at different schools and colleges in Bhubaneswar, Cuttack, Angul and Damanjodi of Odisha, where more than 30,000 students have taken the integrity pledge.

Integrity Pact

Integrity Pact(IP), a tool developed by Transparency International to make public procurement transparent by binding both parties to ethical conduct is used in NALCO for contracts value above Rs. 50 Lakhs showing Organization’s commitment for forbidding unethical practices. At present NALCO covers 100% under Integrity Pact (IP) for the procurement value Rs. 50 Lakhs and above. The present coverage is approximately 85% of total procurement excluding the exempted category as per MoD guidelines.

Vigilance Awareness Training Programs

NALCO Vigilance has been arranging Training Programs for various levels of Officers in order to bring in Awareness about the Systems, Procedures etc., for effectively discharging their duties.

Outreach Activity

To create greater awareness and participation of the public/citizens at large, the Central Vigilance Commission (CVC) has envisaged a concept of “Integrity Pledge”. As such integrity pledge has been envisaged enlisting support and commitment of the citizens to prevent and combat corruption. The “Integrity Pledge” to be taken by individual citizens affirming their commitment to eradicate corruption and to uphold highest standards of ethical conduct, transparency and good governance. The e-pledge is available in the website https://pledge.cvc.nic.in to enable wider participation.

To promote the integrity, honesty and good governance, NALCO has been conducting e-pledge drive through Outreach activity at different schools and colleges in and around Bhubaneswar and Cuttack. NALCO is imparting full effort in conducting such activities with a vision of “Swachh Bharat” and “Corruption Free India”.

The said activity had been organized at Utkal University, Sai International School, S’O’A University, Xavier Institute of Management and Silicon Institute of Technology, Govt. Boys High School (Unit-8) in Bhubaneswar, covering about 1600 nos. of participants till date. The same activity is planned to be conducted in some more schools and colleges in and around Bhubaneswar and Cuttack.

The following are the few best practices / system study improvements implemented in NALCO

  • The Company has implemented ERP (SAP) System in all of its manufacturing units/offices, which has strengthened the internal control systems.
  • Customer Relationship Management (CRM) Portal is launched. Customers can retrieve information on the products that are acquired from NALCO.
  • Supplier Relationship Management (SRM) Portal is launched. Vendors can register themselves online and participate in e-tendering & e-procurement process.
  • Details of awarded tenders & contracts published in the NALCO website.
  • CTE type examinations are conducted regularly.
  • Officers and Staff working in sensitive areas (as defined by the CVC) are transferred to non-sensitive areas, as per CVC guidelines.

The following Vigilance activities are practiced and carried out regularly like scrutiny of following documents/files

  • Purchase Orders
  • Sub-contract Orders
  • Civil works Contracts
  • Electrical / Mechanical works Contracts
  • Medical Equipment Contract
  • Consultancy Contracts
  • Service contracts
  • Supply of Medicines Contracts
  • Store / Purchase Contracts etc.

(The values of the Orders / Contracts taken for scrutiny are as per CVC guidelines.)

  • Annual Property Returns filed by the Individuals of the company is scrutinized regularly.