Visakhapatnam Steel Plant

Vigilance Department

Rashtriya Ispat Nigam Limited

Volume-3 Issue - 4 (October - December 2009)

SPANDANA

for internal circulation only

v Glimpses of Vigilance

Awareness Week

activities

v Case studies

v Latest CVC circulars

v Vigilance checks

during the quarter

Oct-Dec’09

v News & Events

Inside ...

from CVO’s Desk……

VIGILANCE AWARENESS WEEK 2009

In line with the directions of CVC, Vigilance Awareness Week-2009 was observed during 3rd November to 7th November 2009

in RINL.

The following activities were undertaken in connection with the observance of Vigilance Awareness Week.

(a) On 3rd November 2009, pledge was taken at 11.00 AM by all the employees.

(b) In order to extend the reach of the vigilance awareness drive, it was thought fit to involve the children and women in the

activities for promoting vigilance awareness. Accordingly, slogan competitions in three languages (Theme: Efforts to make India a

corruption-free country) among the women were conducted. Similarly, slogan competitions in three languages (Theme: Eradication

of corruption is the need of the hour) for RINL employees were also conducted and the response was very encouraging.

(c) This year, for the first time, suggestions were invited from our employees through on-line Srujan Vikas Management

System on the occasion of the Vigilance Awareness Week pertaining to leveraging of information technology for promoting greater

transparency, fairness and equity. Response was quite encouraging.

(d) Painting and quiz competitions for children studying in Arunodaya Special School for differently abled children were held.

There was enthusiastic participation in the competitions.

Quiz competition on moral values, ethics and personalities was conducted in which large number of students participated.

Spandana wishes all a Happy New Year and Pongal

The civil society and citizens in general must play an effective and proactive role in fighting

corruption. While post-facto analysis of cases is required, there is much wisdom in the age old saying

"Prevention is better than cure”. For this, all stake holders need to play a proactive role to curb corruption.

Vigilance Awareness Week was observed by RINL Vigilance Dept. from 03rd Nov to 07th Nov

2009 for spreading awareness among the people about ethics, values and their role in fighting the

malaise of corruption. There is a need for maintaining absolute honesty at all times and at all levels. We

need to understand the dangers of corruption. Corruption, even in smaller measures, if left to itself,

gnaws at the vitals of an organization and drains out precious resources.

This year, we have made special efforts to reach the grass root level of employees and their

family members by conducting slogan and suggestion competitions. In order to spread the message of

ethics and values among school children essay writing competition was held on the theme of 'Role of

children in building an ideal society' and 'Honesty is best policy'. Elocution competition was also

conducted on the theme of 'Role of education in character building' on this occasion. The results were

revealing and we were quite impressed at the talent and knowledge of the children. I compliment all the

children and their parents.

During Vigilance Awareness Week we had solicited suggestions from the existing customers,

vendors and contractors of RINL for improving procedures and systems in order to make them even

more transparent and fair to all. The response was good and suggestions are useful.

I believe that all these measures will definitely have positive impact on working of employees

and create awareness among them on the need, to curb the menace of corruption in our society.

(K. Vidyasagar, IAS)

The greatest friend of truth is time, her greatest enemy is prejudice, and her constant companion humility. - Charles Caleb Colton

Krishna Murty A.G. AGM(TPP) conducting quiz competition in MP hall, during VAW-09

Elocution Competition on the topic "Role of education in character building" in all the three languages i.e.

English, Hindi and Telugu, was conducted and the response was very good.

Like in the previous year, we have gone beyond the schools of the Steel Township and conducted Essay-

writing competition in Telugu among the school children of 17 Zilla Parishad Schools which are located in the

periphery of the Steel Plant. Similarly, competitions were held in essay writing and elocution for the school

children in schools located in Jaggayyapeta and Madharam where RINL has its captive mines.

(e) On 5th November, 2009, an

interaction session with contractors of

Projects Division, Works Division, and

Personnel Contracts Section was held.

Number of contractors and senior

officials of VSP have participated in the

meeting. Presentation on "Leveraging of

Technology in tendering and contracts"

followed by an interactive session was

organized for promoting greater

transparency, fairness and equity.

Discussions were very fruitful and some

valuable suggestions were made by

contractors.

In the afternoon, a talk on "Need for Enhanced Transparency and Good Corporate Governance in PSUs"

was delivered by Sri E.A.S. Sarma, IAS (Retd), former Secretary, Department of Economic Affairs, Govt. of India

to the senior officers of the Company. His talk was very interesting and was very much appreciated by the

audience.

(f) On 6th November, 2009, two interactive sessions were arranged, one on leveraging of technology in

Materials Management Department with vendors and another on e-auction with customers of Marketing

Department. Both these sessions featured presentations by Materials Management Department and Marketing

Department respectively. Many vendors, customers and senior officials of VSP have participated in these sessions.

Sri E.A.S. Sarma, IAS (Retd), addressing senior officers of VSP in T&DC auditorium.

2

Education without values, as useful as it is, seems rather to make man a more clever devil - C.S. Lewis

(g) On the same day in the second half, a power point presentation on "Role of Enterprise Resource Planning (ERP)

in Improving Transparency" was made by the Senior consultant of Price Waterhouse Coopers before a group consisting

of senior officers of RINL and customers, vendors and contractors. This presentation was organized in view of the fact

that RINL has recently finalized the contract for providing ERP solution for RINL. The presentation was informative and

the discussion that followed was very fruitful. The officers and vendors have appreciated the benefits of ERP.

(h) A brochure containing the messages of Hon'ble President of India, Hon'ble Vice President of India, Hon'ble Prime

Minister, Hon'ble Leader of Opposition (Lok Sabha) and Central Vigilance Commission and a brief note on the initiatives

taken for usage of Information Technology in RINL for improving transparency and good governance, was widely distributed

among the participants and all the stakeholders.

Separately, in our effort to improve the systems and procedures, we have written to the RINL customers, contractors

and vendors of RINL seeking their views and suggestions. The same would be analysed with the help of the departments

concerned for bringing about improvement in the systems and procedures.

Dr. S.N. Rao, DGM (ERP) I/c welcoming senior VSP officials,

vendors and customers at Nagarjuna hall, Centre for HRD

K. Vidyasagar (IAS),CVO, RINL presenting bouquet to

speaker, Sri Binu Rajendran, Sr Consultant, PWC.

Interactive session with customers and vendors in Marketing and Materials management Dept.

3

The needs of society determine its ethics. - Maya Angelov

Prize winning paintings in competition conducted for students

M P KUMAR ,IIIrd Prize, Painting competition (Juniors)

REHANA ,IInd Prize, Painting competition (Juniors)BHARAT ,Ist Prize, Painting competition (Juniors)

4

If you tell the truth, you don't have to remember anything. - Mark Twain

of Arunodaya Special School on the occasion of VAW - 2009

RAJA ,Ist Prize, Painting competition (Seniors) PRASANTH ,IInd Prize, Painting competition (Seniors)

ANISHA ,IIIrd Prize, Painting competition (Seniors)

5

No legacy is so rich as honesty. - William Shakespeare

The successful conduct of the different activities during the Vigilance Awareness Week, and the enthusiastic

response they drew, demonstrated that the purpose of the Vigilance Awareness Week was met.

On 7th November, 2009 Valedictory function was held in Training & Development Centre Auditorium. Sri V.N.

Vishnu,IAS, Vice Chairman, Visakhapatnam Urban Development Authority (VUDA) was the Chief Guest. In the valedictory

function, dignitaries have distributed the prizes and certificates of appreciation to the winners of Slogan writing, Elocution,

Essay writing, Quiz and Painting Competitions. The 1st prize winners in elocution in three languages for school

children have delivered their presentations before the audience which were very much appreciated.

Valedictory function of VAW-09

Chief Guest Sri V.N. Vishnu,IAS, Vice Chairman, VUDA addressing the gathering in T & DC auditorium

Some of the slogans received during Vigilance Awareness Week -2009

1 Corruption gives sleepless treasure, honesty gives peaceful pleasure.

2 Cutting corruption at roots, gives society healthy fruits.

3 Don’t go for dishonest reap, conscience never allows sleep.

4 Corruption ruins, sincerity reigns.

5 Bringing accountability is what we need, for which, transparency is required indeed.

6 Prevent corruption, protect nation.

6

A good name, like good will, is got by many actions and lost by one. - Lord Jeffery.

Case Study - Quality Check

Surprise check of quality of materials used by an Agency in execution of work was carried out by Vigilance

department. During the surprise check, sampling and testing of material was done involving the Contractor and the

Department. The test conducted in the presence of the Contractor and the Department showed that the material

used by the Contractor was not conforming to the Specification. It was found that some of the materials from the

existing lots were already used for the work. Vigilance department advised, the department concerned to recover

Rs.20,160/- from the Agency’s bill for using material not conforming to specification which however , was technically

acceptable. In addition to the advice for recovery, a suggestion was given to examine the existing Contract provision

for inclusion of suitable clause about penal action to be taken against the Agency to meet such eventualities.

Case Study- Surveillance checks

Based on a source information, Vigilance Department carried out surveillance checks at site and related RA Bills

were also checked. During the checking at site, Vigilance department noticed that a particular method of carrying out

work was mentioned in the Contract document where as the same work at site was being carried out by the Contractor

by following a totally different method and different specification, resulting in substantial saving to the Contractor.

Vigilance department advised, the department concerned to make payment for the actual work done at

site. This resulted in saving of Rs. 1.32 lakhs to the Company. Further, four Officers were issued warning letters

by the department concerned for not adhering to Contract specifications and method of execution of work.

Adoption of Integrity Pact-Periodical regarding

The Commission in its various circulars has emphasized the necessity to adopt

Integrity Pact (IP) in Government organizations in their major procurement activities.

The Commission had also directed that in order to oversee the compliance of obligations

under the Pact by the parties concerned, Independent External Monitors (IEMs) should

be nominated with the approval of the Commission, out of a panel of names proposed

by an Organisation.

Further, the Commission vide its circular No. 10/5/09 dated 18.5.09 provided a

review system for the CVOs wherein internal assessments of the impact of Integrity

Pact are to be carried out periodically and reported to the Commission. In this regard,

it is clarified that such review should be on annual basis. The Organisation which has

adopted Integrity Pact may report compliance of review system through monthly

reports.

22/08/09

11 Aug 09

1.

+ Note: for complete circular please visit CVC website @ www.cvc.nic.in

“The goal of mankind is knowledge. Now this knowledge is inherent in man. No knowledge comes from outside; it

is all inside. What we say a man ‘knows’, should, in strict psychological language, be what he ‘discovers’ or ‘unveils’;

what man ‘learns’ is really what he discovers by taking the cover off his own soul, which is a mine of infinite knowledge.”

-Swami Vivekananda

S.No. SubjectCVC Circular No.

& Date

7

Views and Opinions published in this Newsletter do not necessarily reflect the Management’s thinking and Policy.

Feedback for improvement is welcome and may be sent to spandana@vizagsteel.com

Note: Spandana can be viewed at http://www1.vspsite.org/vigilance/spandana/tabid/70/default.aspx

Editorial Board: S.K. Bose, DGM (Vigilance), Ashok D. Chincholkar, Manager (Vigilance)

NEWS & EVENTS

1) Sadbhavana pledge was taken by all employees of Vigilance department, On 31st Oct 09 on the occasion of Sadbhavana Divas.

2) Smt Ranjana Kumar, Vigilance Commissioner, CVC visited RINL on the 09th Oct 09. She delivered lecture on “The Role of

effective HR in the success of an organization” in T & DC Auditorium which was followed by an interactive session.

3) Shri P.C. Parakh,IAS (Retd.) Independent External Monitor visited RINL on 23rd and 24thDec 2009 for reviewing the implementation

of Integrity Pact in RINL.The review with CMD, Directors and other senior officials was held on 24th Dec 09. An interactive session

on IP implementation was also conducted with suppliers/vendors/contractors of RINL on 23rd Dec 09.

Review of Purchase Preference Policy for Products and Services of

Central Public Sector Enterprises (CPSEs) in view of the judgement of the

Supreme Court of India in the matter of M/s Caterpillar India Pvt. Ltd. v/s

Western Coal fields Ltd. and Ors dated 18.05.2007.

The Department of Public Enterprises has issued guidelines vide O.M. No. DPE/

13(15)/2007-Fin. Dated 21.11.2007 on the subject cited above which reiterates DPE's

earlier guidelines dated 18.07.2005 to the affect that the Purchase Preference Policy

would stand terminated w.e.f. 31.03.2008. Further, it also provides that Preferential

Policy framed for the specific sectors by the concerned Ministry/department within

relevant Act of Parliament or otherwise don't come within the purview of these guidelines.

However, the DPE OM. Dated 21/11/2007, lays down that the concerned Ministry/

Department may independently evolve/review preferential policies for sectors of their

concern as per their requirement.

The Commission has desired that if any Ministry/Department has evolved a

Purchase Preference Policy pursuant to the DPE Guidelines, the same may be brought

to the notice of the Commission.

31/10/09

09 Nov 09

S.No. SubjectCVC Circular No.

& Date

2.

Transfer

Shri K. Srinivasa Rao AGM (Vig) has been transferred to T&DC department. Spandana wishes him all success in his new assignment.

Vigilance Checks carried out during October - December 2009

Sl.No Description Total

1 Surveillance checks 63

2 Road re-weighments 26

3 Rake re-weighments 01

4 Quality checks 15

5 Stores checking 02

TOTAL: 107