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Volume 8 DEC 2015/JAN 2016

From the Desk of Chief Editor

Dear Readers,

Jagriti wishes all its readers a Very Happy & Prosperous New Year.

We are virtually living in glass houses. We are living a highly interconnected world. Most of the

transactions that we do can be tracked as they being done over the internet. In the e jungle that we

live in, there are many dangers like viruses, hackers, fraudsters etc. Every now and then we hear of

some of our colleagues losing money to on line fraudsters. We need to equip ourselves to be able

handle these threats both at the personal level and also at the company level. A Vigilance Awareness

Program was done in Dec 2015 at BG CX for 8 days covering around 360 senior executives in which

the risks associated with living the e jungle and also the various mitigation measures were touched

upon.

Taking the glass house analogy further, even Corporate are under constant scrutiny by various stake

holders. PSUs being model organizations are expected to be epitomes of Transparency and Fairness

in all their acts. Vigilance is one of the wings in PSUs that can be used effectively by the

Managements to improve Transparency and Fairness in the companys business processes. In this

issue, we have brought out an article on Vigilance as a Management Concept.

The theme for this years Vigilance Awareness week was Preventive Vigilance as a Tool of Good

Governance. Corporate Vigilance has released Corruption Risk Management Policy. This is

intended to encourage Units / SBUs to identify the corruption prone areas and plan for mitigation of

the corruption risks through appropriate preventive actions. Though the Policy was issued 18

months back, no significant action has been taken by the Units / SBUs.

There has been an overwhelming response to CPPP program. As of now, the count of employees

who have completed CPPP certification is 1280 and 151 employees have completed CPCM

certification.

Corporate Vigilance has initiated steps for getting ISO 9001 2015 Certification for Vigilance. We

expect to be certified in the next few months.

We look forward to your suggestions to improve the journal. Articles on Vigilance related subjects

are welcome.

Yours Sincerely,

S.Mohanraj,S.Mohanraj,S.Mohanraj,S.Mohanraj, AGM(Vig)/CO & AGM(Vig)/CO & AGM(Vig)/CO & AGM(Vig)/CO & Chief Editor, JAGRITI MagazineChief Editor, JAGRITI MagazineChief Editor, JAGRITI MagazineChief Editor, JAGRITI Magazine

JAGRITI VIGILANCE NEWSLETTER

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VIGILANCE AS A MANAGEMENT CONCEPT

Vigilance is an inalienable and integral part of the management function and all

executives are ipso-facto Vigilance Officers also. In-house vigilance is an essential

management tool to safeguard the organization from erosion of the organizational

resources and goodwill.

The following concepts therefore must be well understood :

Organization exists for achievement of goals (long term aims) and objectives

(short term steps towards the goals).

Management strives to maximize productivity with minimum utilization of

resources.

Success of a business organization is generally measured by generation of profits

or customer satisfaction.

In respect of public sector undertakings, in addition to profits, achievement of

social and public goals are taken into consideration for measuring success.

Image of an organization depends on public perception of its utility to the society

and not by its balance sheet.

Public expectations have three components substantive, psychological and

services delivery systems.

Dishonesty among employees results in wastage of resources. These employees

generate public discontentment by preventing achievement of substantive

components by defective / improper services delivery system.

Vigilance is an important tool to increase productivity and profitability by

plugging the seepage in resources.

Vigilance thus acts as a profit generating centre for the enterprise.

Vigilance consists of proactive and reactive roles.

Proactive role consists of preventive vigilance, surveillance and detection.

Reactive role consists of punitive vigilance.

Corruption includes all known deviations from standards of integrity and

impartial exercise of discretion. It includes all forms of misconduct such as

misappropriation, nepotism, improper use of discretion and conduct unbecoming

of a public servant.

Vigilance aims to prevent corruption from flourishing in an organization and

when located, in eliminating it.

Action Plan for preventive vigilance at the executive level

An action plan for preventive vigilance should comprise of:

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a. Simplification of rules and procedures to cut down delays, de-regulation

wherever possible to reduce the points of corruption and harassment to the

public.

b. Reducing the areas of discretion and patronage, particularly at lower levels.

c. Screening of posting of officials in sensitive posts.

d. Periodical rotation of staff in sensitive posts.

e. Meaningful scrutiny of Assets and Liability statements.

f. Introduction of public information and assistance counters in departments and

places having public dealings.

g. Systematic as well as surprise inspections by senior officers and

h. Curbing outside influence in administration and personnel management.

Though as stated earlier, a general alert and awareness has been created, which in itself

is quite encouraging, yet the results leave a lot to be desired. The salient reasons for this

appear to be:

i. Internal vigilance system has not been fully integrated with the overall

management system of the undertakings. Unfortunately some sort of adversary

relation has developed between the executive and internal vigilance.

ii. Vigilance is sometimes regarded as a necessary evil. Sometimes efforts by

vigilance and action taken are termed as witch-hunting.

iii. The management usually shies away from exposure to vigilance due to the

mistaken notion of loss of image. The executive is yet to develop the notion of

treating it as an essential part of the system.

iv. Many times the concerned departmental officers withdraw themselves from the

responsibility of keeping an effective check on the activities in the sensitive areas

under them and on persons of doubtful integrity. Even routine duties like

inspections and physical verifications are neglected and it is felt that the entire

responsibility of cleaning up the organization is that of the Vigilance branch.

However, in fact, it is a multi-dimensional problem and cannot be tackled by a

single agency.

The system therefore needs a complete re-appraisal. It is imperative that the gap

between the management and Vigilance is bridged.

i. The management should realize the functions and the importance of vigilance.

ii. Vigilance should be treated as a tool of the management to eradicate / prevent

corruption.

iii. Vigilance should not to be taken as a blockade in progress but as a means to cut

down wastage, leakage, etc, thereby improving profitability.

iv. The executive should realize that vigilance is impartial and initiates action only

against those involved in undesirable activities which are against the interests of

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the organization.

v. The executive should create his own in-house vigilance set-up with self-defined

tasks and procedures, line of responsibility, etc, thus giving due status to

vigilance.

TEN GOLDEN RULES FOR IN-HOUSE VIGILANCE

1. Effective and regular supervision eliminates corruption.

2. Vigilance is the responsibility of all employees in an organization.

3. Encourage and create a climate for effective vigilance.

4. Corruption corrodes the good image of the organization. Eliminate the same.

5. Constantly monitor exercise of discretion at all levels to detect its improper use

for pecuniary considerations.

6. Identify areas prone to corruption and strict rotation of officials in sensitive posts

within a specific period of 2/3 years checks corruption.

7. Preparation of list of employees of doubtful integrity and keeping close watch on

them goes a long way to eliminate corruption.

8. Surprise checks / inspections besides mandatory scheme of inspections by senior

officers. Deterrent action against defaulters and wide publicity of punishment

awarded to guilty employees helps a lot in curbing corruption.

9. Inculcate among employees the desire to follow principles of ethics.

Organizational culture should nurture and encourage ethical behaviour.

10. Reduce area of discretion and patronage.

Compiled by:

C. SELVA KUMAR, DGM / VO MR & MS /BG. Cx.

__________________________________________________________________________________

Conscience, the Defence against Corruption

Conscience is the light of the Soul that burns

within the chambers of our psychological

heart. It is as real as life is. It raises the voice in

protest wherever anything is thought of or

done contrary to the righteousness. Conscience

is a form of truth that has been transferred

through our genetic stock in the form of the

knowledge of our own acts and feelings as

right or wrong.

Conscience is also a great ledger where our

offences are booked and registered. It is a

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terrible witness. It threatens, promises, rewards, and punishes, keeping all under its control.

If conscience stings once, it is an admonition, if twice, it is a condemnation. Cowardice asks,

"Is it safe?" Greed asks, "Is there any gain in it?" Vanity asks, "Can I become great? Lust

asks, "Is there pleasure in it? But conscience asks, "Is it right?" Why have we become deaf

to its voice? Insensitive to its pricks? Callous to its criticism? The answer is corruption.

Corruption is an assault on consciousness. The habit of taking bribes and seeking favours has

become very common. People holding important positions have developed inconsiderateness

to their conscience. They pretend everything is all right. Do they not have an idea of the law

of action and reaction? Have they forgotten how impressions of the subconscious mind and

their forces work? If you take bribes, your thoughts and actions are registered in the

subconscious mind. Will you not be carrying forward your dishonesty to your next

generation, causing them great suffering? It is a painful reality that corruption has become a

way of life affecting all aspects of living, personal as well as social. It is not merely the

pecuniary corruption but other forms as well. Immoral ways of people holding high positions

and handling power have taken away guilt from the minds of lesser mortals. What a

dangerous situation? A great civilization is endangered.

A virtuous man alone can use the instrument of conscience. He alone can hear the inner

voice of the soul clearly. In a wicked man this faculty is dead. The sensitive nature of his

conscience has been destroyed by sin or corruption. Hence he is unable to discriminate right

from wrong. Those who are leading organizations, business enterprises, institutions and

governments, how can they be corrupt? Is it not wise to have a clean conscience and enjoy

freedom from anxiety and all kinds of worries? If you do wrong actions and sinful deeds and

treat them lightly today, you will not hesitate to perform serious crimes tomorrow.

If you allow one sin to enter and dwell in your conscience, you pave the way for the entry of

thousand sins. Your conscience will become blunt and lose its sensitivity. The habit of doing

evil deeds will pervade the whole body like the poison of a scorpion.

Do you know when you are corrupt, your children, who are indeed enjoying the fruits of your

corruption, are mocking at you? After all they are well-informed and knowledgeable. Your

parental mask is too thin to hide the contempt of your children. You are no more the role

model of your own children. Is this disgrace not enough? Our society is fast reaching a stage

where the immunity of conscience of people holding positions of consequence is challenged

by the corruption, as HIV would do to the body of an AIDS patient. The corruption has seeped

into every stream of our life-blood. Can we save ourselves as a civilization?

Spiritual leaders have evolved morals, codes, and teachings of righteousness. Beautiful

hymns, songs and prayers have been written and composed. But the annihilation of

conscience by corruption appears frightening. Religion has not been effective in evoking

conscience. Who then will? Can our conscience be redeemed?

A movement through the Foundation for Unity of Religions and Enlightenment of Citizenship

(FUREC) against corruption has to be made as a new feature.

By Dr.A.P.J Abdul Kalam, Late President of India,

(Source: The Hindu)

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PREVENTIVE VIGILANCE - AN EFFECTIVE TOOL OF GOOD GOVERNANCE The very common phrase goes that Prevention is better than Cure It is easier to

stop something happening in the first place than to repair the damage after it has

happened. This phrase advises us to take preventive steps to keep us away from all

sorts of dangers since this reduces the effort needed to deal with the effects of a danger. In

the same way preventive vigilance means to follow the organizational procedures, rules

and regulations together with effective monitoring. It is required to wait for lapses to

be committed and then try to conduct post-mortem at a high cost.

Prevention is the shield which saves mankind from many disasters, chaos and destruction. We must measure every step we take. A cure is a blessing, but preventions are better than a

cure. A wise act of a cautious mind can stop us from stepping into something wrong or dangerous. Prevention makes one escape completely from dangers and difficulties. Cure is a

solution for the suffering which has already engulfed him. Man can prevent himself from falling into bad habits. Prevention can be achieved by planning ahead. One should act

beforehand towards certain issues, situations, etc rather than looking for its solution later on. In other words Do only those things in life for which you dont have to rework. This

principle can be observed in our daily lives,

Bribery, greed and other factors are source of all sorts of rampant corruption all over the world. If these malpractices had been nipped in the bud they wouldnt occur at all. We all are

responsible for its rise and growth. The practice in some nations have become a standard, a norm or a tradition which has taken so many complex forms and has become so entangled

and assimilated in our lives that even though we talk against it, we ourselves encourage these. Sometimes, it is the only way or a shortcut to a solution that we have to indulge in it. Scams

and scandals are the outcome of corruption and they have a high range of effect throughout the whole community as is evident in 2G Spectrum Scam of India and Oil and Gas Bribery

Case (Panalpina) and various others are clearly the outcome of ineffective or non-existent

measures of preventive vigilance.

Prevention implies to stop doing something. Cure means to find a solution. Man is prone to commit mistakes. Man can foresee the happenings of the future. He checks himself from

doing anything wrong.

We must measure every step we take. Cure involves much more effort and pain than what would need to prevent a problem from affecting us. A cure is a blessing, but prevention is

more than a blessing. It is better than cure. A wise act of cautious mind can check us from stepping into something wrong or dangerous. The act of right living makes everything

possible. Living in the right sense means living judiciously, wisely and cautiously. Man has the knowledge of distinguishing between the right and the wrong, the good and the evil, the

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safe and the dangerous. He can judge them and escape from dangers and difficulties before

they engulf him. Many fail to distinguish between them and find themselves trapped. Then they seek a cure. Prevention halts or obstructs the danger or evil from the person before it

overpowers him. It makes the person escape from it completely. Cure is a solution for the danger or evil which has already engulfed him. Hence, I would like to convey in strong words

that prevention is always better than cure.

The process of strengthening an organizational Integrity System begins with a organizational dialogue followed by organizational action. Today the Public Sector Undertakings in the

country play a significant role in the economic as well as social development of the country. They are subject to public criticism and criticism in the press. Unlike the private commercial

organization where individuals count for more, in these public undertakings, the systems have to work more than individuals. Under such circumstances, there is a need for a strong and

dedicated vigilance organization in the PSUs with a set of strict rules to regulate the conduct of the workmen and executives.

Vigilance has to be looked upon as one of the essential components of management. If the

vigilance set-up is effective in an organization, it will certainly ensure the functioning of the other segments like Contract, Purchase, Sales, Human Resource, Technical and Finance in a

very effective and efficient way. Vigilance has, therefore, to be given a rightful place in the

management. Though the work of `Vigilance is liked neither by an honest officer nor a dishonest officer, yet its absence will be harmful to the organization. It is like a bitter pill. For

the good health of the organization, the bitter pill has to be administered.

The objective of vigilance is to ensure that the management gets the maximum out of its various transactions. In the field of purchases, it should get the quality product at competitive

rates. In the field of sales, it should get the maximum realization for its products at negligible selling cost. In the field of Human Resource, it recruits the best talented people and keeps the

morale of the people high. Likewise, in any of its transactions, it should endeavour to get the best. Unlike in private organizations (mostly individual concerns), where individuals whose

interest are totally cantered on the profitable functioning of the organization, in public sector organizations it is rather difficult to inculcate culture without a vigilance set-up. The presence

of a vigilance set-up will enable the management to enable the presence of that culture.

Vigilance is not something external. It should be accepted as an essential part of management. Vigilance connotes watchfulness. It is not the purpose of vigilance to wait for

lapses to be committed and then try to conduct post-mortem. What is more important than punitive vigilance is preventive vigilance. In short, management should be interested in

preventive vigilance measures. If adequate attention is paid to preventive vigilance side, maximum vigilance cases will not arise. Preventive vigilance calls for constant review of

rules, procedures and practices which shrink the scope for corruption in the following

segments:

a) Contract Management b) Material and Purchase Management c) Sales Management d) Human Resource Management e) Inventory Management f) Works Contract Management g) Finance Management

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Preventive vigilance is nothing but adoption of a package of measures to improve systems /

procedures to reduce / eliminate corruption. Purpose of Preventive Vigilance is to bring about a higher order of morality, rationality and watchfulness in public service.

1. Study the working culture of the organization. 2. Study the corruption-prone and sensitive areas. 3. Simplification of rules and procedures which have loopholes. 4. Define duties and responsibilities. 5. Locate sensitive spots. 6. Surprise checks and inspections. 7. Detection of failures in quality and speed of work. 8. Reduce the scope of discretionary powers.

The above are some of the general aspects of preventive vigilance measures that could be adopted in our organization. But these will vary depending upon the type of activity, size of

the department, the areas of operation, etc. However, the point to be borne in mind is that preventive vigilance measures help the management to get optimum results from the different

activities. It is also necessary to have close liaison with various investigation agencies on a periodical basis so that the Vigilance Organization has the advantage of having information

from external and internal front also. Detective Vigilance, Punitive Vigilance, Corrective

Vigilance, Predictive Vigilance, Preventive Vigilance and Proactive Vigilance are the various Vigilance mechanisms used in Public Sector Undertakings to enforce the rules and

procedures from time to time. But out of these, the best tool of good governance is Preventive Vigilance, reason being prevention is always better than cure.

It is strongly felt that all these procedures could work well only if there is total commitment

and honesty on our part in implementing them. Let we therefore dedicate ourselves to be honest to implement the preventive vigilance procedures to make our nation and organization

function in a very effective and efficient way so that we can reach commanding heights in the economic and social development of the nation.

Three elements of Preventive Vigilance are the Eyes, the Ears & finally, justification of Brain.

Finally, Vigilance goes hand in hand with Good Governance.

Contributed by

M.Raja Sekaran, Sr.DGM(Corporate Vigilance)

Six Ethics of Life

Before you pray - Believe Before you speak - Listen

Before you spend - Earn Before you write - Think

Before you Quit - Try Before you Die - Live

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Cartoons Speak

BEFORE NOW

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News & Events

The Inter Unit Vigilance/Investigation Officers meet was conducted from 16th December to 19th December 2015 at Corporate Auditorium. On 16th an ISO 9001/2015 awareness program was conducted by Shri Eswar of BVCI, Bangalore. As Corporate Vigilance is moving its steps towards attaining ISO 9001 certification under the new 2015 Standard, this training program was conducted to create awareness among the Vigilance and Investigating Officers on the procedural and documentation aspects so as to realize the target of being the first department in BEL to get the ISO 9001 certification under 2015 standard.

On 17th December 2015, CBI, ACB Bangalore conducted the training program on important provisions of Prevention of Corruption of Corruption Act, 1988, Indian Penal Code, 1860. SP, ACB, Bangalore also gave a brief about the CBIs roles and responsibilities.

On19th December 2015, Shri Venkatesh Murthy from Data Council of India, Bangalore gave a brief lecture on various types Cyber Crimes and the means of safeguarding against such crimes.

On 18th December 2015, CVO inaugurated the File Cycle Management (FLM) for Vigilance . This was followed by interactive session with the Vigilance and Investigating Officers and discussed on the 18 Agenda points circulated to Vigilance Officers. VOs of Other Units, other than Bangalore made a Power Point Presentation on these Points.

On 11th January 2016, CVO had a interactive session with Vigilance and Investigating Officers of Bangalore Unit.

____________________________________________

First they ignore you, then they ridicule you,

then they fight you, and then you win. Mahatma Gandhi

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_______________________________________________________

Training Programs: 360 Sr.Executives were trained during the 8 days training program conducted by

M/s.Deloitte Touche Tohmatsu India Pvt Ltd, Bangalore at CLD from 07-12-2015 to

16-12-2015. This training program was organised by Corporate Vigilance.

Corporate Vigilance has conducted training program Overview of Vigilance for 322

newly inducted Probationary Engineers at CLD Bangalore during Nov & Dec 2015.

Group Learning Program:

As part of Group Learning Program, the following Vigilance Officers made a PPT

presentation on the following topics at Corporate Vigilance.

Name of the Vigilance Officer Topics presented

Mr.Solomon Paul Raj, Mgs (CO-VIG) Gaps in the Existing Purchase

Procedure.

Mr. Manjunath Prasanna, DM (CO-VIG) Indian Evidence Act, 1872.

Mr.C.Selvakumar, VO, MR & MS, BG Prevention of Corruption Act, 1988.

Mr.B.Ravi Prakash, VO, NS 1 & NS 2 Minimum Wages Act, 1948.

Mrs.Meena Parameswaran, Sr.DGM-VIG (SU) Indian Factories Act, 1948.

Mr.D.Sozhan, DGM & VO(Corporate) Right to Information Act, 2005.

Mr.Mritunjaykumar, VO (Mil Com & EWA) Indian Contracts Act, 1872.

= >

@ (B)/ . F

G Contributed by

Smt. Mansi Gupta

DM(MARKETING)/ BE PK-Unit

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Important Mile Stones in Certified Public Procurement

Program (CPPP) of World Bank:

The number of BEL Employees and Executives who completed the CPPP crossed 1000 Mark

and it now stands at 1282 as on 27-01-2016. The Major Contributors are ; GAD Unit- 382,

Panchkula Unit -266, Hyderabad Unit-195, Kotdwara Unit 41, Corporate Vigilance -10 and in

BG Compex, CSG 202, EM SBU- 65 and T&BS SBU-42. Besides this, about 150 employeees

successfully completed the Certified Program in Contract Management. Jagriti

Congratuates all the successful participants of CPPP and wish many more joined the stream and

get benefitted.

On 08th December 2015, in the Vigilance Study Circle meeting held at HAL, Corporate Office, Shri K. Baljit Chander, GM, and Shri Yashpal Seth, Sr.DGM & VO, of Panchkula Unit was felicitated for the excellent achievement in CPPP by Panchkula Unit.

Photo Gallery VOs and IOs Meet 2015

VOs/IOs meet Shri Mohan Raj, AGM(Vigilance) delivers the welcome address.

(Right) Shri M.L.Shanmukh, Director (HR) delivers the inaugural address.

Mr.Shreenivas Galgali, CVO, KIOCL, and Chief Guest at the inauguration of VOs/IOs Meet, delivers the Speech.

(Right) Mr.Shivakumar, IAS, CVO BEL delivers the keynote address.

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Shri.Eswar of BVCI, was given a warm welcome with a bouquet by Shri Shivakumar, IAS, CVO.

(Right) Shri Eswar speaking at the Training Program on ISO 9001/2015 at the Corporate Auditorium.

Dr.Subramanyeswara Rao, IPS, SP, CBI, Anti Corruption Branch, Bangalore delivers the Speech

on CBI and its Roles and on salient provisions in the Indian Penal Code, 1860.

Shri B.L.Singhad, Asst.Director (Retd), IB and now a Consultant, ACB, Bangalore, explained on

the salient features in the Prevention of Corruption Act, 1988.

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Shri Shivakumar, IAS, CVO presented mementos to the Speakers, Shri B.L.Singhad, Consultant,

CBI, ACB, Bangalore and Dr.A.Subramanyeswara Rao, SP, CBI, ACB, Bangalore.

Shri Shivakumar, IAS, CVO inaugurates File Cycle Management (FLM) for Vigilance Dept.

Shri Manu Rastogi, Manager IS/CO gave a demo on file creation in FLM Module relating

to certain Vigilance Clerance.

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Shri Shivakumar, IAS, CVO addresses the VOs and IOs during his interaction meet on 18th

December 2015.

Shri Shivakumar, IAS, CVO with the Vigilance and Investigation Officers of BEL .

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Vigilance Study Circle Bangalore meeting held at HAL, Corporate Office on 08-12-2015

Smt Kavitha Kestur, CVO/BEML, Shri Baljit Chander, GM, BEL, Panchkula Unit, Shri Shivakumar,

CVO/BEL, Shri Mr.Shreenivas Galgali, CVO/KIOCL, at the meeting of Vigilance Study Circle, Bangalore, held

at HAL Corporate Office on 8th December 2015.

Quotable quotes Say What Is True; Do What Is Right.

If only everyone adheres to the above, the planet we live would be a paradise.

It's fine to celebrate success but it is more important to heed the lessons of failure

Bill Gates There are two mistakes one can make along the road to truth - not going all the way, and not starting.

Buddha

Try not to become a person of success, but rather try to become a person of value. Albert Einstein

Thinking should become your capital asset, no matter whatever ups and downs you come across in your life.

Dr. APJ Kalam

Honest people don't hide their deeds.

Vigilance is the Responsibility of Everyone in the Organisation

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Important CVC Circulars

No.007/CRD/008 Government of India

Central Vigilance Commission *****

Satarkta Bhawan, Block A,

GPO Complex, INA, New Delhi- 110 023

Dated the 15th February 2008

Circular No. 07/02/08 Subject: Measures to curb the menace of counterfeit and refurbished IT products - regarding. With the increasing use of IT to leverage technology, a large number of Government organizations are either upgrading or in the process of procurement of new computer hardware and software. It is often difficult to know the difference between PC made of Genuine Parts and that made of Counterfeit Parts. It may also be the case often that while various organisations order and pay for brand new equipment, they end up getting an inferior PC with counterfeit and second hand/refurbished parts disguised as new in new/ original cabinets to various customers designated as consignees by the ordering agencies at the headquarters of these organizations who are ignorant or have little or no technical knowledge in the matter. In effect, this amounts to the organisation not getting what they actually ordered and paid for. The supplies of such PC in the long run would defeat the very purpose of going for a new system. COUNTERFEITING is designed to cheat naive consumers/organizations. This current circular is intended to help/ inform and enable due diligence as well as curbing the menace of counterfeit and refurbished IT products disguised as new. As a first step, there is a need for all buyers in the Government Departments/ PSU to insist on a signed undertaking (sample format enclosed) from some authority not lower than the Company Secretary of the system OEM that would certify that all the components/parts/assembly/software used in the Desktops and Servers like Hard disk, Monitors, Memory etc were original/new components/parts/assembly/software, and that no refurbished/duplicate/ second hand components /parts / assembly /software were being used or would be used, so that the buying organizations were not cheated and get the original equipments as ordered by them. Also one could ask for Factory Sealed Boxes with System OEM seal to ensure that the contents have not been changed en route. Following advisory checkpoints it is hoped shall help identify the fraudulent practices that have come to notice and help guard against spurious and refurbished/duplicate/ second hand components/parts/ assembly / software being received by purchasers and consignees who receive such goods and may not have much technical knowledge.

1. CPU. Buyers are cautioned against buying IT Hardware with remarked CPUs that are freely / readily available in the market today. Entry Level processors get Remarked / Over clocked and sold as high end processors. These CPUs, come disguised as higher clock speed processors (e.g. a Celeron CPU can be remarked as a P4 CPU) while their real clock speed may be lower. Since Operating System is loaded from

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CD bundled with Motherboard, the CD contains image of configured OS. Hence information as seen in My Computer System Properties shall give deceptive information. In other words, a Celeron CPU remarked as a P4 CPU, shall be seen as a P4 CPU only. Buyers should therefore, use various tool / utilities like the CPU-Z Utility or the sSpecNo. for ascertaining the real parameters of the CPU. Utility like CPU-Z (appox. 1.3 MB size) are available free on the web.

2. Hard Disk IT Hardware with refurbished Hard Disks that are actually 2nd hand /

repaired hard disks are readily available at low cost. In hard disk drives, the factory repaired hard disk drives, which are mainly used in the warranty replacements are substituted in the new machines. Same is the case observed with floppy drive and Optical disk drives many times. Most of the competent hard disk makers use a sticker on such hard disks sold by them that clearly distinguishes such hard disks from the fresh ones. For example, manufacturer Seagate marks Green Border and label of Certified Repaired HDD to distinguish such disk drives from New Genuine HDD. There is No border or Refurbished label on genuine new HDD.

In addition to this, buyers may also use HDTUNE_210 Utility. This utility shall return Hard Disk Manufacturers Serial no. and Date of manufacturing of the Hard Disk. These parameters can be used to cross-verify with the hard disk vendor. Various Hard Disk vendors also put a date code on the hard disk. A mismatch between this date and the one returned by HDTUNE_210 Utility can also be viewed as tampering with the actual information of the hard disk.

3. Monitors. IT Hardware with refurbished Monitors that are actually 2nd hand /repaired

monitors are given a new look by changing the body, with internal components remaining old / repaired. These CRT monitors are usually discarded from developed countries like US and Europe. There are also B Grade (New but Low Quality) CRT Monitors used in place of new monitors. Many times these can be distinguished by opening the cabinet body and noticing that the label on the tube does not carry various certifications and there are scratch marks on the tube. While Genuine Picture Tubes have all mandatory Certifications, Counterfeit Picture Tubes would not have these certifications. Certification gives an assurance of Reliability.

Further many such cathode ray tubes (Picture Tubes) are found to need extra magnets to achieve focusing and earthing also is missing. Genuine Monitors rely on Yoke Coil alone to focus electronic beam. Counterfeit Monitors typically require Numerous Magnetic Strips in addition to Yoke Coil to focus electronic beam. Further, Earthing and Shielding provide ESD (Electro Static Discharge) protection. Genuine Picture Tubes have proper Earthing and Shielding. Earthing and Shielding is compromised in counterfeit Picture Tubes to reduce cost. In B Grade LCD Monitors, panels used are B grade in which the number of spots may be higher, response time & brightness of lower specs than what is stated. Above monitors are all available at low cost.

The Signed Undertaking as suggested shall serve as a deterrent and as a safeguard to ensure that bidders are not fleecing them by supplying such monitors.

4. Operating System. Purchasers should check the IT Hardware supplied (randomly

selected IT Hardware) for Certificate of Authenticity (COA) pasted on the PC for product serial number and OEMs / Suppliers name to be printed on it. In Operating

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systems, pirated OS software with fake Certificates of Authenticity are used by some suppliers to cut costs. They look as good as the real ones. In PCs, counterfeiters buy legitimate software and copy the box design and packaging. Using sophisticated and expensive copiers, many copies of illegal CDs are created in a day. Purchasers should guard against buying IT Hardware with pirated copies of Operating Systems. Such Operating Systems, though, available at low prices, do not have the updated patches and security features that help safeguarding the PC and also improve its lifespan. Purchasers, therefore, may use the standard testing procedures (randomly on randomly selected IT Hardware) available on the following URL for ascertaining the in authenticity of the operating system installed on their PC :http://www.microsoft.com/resources/ howtotell/ww/ windows/ default.mspx . Microsoft provides an inbuilt tool to diagnose the Genuineness of its Operating System. One could go to My Documents, and Help, from where one shall get step by step instructions to find out whether the windows installed is genuine. http://www.microsoft.com/resources/howtotell/ww/windows/default.mspx

5. Mechanical Keyboards: Fake mechanical keyboards that are partially mechanical, with only the key plunger being that of a real mechanical keyboard and rest of the keyboard features remaining the same as those of membrane keyboard are being passed on as true mechanical keyboards. While these keyboards are available at low prices, they do not offer the robustness and long key-stroke life expected of a real mechanical keyboard. Real Mechanical Keyboards are expected to have Keystroke life of 50 Million as against 10 million for Membrane and Semi- Mechanical Keyboards. In case of bulk orders, it is recommended to physically examine a few keyboards for their construct to ascertain the genuineness of their being real mechanical keyboards.

6. Low Quality Memory Module Memory chips are remarked or downgraded wafers are plastic packed under unknown brands or remarked with names of well known brands. Such memory modules have lower performance levels. It is better to go in for proven reputed brands such as Kingston, Transcend, Corsair, Samsung and Hynix to name a few available in the market.

7. Fraudulently Marked SMPS In power supplies, wrong marking of the wattage is done. The power supplies do not carry all required certifications. While Genuine Power supplies carry all mandatory certifications, in counterfeit Power supplies these certifications shall be found missing. Further Short circuit & over voltage protection circuitry could be missing in counterfeit Power Supply to reduce cost.

8. Counterfeited Consumables Counterfeited consumables such as printer cartridges etc are used which are refilled with ink of poor quality leading to poor performance and clogging, smudging in printers etc. It is advisable to buy such consumables from OEM authorized suppliers or distributors to ensure quality and longevity of the printer equipment.

(V. Ramachandran) Chief Technical Examiner

Central Vigilance Commission All Chief Vigilance Officers in the Ministries/Departments/PSEs/ Public Sector Banks/Insurance Companies/ Autonomous Organisations/Societies Annexure: Model Undertaking of Authenticity form

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Format for Undertaking of Authenticity for Desktops and Server Supplies Sub: Supply of IT Hardware/Software -- Desktops and Servers Ref : 1. Your Purchase Order No. ------------dated-------.

2. Our invoice no/Quotation no. -------dated--------. With reference to the Desktops and Servers being supplied /quoted to you vide our invoice no/quotation no/order no. Cited above,---- We hereby undertake that all the components/parts/assembly/software used in the Desktops and Servers under the above like Hard disk, Monitors, Memory etc shall be original new components/parts/ assembly /software only, from respective OEMs of the products and that no refurbished/duplicate/ second hand components/parts/ assembly / software are being used or shall be used. We also undertake that in respect of licensed operating system if asked for by you in the purchase order, the same shall be supplied along with the authorised license certificate (eg Product Keys on Certification of Authenticity in case of Microsoft Windows Operating System) and also that it shall be sourced from the authorised source (eg Authorised Microsoft Channel in case of Microsoft Operating System). Should you require, we hereby undertake to produce the certificate from our OEM supplier in support of above undertaking at the time of delivery/installation. It will be our responsibility to produce such letters from our OEM suppliers at the time of delivery or within a reasonable time. In case of default and we are unable to comply with above at the time of delivery or during installation, for the IT Hardware/Software already billed, we agree to take back the Desktops and Servers without demur, if already supplied and return the money if any paid to us by you in this regard. We (system OEM name) also take full responsibility of both Parts & Service SLA as per the content even if there is any defect by our authorized Service Centre/ Reseller/SI etc. Authorised Signatory Name: Designation Place Date

________________________________________________________________________

EDITORIAL BOARD

Shri S.Mohanraj, AGM(Vigilance)/CO - Chief Editor

Shri. M.Raja Sekaran, Sr.DGM (AC & PV)/CO - Editor

Smt. Meena Parameshwaran, Sr.DGM & VO (SU) & CSG - Member

Shri .Yashpal Seth, SR.DGM & VO/PK - Member

Shri. B.Ravi Prakash, DGM & VO, NS1 & NS 2 - Member

Shri .C. Selvakumar, DGM & VO, MS & MR - Member

Smt.Shirin Samuel, DGM/CC-CO - Member

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Articles, Cartoons, Slogans, Quotes related to Vigilance, Corruption and other issues of

Public interest are invited from the Readers for publication in the Jagriti News letter.

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Bharat Electronics Limited, Corporate Office, Outer Ring Road, Nagavara, Bengaluru-

560045.