Present GeM system full of flaws, avoid buying from single vendor: ACB to govt

SRINAGAR: Jammu and Kashmir Anti-Corruption Bureau has pointed out flaws in Government e-Marketplace (GeM) and has asked the Union Territory government to avoid buying from a single vendor.

A communique sent by the ACB on September 9, 2022, to the General Administration Department (GAD) advises that departments shall avoid buying from a single vendor.

“Buying from a single vendor shall generally be avoided, and the departments shall not split the requirements which are against the principles of financial propriety,” reads the ACB note.

In the communique, the ACB has pointed out that it has observed during fact-findings that the present system with regard to purchases made on GeM is full of flaws and there seems to be a deep nexus between the buyers and vendors.

“Favouring the selected vendors by the buyers in this process cannot be ruled out. In most cases, it has been reported that the buyer provides his ID and password in advance to prefixed vendors, so that the vendor may operate and manage all the things smoothly. This results in avoiding the competition and purchase of the goods and the services at exorbitant rates and further results in the exchange of huge amounts of bribe in the process,” the communique further states.

The ACB has recommended that the reasonability of the rates should be verified through a market survey committee for all purchases through GeM.

“Generally the items are available at GeM at rates lesser than the market rates. However, if the rates at GeM are higher, the same shall be brought to the notice of the GeM authorities and Finance department,” the communique states.

The ACB has suggested that the procuring authorities shall certify the reasonability of rates.

It has also recommended that the Finance department may make bidding/ reverse auction mandatory for purchases to be made.

“Further, all purchases should be made irrespective of the Rs 5 lakh ceiling through bidding and reverse auction mode only. It is recommended that the Finance Department may make it mandatory for all DDOs to procure for the amount of Rs 25000/- and above with bidding and reverse auction only,” the note states—(Agencies)