Kolkata, July 15 (IANS) In a move aimed at strengthening transparency and financial discipline in government functioning, the West Bengal government has directed all departments and public bodies to stop repeatedly extending contracts awarded to the same agencies and instead invite fresh tenders before existing contracts expire.

A government statement said on Wednesday that extending the term of the same agency repeatedly after the expiry of the contract will not be allowed anymore.

According to the statement, Chief Secretary Manoj Kumar Agarwal issued a circular on the issue earlier this week, reminding all government departments to follow this rule. This will apply not only to government departments, but also to panchayats, municipalities and even state-owned companies. This is likely to speed up government work, tighten rules and regulations and bring financial discipline.

According to the circular, “It has been observed that Government Departments and Offices under their administrative control repeatedly seek approvals from the Finance Department for extensions of contracts with agencies engaged by them for various purposes. Some authorities have even been approving these extensions without prior consultation with the Finance Department. Such practices constitute a violation of established financial discipline and compromise the integrity of the competitive bidding process.”

The circular further said, “Procuring authorities must initiate the process of floating fresh tenders for selection of agencies no later than 3 (three) months prior to the expiry of the existing contract. Heads of the Departments will hold monthly review of all existing contracts. List of contracts will be shared with the Finance Department.”

The circular continues, “Proposals for extension or renewal of existing contracts will not be entertained under any circumstances and cannot be fait accompli due to lack of timely due diligence. Any unauthorised extension of contracts or delay in initiating fresh tenders will be viewed as a serious breach of financial discipline and be dealt with accordingly.”

“This directive shall also be applicable for the Local Bodies, State Public Sector Undertakings (PSUs), Statutory Bodies and other parastatals. Heads of Departments/ Subordinate Offices shall be personally responsible for ensuring strict compliance with these directives within their jurisdictions,” the statement concluded.

Officials said the government had observed a growing trend of departments repeatedly extending contracts and, in many instances, forwarding files to the Finance Department at the last moment for approval. There were also cases where departments extended contracts on their own without prior clearance from the Finance Department. The new directive seeks to put an end to such practices.

According to a section of the administration, repeatedly using the same organisation for work defeats the main purpose of competitive bidding. As a result, questions arise about the quality of the work, and other organisations are deprived of the opportunity to participate in government work.

–IANS

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