FINAL ASSESSMENT HINDUSTAN AERONAUTICS LIMITED

Transcription

FINAL ASSESSMENT
HINDUSTAN AERONAUTICS LIMITED
The following pages contain the detailed scoring for your company based on
public information.
The following table represents a summary of your scores:
Number of
questions
% score based
on public
information
Leadership, Governance and Organisation
10
55%
Risk Management
7
50%
Company Policy and Codes
12
45.8%
Training
5
30%
Personnel and Helplines
7
57.1%
Total
41
48.8%
Topic
HINDUSTAN AERONAUTICS LIMITED 23/12/14
HTTP://WWW.HAL-INDIA.COM/
A1:
Does the company publish a statement from the Chief Executive Officer or
the Chair of the Board supporting the ethics and anti-corruption agenda of
the company?
Score:
2
Comments:
Based on public information, there is evidence that the company publishes statements from
the Chairman supporting the ethics and anti-corruption agenda of the company. Statements
in regard to anti-corruption and integrity can be found in the Annual Report 2012-2013 and
several editions of the company magazine Marg Darshan.
References:
Public:
Annual Report 2012 – 2013, p.13:
‘Chairman’s Statement’
‘“Integrity” is one of the seven values that your company continues to achieve in all its
business transactions. Keeping in line with the highest standards of corporate governance
that the company has set for itself, the Company has signed a Memorandum of
Understanding (MoU) with Transparency International India (TII) for bringing more
transparency in procurements as well as better compliance with the CVC guidelines on
Integrity Pact (IP). It became the first Defence PSU to sign such a MoU with TII.’
http://hal-india.com/Annual-Report-2012-13-English.pdf
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol XI Issue No. 1
(April 2014), p.1:
‘Chairman’s Message’
‘Ingenious ideas to promote good governance are extremely important. I am happy to note
that Vigilance Department under the leadership of Anurag Sahay, C O, continues its
preventive vigilance initiatives by laying emphasis on CVC 's theme of the year “Promoting
Good Governance in public institutions." This edition of Marg Darshan contains articles from
officers of diverse functional background. The contributions focus on micro issues and
suggest measures to promote good governance in the critical functional areas. This is a
worthwhile initiative complimenting last edition of Marg Darshan, on same theme but
focusing on macro strategies in promoting good governance. Good governance not only
needs procedural reforms but also demands commitment and ownership of all stake holders
in understanding, implementing of policy guidelines and promoting good practices. I am
confident that this edition will definitely enhance confidence among all stakeholders by
implementing good practices in various functional areas like HR, Outsourcing, Procurement,
Facility Management, Medical & Health unit etc, which have clear vigilance sensitivity. The
article on "The Lokpal And Lokayuktas Act, 2013 ", is an important and timely contribution
for creating awareness of the Act amongst all of us. HAL is facing new challenges in
disinvestment, re-structuring and increased competition in Defence Aerospace Sector. I
have no doubt that this edition of Marg Darshan enhances our confidence in facing such
challenges through promoting diligent and transparent decision making process.’
http://www.hal-india.com/vigilance/Marg-Darshan/Marg_Darshan%20_April-2014.pdf
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol X Issue No. 2
(October 2013), p.3:
‘It gives me great pleasure to note that the Vigilance Department has devoted this edition of
Marg Darshan to “Promoting Good Governance in HAL". The Central Vigilance Commission
has been promoting Transparency , Fairness, Equity and encouraging competitiveness as
well as Leveraging of Technology in all areas of functioning of the Government and its
organisations. Technology brings in efficiency as well as transparency and therefore needs
to be assimilated and integrated into all aspects of our decision making. By making all
activities (especially those related to procurement, payments, outsourcing and recruitment
etc. that are vulnerable to unethical practices) available on an open platform to all the
stakeholders, the likelihood of abuse is greatly reduced. Decision makers will be empowered
to take quick decisions, as good governance measures through technology abled solution
would aid prudence and clarity of purpose.
We have an obligation towards our stakeholders to provide them the necessary information
regarding tender notification, status of tenders, placement of orders, status of products
delivered and payments etc., all these are possible when we fully embrace technology .ERP
and IFS system will need to be implemented fully. Recruitment, Hiring of Consultants,
Allotment of Accommodation, Deployment of assets of the company is required to be done
in a transparent manner which technology can ensure. This will reduce complaints and raise
the morale for higher production and performance.’
http://www.hal-india.com/vigilance/Marg-Darshan/Marg_darshan_Oct-13.pdf
Marg Darshan Vigilance Magazine – Vol X Issue No. 1, (April 2013), p.3:
‘This edition is focused on a subject of interest and the theme of this edition is
“Strengthening of Internal Controls”. The theme is thought provoking which has relevance
across all the Departments. I am convinced that unless our internal procedures and systems
are proven to be effective in terms of quality, time and costs, our final product cannot meet
the expectations of our customer. We need to be 'Customer Centric', with due concern to
ethical benchmarks. As a Defence PSU, we need to be diligent in our dealings. Through this
edition of the Marg Darshan, I reach out to all HALites to dedicate ourselves to enhance our
performance, and fulfil the objective of excellence and customer delight. I compliment the
Vigilance Department for involving officers from diverse Departments to suggest ways and
measures for strengthening internal controls in HAL in the true spirit of participative
Vigilance.’
http://www.hal-india.com/vigilance/Marg-Darshan/MARG-DARSHAN_APR_2013.pdf
Marg Darshan Vigilance Magazine – Facets of Vigilance, Vol IX Issue No. 2 (October 2012),
p.3:
‘It gives me great pleasure to acknowledge the consistent efforts being made by the
Vigilance Department towards spreading the message of anti-corruption through preventive
measures. The regularity of publication of Marg Darshan, is an indication of their
commitment. The Vigilance Department has also been taking innovative steps to create
greater awareness of rules and procedures so that decisions are not taken out of ignorance
or incomplete knowledge. Fiscal prudence in our decisions will go a long way in sustaining
our Company. Integrity, Credibility and Quality should be the Mantra for our professional
domain. Consistent performance with high standards of quality, delivery in time as per the
agreed terms will see that the Company is held in high esteem in the Indian PSEs. Through
this medium, I urge all employees to strive towards taking the Company forward to become
a Maharatna in the near future.’
http://www.hal-india.com/vigilance/Marg-Darshan/Marg%20Darshan-Oct.2012.pdf
Marg Darshan Vigilance Magazine – HAL’s Anti-Corruption Strategy, Vol IX Issue No. 1 (April
2012), p.3:
‘At the same time we also need to be vigilant in the way public funds are utilised. Rules and
procedures are already in place. Competent authorities need to exercise due diligence while
taking a decision. Whenever situations arise that are not covered in the rulebook, the
sanctioning authority would take decision based on the circumstances in an explained and
rational manner. We cannot be fearful/slow in decision making or blame rules & regulations
as obstructive.
I am happy to note that the Vigilance Department is in the forefront of creating awareness
of our policies, guidelines, and Dos & Don’t through their various publications likeV2, Marg
Darshan etc. and programs like Sampark etc. Let us create an atmosphere which emboldens
our executives to take bold decisions without any fear of retribution. Let us all combine our
energies in further enhancing the Integrity quotient of HAL.
HAL is not only an organization, it is also a symbol of trust of people of India in our defence
support preparedness. Our future well-being will hinge upon credibility, profitability and
commitment in serving our customers in terms of quality and delivery schedules. Every
department will need to haul together just as a multicellular organism operating in
harmony.
http://www.hal-india.com/vigilance/Marg-Darshan/Margadarshan_2_Apr12.pdf
Purchase Manual – Issue 3 (2013), foreword:
http://hal-india.com/Pur.%20Manual%20&%20Sub-%20Cont/PurchaseManual.pdf
A2:
Does the company’s Chief Executive Officer or the Chair of the Board
demonstrate a strong personal, external facing commitment to the ethics
and anti-corruption agenda of the company?
Score:
1
Comments:
Based on public information, there is some evidence that the Chairman demonstrates a
strong personal, external facing commitment to the ethics and anti-corruption agenda of
the company. In 2013, the Chairman signed a Memorandum of Understanding with
Transparency International India regarding the adoption of an Integrity Pact, becoming the
first defence PSU to do so. The company therefore scores 1. To score higher the company
would need to provide at least one more example of the Chairman’s active external
engagement in anti-corruption matters.
References:
Public:
Company website: HAL First Defence PSU to Sign MoU with Transparency International India
‘HAL has signed a Memorandum of Understanding (MoU) with the Transparency
International India (TII) for adoption of Integrity Pact (IP). “Considering that HAL deals with
number of domestic and international business partners for goods and services, the MoU
will go a long way in establishing higher standards in our operations”, says Dr. R. K. Tyagi,
Chairman, HAL.
The MoU was signed by Dr. Tyagi and Justice Kamleshwar Nath, Chairman, TII at a function
in New Delhi yesterday. HAL has so far signed "Integrity Pact" with 115 vendors (85 foreign
and 30 Indian).
“Integrity Pact” is a tool developed to ensure that all activities and transactions between
companies or Government departments and their suppliers are handled in fair and
transparent manner.
TII will support HAL by providing advice and resources to implement the Integrity Pact
program successfully. Incidentally, HAL is the first Defence PSU to sign such an MoU with
TII.’
http://hal-india.com/First_Defence_PSU.asp
Company website, CEO inaugurating the Integrity Circle (2014):
http://www.hal-india.com/PhotoGallery_SlideShow.aspx?MKey=43&cKey=37
Company website, Annual Vigilance Talk (2013):
‘Annual Vigilance Talk-2013 was organised by HAL Vigilance Department on 28th Oct 2013,
during Vigilance Awareness Week-2013. Hon’ble Justice N Santosh Hegde, Former Supreme
Court Judge & Former Karnataka Lokayukta, delivered a talk on “Integrity and Good
Governance in Public Institutions”. The program was held at Ghatge Convention Center, HAL
Airport Road, Bangalore, which was attended by senior officers of HAL. The program was
live webcasted to all Divisions of HAL located outside Bangalore.’
http://www.hal-india.com/Common/Uploads/DMS/Photos-of-Annual-Vigilance-Awarenesstalk-2013.pdf
Purchase Manual (2013), Foreword, p.2:
http://www.hal-india.com/Common/Uploads/DMS/PurchaseManual.pdf
A3:
Does the company’s Chief Executive Officer demonstrate a strong personal,
internal-facing commitment to the ethics and anti-corruption agenda of the
company, actively promoting the ethics and anti-corruption agenda at all
levels of the company structure?
Score:
1
Comments:
Based on public information, there is limited evidence that the Chairman, who fulfils the
role of CEO, demonstrates a strong personal, internal-facing commitment to the ethics and
anti-corruption agenda of the company. Evidence shows that the Chairman supports the
company’s vigilance department, by actively taking part in the annual Vigilance Awareness
Week. The company therefore scores 1. To score higher the company would need to
provide at least two more examples of such engagement.
References:
Public:
HAL Vigilance Magazine, Marg Darshan (October 2014), p.1:
Chairman’s message:
‘Dear colleagues,
This edition of Marg Darshan provides an insight into the - 'National Framework to prevent
corruption'. The articles on United Nations Convention Against Corruption (UNCAC),
Prevention of Corruption Act, Corruption Risk Management & articles covering other
legislations connected to the theme including Companies Act, RTI etc., are very much
important and relevant for creating awareness. It is all the more appropriate when our
Organization is entering into more competitive market along with the possible structural
changes including disinvestment.
I also note that the theme of CVC for this year's Vigilance Awareness Week - 'Combating
Corruption.
Technology as an Enabler' and that of the current edition of Marg Darshan, mutually sync
with the aim of creating awareness and to combat corruption by widening the scope for
applying technology in eradicating the same.
In the present competitive environment, Transparency and Technology are two faces of the
same coin, wherein the application of technology in various felds always provide a cutting
edge in the performance and maintaining ethics in an organisation. It is relevant to mention
that several players in the private sector observed October 10, 2014 as the 'Compliance day'
and also celebrated the 'Compliance and ethics week' immediately thereafter. It is obvious
that the concern for 'transparency' and 'ethics' has spread its wings beyond the ambit of
Government Institutions.
I appreciate the efforts of Vigilance Department in creating awareness amongst employees
in preventive Vigilance. I also note that the theme emphasised by the CVC for current year's
Vigilance Awareness Week is need of the hour and on this aspect, I prefer to make a
mention about the IT enabled processes (viz: e-procurement, e-payment, etc) being
professed in HAL in order to enhance the transparency, quality & timeliness and to reduce
any possibility of misgivings. These efforts are relevant and timely keeping in view the
initiatives being taken by the Government of India on the 'Make in India' campaign, as it
presents a great opportunity for further indigenisation of defence projects.
I wish all the best to Team Vigilance and appreciate the efforts in bringing out yet another
Bi-annual issue of Marg Darshan which is in your hands now.
Dr R K Tyagi
Chairman’
http://www.hal-india.com/Common/Uploads/DMS/MD-OCT-issue-full-pages.pdf
TI notes:
Annual Vigilance Talk (2013):
http://www.hal-india.com/Common/Uploads/DMS/Photos-of-Annual-Vigilance-Awarenesstalk-2013.pdf
Vigilance Awareness Week 2014 Photos:
Vigilance Awareness Week 2013 Photos, p.1:
(p.2):
(p.3):
http://www.hal-india.com/vigilance/Image-Gallery/co.pdf
Company website: Vigilance
‘Transparency in Public Procurement: A booklet was released during the VAW 2012 by the
chairman HAL.’
http://www.hal-india.com/Initiatives.asp
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol XI Issue No. 1
(April 2014), p.1:
‘Ingenious ideas to promote good governance are extremely important. I am happy to note
that Vigilance Department under the leadership of Anurag Sahay, C O, continues its
preventive vigilance initiatives by laying emphasis on CVC 's theme of the year “Promoting
Good Governance in public institutions." This edition of Marg Darshan contains articles from
officers of diverse functional background. The contributions focus on micro issues and
suggest measures to promote good governance in the critical functional areas. This is a
worthwhile initiative complimenting last edition of Marg Darshan, on same theme but
focusing on macro strategies in promoting good governance. Good governance not only
needs procedural reforms but also demands commitment and ownership of all stake holders
in understanding, implementing of policy guidelines and promoting good practices. I am
confident that this edition will definitely enhance confidence among all stakeholders by
implementing good practices in various functional areas like HR, Outsourcing, Procurement,
Facility Management, Medical & Health unit etc, which have clear vigilance sensitivity. The
article on "The Lokpal And Lokayuktas Act, 2013 ", is an important and timely contribution
for creating awareness of the Act amongst all of us. HAL is facing new challenges in
disinvestment, re-structuring and increased competition in Defence Aerospace Sector. I
have no doubt that this edition of Marg Darshan enhances our confidence in facing such
challenges through promoting diligent and transparent decision making process.’
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol X Issue No. 2
(October 2013), p.3:
‘It gives me great pleasure to note that the Vigilance Department has devoted this edition of
Marg Darshan to “Promoting Good Governance in HAL". The Central Vigilance Commission
has been promoting Transparency , Fairness, Equity and encouraging competitiveness as
well as Leveraging of Technology in all areas of functioning of the Government and its
organisations. Technology brings in efficiency as well as transparency and therefore needs
to be assimilated and integrated into all aspects of our decision making. By making all
activities (especially those related to procurement, payments, outsourcing and recruitment
etc. that are vulnerable to unethical practices) available on an open platform to all the
stakeholders, the likelihood of abuse is greatly reduced. Decision makers will be empowered
to take quick decisions, as good governance measures through technology abled solution
would aid prudence and clarity of purpose.
We have an obligation towards our stakeholders to provide them the necessary information
regarding tender notification, status of tenders, placement of orders, status of products
delivered and payments etc., all these are possible when we fully embrace technology .ERP
and IFS system will need to be implemented fully. Recruitment, Hiring of Consultants,
Allotment of Accommodation, Deployment of assets of the company is required to be done
in a transparent manner which technology can ensure. This will reduce complaints and raise
the morale for higher production and performance.’
Marg Darshan Vigilance Magazine – Vol X Issue No. 1, (April 2013), p.3:
‘This edition is focused on a subject of interest and the theme of this edition is
“Strengthening of Internal Controls”. The theme is thought provoking which has relevance
across all the Departments. I am convinced that unless our internal procedures and systems
are proven to be effective in terms of quality, time and costs, our final product cannot meet
the expectations of our customer. We need to be 'Customer Centric', with due concern to
ethical benchmarks. As a Defence PSU, we need to be diligent in our dealings. Through this
edition of the Marg Darshan, I reach out to all HALites to dedicate ourselves to enhance our
performance, and fulfil the objective of excellence and customer delight. I compliment the
Vigilance Department for involving officers from diverse Departments to suggest ways and
measures for strengthening internal controls in HAL in the true spirit of participative
Vigilance.’
Marg Darshan Vigilance Magazine – Facets of Vigilance, Vol IX Issue No. 2 (October 2012),
p.3:
‘It gives me great pleasure to acknowledge the consistent efforts being made by the
Vigilance Department towards spreading the message of anti-corruption through preventive
measures. The regularity of publication of Marg Darshan, is an indication of their
commitment. The Vigilance Department has also been taking innovative steps to create
greater awareness of rules and procedures so that decisions are not taken out of ignorance
or incomplete knowledge. Fiscal prudence in our decisions will go a long way in sustaining
our Company. Integrity, Credibility and Quality should be the Mantra for our professional
domain. Consistent performance with high standards of quality, delivery in time as per the
agreed terms will see that the Company is held in high esteem in the Indian PSEs. Through
this medium, I urge all employees to strive towards taking the Company forward to become
a Maharatna in the near future.’
Marg Darshan Vigilance Magazine – HAL’s Anti-Corruption Strategy, Vol IX Issue No. 1 (April
2012), p.3:
‘At the same time we also need to be vigilant in the way public funds are utilised. Rules and
procedures are already in place. Competent authorities need to exercise due diligence while
taking a decision. Whenever situations arise that are not covered in the rulebook, the
sanctioning authority would take decision based on the circumstances in an explained and
rational manner. We cannot be fearful/slow in decision making or blame rules & regulations
as obstructive.
I am happy to note that the Vigilance Department is in the forefront of creating awareness
of our policies, guidelines, and Dos & Don’t through their various publications likeV2, Marg
Darshan etc. and programs like Sampark etc. Let us create an atmosphere which emboldens
our executives to take bold decisions without any fear of retribution. Let us all combine our
energies in further enhancing the Integrity quotient of HAL.
HAL is not only an organization, it is also a symbol of trust of people of India in our defence
support preparedness. Our future well-being will hinge upon credibility, profitability and
commitment in serving our customers in terms of quality and delivery schedules. Every
department will need to haul together just as a multicellular organism operating in
harmony.
Vigilence Manual Vol-1, p.22:
http://www.hal-india.com/vigilance/VigilanceManual/VigManual-1.pdf
A4:
Does the company publish a statement of values or principles representing
high standards of business conduct, including honesty, trust, transparency,
openness, integrity and accountability?
Score:
2
Comments:
Based on public information, there is evidence that the company has published a statement
of values representing high standards of business conduct, including trust and integrity. To
work with integrity the company has a commitment to be honest and trustworthy, and to
achieve trust requires transparency. The values are briefly explained on the company’s
website and in company documents.
References:
Public:
Company website: About Us
‘•Trust and Team Spirit
We believe in achieving harmony in work life through mutual trust, transparency, cooperation and a sense of belonging. We will strive for building empowered teams to work
towards achieving organisational goals.’
‘•Integrity
We believe in a commitment to be honest, trustworthy and fair in all our dealings. We
commit to be loyal and devoted to our organisation. We will practise self discipline and own
responsibility for our actions. We will comply with all requirements so as to ensure that our
organisation is always worthy of trust.’
http://www.hal-india.com/ourvalues.asp
Company website: About Us
‘Commitment
We shall accomplish our mission with:



Absolute integrity and dedication
Total customer satisfaction
Honesty and transparency
 Courtesy and promptness
 Fairness
 Total quality
 Innovation and creativity
 Trust and team spirit
 Respect for the individual
 Humility
 Compassion
We commit ourselves to do our duty to the best of our ability, integrity and efficiency with
the prime motto of fulfilling the customer’s, shareholders' and individuals requirements and
to rise to their expectations and beyond.
Our Expectations
We expect you to






Be prompt and reasonable
Be fair, honest and transparent in dealings.
Adhere to time and delivery schedules
Extend your cooperation in all our endeavor
Provide us detailed specifications
Acquaint us with the systems and maintenance procedures and product performances
criterion
 Indicate realistic schedule and make prompt payment
 Comply with the service instructions and timely maintenance procedures.’
'Corruption Free Services
We shall:(i) Adopt systems and procedures which leave no scope for any corrupt practices.
(ii) Maintain absolute confidentiality of the information/ complaints.
(iii) Believe means and ends cannot be separated. Good ends call for good means. Good
means cannot but lead to good ends. There shall be no need for any one at any time to
offer bribe or any other inducement for doing business with us. We shall promptly and
expeditiously enquire into all genuine and legitimate complaints of corruption against any
employee of our organization.
(iv) Always be honest and transparent and would like to be seen as honest. We shall
not claim any judicial privilege for our documents and records except in rare cases that too
in the interest of national security.
(v) Implement all the policies and directives of Central Vigilance Commission.'
http://www.hal-india.com/citizen.asp
Annual Report 2012 – 2013, Page 13:
Vigilance Manual Vol-I, pp.3-4:
‘Citizens Charter for HAL
This Charter is a declaration of our commitment, expectations and highest standards with
total quality to achieve excellence in Design, Manufacture and Maintenance of Aerospace
defence equipment, Software development for Aerospace application and Design
Consultancy by managing the business on commercial lines in most fair, honest and
transparent manner, with corruption free service for the benefit of the customers who are
our partners in progress to ensure safe custody of public money.
a) Commitment












Courtesy and promptness
Fairness
Total quality
Innovation and creativity
Trust and team spirit
Respect for the individual
Humility
Compassion
Commit ourselves to do our duties to the best of our ability, integrity and efficiently with
the prime motto of fulfilling the customers and shareholders requirements and to rise to
their expectations and beyond.
b) Our Expectations
We expect you to








criterion
Indicate realistic schedule and make prompt payment
Comply with the service instructions and timely maintenance procedures.’
(pp.5-6):
‘Corruption Free Services
offer bribe or any other inducement for doing business with us. We shall promptly
andexpeditiously enquire into all genuine and legitimate complaints of corruption against
any employee of our organization.
(v) Implement all the policies and directives of Central Vigilance Commission.’
Whistleblower Policy (July 2010), p.1:
‘The Company believes in the conduct of the affairs of its constituents in a fair and
transparent manner by adopting highest standards of professionalism, honesty, integrity
and ethical behaviour. Towards this end, the Company has adopted the Code of Conduct
(‘the Code’), which lays down the principles and standards that should govern the actions of
the Company and its employees.’
http://www.hal-india.com/vigilance/Whistle-Blower-Policy-HAL/Whistle-Blower-PolicyHAL.pdf
Code of Business Conduct & Ethics for Board Members and Senior Management of
Hindustan Aeronautics Limited (January 2008), p.1 :
‘1.2 The purpose of this Code is to enhance ethical and transparent process in managing the
affairs of the Company’
(p.4):
‘5.2 Be honest and trustworthy & practice integrity
5.2.1 Integrity and honesty are essential components of trust. Without trust an organization
cannot function effectively.
5.2.2 All Board Members and Senior Management are expected to act in accordance with
highest standards of personal and professional integrity, honesty and ethical conduct, while
conducting business of the Public Enterprises.’
(pp.5-6): ‘5.5.1 To strive continuously to bring about integrity and transparency in all
spheres of the activities.
5.5.2 Work unstintingly for eradication of corruption in all spheres of life.’
http://hal-india.com/HAL-CoC.pdf
A5:
Does the company belong to one or more national or international initiatives
that promote anti-corruption or business ethics with a significant focus on
anti-corruption?
Score:
0
Comments:
Based on public information, there is no readily available evidence that the company
belongs to one or more national or international initiatives that promote anti-corruption, or
business ethics with a significant focus on anti-corruption.
References:
Public:
TI notes:
HAL MoU with TI India:
August 6, 2013: ‘HAL has signed a Memorandum of Understanding (MoU) with the
Transparency International India (TII) for adoption of Integrity Pact (IP). “Considering that
HAL deals with number of domestic and international business partners for goods and
services, the MoU will go a long way in establishing higher standards in our operations”,
says Dr. R. K. Tyagi, Chairman, HAL.
and 30 Indian).
transparent manner.
TII.’
http://www.hal-india.com/HAL%20First%20Defen/ND__29
HAL International Training Certificate, Photos:
International Anti-Corruption Academy (IACA), Vienna, like International Anti-corruption
Summer Academy, Procurement Anti-Corruption Training (PACT) etc.
Annual Report 2012 – 2013, Page 13:
Company Website: Vigilance
‘The Integrity Pact envisages an agreement between the prospective vendor/bidder and the
buyer committing the persons/officials of both the parties not to exercise any corrupt
influence on any aspect of the contract. Only those vendors/bidders who have entered into
such an Integrity Pact with the buyer (HAL) would be competent to participate in bidding
with HAL wherever the value of each contract exceeds Rs 20 Crores.
This Pact is a preliminary qualification for entering into any contract with HAL. The Pact will
be effective from the stage of Invitation of Bids till the complete execution of the Contract.
The Central Vigilance Commission (CVC) has appointed Shri Dhirendra Singh, IAS (Retd.) as
Independent External Monitor (IEM) to oversee the implementation of the Integrity Pact.’
http://www.hal-india.com/integrity.asp
Company website: HAL First Defence PSU to Sign MoU with Transparency International India
‘HAL has signed a Memorandum of Understanding (MoU) with the Transparency
International India (TII) for adoption of Integrity Pact (IP). “Considering that HAL deals with
number of domestic and international business partners for goods and services, the MoU
will go a long way in establishing higher standards in our operations”, says Dr. R. K. Tyagi,
Chairman, HAL.
and 30 Indian).
transparent manner.
TII.’
http://hal-india.com/First_Defence_PSU.asp
A6:
Has the company appointed a Board committee or individual Board member
with overall corporate responsibility for its ethics and anti-corruption
agenda?
Score:
0
Comments:
Based on public information, there is no readily available evidence that the company has
appointed a Board committee or individual Board member with overall corporate
responsibility for its ethics and anti-corruption agenda. The company’s Vigilance
Department is responsible for the company’s anti-corruption intiatives, but it is not a Board
committee.
References:
Public:
TI notes:
Company website, Integrity Pact:
‘The Integrity Pact envisages an agreement between the prospective vendor/bidder and the
This Pact is a preliminary qualification for entering into any contract with HAL. The
Pact will be effective from the stage of Invitation of Bids till the complete execution of the
Contract.
The Central Vigilance Commission (CVC) has appointed Shri Dhirendra Singh, IAS
(Retd.) as Independent External Monitor (IEM) to oversee the implementation of the
Integrity Pact. Address of IEM is as follows :
Shri Dhirendra Singh, IAS (Retd.)
Flat No. 102, Earth Court-2
Jaypee Greens,
Surajpur Kasna Road,
Greater Noida- 201310.
Phone:0120-2324305,
Email:[email protected].’
http://www.hal-india.com/Integrity%20Pact/M__45
Vigilance Manual Vol-1, p.21:
‘The Vigilance scheme of HAL was drawn on the model recommended by the Central Bureau
of Investigation. The Board of Directors of HAL approved the scheme vide item No.19 in the
21st Meeting of the Board of Directors dated 26th February 1967 held in Bangalore.
Ever since its inception, the Vigilance Department co-existed with Security Department and
was generally identified as S&V Dept. Based on the outcome of the Regional Workshop of
Chief Vigilance Officers held in Bangalore on 10th and 11th December 1997, action was
taken by HAL Management for bifurcation of Security and Vigilance Department in the
Company, with a view to strengthen and focus only on anticorruption activities.
With a view to tackle corruption and making the functioning of investigating and Vigilance
agencies more independent, effective, credible and prompt, the Department of Public
Enterprises (Govt. of India), vide there letter No 5(7)/98(GL-009) GM dated 25th
September1998, has recommended model vigilance set-up for the PSE’S as a broad
guideline to be adopted with such modifications as may be appropriate in the case of an
individual undertaking. Based on the recommendations made in the above letter of DPE the
vigilance setup in HAL was recognized and the present set-up established.’
‘During the year 1998, the Vigilance set up was separated from the security Department and
established based on the recommendations of Department of Public Enterprises, with a
view to make the Department more effective, credible and prompt.
HAL Vigilance Department has a work force of Officers 50 & 77 workmen. Vigilance Officers
and workmen are positioned in all the Divisions of HAL spread throughout the country who
report to the CVO stationed at the Corporate Office of HAL in Bangalore.
The Vigilance department plays a vital role in ensuring that the Rules and laid down
Procedures of the Govt and Company are adhered to in all circumstances and the
discretionary powers vested with the individuals are exercised judiciously so that there is
transparency in all official dealings. Vigilance Department pioneers the Anti-Corruption work
of the Company.’
http://www.hal-india.com/vig-about-us.asp
‘Head of Systems Audit / Director (HR) will submit their report after investigation to the
Chairman, Audit Committee. If an investigation leads the Chairman of the Audit Committee
to conclude that an improper or unethical act has been committed, the Chairman of the
Audit Committee shall recommend to the management of the Company to take such
disciplinary or corrective action as the Chairman of the Audit Committee may deem fit. It is
clarified that any disciplinary or corrective action initiated against the Subject as a result of
the findings of an investigation pursuant to this Policy shall adhere to the applicable HAL
Conduct, Discipline & Appeal Rules, 1984 (CDA Rules).’
‘The Central Vigilance Commission (CVC) has appointed Shri Dhirendra Singh, IAS (Retd.) as
Independent External Monitor (IEM) to oversee the implementation of the Integrity
Pact. Address of IEM is as follows:
Jaypee Greens,
Phone: 0120-2324305,
Email : [email protected].’
A7:
Has the company appointed a person at a senior level within the company to
have responsibility for implementing the company’s ethics and anticorruption agenda, and who has a direct reporting line to the Board?
Score:
2
Comments:
Based on public information, there is evidence that the company has appointed the Chief
Vigilance Officer with responsibility for implementing its ethics and anti-corruption agenda.
The Chief Vigilance Officer is identified as Shri Anurag Sahay.
References:
Public:
(p.24): ‘Duties of Chief Vigilance Officer
(i) To act as a link between HAL and Central Vigilance Commission on the one hand
and HAL and Ministry of Defence on the other. To investigate and report on the
complaints forwarded by the Central Vigilance Commission/ Ministry against officials of
HAL. Also to assist/advise the Chairman HAL, in combating corruption.
(ii) To ensure that assessments are made of the scope and modes of corruption and
malpractices in the HAL and to suggest measures to check them.
(iii) To examine rules and procedures/ to remove loopholes and defects with a view
to eliminate or minimize factors, which provide opportunities for corruption and
malpractices.
(iv) To plan and enforce regular inspections, surprise checks for detecting failures in
quality or speed of work, which be indicative of the existence of corruption or
malpractice.
(v) To scrutinize all complaints and information received in the Corporate Office having
vigilance angle and to arrange for adequate enquiries to be made and action to be taken on
the reports received.
(vi) To refer to Central Bureau of Investigation in consultation with Chairman those
complaints and information which require enquiries by them and to ensure that Central
Bureau of Investigation is given all the assistance in all enquiries by way of arranging
production of records files, etc.
(vii) Maintain proper surveillance on officers of doubtful integrity and officers who are on
the Agreed List.
(viii) Ensure prompt observance of Conduct Rules regarding integrity covering
(a) statements of assets and acquisitions
(b) gifts
(c) relatives employed in private firms or doing private business
(d) benami transactions.’
(p.34): ‘Functional and Administrative control over Vigilance Officials:
All matters pertaining to functional and administrative control over vigilance officials
like, recruitment, induction, grant of leave, training, transfer/job rotation, promotion,
movement/temporary duty/forwarding of applications/writing of Performance Appraisal
Reports/Disciplinary action etc. would be exercised by the Chief Vigilance Officer.’
‘HAL Vigilance Department has a work force of Officers 50 & 77 workmen. Vigilance Officers
and workmen are positioned in all the Divisions of HAL spread throughout the country who
report to the CVO stationed at the Corporate Office of HAL in Bangalore.’
‘The Head of the Vigilance Department in HAL is Chief Vigilance Officer (Officer on
deputation from Central government deputed by the CVC).
List of CVO’s In HAL Till Date:
1. Shri T Srinivasulu, IPS From 1984 To 1989.
2. Shri Rm Vasant Kumar,IPS From 1990 To 1991.
3. Shri Ku Shetty,IPS From 1992 To 1994
4. Shri Ys Rao, IPS From1994 To 1997
5. Shri A Vijay Anand, IRS From 1999 To 2004
6. Shri V H Deshmukh, IPS From 2004 To 2009
7. Shri Anurag Sahay, IRS From 2009 –Till Date’.
‘The Central Vigilance Commission (CVC) has appointed Shri Dhirendra Singh, IAS (Retd.) as
Independent External Monitor (IEM) to oversee the implementation of the Integrity
Pact. Address of IEM is as follows:
Jaypee Greens,
Phone: 0120-2324305,
Email: [email protected].’
Company website: Organisation Chart
http://www.hal-india.com/Organisation-Chart.pdf
A8:
Is there regular Board level monitoring and review of the performance of the
company’s ethics and anti-corruption agenda?
Score:
1
Comments:
Based on public information, there is limited evidence of regular Board level monitoring and
review of the performance of the company’s ethics and anti-corruption agenda. The
Chairman of the Audit Committee receives quarterly reports from the Director of Human
Resources or the Head of Systems Audit, in regard to whistleblowing reports. The company
therefore scores 1. To score higher the company would need to provide evidence of a
formal Board level review of the company’s entire ethics and anti-corruption agenda, or that
it commissions a similar external review.
References:
Public:
‘Duties of Chief Vigilance Officer
malpractices.
malpractice.’
(p.25): ‘ (xv) To supervise timely submission of various Reports & Returns those need to be
submitted to CVC/Ministry/CBI.’
‘Duties of DGM/Chief Manager (Vigilance) at Corporate Office
(i) He will assist CVO for ensuring implementation of Corporate Policies and CVC on the
vigilance matters in the Company.
(ii) He will be responsible for collection/collation of all vigilance reports & returns from all
the divisions including Corporate Office and further onward submission to the Ministry.’
(p.72): ‘Periodic Review and Evaluation
The Principal periodically reviews the effectiveness of Integrity Pact Program through all or
some of the following:
a) IEM will have to submit a Quarterly Report on the progress and effectiveness of
Integrity Pact Program.
b) IEM and senior leadership of the Principal will do a self-assessment of Integrity
Pact Program’s effectiveness and identify areas / ways to improve.
c) Principal will have to conduct a complete and periodic review by an outside
agency, including Government Officials, suppliers, Independent Observers etc. about IP’s
effectiveness in reducing corruption.
d) Principal will have to meet with CVC and TI-India on an annual basis to discuss the
above.’
(p.27): ‘Duties of Deputy Manager (Vigilance) / Vigilance Officer at Corporate Office
(i) He will be responsible for compilation of the articles for Department
Publications/Magazines.
(ii) He will assist the Manager (Vigilance) in Anti Corruption work of Corporate Office
and HAL Management Academy.
(iii) He assist the Manager (Vigilance) to analyze and process all the investigations
reports of the divisions and review disciplinary proceedings when called for.’
‘The Director (HR) or Head of Systems Audit shall submit a report to the Chairman of the
Audit Committee on a regular basis about all Protected Disclosures referred to him / her
since the last report together with the results of investigations, if any, on quarterly basis.’
A8(a):
Is there a formal, clear, written plan in place on which the review of the
ethics and anti-corruption agenda by the Board or senior management is
based, and evidence of improvement plans being implemented when issues
are identified?
Score:
0
Comments:
Based on public information, there is no readily available evidence of a formal, clear, written
plan in place, on which the review of the ethics and anti-corruption agenda by the board or
senior management is based. TI notes that there is some evidence that improvement plans
have been implemented when issues have been identified; for example, the company’s
Vigilance Manuals have been revised.
References:
Public:
TI notes:
malpractices.
‘New Intiatives of the Vigilance Department

Review of Works and Contracts Manual





Revision of HAL Vigilance Manuals
Change in Logo of Vigilance keeping in sync with objectives and present day times
ISO 9001:2008 Certification
Exploring implementation of e-Awas (e-enabled quarters allotment system)
Induction of Officials into Vigilance Dept from diverse background, to make it a
heterogeneous workforce with an aim to deliver multi-pronged anti corruption service
armed with varied professional competencies.
 PRAYAS: A compendium of selected Vigilance cases which bring out acts of violation of
rules and procedures to prevent recurrence. It also aims to share experience with regard
to investigations for Vigilance professionals.
 Transparency in Public Procurement: A booklet was released during the VAW 2012 by
the chairman HAL.
 OLIV (Online Vigilance Clearance System)
 Data Centre
Sensitizing Selection Committees for Recruitment.
HAL-Pedia
http://www.hal-india.com/Initiatives.asp
Reforms in appointment of consultants:
The Department has been advocating adopting of a transparent system in the Appointment
of Consultants as this was one of the areas which needed immediate attention in view of
the changing business strategies globally. There have been instances where some of such
appointments attracted punitive vigilance intervention. Keeping all the facets in view, HAL
has adopted a detailed policy for appointment of consultants in line with guidelines issued
by CVC.
Reforms in Delegation of Powers:
Delegation of Powers (DOP) of the Company which was issued in the year 2008, was taken
up for scrutiny by Vigilance Dept. Aim was to ensure that the powers conferred on the
authorities are invoked with due diligence and accountability from the point of financial
propriety. Management considered the suggestions of the Vigilance and necessary
improvements have been made in the different Clauses of DOP.
Reforms in HAL CDA Rules – imposition of penalty after retirement etc:
Central Vigilance Commission and the Ministry, had issued directives for amendment to the
service rules (Conduct Discipline & Appeal Rules) for incorporating provision for continuance
of disciplinary after retirement and imposition of penalty. Vigilance Dept in compliance of
the same, took up the matter with the Management and ensured necessary amendments.
Reforms in intimation of Moveable Property:
It was observed by Vigilance Dept during various scrutiny that officers were not intimating
the acquisition of moveable property in the Property Returns and moreso not within a
month of transaction which is the norm. Added to this some officials confused the issue and
were intimating/declaring transactions in moveable property in their Annual Property
Returns filed at the end of each calendar year and not within 30 days as mandated.
Vigilance Dept took up the issue with the Management and since then a policy reiterating
the procedure has been circulated for compliance by all officers.
Reforms in obtaining of Vigilance Clearance:
Vigilance Department in HAL issues Vigilance Clearance to its officials for purposes
mandated by the Company. It was observed that the Dept seeking Vigilance Clearance, was
providing inputs in a piece meal/incomplete manner which was resulting in avoidable delays
in processing/issuance of Clearances. A format was devised to enable the Dept seeking
clearance to provide required information in a structured manner. This has apart from
minimizing the time cycle in processing of large number of clearances has also facilitated
proper record keeping/updation.
Reforms in procurement process:
Streamlining the procedures involved in Public Procurement has been the thrust of the
Vigilance Dept in HAL. Being a strategic Defence PSU, HAL has to procure, considerably from
various vendors. The focus of Vigilance Dept in this area is ensuring/monitoring whether the
basic tenets of public procurement such as transparency, fairness, equity and value for
money has been followed in the process of these procurements. ‘Less discretion and more
competition’ has been the mantra driving the Vigilance thereby discharging the duty of a
dutiful guardian of public money. Experience gained by Vigilance through its Preventive and
Punitive Vigilance activities over a period of time has only facilitated to address grey areas
to plug loopholes.
Improving Vigilance administration by leveraging technology is the best tool to minimize
human interface and accelerate automation leading to transparent systems and Vigilance
Dept in HAL has made this as its signature movement. Leading from the front Vigilance Dept
has ensured successful implementation of e-Payments. Today almost 90% of payments
made by HAL is through e-mode. Aim is to make it 100% within a couple of months.
e-Procurement:
The Central Vigilance Commission is promoting e-Governance to improve transparency in
government functioning. As regards public procurement, the modern IT tools can be
leveraged in enhancing transparency in the form of e- Tendering, e-Procurements, ePayments, e-Auction and uploading/posting of tender details on the official website of the
Company. Keeping in line with the same, top on the agenda of Vigilance Dept is eProcurement for which a full fledged Data Center with required infrastructure is being put in
place for hosting a independent and customized e-procurement for HAL.
Apart from the above, Vigilance Dept continuously strives through its mechanism to address
issues like re-tendering, non-involvement of middlemen, authenticated e-correspondence
by valid digital signature, reforms in receipt and anlaysis of offers; updating of vendor
directory, vendor development; etc unstintingly. Regular interactive sessions by the Chief
Vigilance Officer with the community of HAL has also sensitized informed decision making.
Today there is tremendous awareness on the need to be vigilant in day to day duties.
Recoveries/Savings:
Due to its untiring efforts both through Preventive and Punitive Vigilance activity, Vigilance
Department apart from acting as an catalyst in streamlining of systems, has been able to
contribute directly to the financial well being of the Company. The efforts of Vigilance Dept
has yielded recoveries and savings to the tune of Rs. 6,67,58,683=00 approximately in the
last three years.
Systems Improvement:
Following circulars of HR and Finance departments have been issued by Management due to
intervention of Vigilance department. Some of them are :
Issues Related to HR Department:
(a) Guidelines on Recruitment Activity.
(b) Intimating regarding movable property exceeding Rs.20,000/within a month.
(c) Vigilance Department to be the nodal agency for handling of complaints (Complaint
Handling).
(d) Outsourcing of recruitment activity.
(e) Consultation with Vigilance Department in disciplinary cases.
(f) Policy on Engagement of Consultant & Experts.
(g) Amendments to rules pertaining to forfeiture of Gratuity when the Officer has retired
from Service.
(h) Settlement of PF dues of Contract Labour.
(i) Payment of Canteen Allowance.
(j) Pre-employment Medical Standards.
(k) Entitlement of Canteen and Conveyance allowance while on deputation.
(l) Derecognition of qualifications obtained from institutions not recognized by
UGC/Certifying Govt. Agencies.
(m) Pre employment Medical Standards.
Issues Related to Finance Department:
(a) Revised procedure for acceptance of Single offer against tender notified in revised DOP.
(b) Delegation of Powers with regard to accepting liability by the Company while signing
MOU/NDA.
(c) Suggested guidelines to bring clarity in responsibilities of user Department/IMM/Works
Deptt/IT Deptt./Cash/Bank Section/Bills payable Section.
(d) Returning of unopened price bids.
(e) System improvement in procedures adopted in the Cash Office Section.
(f) Guidelines for Recoveries to be made from Contractors in accordance with Contractual
terms and obligations.
(g) Independent verification of antecedent/genuineness of senders before registration in
Vendor Directory.
(h) Guidelines for parity in TA/DA entitlements in respect of non HAL employees sent on
deputation after approval by Competent Authority.
(i) Guidelines for Tendering System for procurement of capital items requiring change in
scope of the tender notice.
(j) Preparation of Estimate of a work in conformance with MES SSR rates.
(k) Adoption of FE rates as on the day of opening of price bids.’
http://www.hal-india.com/Achievements.asp
A9:
Does the company have a formal process for review and where appropriate
update its policies and practices in response to actual or alleged instances of
corruption?
Score:
2
Comments:
Based on public information, there is evidence that the company has a process to review
and also updates its policies and practices, in response to actual or alleged instances of
corruption. This is the responsibility of the Vigilance Department and the Chief Vigilance
Officer. Evidence suggests that in response to unethical consultant appointments the
Vigilance Department introduced a detailed policy for the appointment of consultants.
References:
Public:
Duties of Chief Vigilance Officer
malpractices.
malpractice.
the reports received.’
Vigilance Manual Vol-2, page 191:
‘10 Recommendation for systematic improvement
Any fraud, corruption, irregularity or impropriety indicates a failure of control
mechanism or gaps in systems and procedures at the end of the report the CVO should try
to recommend systemic improvements in order to prevent the risk of a recurrence of the
lapse/ misconduct.’
‘Head of Systems Audit / Director (HR) will submit their report after investigation to the
Chairman, Audit Committee. If an investigation leads the Chairman of the Audit Committee
to conclude that an improper or unethical act has been committed, the Chairman of the
Audit Committee shall recommend to the management of the Company to take such
disciplinary or corrective action as the Chairman of the Audit Committee may deem fit. It is
clarified that any disciplinary or corrective action initiated against the Subject as a result of
the findings of an investigation pursuant to this Policy shall adhere to the applicable HAL
Conduct, Discipline & Appeal Rules, 1984 (CDA Rules).’
Reforms in appointment of consultants:
by CVC.
A9(a):
Does the company have a formal anti-corruption risk assessment procedure
implemented enterprise-wide?
Score:
1
Comments:
Based on public information, there is some evidence that the company has a corruption risk
management system implemented enterprise-wide. A system has been implemented that
identifies, assesses and mitigates risks. It has been recently introduced and the
Management Committee of the Board has mandated the Vigilance department to work on
the modalities of the implementation. TI notes that the Chief Vigilance Officer ensures that
assessments are made of the scope and modes of corruption, and suggests measures to
check them. However, there is no further evidence of when and how mitigation plans
should be applied. The company therefore scores 1.
References:
Public:
HAL Vigilance Magazine, Marg Darsan (April 2014), p. 2:
CVO’s desk:
‘Corruption Risk Management (CRM) in HAL
I would like to bring to your attention a key aspect of our functioning on which we are
presently engaged. Corruption Risk Management (CRM), we believe is an extremely
important tool for Integrity Management in the Company. As you may be aware, Company
has recently issued a Risk Management Policy. The Risk Management Policy issued by the
Company establishes a framework to identify risks, assess and rate risks and come up with
mitigation measures. The Management Committee of the Board has mandated the Vigilance
Department to work on the modalities of implementation of CRM within the Company. In
identifying the corruption related risks and the possible mitigation measures we propose to
have broad ranging consultations with all the stakeholders within the Company. We strongly
believe that if we can identify the corruption risks and undertake the possible measures for
mitigation, it would be the single most significant preventive vigilance strategy. In coming
weeks and months we would be approaching various divisions to create awareness
regarding the CRM and for consultations with you for identification of risks and possible
mitigation strategies. CRM would definitely bring the awareness of corruption risks not only
within the thought processes of the executives but also in the decision making structures of
the Company.’
http://www.hal-india.com/Common/Uploads/DMS/Marg_Darshan%20_April-2014.pdf
Code of Business Conduct and Ethics for Board Members and Senior management of
Hindustand Aeronautics Llimited (January 2008), p.10:
‘6.11 Identity, mitigate and manage business risks :
It is everybody's responsibility to follow the Risk Management Framework of the Company
to identify the business risks that surround function or area of operation of the Company
and to assist in the company-wide process of managing such risks, so that Company may
achieve its wider business objectives.’
http://www.hal-india.com/Common/Uploads/ContentTemplate/3_Down_HAL-CoC.pdf
FOREWORD (February 2014), Human Resources:
‘Vigilance cannot be considered as an activity merely to prevent corruption.
Considered holistically, it can acquire a more meaningful role. In fact, vigilance has to
be seen as a part of the overall risk management mechanism of an organization
whereby systems are structured in such a manner so as to prevent leakages even
while making the organization transparent and accountable in its dealings with
customers both internal and external.’
(p.24):
malpractices.
malpractice.
the reports received.’
(p.77): ‘Periodic Review and Evaluation
The Principal periodically reviews the effectiveness of Integrity Pact Program through all or
some of the following:
a) IEM will have to submit a Quarterly Report on the progress and effectiveness of
Integrity Pact Program.
b) IEM and senior leadership of the Principal will do a self-assessment of Integrity
Pact Program’s effectiveness and identify areas / ways to improve.
c) Principal will have to conduct a complete and periodic review by an outside
agency, including Government Officials, suppliers, Independent Observers etc. about IP’s
effectiveness in reducing corruption.
d) Principal will have to meet with CVC and TI-India on an annual basis to discuss the
above.’
A10:
Does the company have a formal anti-corruption risk assessment procedure
for assessing proposed business decisions, with clear requirements on the
circumstances under which such a procedure should be applied?
Score:
0
Comments:
Based on public information, there is no readily available evidence that the company has a
formal anti-corruption risk assessment procedure for assessing proposed business decisions,
with clear requirements on the circumstances under which such a procedure should be
applied.
References:
Public:
NA
A11:
Does the company conduct due diligence that minimises corruption risk
when selecting or reappointing its agents?
Score:
2
Comments:
Based on public information, there is evidence that the company does not use agents in the
procurement process.
References:
Public:
Purchase Manual – Issue 3 (2013), p.65:
'8.8.7 Non-Involvement of Indian Agents
8.8.7.1 Following clause shall be incorporated in all enquiries, tenders, purchase orders,
contracts/ agreements:
8.8.7.2 “The seller confirms and declares to the buyer that the seller is the original
manufacturer/licensor/distributor/stockist/channel partner of the stores referred to in
this contract and has not engaged any individual or firm, whether Indian or foreign
whatsoever, to intercede, facilitate or in any way to recommend to HAL or any of its
functionaries, whether officially or unofficially, to the award of the contract to the
Seller; nor has any amount been paid, promised or intended to be paid to any such
individual or firm in respect of any such intercession, facilitation or recommendation. The
Seller agrees that if it is established at any time to the satisfaction of the Buyer that
the present declaration is in any way incorrect or if at a later stage it is discovered by
the Buyer that the Seller has engaged any such individual/firm, and paid or intended to
pay any amount, gift, reward, fees, commission or consideration to such person, party,
firm or institution, whether before or after the signing of this contract, the Seller will
be liable to fund that amount to the Buyer. The Seller will also be debarred from
entering into any supply Contract with HAL for a minimum period of five years. The Buyer
will also have a right to consider cancellation of the Contract either wholly or in part,
without any entitlement or compensation to the Seller who shall in such event be liable to
refund all payments made by the Buyer in terms of the Contract along with interest at
the rate of 2% per annum above LIBOR rate. The Buyer will also have the right to recover
any such amount from any contracts concluded earlier with HAL or Government of India.”
8.8.7.3 It should be ensured that the supplier confirms/responds to this clause at the time of
registration as well as along with the offer.
8.8.7.4 Ministry of Defence has issued regulatory provisions in respect of Indian Authorised
Representatives/ Agents, where permissible.
(Ref: http://mod.nic.in/newadditions/repagent.htm )
8.8.7.5 Following additional clause shall be incorporated in all enquiries, tenders, purchase
orders, contracts/agreements.
“HAL has not appointed any agent in India or outside India for procurement of any items
and deals directly with vendors. In case any individual or firm approaches you posing
themselves as authorized agent of HAL, it is requested that you should not entertain such
claim and in addition inform immediately to HAL”. Designation of the officer to whom
information to be sent should be indicated.’
‘Reforms in appointment of consultants
by CVC.’
A12:
Does the company have contractual rights and processes for the behaviour,
monitoring, control, and audit of agents with respect to countering
corruption?
Score:
2
Comments:
Based on public information, there is evidence that the company does not use agents in the
procurement process.
References:
Public:
Purchase Manual – Issue 3 (2013), p.65:
'8.8.7 Non-Involvement of Indian Agents
the rate of 2% per annum above LIBOR rate. The Buyer will also have the right to recover
any such amount from any contracts concluded earlier with HAL or Government of India.”
8.8.7.3 It should be ensured that the supplier confirms/responds to this clause at the time of
registration as well as along with the offer.
8.8.7.4 Ministry of Defence has issued regulatory provisions in respect of Indian Authorised
Representatives/ Agents, where permissible.
(Ref: http://mod.nic.in/newadditions/repagent.htm)
8.8.7.5 Following additional clause shall be incorporated in all enquiries, tenders, purchase
orders, contracts/agreements.
“HAL has not appointed any agent in India or outside India for procurement of any items
and deals directly with vendors. In case any individual or firm approaches you posing
themselves as authorized agent of HAL, it is requested that you should not entertain such
claim and in addition inform immediately to HAL”. Designation of the officer to whom
information to be sent should be indicated.’
‘Reforms in appointment of consultants
by CVC.’
A13:
Does the company make clear to contractors, sub-contractors, and suppliers,
through policy and contractual terms, its stance on bribery and corruption
and the consequences of breaches to this stance?
Score:
2
Comments:
Based on public information, there is evidence that the company has made clear to
suppliers through contractual terms, its stance on bribery and corruption, and the
consequences of breaches to this stance. Vendors and suppliers are required to sign the
Integrity Pact, which states that both parties must not exercise any corrupt influence on any
part of the contract. Similarly, the Purchase Manual shows that the company has the right
to disqualify a contractor from the tender process in response to corrupt activities.
References:
Public:
‘Integrity Pact with Vendors
The Integrity Pact envisages an agreement between the prospective vendor/bidder and the
This Pact is a preliminary qualification for entering into any contract with HAL. The Pact will
be effective from the stage of Invitation of Bids till the complete execution of the Contract.’
Purchse Manual Issue 3 (2013), p.207:
‘BRIBES AND GIFTS
Any bribe, commission, gift or advantage given, promised or offered by or on behalf of the
contractor or his parties, agent or servant or any one on his or their behalf to any officer,
servant, representative or agent of HAL or any person on his or their behalf in relation to the
obtaining or to the execution of this or any other contract with HAL shall in addition to any
criminal liability which the contractor may incur, subject the contractor to the cancellation
of this and all other contracts with HAL and also to payment of any loss or damage resulting
from any such cancellation under clauses-8 and 10 thereof. Any question or dispute as to
the commission of any offence under the present clause shall be settled by HAL in such
manner and on such evidence or information as they may think fit and sufficient and their
decision shall be final and conclusive.’
(p.278): ‘5. Commitments of the Bidder(s) / Seller(s).
5.1 The Bidder(s)/ Seller(s) commit himself to take necessary measures to prevent
corruption.
He commits himself to observe the following principles during his participation in the tender
process and during the contract execution.
i) The Bidder(s)/ Seller(s) will not, directly or through any other persons or firm, offer
promise or give to any of the Buyer’s employees involved in the tender process or the
execution of the contract or to any third person any material or other benefit which he / she
is not legally entitled to, in order to obtain in exchange any advantage during the tendering
or qualification process or during the execution of the contract.
ii) The Bidder(s)/ Seller(s) will not enter with other Bidders / Sellers into any undisclosed
agreement or understanding, whether formal or informal. This applies in particular to
prices, specifications, certifications, subsidiary contracts, submission or non submission of
bids or any other actions to restrict competitiveness or to introduce cartelization in the
bidding process.
iii) The Bidder(s)/ Seller(s) will not commit any offence under the Prevention of Corruption
Act 1988: further the Bidder(s)/ Seller(s) will not use improperly, for purposes of
competition or personal gain, or pass on to others, any information or document provided
by the Buyer as part of the business relationship, regarding plans, technical proposals and
business details, including information contained or transmitted electronically.
5.2 The Bidder(s)/ Seller(s) will not instigate third persons to commit offences outlined
above or be an accessory to such offences.
6. Previous Transgression
6.1 The Bidder /Seller declares that no previous transgressions have occurred in the last
three years with any other company in any country conforming to the anti corruption
approach or with any other Public Sector Enterprise in India that could justify
bidder’s/Sellers’ exclusion from the tender process.
6.2 If the Bidder / Seller makes incorrect statement on this subject, Bidder / Seller can be
disqualified from the tender process or the contract, if already awarded, can be terminated
for such reason without any liability whatsoever on the Buyer.
7. Company Code of Conduct
Bidders / Sellers are also advised to have a company code of conduct (clearly rejecting the
use of bribes and other unethical behavior) and a compliance program for the
implementation of the code of conduct throughout the company.’
(p.279): ‘8. Sanctions for Violation (Disqualification from tender process & exclusion from
future contracts and Criminal charges against violation by Bidders / Sellers)
8.1 If the Bidder(s)/ Seller(s), before award or during execution has committed a
transgression through a violation of Clause 5, above or in any other form such as to put his
reliability or credibility in question, the Buyer is entitled to disqualify the Bidder(s)/ Seller(s)
from the tender process’.
http://www.hal-india.com/Pur.%20Manual%20&%20Sub-%20Cont/PurchaseManual.pdf
A13(a):
Does the company explicitly address the corruption risks associated with
offset contracting?
Score:
0
Comments:
explicitly addresses the corruption risks associated with offset contracting.
References:
Public:
TI notes:
Annual Report 2012-2013, p.22:
‘Offset Business
With an objective to maximise export opportunities arising out of Offset programmes linked
to Indian Defence acquisition programmes, various strategic initiatives were taken to
establish and progress business framework / agreement with the OEMs.’
A13(b):
Does the company conduct due diligence that minimises corruption risk
when selecting its offset partners and offset brokers?
Score:
0
Comments:
conducts due diligence that minimises corruption risk when selecting its offset partners.
References:
Public:
TI notes:
Annual Report 2012-2013, p.22:
‘Offset Business
With an objective to maximise export opportunities arising out of Offset programmes linked
to Indian Defence acquisition programmes, various strategic initiatives were taken to
establish and progress business framework / agreement with the OEMs.’
A15:
Does the company have an anti-corruption policy that prohibits corruption in
its various forms?
Score:
1
Comments:
Based on public information, there is evidence that the company has an anti-corruption
policy. The company therefore scores 1. To score higher the company would need to
provide evidence that it explicitly prohibits many of the forms that corruption might take,
for example the giving and receiving of bribes and kickbacks.
References:
Public:
Vigilance Manual Vol-I, p.3:
our partners in progress to ensure safe custody of public money.’
Foreword Design and Development Director:
‘The objective of corruption free HAL cannot be done entirely by a small team of 40 plus
Vigilance Officers. Undoubtedly, unless all stakeholders are involved in the process, effective
Vigilance cannot be achieved. Every one working in their position, department have to come
forward to fill the loopholes in the system.
To cull out all relevant circulars and guidelines in form of a manual is a laudable initiative.
This is a major step towards bringing awareness of various Vigilance concepts and practices
in the organization.’
(pp.5-6): ‘Corruption Free Services
We shall:HINDUSTAN AERONAUTICS LIMITED 23/12/14
(i) Adopt systems and procedures which leave no scope for any corrupt practices.
(p. 16):
‘Vigilance Angle:
As defined vide CVC Office Order No.74/41/2005 dated 21st Dec 2005, Vigilance
angle is obvious in the following acts:
(i) Demanding and/or accepting gratification other than legal remuneration in respect of an
official act or for using his influence with any
other official.
(ii) Obtaining valuable thing, without consideration or with inadequate consideration from a
person with whom he has or likely to have official dealings or his subordinates have official
dealings or where he can exert influence.
(iii) Obtaining for himself or for any other person any valuable thing or pecuniary advantage
by corrupt or illegal means or by abusing his position as a public servant.
(iv) Possession of assets disproportionate to his known sources of income.
(v) Cases of misappropriation, forgery or cheating or other similar criminal
offences.
(vi) There are, however, other irregularities where circumstances will have to be weighed
carefully to take a view whether the officer’s integrity is in doubt. Gross or willful
negligence; recklessness in decision making; blatant violations of systems and procedures;
exercise of discretion in excess, where no ostensible public interest is evident; failure to
keep the controlling authority/ superiors informed in time – these are some of the
irregularities where the disciplinary authority with the help of the CVO should carefully
study the case and weigh the circumstances to come to a conclusion whether there is
reasonable ground to doubt the integrity of the officer concerned.
(vii) Any undue/unjustified delay in the disposal of a case, perceived after considering all
relevant factors, would reinforce a conclusion as to the presence of vigilance angle in a case.
The raison d'être of vigilance activity is not to reduce but to enhance the level of managerial
efficiency and effectiveness in the organisation. Commercial risk taking forms part of
business. Therefore, every loss caused to the organisation, either in pecuniary or nonpecuniary terms, need not necessarily become the subject matter of a vigilance inquiry.
Thus, whether a person of common prudence, working within the ambit of the prescribed
rules, regulations and instructions, would have taken the decision in the prevailing
circumstances in the commercial/operational interests of the organisation is one possible
criterion for determining the bona fides of the case. A positive response to this question
may indicate the existence of bonafides. A negative reply, on the other hand, might indicate
their absence.’
(p. 25):
‘THE PLEDGE :
(Administered by Chairman, HAL to Vigilance Functionaries during the Bi-Annual
Conference, 25th Apr to 27th Apr 2012 )
“We, the Vigilance Professionals of Hindustan Aeronautics Limited, do hereby solemnly
pledge that we shall continuously strive to bring about integrity and transparency in all
spheres of our activities. We also pledge that we shall work unstintingly for eradication of
corruption in all spheres of life .We shall remain Vigilant and work towards the growth of
our Organization. Through our collective efforts, we shall bring pride to our organization and
provide value based service to our countrymen. We shall strive to achieve total satisfaction
of all stakeholders through result oriented quality anti corruption services with trust,
integrity and efficiency. We shall exhibit the highest standards of ethical behavior in our
official and personal conduct. We shall do our duty conscientiously and act without fear or
favour”.’
Hindustan Aeronautics Limited (January 2008), p.3:
'3. APPLICABILITY:
3.1 This code shall be applicable to the following personnel :a) All Whole-time Directors including the Chairman of the Company.
b) All Part-time Directors including Independent Directors under the provisions of law.
c) Senior Management.
3.2 The Whole-time Directors and Senior Management (Grade IX & above) should continue
to comply with other applicable/to be applicable policies, rules and procedures of the
Company.’
(pp.3-4): ‘4. CONTENTS OF CODE
Part I : General Moral Imperatives
Part II : Specific Professional Responsibilities
Part III : Specific Additional Provisions for Board Members and Senior Management
This code is intended to serve as a basis for ethical decision making in the conduct of
professional work.
It is understood that some words and phrases in the code of ethics and conduct document
are subject to varying interpretations. In case of any conflict, the decision of the Board shall
be final.’
(p.4): ‘5.2 Be honest and trustworthy & practice integrity
Conduct, Discipline and Appeal Rules – 1984 (September 2013) p.6:
‘Further, the following acts would be demmed to be misconduct and officer committing
such acts would be liable to disciplinary action:’
'Accepting or offering any illegal gratification or indulging in any corrupt practice’.
http://www.hal-india.com/Vigilance/CDA-Rules-Booklet.pdf
Purchase Manual Issue 3 (2013), p.92:
‘In all their dealings and transactions, the personnel of the Purchase Departments shall
conduct themselves in an exemplary manner in keeping with the best interest, dignity and
tradition of the Company and their profession. In this connection, the 'Code of Conduct &
Ethics' adopted by the Indian Institute of Materials Management, which is reproduced
below, shall serve to guide their actions.’
‘To subscribe and work for honest and truth in buying and selling, to denounce all forms and
manifestations of commercial bribery, and to eschew anti - social practices.’
A16:
Is the anti-corruption policy explicitly one of zero tolerance?
Score:
2
Comments:
Based on public information, there is evidence that the company’s anti-corruption policy is
explicitly one of zero-tolerance. The company states that Board members and Senior
Management must work for the eradication of corruption in all spheres of life.
References:
Public:
our partners in progress to ensure safe custody of public money.’
(pp.5-6): ‘Corruption Free Services
A17:
Is the company's anti-corruption policy easily accessible to Board members,
employees, contracted staff and any other organisations acting with or on
behalf of the company?
Score:
2
Comments:
Based on public information, there is evidence that the company’s ethics and anticorruption policies are easily accessible to Board members, contracted staff and third
parties. The four volumes of the company’s Vigilance Manual, the Code of Business Conduct
and Ethics for Board members and Senior Management, and the Rules booklet are all
available on the company’s website.
References:
Public:
Links for the four volumes of the company’s Vigilance Manual.
http://www.hal-india.com/VigilanceManual.asp
Hindustan Aeronautics Limited (January 2008)
Conduct, Discipline and Appeal Rules – 1984 (September 2013)
A17(a):
Is the company’s anti-corruption policy easily understandable and clear to
Board members, employees and third parties?
Score:
1
Comments:
Based on public information, there is some evidence that the company’s ethics and anticorruption policies are easily understandable and clear to Board members, employees and
third parties. However, TI assesses that the company’s Vigilance Manual is dense and it does
not clearly provide guidance on corruption related issues. The company therefore scores 1.
References:
Public:
Integrity Pact:
www.hal-india.com/Common/Uploads/DMS/New IP format.pdf
Transparency in Public Procurement, Vigilance Awareness Week (2012):
www.hal-india.com/Common/Uploads/DMS/Transparency in Public Procurement.pdf
Vigilance Manual Vol-I, pp.3-4:
‘Commitment











Courtesy and promptness
Fairness
Total quality
Innovation and creativity
Trust and team spirit
Respect for the individual
Humility
Compassion

Commit ourselves to do our duties to the best of our ability, integrity and efficiently with
the prime motto of fulfilling the customers and shareholders requirements and to rise to
their expectations and beyond.
Our Expectations
We expect you to








criterion
Indicate realistic schedule and make prompt payment
Comply with the service instructions and timely maintenance procedures.’
(pp.5-6):
‘Corruption Free Services
Code of Business Conduct and Ethics for Board Members and Senior Management of HAL
(January 2008), p.4:
Conduct, Discipline and Appeal Rules – 1984 (September 2013), pp.27-28:
‘5. Employment of near relative of the officer of the Company in any firm enjoying
patronage of the Company:
i) No officer shall use his position or influence directly or indirectly to secure employment in
the Company or any firm enjoying patronage of the company for any person related
whether by blood or marriage to the officer or to the officer's wife or husband, whether
such a person is dependent on the officer or not.
ii) No officer shall except with the previous sanction of the Competent Authority, permit his
son, daughter or any member of the family to accept employment with any company or
firm, with which he has official dealings or with any company or firm, having official dealings
with the company provided that where the acceptance of the employment cannot await the
prior permission of the Competent Authority, the employment may be accepted
provisionally subject to the permission of the Competent Authority, to whom the matter
shall be reported forthwith.
iii) No officer shall in the discharge of his official duties deal with any matter or give or
sanction any contract to any company or firm or any other person if any member of his
family is employed in that Company or firm or under that person or if he or any member of
his family is interested in such matter or contract in any other manner and the officer shall
refer every such matter or contract to his official superior and the matter or the contract
shall thereafter be disposed of according to the instructions of the authority to whom the
reference is made.
Note : Employees should inform their respective Divisional/Office management through
their Section/Departmental Head about employment of their near relatives (viz. father,
mother, spouse, children including step children, brother, sister) in the firms with which the
Division/Office of HAL have business dealing. This is with a view to protect the interest of
the company and ensure that the concerned Division/Office enters into a fair and proper
business/ transaction with such firms.’
A18:
Does the anti-corruption policy explicitly apply to all employees and
members of the Board?
Score:
2
Comments:
Based on public information, there is evidence that the company’s ethics and anticorruption policies explicitly apply to all employees and Board members.
References:
Public:
Vigilance Manual Vol-I, foreword:
‘The instructions and guidelines contained in the Manual are applicable to all employees
and are required to be adopted and practiced in letter and in spirit.’
(preface): ‘The instructions contained in the Manual are mandatory and it is expected that
the officers at various levels will refer to the Manual for guidance in making HAL a
completely transparent organization.’
Code Of Business Conduct & Ethics for Board Members and Senior Management of
Hindustan Aeronautics Limited Members (January 2008), p.3:
'3. APPLICABILITY:
3.1 This code shall be applicable to the following personnel :a) All Whole-time Directors including the Chairman of the Company.
b) All Part-time Directors including Independent Directors under the provisions of law.
c) Senior Management.
3.2 The Whole-time Directors and Senior Management (Grade IX & above) should continue
to comply with other applicable/to be applicable policies, rules and procedures of the
Company.’
(pp.3-4): ‘4. CONTENTS OF CODE
Part I : General Moral Imperatives
Part II : Specific Professional Responsibilities
Part III : Specific Additional Provisions for Board Members and Senior Management
This code is intended to serve as a basis for ethical decisionmaking in the conduct of
professional work.
It is understood that some words and phrases in the code of ethics and conduct document
are subject to varying interpretations. In case of any conflict, the decision of the Board shall
be final.’
A20:
Does the company have a policy on potential conflicts of interest, and does it
apply to both employees and board members?
Score:
1
Comments:
Based on public information, there is evidence that the company has a policy on potential
conflicts of interest. However, the policy is spread across numerous documents and does
not offer a clear definition of a conflict of interest. The company therefore scores 1.
References:
Public:
‘Commitments and obligations of Principal
(i) The Principal will commit to have ethical and corruption-free business dealings with
counter parties.
(ii) The Principal will value its relationship with all counter parties and will deal with them
in a fair and transparent manner.
(iii) The Principal and/or its associates (employees, agents, consultants, advisors etc)
will not seek any favour, undue benefit or accept bribes for themselves or for third parties.
(iv) will deal with all counterparties with equity, reason and fairness.
(v) will exclude all associates who may be prejudiced or have a conflict of interest in
dealings with counter parties.’
‘There should be a provision requiring the officer concerned not to deal with the
contract or other cases where he has an interest in case dealings are involved with a firm
where his wife, dependents or other relations are partners/employees etc. It should be
incumbent on the part of the officer to report this fact to the competent authority. Policy
on Conflict of interest should be incorporated in the rules.’
Transparency in Public Procurement (2012), p.9:
‘Code of Ethics should be formulated and notified to promote transparency in
procurement administration and to avoid conflict of interest of the officials involved in
the process.’
(p.24): ‘12. Conflict of Interest
Conflict of interest, if any, arising out of bidders and other entities or officials should be
avoided. For example, consultant of the Project should not be allowed to bid for any of
the tenders of that Project.
All tender processing authorities should confirm that they do not have conflict of interest
in the subject tender being processed.
In a tender, either the Indian agent on behalf of the Principal / OEM or Principal / OEM
itself can bid but both cannot bid simultaneously for the same item/product in the same
tender.
If an agent submits bid on behalf of the Principal / OEM, the same agent shall not submit
a bid on behalf of another Principal / OEM in the same tender for the same
item/product.
Bid documents should clearly indicate whether one Vendor can submit more than one
bid. For example, some bidders quote for option-1, option=2 etc. Tender should indicate
whether multiple bids submitted by the same Bidder will be considered.’
http://www.hal-india.com/vigilance/Transparency%20in%20Public%20Procurement.pdf
Code Of Business Conduct & Ethics for Board Members and Senior Management of
Hindustan Aeronautics Limited Members (January 2008), pp.11-12:
‘As Board Members’
‘7.2.2 Undertake that without prior approval of the disinterested members of the Board,
they will avoid apparent conflict of interest. Conflict of interest may exist when they have
personal interest that may have a potential conflict with the interest of the Company.
Illustrative cases can be:
Related Party Transactions: Entering into any transactions or relationships with the
Company in which they have a financial or other personal interest (either directly or
indirectly such as through a family members or relation or other person or other
organization with which they are associated.
Outside Directorship: Accepting Directorship on the Board of any other Company that
competes with the business of the Company.
Consultancy / Business / Employment: Engaging in any activity (be it in the nature of
providing consultancy service, carrying on business, accepting employment) which is likely
to interfere or conflict with their duties responsibilities towards Company. They should not
invest or associate themselves in any other manner with any supplier, service provider or
customer of the Company.
Use of official position for personal gains: Should not use their official position for personal
gains’.
reference is made.
Note: Employees should inform their respective Divisional/Office management through
A21:
Does the company have a policy for the giving and receipt of gifts to ensure
that such transactions are bona fide and not a subterfuge for bribery?
Score:
1
Comments:
Based on public information, there is evidence that the company has a policy for the receipt
of gifts, to ensure that such transactions are bona fide and not a subterfuge for bribery.
Gifts worth more Rs.1500 received by an officer or any of their family members must be
sanctioned by the Competent Authority. The company therefore scores 1. To score higher
the company would need to provide evidence that a similar policy applies to giving gifts.
References:
Public:
‘XV. Gifts:
Save as otherwise provided in these rules, no officer of the Company shall accept or permit
any member of his family or any other person acting on his behalf to accept any gift.
Explanation: The expression “Gift” shall include free transport, board, lodging or other
service or any other pecuniary advantage when provided by any person other than a near
relative or a personal friend having no official dealings with the officer.
Note:
(1) An officer of the Company shall avoid acceptance of lavish or frequent hospitality from
any individual or firm having official dealings with him;
(2) On occasions such as weddings, anniversaries, funerals or religious functions, when the
making of gifts is in conformity with the prevailing religious or social practices, an Officer of
the Company may accept gifts from his near relatives but he shall make a report to the
Competent Authority if the value of the gift exceeds Rs.4000/- in respect of Officers in
Grade-I; and Rs.7000/- in respect of Officers in Grade-II & above;
(3) On such occasions as are specified in Sub-rule (2), an Officer of the Company may accept
gifts from his personal friends having no official dealings with him, but he shall make a
report to the Competent Authority if the value of the gift exceeds Rs.4000/- in respect of
Officer in Grade-I; and Rs.7000/- in respect of Officer in Grade-II & above;
(4) In any other case, an Officer of the Company shall not accept or permit any other
member of his family or any other person acting on his behalf to accept any gifts without
the sanction of the Competent Authority if the value thereof exceeds Rs.1500/-. Provided
that when more than one gift is received from the same person / firm within a period of 12
months, the matter shall be reported to the Competent Authority if the aggregate value of
the gifts exceed Rs.1500/-”.’
‘Ensure prompt observance of Conduct Rules regarding integrity covering
(a) statements of assets and acquisitions
(b) gifts
(c) relatives employed in private firms or doing private business
(d) benami transactions.’
(p.100): Vigilance staff, ‘do not accept gifts whose value is beyond the acceptable limits.’
Vigilance Manual Vol- 4, pp.2-3:
‘2. ACCEPTANCE OF GIFTS
2.1 ACCEPTANCE OF GIFTS BY GOVERNMENT SERVANTS
Gifts are presented by the public sector undertakings, banks etc. to a number of persons
including government officials during festive occasions, such as, Diwali, Chrismas, New Year
etc. this matter has been the subject of comments in the press, media etc. The commission
has considered the matter and is of the view that this practice, at least, so far as
government servants are concerned, needs to be discouraged. The CCS (Conduct) Rules
provide that no government servant shall accept or permit any member of the family or any
other person acting on his behalf to accept any gift except on occasions like weddings,
anniversaries or religious functions. The practice of PSUs etc. sending gifts to government
servants unnecessarily embarrasses them and puts them in a dilemma. The gifts are to be
provided only to promote commercial/business interests and need not therefore be sent to
government officials etc. who are only doing their duty. The Public sector undertakings,
banks etc. are therefore, advised that they may follow this advice with immediate effect.
The CVOs may bring this to the notice of the Chief Executives and all relevant executives.
2. Commission also would like to receive a report from the CVOs on the gift policy of the
Company followed by them in the current year and the actual expenditure incurred by them
as festival gifts. The Commission hopes to receive the special report by 15th January 2004
and every year thereafter. (CVC circular No. 002/MSC/70 Dt. 27 Aug 03)
2.2 ACCEPTANCE OF GIFTS BY GOVERNMENT SERVANTS
Please refer to the Commission’s letter No.002/MSC/70 (Office Order No. 40/8/2003) dated
the 27th August 2003 on the subject cited above. While the Commission reiterates its
instructions issued vide the aforesaid office order and emphasizes that the practice by PSUs
etc. of sending gifts to government servants on the occasion of festivals be discouraged, it is
clarified that these instructions would not apply to mementoes, diary & calendar, etc.
brought out by PSUs etc. for publicity and business promotion.
2. All CVOs are requested to bring this to the notice of all concerned. They should furnish a
report on the expenditure incurred by them on festival gifts during this year, in their
monthly and the annual report to the Commission. (CVC circular No. 004/MSC/032 Dt. 22
Sep 04)
2.3 RESTRICTIONS ON GIFTS TO GOVERNMENT SERVANTS
Please refer to ED(V)’s letter No. HAL/CO/VIG/41/2003/1626 dated 18.9.2003 enclosing
therewith a copy of CVC’s Circular No. 002/MSC/70 dated 27.8.03, imposing restrictions on
the practice of acceptance of gifts by the Government Servants.
2. While noting the advise of CVC as contained in the above communication, Chairman has
dircted that we should not give any festival gifts to Govt. servants, and further, desired that
yearly confirmation be obtained from the Divisions/Complexes by 5th January every year on
the information sought by CVC in their letter referred to above.
3. You are requested to instruct the concerned to comply with the instructions and forward
the requisite information in the format enclosed at Annexure-I to Corporate 3 Office by 5th
January every year (4th January in case 5th January happens to be a holiday) to facilitate us
to furnish the necessary inputs to CVC through Corporate Vigilance.
(HAL/P&A/20(28)-2/VG/2003/677 dt 18 Oct 2003)
2.4 FESTIVAL GIFTS TO GOVERNMENT SERVANTS BY PSUs ETC.
Please refer to the Commissions letter No. 002/MSC/70 (Office Order No. 40/8/2003) dated
27th August, 2003 and 004/MSC/70 (Office Order No. 60/9/04) dated 22nd September,
2004 on the subject cited above.
2. The Commission once again reiterates its instructions issued vide the aforesaid office
orders and emphasizes that the practice by PSUs etc. of sending gifts to Government
servants on the occasion of festival and New Year be discouraged. All CVOs are requested to
bring this to the notice of all concerned. They should furnish report on the expenditure
incurred by them on festival gifts during this year in their Monthly and Annual reports to the
Commission.’
A22:
Does the company’s anti-corruption policy include a statement on the giving
and receipt of hospitality that ensures that such transactions are bona fide
and not a subterfuge for bribery?
Score:
1
Comments:
Based on public information, there is evidence that the company has a policy for the receipt
of hospitality, to ensure that such transactions are bona fide and not a subterfuge for
bribery. Company officers must avoid accepting lavish or frequent hospitality from any
individual or firm that they conduct activities with. Furthermore, as a gift is defined as any
service or pecuniary advantage provided by a person other than a near relative or a
personal friend that has no official dealings with the officer, the company’s rule that the
Competent Authority must sanctions gifts worth more that Rs.1500 received by an officer or
any of their family members, applies to hospitality. The company therefore scores 1. To
score higher the company would need to provide evidence of a policy that explicitly applies
to the giving of hospitality.
References:
Public:
‘XV. Gifts:
Save as otherwise provided in these rules, no officer of the Company shall accept or permit
any member of his family or any other person acting on his behalf to accept any gift.
Explanation: The expression “Gift” shall include free transport, board, lodging or other
service or any other pecuniary advantage when provided by any person other than a near
relative or a personal friend having no official dealings with the officer.
Note:
(1) An officer of the Company shall avoid acceptance of lavish or frequent hospitality from
any individual or firm having official dealings with him;
(2) On occasions such as weddings, anniversaries, funerals or religious functions, when the
making of gifts is in conformity with the prevailing religious or social practices, an Officer of
the Company may accept gifts from his near relatives but he shall make a report to the
Competent Authority if the value of the gift exceeds Rs.4000/- in respect of Officers in
Grade-I; and Rs.7000/- in respect of Officers in Grade-II & above;
(3) On such occasions as are specified in Sub-rule (2), an Officer of the Company may accept
gifts from his personal friends having no official dealings with him, but he shall make a
report to the Competent Authority if the value of the gift exceeds Rs.4000/- in respect of
Officer in Grade-I; and Rs.7000/- in respect of Officer in Grade-II & above;
(4) In any other case, an Officer of the Company shall not accept or permit any other
member of his family or any other person acting on his behalf to accept any gifts without
the sanction of the Competent Authority if the value thereof exceeds Rs.1500/-. Provided
that when more than one gift is received from the same person / firm within a period of 12
months, the matter shall be reported to the Competent Authority if the aggregate value of
the gifts exceed Rs.1500/-”.’
(p.36): ‘XVIII. Return of hospitality accepted from Foreign Missions :
Diplomats are specially paid to enable them to entertain local officials and that the local
officer's capacity to return their hospitality is limited. There need not, therefore, be
anything like a quid pro quo basis maintained in the matter of entertainment between
diplomats and Company Officers.’
(p.37): ‘XX. Putting up or staying with Foreign Nationals as Guests:
a) Officers should not stay as guests with foreign diplomats in India or abroad, except with
the permission of the Competent Authority.
b) Officers should not invite foreign diplomats to stay with them as their guests in India.
Residential accommodation whether owned by the officer or allotted to him by the
Company, where he actually resides, should not be let out or shared with foreign
nationals/members of Diplomatic Mission and their employees, except with the approval of
the Competent Authority.’
(p.38): ‘XXII. Acceptance of lifts in Aircraft belonging to foreign embassies in India to Foreign
Government abroad:
No officer should accept or permit his wife or dependent to accept passage money or free
air transport from a Foreign Mission/Government Organization. Exceptional ca se s whe re
humanitarian or Compassionate grounds are involved should be referred to the Corporate
Office for grant of permission
There would, however, be no objection to the acceptance of the cost of passage when
invited by foreign Governments and organizations to participate in conferences, seminars
etc., if the invitation is extended to a particular official by name with a view to benefit from
the expertise of the officer invited. Cases of such an invitation may be referred to Corporate
Office for obtaining approval of the Ministry of Defence before acceptance. In other cases in
which participation in conferences etc., is considered desirable in the interest of the officer
concerned or the Division sponsoring his deputation, the cost of passage should continue to
be met by the sponsoring Division.
Within a foreign country, an officer could accept a free flight in connection with his official
duties only. When an officer and his family are in a foreign country as State Guests it would
be permissible for them to accept free flights from Foreign Governments.’
A23:
Does the company have a policy that explicitly prohibits facilitation
payments?
Score:
0
Comments:
policy that explicitly prohibits facilitation payments.
References:
Public:
TI notes:
Purchase Manual (2013), p. 65:
‘8.8.7 Non-Involvement of Indian Agents
the rate of 2% per annum above LIBOR rate. The Buyer will also have the right to
recover any such amount from any contracts concluded earlier with HAL or Government
of India.”’
http://www.hal-india.com/Common/Uploads/DMS/PurchaseManual.pdf
Integrity Pact:
‘5.2 The Bidder(s)/ Seller(s) will not instigate third persons to commit offences
outlined above or be an accessory to such offences.
Sheet: 2 of 6 5.3 Agents / Agency Commission:
The seller confirms and declares to the buyer that the seller is the original
manufacturer or authorized distributor / stockiest of original manufacturer or
Govt. Sponsored / Designated Export Agencies (applicable in case of countries
where domestic laws do not permit direct export by OEMS) of the stores referred
to in this offer / contract / Purchase order and has not engaged any individual or
firm, whether Indian or Foreign whatsoever, to intercede, facilitate or in any way
to recommend to Buyer or any of its functionaries, whether officially or
unofficially, to the award of the contract / purchase order to the Seller; nor has
any amount been paid, promised or intended to be paid to any such individual or
firm in respect of any such intercession, facilitation or recommendation. The
Seller agrees that if it is established at any time to the satisfaction of the Buyer
that the present declaration is in any way incorrect or if at a later stage it is
discovered by the Buyer that the Seller has engaged any such individual / firm,
and paid or intended to pay any amount, gift, reward, fees, commission or
consideration to such person, party, firm or institution, whether before or after
the signing of this contract / purchase order, the Seller will be liable to refund
that amount to the Buyer’
A24:
Does the company prohibit political contributions, or regulate such
contributions in order to prevent undue influence or other corrupt intent?
Does the company record and publicly disclose all political contributions?
Score:
0
Comments:
policy that prohibits or regulates political activities, in order to prevent undue influence or
other corrupt intent. The company prohibits the personal political activities of its officers,
but there is no evidence of similar prohibitions for corporate political contributions.
References:
Public:
TI notes:
‘V (A). Prohibition of political activities:
Officers are prohibited from:a) becoming an office-bearer of a political party or an organization which takes part in
politics;
b) taking part in assisting in any manner in any movement/agitation or demonstration of a
political nature;
c) taking part in an election to any legislature or local authority; &
d) canvassing in any election to any legislature or local authority.’
A25:
Does the company have a clear policy on engagement in lobbying activities,
in order to prevent undue influence or other corrupt intent, and discloses the
issues on which the company lobbies?
Score:
0
Comments:
clear policy on engagement in lobbying activities, in order to prevent undue influence or
other corrupt intent, or discloses the issues on which it lobbies.
References:
Public:
NA
A25(a):
Does the company prohibit charitable contributions, or regulate such
contributions in order to prevent undue influence or other corrupt intent?
Score:
0
Comments:
prohibits charitable contributions, or regulates such contributions in order to prevent undue
influence or other corrupt intent.
References:
Public:
NA
A26:
Does the company provide written guidance to help Board members and
employees understand and implement the firm’s ethics and anti-corruption
agenda?
Score:
0
Comments:
provides written guidance to help board members and employees, understand and
implement the company’s ethics and anti-corruption agenda.
References:
Public:
TI notes:
Code of Business Conduct and Ethics for Board Members and Senior Management of
Hindustan Aeronautics Limited:
www.hal-india.com/Common/Uploads/ContentTemplate/3_Down_HAL-CoC.pdf
A27:
Does the company have a training programme that explicitly covers anticorruption?
Score:
2
Comments:
Based on public information, there is evidence that the company has an explicit anticorruption module as part of its ethics and compliance training programme.
References:
Public:
The duties of the Chief Vigilance Officer include, ‘To ensure adequate training in anticorruption measures are imparted to the officers and staff of the Department.
(p.26): Duties of the DGM/Chief Manager at Corporate Officer include to, ‘assist the CVO in
the training of all the officers of the vigilance department including nominating them on
Govt. and privately sponsored training programmes.
(p.36): Training for Vigilance Officials:
‘A yearly training programme will be prepared by the Corporate office for the Executives
and staff separately. The training will be imparted to the staff centrally in the form of
training capsules atleast twice a year. For the Executives, the Corporate Office will organize
Workshops.
The Executives will be deputed to various training courses conducted by Government
Institutes, CBI Academy, Central Forensic Science Laboratory, Central Detective Training
School, and other training institutes of the State / Central Govt. Besides these Officers may
be deputed to attend Seminars and Workshops organized by Universities/ private
establishments.’
(p.98): ‘Vigilance Awareness programmes should be planned in the Action Plan
periodically in co-ordination with the training department of the Divisions for both
Executives and Non Executives.’
‘The Vigilance Department primarily focuses on Preventive and Punitive role. Another role is
detective / surveillance. Preventive Vigilance is a pro-active approach, which looks at
creating awareness and education on anti-corruption measure, simplification of rules and
procedures, plugging loopholes in the system. Punitive vigilance deals with disciplinary
action against the employees who have engaged in corrupt activities.’
Company website: Sampark a Vigilance Initiative to Connect
‘For the Vigilance Awareness Period 2010-2011, the emphasis of the Central Vigilance
Commission (CVC) is on increasing awareness. In line with CVC's stress on Preventive
Vigilance and increasing awareness, Team Vigilance, HAL has conceptualized SAMPARK, our
new Preventive Vigilance initiative. Team Vigilance will SAMPARK you in your Divisions with
specific inputs on various sensitive areas and share with you, insights gained over the
years.
The attempt in SAMPARK is to deal with issues from a comprehensive and macro
perspective based on all round experience gained from a plethora of cases company wide.
The Vigilance Department led by the Chief Vigilance Officer himself would bring SAMPARK
to your Divisions' doorsteps and interact as well as connect with you in this endeavour to
improve transparency and fair play in all our dealings.
The focus is on real time issues that an average executive encounters in his day to day
official life. The emphasis is on Vigilance issues from an executive's point of view and not on
theoretical construct of Vigilance or its ethical dimensions.
SAMPARK endeavours to make Executives self sufficient in matters of Vigilance and thereby
empower them to work effectively and efficiently, without misplaced fear of punitive
Vigilance action.
A 2 Hour presentation by experienced and Senior Vigilance functionaries on main issues of
concern like Procurement and Outsourcing, Personal Vigilance and Rationale in Decision
Making, Recruitment and Works etc will be made. The presentation covers the problem
areas in the topics mentioned based on actual Vigilance Cases. The CVO would himself steer,
monitor and moderate the proceedings which will be followed by an open house question
and answer session.
The Question and Answer Session is aimed at addressing the pertinent situations focused on
the issues at hand. Vigilance Department appeals to all its fellow employees to raise queries
specific to the issues of discussion at the end of the presentation on all topics to make
SAMPARK truly rewarding for all concerned.’
http://www.hal-india.com/about-sampark.asp
A28:
Is anti-corruption training provided in all countries where the company
operates or has company sites?
Score:
1
Comments:
Based on public information, there is evidence that company divisions receive Vigilance
Awareness programmes and training, which includes education on anti-corruption
measures. The company therefore scores 1. To score higher the company would need to
provide evidence that this anti-corruption training is provided to all company employees.
References:
Public:
The duties of the Chief Vigilance Officer include, ‘To ensure adequate training in anticorruption measures are imparted to the officers and staff of the Department.
(p.26): Duties of the DGM/Chief Manager at Corporate Officer include to, ‘assist the CVO in
the training of all the officers of the vigilance department including nominating them on
Govt. and privately sponsored training programmes.
(p.36): Training for Vigilance Officials:
Workshops.
The Executives will be deputed to various training courses conducted by Government
Institutes, CBI Academy, Central Forensic Science Laboratory, Central Detective Training
School, and other training institutes of the State / Central Govt. Besides these Officers may
be deputed to attend Seminars and Workshops organized by Universities/ private
establishments.’
(p.98): ‘Vigilance Awareness programmes should be planned in the Action Plan
periodically in co-ordination with the training department of the Divisions for both
Executives and Non Executives.’
years.
Vigilance action.
and answer session.
A29:
Does the company provide targeted anti-corruption training to members of
the Board?
Score:
0
Comments:
provides targeted anti-corruption training to Board members.
References:
Public:
TI notes:
Training for Vigilance Officials:
Workshops.
Code of Business Conduct and Ethics for Board Members and Senior Management at
‘7.3.3 Annual Compliance Reporting :
All Board Members and Senior Management shall affirm compliance of this Code within 30
days of close of every financial year. A proforma of Annual Compliance Report is at
Appendix – II”. The Annual Compliance Report shall be forwarded to the Company
Secretary. If any Director leaves the Company any time during a financial year, he shall send
a communication to Company Secretary affirming compliance of the Code till the date of
his/her association with HAL.
(p.15):
‘Appendix II
HINDUSTAN AERONAUTICS LIMITED
CODE OF CONDUCT FOR BAORD MEMBERS
& SENIOR MANAGEMENT
ANNUAL COMPLIANCE REPORT*
I, …………………………………………………………………. do hereby solemnly
affirm that to the best of my knowledge and belief, I have fully complied with the
provisions of the “Code of Business Conduct and Ethics for Board Members and
Senior Management of HAL” during the financial year ending 31st March, 200__.
(Signature)
Name :______________________
Designation : ______________________
Date :
Place :
* To be submitted by 30th April each year’
Annual Vigilance Sensitisation Lecture Series:
http://www.halindia.com/Annual%20Vigilance%20Sensitisation%20Lecture%20series/M__50
A30:
Does the company provide tailored ethics and anti-corruption training for
employees in sensitive positions?
Score:
0
Comments:
provides tailored ethics and anti-corruption training for employees in sensitive positions.
References:
Public:
TI notes:
Company website, Vigilance Department:
http://www.hal-india.com/About%20Us/M__39
Annual Vigilance Sensitisation Lecture Series:
http://www.halindia.com/Annual%20Vigilance%20Sensitisation%20Lecture%20series/M__50
years.
Vigilance action.
and answer session.
A31:
Does the company have a clear and formal process by which employees
declare conflicts of interest?
Score:
0
Comments:
Based on public information, there is no readily available evidence of a clear and formal
process by which employees declare conflicts of interest. Officers must inform their
management through a section/departmental head, about employment of their near
relatives in firms with which the company conducts business activities. However, there is no
evidence that this declaration is conducted formally and in writing, or that it applies to other
conflicts of interest.
References:
Public:
TI notes:
reference is made.
Note: Employees should inform their respective Divisional/Office management through
A32:
Is the company explicit in its commitment to apply disciplinary procedures to
employees, Directors and Board members found to have engaged in corrupt
activities?
Score:
2
Comments:
Based on public information, there is evidence that the company has an explicit policy to
apply disciplinary procedures to employees and Board members who have violated the
company’s rules and Code of Ethics.
References:
Public:
HAL Conduct, Discipline and Appeal rules (1984), p.4:
‘RULE 4
Code of Conduct :
i) Every officer of the Company shall at all timesa) maintain absolute integrity;
b) maintain devotion to duty; and
c) do nothing which is unbecoming of an officer of the Company or any act which
may bring disrepute to the Company.
ii) Every officer of the Company shall take all possible steps to ensure the integrity and
devotion to duty of all employees for the time being under his control and authority.
iii) Rules that are to be followed by officers in respect of specific matters/ transactions such
as sale/purchase of property, gifts, contacts with foreign national etc., are stipulated in
Schedule-I. Breach of any of these rules would be deemed as misconduct and the officers
who violate these provisions are liable for disciplinary action in accordance with the
provisions contained in these rules.’
(p. 16): ‘Rule 13
Procedure for imposing punishment on Govt. employees on deputation:
Except in the case of officers on deputation who are appointed by the President of India and
Armed Forces Personnel, Chairman has powers to initiate disciplinary action and also place
officers under suspension. Whenever an officer on Deputation is placed under suspension,
the parent department of the officer should forthwith be informed explaining the
circumstances leading to the order of suspension or commencement of disciplinary
proceedings, as the case may be.’
http://www.hal-india.com/Common/Uploads/DMS/CDA-Rules-Booklet.pdf
Vigilance Manual, Vol. 2, pp. 9-10:
‘With the introduction of the HAL CDA Rules, with effect from 1st September 1984,
all Officers in Grade I and above in the Company are governed by the said Rules (as
amended from time to time). However other employees (in workmen cadre), working in
Corporate Office, Liaison Offices, Staff College who are not covered by the Standing
Orders, continue to be governed by the HAL Conduct Rules and HAL Disciplinary Action
Rules 1967.’
‘The matters relating to Conduct and Discipline of employees of HAL are,
accordingly dealt with under the respective Rules/Certified Standing Orders.4
HAL CDA Rules also apply to Officers on contract service and Govt. employees
on deputation other than those appointed by the President of India and Armed Services
personnel.
HAL CDA Rules 1984 contains, inter alia,
a. Code of conduct- Rule 4 read with schedule - I
b. Act which would be deemed to be misconduct - Rule 5
Any breach of Code of conduct as stipulated in Rule 4(read with schedule I) or
commission of misconduct as stipulated in Rule 5 would make the employee liable to
disciplinary action as per the procedure prescribed in Schedule II.’
http://www.hal-india.com/Common/Uploads/DMS/VigManual-2.pdf
Code of Business Conduct and Ethics for Board Members and Senior Management of
Hindustan Aeronautics Limited (January 2008), pp. 12-13:
‘7.3.2 Treat Violations of this code as inconsistent association with the organization.
Adherence of professionals to a code of ethics is largely and generally a voluntary matter.
However, if any of Board Members and Senior Management does not follow this Code, the
matter would be reviewed by the Board and its decision shall be final. The Company
reserves the right to take appropriate action against the defaulter.’
http://www.hal-india.com/Common/Uploads/ContentTemplate/3_Down_HAL-CoC.pdf
Vigilence Manual Vol-1, p.25:
‘The CVO will assess the performance of the Vigilance officers in the capacity of
Initiating Authority/Reviewing Authority as the case may be and would be responsible for
the general administration (including detailing for training, transfer/job rotation,
promotion, sanction of leave, disciplinary action etc) of the Vigilance officers and workmen
in the Divisions and Corporate Office.’
(p.26): ‘He will follow up the cases pending for disciplinary actions in the divisions with the
divisional HOD’s.’
‘He will be responsible for anti-corruption work including investigations of Corporate Office
and Management Academy and study of investigation reports received from Divisions and
take action as per laid down rules for disciplinary action.’
(p.33): ‘Non cooperation/obstruction to Vigilance Officials in discharge of their duties by any
employee of the Company would be deemed as misconduct and liable for disciplinary action
as per the Rules of the Company.’
(p.60): ‘To ensure that the disciplinary authority concerned, issues a speaking order, while
imposing a punishment on the delinquent employee. The order to be issued by the
disciplinary authority should show that the disciplinary authority had applied its mind and
exercised its independent judgment’.
Conduct, Discipline and Appeal Rules – 1984 (September 2013), p.5:
‘Rules that are to be followed by officers in respect of specific matters/ transactions such as
sale/purchase of property, gifts, contacts with foreign national etc., are stipulated in
Schedule-I. Breach of any of these rules would be deemed as misconduct and the officers
who violate these provisions are liable for disciplinary action in accordance with the
provisions contained in these rules.’
(pp.6-7): ‘Further, the following acts would be deemed to be misconduct and officer
committing such acts would be liable to disciplinary action:’
‘Accepting or offering any illegal gratification or indulging in any corrupt practice;’
(pp.12-13): ‘Treat Violations of this code as inconsistent association with the organization.
Adherence of professionals to a code of ethics is largely and generally a voluntary matter.
However, if any of Board Members and Senior Management does not follow this Code, the
matter would be reviewed by the Board and its decision shall be final. The Company
reserves the right to take appropriate action against the defaulter.’
‘The Company believes in the conduct of the affairs of its constituents in a fair and
transparent manner by adopting highest standards of professionalism, honesty, integrity
and ethical behaviour. Towards this end, the Company has adopted the Code of Conduct
(‘the Code’), which lays down the principles and standards that should govern the actions of
the Company and its employees. Any potential violation of “the Code”, however
insignificant or perceived, as such would be a matter of serious concern for the Company.’
Company website, Vigilance:
action against the employees who have engaged in corrupt activities.
The major work profile of the Department comprises investigation of complaints, preventive
vigilance like surprise inspections, regular scrutiny of procurement and contracts files and
carrying out CTE type inspections, etc.’
http://www.hal-india.com/About%20Us/M__39
A33:
Does the company have multiple, well-publicised channels that are easily
accessible and secure, to guarantee confidentiality or anonymity where
requested by the employee (e.g. web, phone, in person), to report concerns
or instances of suspected corrupt activity?
Score:
1
Comments:
Based on public information, there is evidence that the company has multiple channels for
employees to report concerns or instances of suspected corrupt activity. Channels include
the Chairman of the Audit Committee, the Director of Human Resources, the Head of
Systems Audit, the Vigilance Department, and the CVC. The company therefore scores 1. To
score higher the company would need to provide evidence that employees are able to
report anonymously.
References:
Public:
Company website, Online Complaint:
‘As per Central Vigilance Commission guidelines, no action will be taken on Anonymous /
Pseudonymous Petition / Complaints.
We request you to post your Complaint in the Vigilance Complaint Form only to address
serious issues for which you would like the intervention of the Vigilance department of the
Company. Please do not use this particular forum to address any other queries.
Upon receipt of complaint, verification will be done to ascertain whether Vigilance angle
exists in the complaint or not and complaint will be processed only if there is a Vigilance
angle. Hence, complaints having clear cut Vigilance angle can only be addressed.
For faster processing of the complaint, it is suggested that Complainant may provide his/her
E-mail ID in the field mentioned in the Complaint Form.
Please be sure that your matter merits the attention of the Vigilance Department. If so,
please Click here to submit your Complaint. and Check online Complaint status’
http://www.hal-india.com/Online%20Complaint/M__51
Whistleblower Policy (July 2010), pp.5-6:
‘10. All Protected Disclosures concerning operational management should be addressed to
the Chairman of the Audit Committee / Director (HR) / Head of Systems Audit of the
Company for investigation.
11. In respect of all other Protected Disclosures, those concerning the employees at the
levels of Functional Directors and Chairman should be addressed to the Chairman of the
Audit Committee, the Officers at the level of Grade-IX & X should be addressed to the
Director (HR) and other Officers up to the level of Grade-VIII should be addressed to the
Director (HR) / Head of Systems Audit, Corporate Office.
12. The particulars of Chairman of the Audit Committee are as under : Shri AJAY SHANKARC-1/19, Bapa Nagar NEW DELHI
Address of the Director (HR)
Director (HR)
Hindustan Aeronautics Ltd.,
15/1, Cubbon Road
BANGALORE – 560 001.
Address of the Head of Systems Audit :Head of Systems Audit
Hindustan Aeronautics Limited
Corporate Office
15/1, Cubbon Road
13. Protected Disclosures should preferably be reported in writing so as to ensure a clear
understanding of the issues raised and should either be typed or written in legible
handwriting.
14. The protected Disclosure should be forwarded under a covering letter which shall bear
the identity of the Whistle Blower. The Chairman of the Audit Committee / Director (HR) /
Head of Systems Audit as the case may be, shall detach the covering letter and forward only
the Protected Disclosure to the Investigators for investigation within 30 days from the date
of its receipt.
15. Protected Disclosures should be factual and have prima facie evidence / proof, not
speculative or in the nature of a conclusion and should contain as much specific information
as possible to allow for proper assessment of the nature and extent of the concern.
16. Anonymous petitions will not be entertained whatsoever.’
CVC – Important Features of the “Whistle-Blowers” Resolution, p.1:
‘The CVC shall, as the Designated Agency, receive written complaints or disclosure on any
allegation of corruption or of mis-use of office by any employee of the Central Government
or of any corporation established under any Central Act, government companies, societies
or local authorities owned or controlled by the Central Government.’
‘The designated agency will ascertain the identity of the complainant; if the complainant is
anonymous, it shall not take any action in the matter.’
http://www.hal-india.com/vigilance/CVCWhistleBlower/Features.pdf
CVC Office Order, Press Release and Public Notice (May 2004), p.1:
‘The Government of India has authorised the Central Vigilance Commission (CVC) as the
‘Designated Agency’ to receive written complaints for disclosure on any allegation of
corruption or misuse of office and recommend appropriate action.’
‘All CVOs are further required to take the following actions with respect to the complaints
forwarded by the Commission under this Resolution:
(i) All the relevant papers/documents with respect to the matter raised in the complaint
should be obtained by the CVO and investigation into the complaint should be commenced
immediately. The investigation report should be submitted to the Commission within two
weeks.
(ii) The CVO is to ensure that no punitive action is taken by any concerned Administrative
authority against any person on perceived reasons/ suspicion of being “whistle blower.”
(iii) Subsequent to the receipt of Commission’s directions to undertake any disciplinary
action based on such complaints, the CVO has to follow up and confirm compliance of
further action by the DA and keep the Commission informed of delay, if any.
(iv) Contents of this order may be brought to the notice of Secy./CEO/
http://halindia.com/vigilance/CVCWhistleBlower/office%20order_press%20release_public%20notice.
pdf
‘1. As per Central Vigilance Commission guidelines, no action will be taken on Anonymous /
2. We request you to post your Complaint in the Vigilance Complaint Form only to address
3. Upon receipt of complaint, verification will be done to ascertain whether Vigilance angle
4. For faster processing of the complaint, it is suggested that Complainant may provide
his/her E-mail ID in the field mentioned in the Complaint Form.
5. Please be sure that your matter merits the attention of the Vigilance Department. If so,
please Click here to submit your Complaint.’
http://www.hal-india.com/Pre-vigonline.asp
A33(a):
Are the whistleblowing channels available to all employees in all
geographies?
Score:
2
Comments:
Based on public information, there is evidence that whistleblowing channels are available
across geographies, to all employees. Channels include the Vigilance Department and the
CVC.
References:
Public:
Director (HR)
15/1, Cubbon Road
Corporate Office
15/1, Cubbon Road
13. Protected Disclosures should preferably be reported in writing so as to ensure a clear
understanding of the issues raised and should either be typed or written in legible
handwriting.
14. The protected Disclosure should be forwarded under a covering letter which shall bear
the identity of the Whistle Blower. The Chairman of the Audit Committee / Director (HR) /
Head of Systems Audit as the case may be, shall detach the covering letter and forward only
the Protected Disclosure to the Investigators for investigation within 30 days from the date
of its receipt.
15. Protected Disclosures should be factual and have prima facie evidence / proof, not
speculative or in the nature of a conclusion and should contain as much specific information
as possible to allow for proper assessment of the nature and extent of the concern.
16. Anonymous petitions will not be entertained whatsoever.’
CVC – Important Features of the “Whistle-Blowers” Resolution, p.1:
‘The CVC shall, as the Designated Agency, receive written complaints or disclosure on any
allegation of corruption or of mis-use of office by any employee of the Central Government
or of any corporation established under any Central Act, government companies, societies
or local authorities owned or controlled by the Central Government.’
‘The designated agency will ascertain the identity of the complainant; if the complainant is
anonymous, it shall not take any action in the matter.’
CVC Office Order, Press Release and Public Notice (May 2004), p.1:
‘The Government of India has authorised the Central Vigilance Commission (CVC) as the
‘Designated Agency’ to receive written complaints for disclosure on any allegation of
corruption or misuse of office and recommend appropriate action.’
‘All CVOs are further required to take the following actions with respect to the complaints
forwarded by the Commission under this Resolution:
(i) All the relevant papers/documents with respect to the matter raised in the complaint
should be obtained by the CVO and investigation into the complaint should be commenced
immediately. The investigation report should be submitted to the Commission within two
weeks.
(ii) The CVO is to ensure that no punitive action is taken by any concerned Administrative
authority against any person on perceived reasons/ suspicion of being “whistle blower.”
(iii) Subsequent to the receipt of Commission’s directions to undertake any disciplinary
action based on such complaints, the CVO has to follow up and confirm compliance of
further action by the DA and keep the Commission informed of delay, if any.
(iv) Contents of this order may be brought to the notice of Secy./CEO/
‘1. As per Central Vigilance Commission guidelines, no action will be taken on Anonymous /
2. We request you to post your Complaint in the Vigilance Complaint Form only to address
3. Upon receipt of complaint, verification will be done to ascertain whether Vigilance angle
4. For faster processing of the complaint, it is suggested that Complainant may provide
his/her E-mail ID in the field mentioned in the Complaint Form.
5. Please be sure that your matter merits the attention of the Vigilance Department. If so,
please Click here to submit your Complaint.’
http://www.hal-india.com/Pre-vigonline.asp
A33(b):
Does the company have formal and comprehensive mechanisms to assure
itself that whistleblowing by employees is not deterred, and that
whistleblowers are treated supportively?
Score:
0
Comments:
Based on public information, there is no readily available evidence that the company has
formal and comprehensive mechanisms, such as analysis of reporting channel usage
statistics or follow up with individual whistleblowers, to assure itself that whistleblowing by
employees is not deterred, or that whistleblowers are treated supportively.
References:
Public:
NA
A34:
Does the company have well-publicised resources available to all employees
where help and advice can be sought on corruption-related issues?
Score:
2
Comments:
Based on public information, there is evidence that the company has well-publicised
resources available to all employees where help and advice can be sought on corruptionrelated issues. These resources include the Chairman of the Audit Committee, the Director
of Human Resources and vigilance officers posted throughout the company’s divisions.
References:
Public:
Director (HR)
15/1, Cubbon Road
Corporate Office
15/1, Cubbon Road
BANGALORE – 560 001.’
Citizens Charter
‘Helpline :
(i) All our Divisions, Service Stations and Corporate Office are committed
to provide all assistance in the selection, design, manufacture and
maintenance of our products and services.
(ii) We shall equip our public relations department shall render necessary
information which are of common interest.
(iii) You are also welcome to visit us at our website www.hal-india.com for
immediate help and assistance to meet your product and service requirement.
(iv) A network of help line personnel has been identified in each
Division/Complex, which will provide immediate assistance in various matters.’
(p.23):
‘All the Vigilance Officers of the Department are adequately trained to
understand, implement and guide the subordinate staff in the implementation of the
Quality Standards as per the laid down procedures. They are also trained as
Qualified Internal Auditors to carry out Internal Audit periodically of each and every
Complex /Division Vigilance Unit to ensure that the Quality Management Procedures
are properly implemented.’
(p.28): ‘Duties of Heads of Departments of Vigilance Department in the Divisions
(i) He will be responsible for all the Vigilance matters of the Division
(ii) He will maintain and supervise the functioning and discipline of his Department.’
(p.34): ‘The Chief Vigilance Officer and the Vigilance Officials (posted in the
Complex/Division) are the extended arms of the Central Vigilance Commission and are duty
bound to implement the anti-corruption measures of the Government in HAL, completely
and effectively.
(a) All vigilance officials will have unrestricted access (including their official vehicles) to any
location in the factories/departments/hangars/Complex/Divisions/Office and their
premises,
Estate
including
buildings/
shops/establishments/welfare
units/township/residential Quarters/ sports & entertainment amenities, ancillary
units/liaison offices/RM Offices/Guest Houses etc., at any time for carrying out Vigilance
work.
(b) All Vigilance Officials are empowered to seize records/ documents/files/information
(contained in any electronic storage device in any form)/articles, for the purpose of vigilance
investigation;
(c) All Vigilance Officials are empowered to examine employees of HAL for vigilance
enquiries/investigation, record their statement, obtain their signature on such
statements/obtain their signature samples etc.’
A35:
Is there a commitment to non-retaliation for bona fide reporting of
corruption?
Score:
1
Comments:
Based on public information, there is evidence that the company has a non-retaliation policy
for bona fide reporting of corruption. The company therefore scores 1. To score higher the
company would need to provide evidence that disciplinary measures are applied to
employees who breach this policy.
References:
Public:
‘While it will be ensured that genuine Whistle Blowers are accorded complete protection
from any kind of unfair treatment as herein set out, any abuse of this protection will
warrant disciplinary action.
a) Protection under this Policy would not mean protection from disciplinary action arising
out of false or bogus allegations made by a Whistle Blower knowing it to be false or bogus
or with a mala fide intention.
b) Whistle Blowers, who make any Protected Disclosures, which have been subsequently
found to be mala fide or malicious or Whistle Blowers who make three or more Protected
Disclosures, which have been subsequently found to be frivolous, baseless or reported
otherwise than in good faith, will be disqualified from reporting further Protected
Disclosures under this Policy.’
(p.8): ‘Protection
29. No unfair treatment will be meted out to a Whistle Blower by virtue of his/her having
reported a Protected Disclosure under this policy.
30. The Company, as a policy, condemns any kind of discrimination, harassment,
victimization or any other unfair employment practice being adopted against Whistle
Blowers. Complete protection will, therefore, be given to Whistle Blowers against any unfair
practice like retaliation, threat or intimidation of termination / suspension of service,
disciplinary action, transfer, demotion, refusal of promotion, or the like including any direct
or indirect use of authority to obstruct the Whistle Blower’s right to continue to perform his
duties / functions including making further Protected Disclosure. The Company will take
steps to minimize difficulties, which the Whistle Blower may experience as a result of
making the Protected Disclosure.
31. A Whistle Blower may report any violation of the above clause to the Chairman of the
Audit Committee, who shall investigate into the same and recommend suitable action to the
Management.
32. The identity of the Whistle Blower shall be kept confidential to the extent possible and
permitted under law.
33. Any other Employee assisting in the said investigation shall also be protected to the
same extent as the Whistle Blower.’
(p.6):
‘36. Investigations will be launched only after a preliminary review by the Chairman of the
Audit Committee or Director (HR) or Head of Systems Audit, as the case may be, which
establishes that :i. the alleged act constitutes an improper or unethical activity or conduct, and
ii. the allegation is supported by information specific enough to be investigated or in cases
where the allegation is not supported by specific information, it is felt that the concerned
matter is worthy of management review. Provided that such investigation should not be
undertaken as an investigation of an improper or unethical activity or conduct.’
Information Sources:
Company Website:
http://www.hal-india.com/
Annual Report 2012 – 2013:
http://hal-india.com/Annual-Report-2012-13-English.pdf
Code of Business Conduct & Ethics for Board Members and Senior
Management of Hindustan Aeronautics Limited (January 2008):
Conduct, Discipline and Appeal Rules – 1984 (September 2013):
CVC – Important Features of the “Whistle-Blowers” Resolution:
http://www.hal-india.com/vigilance/CVCWhistleBlower/Features.pdf
CVC Office Order, Press Release and Public Notice (May 2004):
http://halindia.com/vigilance/CVCWhistleBlower/office%20order_press%20release_pu
blic%20notice.pdf
Marg Darshan Vigilance Magazine – HAL’s Anti-Corruption Strategy, Vol IX
Issue No. 1 (April 2012):
http://www.hal-india.com/vigilance/MargDarshan/Margadarshan_2_Apr12.pdf
Marg Darshan Vigilance Magazine – Facets of Vigilance, Vol IX Issue No. 2
(October 2012):
http://www.hal-india.com/vigilance/Marg-Darshan/Marg%20DarshanOct.2012.pdf
Marg Darshan Vigilance Magazine – Vol X Issue No. 1, (April 2013):
http://www.hal-india.com/vigilance/Marg-Darshan/MARGDARSHAN_APR_2013.pdf
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol
X Issue No. 2 (October 2013):
http://www.hal-india.com/vigilance/Marg-Darshan/Marg_darshan_Oct13.pdf
Marg Darshan Vigilance Magazine – Promoting Good Governance in HAL, Vol
XI Issue No. 1 (April 2014):
http://www.hal-india.com/vigilance/MargDarshan/Marg_Darshan%20_April-2014.pdf
Organisation Chart
http://www.hal-india.com/Organisation-Chart.pdf
Purchase Manual – Issue 3 (2013):
http://hal-india.com/Pur.%20Manual%20&%20Sub%20Cont/PurchaseManual.pdf
Transparency in Public Procurement (2012):
http://www.halindia.com/vigilance/Transparency%20in%20Public%20Procurement.pdf
Vigilance Awareness Week 2013 Photos:
http://www.hal-india.com/vigilance/Image-Gallery/co.pdf
Vigilance Manual Vol-I:
Vigilance Manual Vol-2:
Vigilance Manual Vol- 4:
Whistleblower Policy (July 2010):
http://www.hal-india.com/vigilance/Whistle-Blower-Policy-HAL/WhistleBlower-Policy-HAL.pdf

FINAL ASSESSMENT HINDUSTAN AERONAUTICS LIMITED

Transcription

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