Irked over delay in payment to contractors, CVC seeks report from all CPSEs

Suspecting corruption amid complaints of delay in releasing payments to contractors and suppliers, anti-graft watchdog CVC has asked all central public sector enterprises (CPSEs) to examine such bills and send a report over pendency.

The move comes after the Central Vigilance Commission received complaints regarding inordinate delay in payments and about non-settlement of bills of contractors, suppliers or service providers by some public sector enterprises.

"It is observed that there is substantial delay in settling running or final bills; and in several cases, bills (both running as well as final) have remained pending for 5-6 years, though these are required to be cleared within a few days," a directive issued by the CVC said.

Such inordinate delay in the settlement of bills is an unhealthy practice, affording scope for corruption. "The Commission is of the view that delay could, in some cases, be motivated," it said.

The CVC said it is important that monitoring of cases of delay or non-settlement is done at higher levels to achieve efficiency and to reduce delay.

"The Commission would, therefore, advise the Chief Vigilance Officers (CVOs) to examine from vigilance angle all cases of inordinate delay (with respect to prescribed time if any, or cases of delay exceeding 15 days for running bills and 30 days for final bills) from date of receipt of bill," the Commission said.

The CVOs act as distant arm of the CVC to check corruption in government departments.

A report in cases of delay in the last three years, elaborating the reasons for delay, may be submitted to the Commission, it said.