E-Procurement System Lacks Formal Agreement
A recent Comptroller and Auditor General (CAG) report has revealed significant weaknesses in Odisha’s e-procurement system, implemented in 2008 via the National Informatics Centre (NIC) to improve transparency in tender processes. The absence of a formal agreement with NIC has led to widespread irregularities, undermining the system’s credibility.
Bidders’ Authenticity Under Question
The report highlights that 25,109 bidders shared identical PAN numbers, raising doubts about their authenticity. Digital signature certificates frequently failed to match bidders’ identities due to weak verification mechanisms, allowing some to deny submitting bids and enabling potential manipulation.
Procedural Lapses in Tender Submissions
CAG noted procedural gaps, including 168 out of 486 tenders allowing only one to nine days for bid submission without justification. In 224 tenders, 228 bids were accepted after deadlines due to manual backdating, exposing inadequate system controls. Alarmingly, 14 bids were submitted before tender documents were issued, and 626,115 bids were filed before their creation time, pointing to systemic vulnerabilities.
Manual Processes Defeat E-Procurement Purpose
Critical stages like technical and financial bid evaluations, vendor negotiations, and work order issuances continue to be handled manually, defeating the purpose of digital procurement. The CAG warns that without strict reforms, Odisha’s e-procurement system remains highly susceptible to fraud and inefficiency.