India's National Textile Corporation Limited (NTC) has signed an MoU for the adoption of an Integrity Pact (IP) tool, designed to ensure the fair and transparent handling of transactions between a company and its suppliers. 

The Memorandum of Understanding was signed with global civil society organisation Transparency International India (TII) late last week. NTC has said it will implement the IP in over 95% of its contracts. 

The IP tool is designed to ensure that all activities and transactions between a company or government department and its suppliers are handled in a "fair, transparent and corruption-free manner". It prohibits any kind of bribing, favour or any other unethical practice, which is closely monitored by honorary Independent External Monitors (IEMs).

Shri K V Chowdary, Central Vigilance Commissioner said the IEMs should not be seen as umpires but as guidance providers. 

"IEMs are there to throw light on the issues faced by vendors and advise the management regarding the same," he said, adding that any vendor who has a genuine grievance can approach the IEM.  

"The adoption of the Integrity Pact will formalise the various measures being undertaken by NTC to bring in fairness and transparency."

Dr S K Panda, Secretary for Textiles, said vigilance is important for the health of any organisation, more so in the public sector, since public money is involved. He added that companies should "follow rules and guidelines", and that where any deviation is made in organisational interest, the rationale for such deviation should be recorded in writing. He also highlighted the need for building strong systems, especially by the use of technology.