Download Government at a Glance

Enhancing Integrity in
Public Procurement
FIDIC seminar, Brussels, 26 June
2012
Elodie Beth, Head of Procurement
Unit, OECD Public Sector Integrity
Division
Why enhancing integrity in public
procurement?
A crucial economic activity of
governments: 13% of GDP
A major risk area for mismanagement,
fraud and corruption
Interface between the public and private
sectors
Bribery is more frequent in procurement
than in other government activities
What could countries do better to prevent
corruption in procurement?
OECD Recommendation on Enhancing
Integrity in Public Procurement
Set of integrity measures
1.
2.
3.
4.
transparency,
good management,
prevention of misconduct,
accountability and control
Review of progress made in OECD countries
Since 2008 Recommendation
Reforms have tackled the whole procurement
cycle in only half of the countries
Prevention of misconduct, compliance
and monitoring
Put mechanisms in place to prevent risks to
integrity in public procurement
- Risk map of the organisation
- Integrity training sessions , codes of conduct
- Independent responsibility for at least persons in the decisionmaking and control
- Mechanisms to avoid prolonged contact between potential
suppliers and government (rotation, use of new technologies)
Ex: Fingerprint recognition e-bidding in Korea to verify identity
Integrity risks – post award
Encourage close co-operation between
government and the private sector to maintain
high standards of integrity, in particular in contract
management
63% of governments require declarations of integrity but
based on good faith
- Not required to provide evidence of their AC policies (less than
20%)
- Not required to contractually commit to complying with AC
standards (less than 20%)
US Review : resource shift away from the contract
management
- monitor progress against pre-specified targets
- inspection of work in progress / random sample checks
- monitoring of payment through e-procurement
- third party scrutiny – e.g. Social witness in Mexico
Provide specific mechanisms to monitor
procurement as well as to detect misconduct and
apply sanctions
- Tracking decisions and enabling the monitoring of procurement
- Data mining and red flags
- Procedures to report misconduct
- Blacklists: only a third of countries are using them (risk of
manipulation, lack of evidence of corruption)
Ex: Data mining in Brazil to detect misconduct and collusion\
Data from public puspending observatory crossed with other
government databases (e.g. coi, exemptions, substantial contract
amendments)
Thank you!