Public Procurement: refers to all contracts made between the government and companies or individuals, normally for the provision of public goods, works and other services

In almost all countries, public procurement through government contracting represents a large if not the largest percentage of the economy. In Indonesia, public expenditures account for 30% to 40% of the total national spending, whilst in Malaysia it is estimated that government procurement accounts for approximately US$12 billion (€8.7 billion).Such large financial flows, combined with insufficient safeguards against corruption in procurement processes, mean enormous sums of public funding are misspent by governments worldwide each year.

TI is advocating for increased transparency and accountability in public procurement practices. A key tool adopted by TI chapters in the Asia Pacific is the Integrity Pact, which seeks to promote transparent procurement practices. The Pact is an agreement from both public officials and bidders that they will not accept or pay bribes. Although Integrity Pacts are not legally binding contracts, they contain appropriate disciplinary sanctions, such as loss of contract, liability for damages and black listing. The enforcement of Integrity Pacts is strengthened by the role of civil society organisations and representatives who oversee and monitor their implementation.

TI China has run a programme on Promoting Transparent Procurement and Corporate Responsibility with businesses and organisations working in the construction sector.

TI India is currently working with the the country’s main anti-corruption agency- the Central Vigilance Commission to implement Integrity Pacts.

TI Indonesia has been actively promoting Integrity Pacts to prevent corruption in procurement since 2003. In 2009, a number of Integrity Pacts were successfully implemented between governments and local businesses across 20 districts in the country.

TI Japan works to raise public awareness on transparent and accountable public procurement mechanisms. The chapter has prepared information booklets on Integrity Pacts in Japanese for local and national government officials.

TI Korea has actively participated in the Clean Procurement Committee and Integrity Pact monitoring activities. To date, Integrity Pacts have involved more than 200 public institutions, universities, and companies and the Seoul Metropolitan Government introduced general use of integrity pacts as a procurement policy mandate.

TI Malaysia is helping the Malaysian government to implement Integrity Pacts. TI Malaysia is actively working with the government‘s Treasury and the Performance and Delivery Unit and has conducted workshops with state government officials in Selangor and Penang.

TI Pakistan has organised a monitoring programme to combat corruption in public procurement. Under this programme, the chapter responds to public allegations of corruption and contacts regulatory bodies to follow up on complaints.

Between 2001 and 2002, TI Pakistan and the Karachi Water and Sewerage Board implemented a project to introduce an "Integrity Pact" to ensure transparency in the implementation of the Greater Karachi Water Supply Scheme. TI Pakistan has since been made an independent observer by the World Bank in the Sindh Water Improvement project, monitoring the tender process and ensuring and certifying compliance with tendering rules.