TIAP and Corruption in Public Contracting
Corruption can add up to 25% to the cost of public contracting, generating waste of public resources, missed development opportunities, an unstable environment for businesses and therefore increasing poverty. It also frequently distorts project selection and results in substandard construction. Consequently, public trust in government is dissipated. Experience shows that corruption in public contracting, if not contained, will grow.
In TI's experience, effective corruption prevention requires at least three elements: political will, collaboration (stakeholder participation) and knowledge. Often, adequate legislation, best practices and good ideas fail because one or more of these elements is absent. TIAP seeks to support these elements by building capacities, facilitating networking and action oriented relationships at the local level and within the region, and facilitating commitment by local governments to action oriented strategies.
TIAP National Chapters and Contacts in Australia, Bangladesh, China, India, Indonesia, Japan, Korea (South), Malaysia, Nepal, and Pakistan have developed and implement a number of programmes and projects to promote transparent and accountable public procurement and contracting with a view to limiting corruption.
TIAP works with the TI Global Programme on Integrity Pact and Public Contracting to coordinate and strengthen initiatives in the region.
Other important work is being done by the Hong Kong Independent Commission against Corruption, the Asian Development Bank, the ADB/OECD Anti-Corruption Initiative for Asia-Pacific, the World Bank and other international organisations.
Regional projects
In December 2004, the TI Asia Pacific Department in partnership with TI National Chapters in Indonesia, Malaysia, Pakistan and the UK, launched a two-year project entitled Preventing Corruption in Public Contracting: Capacity Building and Networking for Civil Society and Local Governments. The project was completed in early 2007. The overall objective of the project was to build capacity and foster effective national and regional networking in Asia to improve transparency and integrity in public contracting by local government, and generally, to improve their procurement systems. The intended outcome was a reduction in the cost of public procurement and better citizen participation in procurement processes leading to better allocation of public resources, more appropriate project selection and design and better construction standards, for higher quality and environmentally less damaging projects. Country experiences are introduced in the new Handbook: Curbing Corruption in Public Procurement.
Australia
Transparent public procurement has been a matter of concern for TI-Australia. The Chapter has produced the paper Curbing Corruption in Procurement and Foreign Direct Investment: The TI perspective.
Bangladesh
TI Bangladesh has produced a number of important research papers on the subject of corruption and public procurement in Bangladesh. Some papers include:
- Corruption in Public Sector Departments: Its Manifestations, Causes, And Suggested Remedies
- Governance, Structural Adjustment & the State of Corruption In Bangladesh by Muzaffer Ahmad
- Political and Administrative Corruption: Concepts, Comparative Experience and Bangladesh Case
China
Project: Promoting Transparent Procurement and Corporate Responsibility in China. The objectives of the two-year project (June 2006 - May 2008) are to increase public awareness on the importance of good corporate governance and the role of business in curbing corruption in the construction sector, and to improve the corporate governance system of SOEs in the construction sector, using the best practice from international anti-corruption movement. The project will be build on previous work done by TI in cooperation with its partner organisations in China in the domain of Business Principles for Countering Bribery and Integrity Packs. For more information, please see the press release or contact the project administrator.
TI's national contact in China organised a capacity building/ training workshop on Integrity Pacts and transparent public procurement for stakeholders from the construction industry and government. Translations of relevant materials have bee produced in the Chinese language. For more information, contact the TI APD contact person or the our national contact in China.
India
Promoting Integrity Pacts (IP) in public procurement. TI India has signed a MoU with the Oil and Natural Gas Corporation Ltd (ONGC) for adoption of Integrity Pact (IP), and IP has been mentioned in India’s Defence Procurement Policy for 2006. For more information, contact TI-India.
To raise public awareness, TI India has published papers and reports on corruption in public procurement and corruption in the country. For more information, contact TI-India.
Indonesia
TI Indonesia was a key partner in the project Preventing Corruption in Public Contracting: Capacity Building and Networking for Civil Society and Local Governments in 2004-2006. For more information on the project implementation, contact the Project Manager or TI-Indonesia.
Japan
TI Japan works to raise public awareness about transparent and accountable public procurement mechanisms including the Integrity Pact. The Chapter has prepared information booklets on Integrity Pacts in Japanese for local and national government officials. For more information, contact TI-Japan.
Korea (South)
Initiatives for Integrity Pact Implementation for Public Sector in Korea have been in place since 1999. TI-Korea has been active in the Clean Procurement Committee and Integrity Pact monitoring activities. To date, Integrity Pacts have involved more than 200 public institutions, universities, and companies. The Seoul Metropolitan Government introduced general use of integrity pacts as a procurement policy mandate. For more information, please contact TI-Korea.
Malaysia
As a key partner to the project Preventing Corruption in Public Contracting: Capacity Building and Networking for Civil Society and Local Governments in 2004-2006, TI Malaysia has worked to initiate dialogue on transparent public procurement and use of the integrity pact. Followed by an assessment of the situation, TI Malaysia organised a capacity building and training workship for the city government officials, in conjunction with other project partners. For more information, contact the Project Manager or TI-Malaysia.
Nepal
TI Nepal implements the Integrity Pact at the municipal level. The Integrity Pact (IP) seeks to curb corruption, instigate reform and promote integrity in work. In Nepal the IP mainly focuses on public pledges by elected members/staff at local government level to maintain transparency and accountability (e.g., Municipalities and District Development Committees (DDCs)). For more information, see the TI Tool Kit 2001 description, or refer to the TI Nepal publication INTEGRITY PACT - Bhaktapur Framework and Allied Documents.
Pakistan
TI Pakistan has worked to promote application of the Public Procurement Rules 2004. The Chapter has provided capacity building for government officials by holding workshops for various government departments. Procurement Manuals complying the Public Procurement Rules 2004 have been prepared for a number of organisations. In 2006, PPR 2004 were adopted by the Government of Sindh. For more information, contact TI Pakistan.
In 2001-2002, TI Pakistan and the Karachi Water and Sewerage Board (KWSB) implemented a project to institute an "Integrity Pact" to ensure transparency in the public procurement procedures with regard to the implementation of the Greater Karachi Water Supply Scheme. For more information, contact TI Pakistan.
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