Public procurement

Photo: Ricardo Gomez Angel / unsplash.com

The problem

Trillions of dollars are spent each year buying goods and services for public projects. From schools and hospitals, to power plants and dams, this means big budgets and complex plans. It also means ideal opportunities for corruption.

Contracts to suppliers can be awarded without fair competition. This allows companies with political connections to triumph over their rivals. Or companies within the same industry can rig their bids, so each gets a piece of the pie. This increases the cost of services to the public. We’ve found that corruption can add as much as 50 per cent to a project’s costs.

But corruption in public procurement isn’t just about money. It also reduces the quality of work or services. And it can cost lives. People in many countries have paid a terrible personal price for collapsed buildings and counterfeit medicines. The end result? Our trust in our leaders is eroded.

The solution

All of us can help ensure taxpayers’ money is well spent. Governments must guarantee to provide good quality services, bought at a fair price. This means they need strong procurement systems. It’s up to us to make sure these are put in place.

What do these systems look like? Above all, they’re transparent. This means we can see what’s going on. Then we can hold governments, bidders and contractors accountable for their actions. Good procurement systems are also shaped by clear regulations that meet international standards. And they’re overseen by strong institutions that enforce those rules. They also provide access to information and effective complaints mechanisms. These let us report suspected corruption confidentially and without threat.

Specific measures can help us ensure honest procurement processes. We should push for commitments to honesty by bidders for a contract and the procuring government agency. This means promises from everyone involved not to take part in bribery, collusion or other corrupt practices. We can also demand an independent external monitor to ensure an agreement is not violated.

To promote honesty in procurement, we’ve combined these measures into an agreement called an Integrity Pact. Since 2001, these have helped protect over 300 bidding processes from corruption.

News

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Dark red octopus crawls over map of the world grabbing money, voting boxes and the scales of justice, as activists and protestors fight back, cutting a tentacle with scissors, shouting through a megaphone and organising resistance with a phone that is filming it.

CPI 2025: Findings and insights

News • 10 February 2026

As corruption worsens globally, a decline in bold, accountable leadership is undermining reform.

Climate protestors standing in front of hills and trees hold placards saying things like "Stop corruption" and climb over a giant hand with bank notes coming out of its sleeves, which is in front of a dark, polluted landscape. A large globe is in the middle of the background.

CPI 2024: Highlights and insights

News • 11 February 2025

While some countries are making progress, corruption still affects billions of people worldwide and leaders are doing too little to stop it.

Integrity Pacts: A blueprint for safeguarding public investments in sustainable development

News • 17 December 2024

Discover how Integrity Pacts foster transparency, accountability, and good governance in public procurement, driving sustainable development worldwide.

EU residents see corruption in public contracting: What can governments do?

News • 08 July 2021

People in the EU doubt that government contracts are allocated in a competitive manner. Integrity Pacts can help reduce corruption risks while boosting participation and trust.

Publications

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Corruption Perceptions Index 2025

Publication • 10 February 2026

The Corruption Perceptions Index scores 182 countries and territories by their perceived levels of public sector corruption, according to experts and business people.