The 9th International Anti-Corruption Conference
Abstracts of presentations
Day 2, Workshop 2
Compte O. / Lambert-Mogiliansky, A. / Verdier, T.:
Corruption and Competition in Public Market Auctions
The objective of this paper is to investigate the effect of
corruption on competition in government procurement auctions.
Our assumption is that the bureaucrat (i.e. the agent that
administers the market), if corrupt, may provide a favour in
exchange for a bribe. The favour we consider in most of our
analysis is the opportunity to readjust a bid. We show that a key
effect of corruption is to facilitate collusion in price between
firms. This can result in high public spending and inefficient
allocation. We discuss the effect of other forms of bureaucratic
discretion in the procurement process and analyse conditions
under which unilateral anti-corruption controls may restore price
Compranet - Electronic System of Government Procurement
The presentation introduces compranet, a universal public-access system for carrying out
public sector tendering via the Internet. It includes detailed examples of documents on the web.
Is it Possible to Avoid Corruption in Public Bidding?
The paper presents the "Programme for Transparent Contracting"
(PTC), designed and carried out by Poder Ciudadano, the Argentine
chapter of TI. It is a preventative, simple, and economic system
to avoid corruption in the bidding process. Public bidding in
most of the countries combine the following characteristics: a)
a high level of discretion among public officials who make key
decisions about the design of bidding documents and the spending
of public funds, and b) a context of low transparency that does
not favour free access to public information. In order to modify
these conditions of high discretion and low transparency, the
"Programme for Transparent Contracting" (PCT) combines two
components: holding public hearings where the responsible
authority convenes citizens, businesses, experts, and
representatives of the opposition to express their objections and
suggestions about the planned terms of the contracting; and the
signing of an Integrity Pact wherein the government and all
businesses competing for the project share a contract of
reciprocal control to prevent the payment of bribes between the
bidders and the State.
Integrating Socio-Economic Objectives and Transparency in Public Procurement
The South African Experience
The presentation outlines the aspects of procurement reform which
are most important, including the promotion of socio-economic
objectives and access to information. The South African
experience is summarised.
Peus, Dr. Busso:
Strengthening the Integrity of Public Procurement through Greater Transparency
The presentation describes the economic logic of transparency, ethics
and integrity in procurement from the point of view of a major
construction firm, which both bidds for public contracts and tenders
its own sub-contracts.
The Integrity Pact (TI-IP) - The Concept, the Model and the present
Applications A Status Report
The paper outlines the concept of the Integrity Pact, developed by
Transparency International in the 1980s. The Pact is a contract among
a government office inviting contractors or suppliers to submit
tenders for a public sector project, and those companies submitting a
tender for this specific project, in which both sides agree not to
propose or take part in corrupt behaviour. TI has developed several
models, based on concrete cases, of which one is included.
Furthermore, seven case studies describing procurement contracts in
which an IP has been included are described in detail.
Wittig, Wayne A.:
Building Value through Public Procurement: A Focus on Africa
This paper will discuss both domestic and international imperatives
for reform of public procurement, with specific information on the
state of public procurement in selected countries in Africa. The ITC
experience in developing countries is that public procurement can
account for up to 50%-70% of imports. Any improvements in the public
procurement system can have a direct and beneficial effect on the
overall economic situation of a country. And improvements are needed.
A country may want to undertake public procurement reforms to support
essential internal administrative improvements, to help qualify for
international financing from multilateral institutions or to help
integrate a country into the multilateral trading system. The core
aspects of public procurement systems involve getting the right item
at the right time, and at the right price, to support government
actions. But, just trying to define the "right" item/time/price/etc.
leads into a variety of public and private functions and political
decisions (e.g. should the item come from private or public production
sources, should a premium be paid to aid local manufacturers, etc.).
Without a serious and sustained review of such decisions, policy
makers may find that their policies are not being supported -- or are
actually being undercut from within the government meant to serve
Wittig, Wayne A.
A Strategy for Improving Public Procurement
This paper provides an outline of how to analyse and reform a Public
Procurement System. Aspects discussed include: the concepts of good
governance and transparency; the legal framework; the organisational
framework; developing procurement professionalism; and the role of
electronic commerce in public procurement.
WTO Work on Transparency in Government Procurement Presentation
The paper presents the work of the WTO Working Group on Transparency
in Government Procurement, which is based on a mandate adopted by
Ministers at the WTO Singapore Ministerial Conference held in December
1996 to "establish a working group to conduct a study on transparency
in government procurement practices, taking into account national
policies, and, based on this study, to develop elements for inclusion
in an appropriate agreement'.