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INTERNATIONAL ANTI-CORRUPTION CONFERENCE (IACC)
Programme Papers from the 9th IACC
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The 9th International Anti-Corruption Conference

The Papers


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 competition.

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Farrel:
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.

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Gruenberg, Christian:
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.

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Letchmiah, Deen:
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.

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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.

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Wiehen, Michael:
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.

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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 them.

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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.

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WTO Secretariat
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'.

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